Cryptocurrency thefts, hacks, and fraud totaled $1.9 billion in the first 10 months of 2020. This highlights the need for secure storage solutions in the crypto space.
Many of these hacks and security breaches come down to best practices. If you're new to the cryptocurrency space, this alone may scare you off.
Sometimes learning things the hard way is the only way. This is all too familiar with leaving their cryptocurrencies on exchanges and seeing their funds disappear.
Crypto wallets like the Ledger wallet offer a more secure solution to this problem. In this guide, we'll discuss what a Ledger wallet is, how they work, and why you need one. Keep reading to learn more.
What Is a Ledger Wallet?
The Ledger wallet is a hardware wallet used to store cryptocurrencies offline. Rather than storing your cryptocurrencies on a desktop or mobile device, you can keep your cryptocurrencies safe with a Ledger wallet. Choose between a Ledger Nano X, Ledger Nano S Plus, or a Ledger Stax.
The way it works is simple—it stores your private keys offline. The Ledger wallet itself looks similar to a USB stick. Use one for balance tracking, checking transaction history, and managing your account.
Connect and interact with a Ledger wallet easily by sticking it into your computer with a USB cable or Bluetooth. There is also an accompanying app (Ledger Live) to get a bird’s-eye-view of your cryptocurrencies and interact with exchanges, other wallets, and dApps (decentralized applications).
How Do Ledger Wallets Work?
Think of a ledger wallet as a device that interacts with the blockchain. Your cryptocurrency is stored on the blockchain and you interact with it via the ledger wallet.
For example, if you wish to authorize a transaction on the blockchain, you can do so with the ledger wallet. If you're asking yourself "are Ledger wallets safe?", the answer is "yes" since they're offline and away from hackers.
When you set up your Ledger wallet, you'll create a unique 24-word seed phrase that backs up your private keys. Write both your seed phrase and private key and keep them away from prying eyes.
When you wish to receive cryptocurrency, you will show your public key (long string of random numbers and letters or a QR code).
How to Use a Ledger Wallet
Learning how to use a Ledger wallet isn't difficult, but it may take some time if you're new to interacting with cryptocurrencies. The more you use a hardware wallet like the Ledger, the more comfortable and confident you will become.
Do your own research (DYOR) and always check and double-check before signing a transaction. If it feels "phishy", it is.
Keep Your Crypto Secure With a Ledger Wallet
The rise of the cryptocurrency market has led to an increased need for secure storage solutions like the Ledger wallet. With the prevalence of cyber-attacks and cryptocurrency thefts, protecting your digital assets with a hardware wallet that offers robust security measures and user-friendly features is essential.
As the cryptocurrency market continues to grow and evolve, it's important to stay informed about the latest developments in security and take proactive steps to protect your investments. By using a hardware wallet like the Ledger wallet, you can minimize the risk of theft or loss of your digital assets and enjoy peace of mind knowing that your cryptocurrency holdings are secure.
If you're in the market for a hardware wallet, be sure to get your hands on a Ledger wallet right away.