Ledger Nano S unboxing + What is a Bitcoin hardware wallet?
In this video I will I unbox the Ledger Nano S and talk about the benefits of using Bitcoin hardware wallets.
Welcome back to CraveThatCoin,
Something a bit different for you in this video. I have just purchased a Ledger Nano S to store my Bitcoin and other crypto currencies. If you're not already aware, the Ledger Nano S is one of many crypto hardware wallets. A hardware wallet is essentially a device that stores your private keys offline. As the private key is stored offline it offers added protection from potential hacks and even when the device is connected to your computer the private key is never exposed. This differs from a software wallet such as Exodus which stores the private keys directly on your computer.
The device has its own screen and buttons which are used to set and enter your pin to confirm transactions. This is a great second layer of security compared to a software wallet as some computer viruses such as keyloggers can record your keys as you type. This could reveal your password or pin to hacker, which is one risk of using software wallets.
While setting up the device you will be asked to write down 24 random words. This is effectively your password which grants full access to your Bitcoin. It's very important to write these words down and store them offline as without them you will loose access to your Bitcoin. Make sure your unique 24 words are kept safe as with them anyone can gain easy access to your Bitcoin. I recommend writing them down and storing them offline in more than one place, for extra security don't mention anything about what they are used for on the paper. You could also write them backwards or try and disguise them with other text for extra security. At least that way if someone finds the paper it won't be obvious that it's a form of password.
As you expected, should you loose your device you can enter your 24 words with supporting wallets to restore your private keys and re-gain access to your Bitcoin.
I really like paper wallets which is what I have been using for some time to store my Bitcoin. They are similar to a hardware wallet as the private key is held offline but with a paper wallet it's printed out. The problem with this form of storage is whenever a Bitcoin fork happened such as the recent Bitcoin Cash I had to move my Bitcoin to claim the coins which become very time consuming. Ledger makes it very easy to claim the coins as forks happen so it will save me a lot of time going forward as more and more forks are planned for the future.
I hope you found this video interesting. If you would like to purchase one of these devices for your own Bitcoin I have added a affiliate link in the description. I will of course make a commission should you choose to use that link but if you prefer feel free to visit the website directly.