How to setup and use a cryptocurrency hardware wallet.
Why Use A Crypto Hardware Wallet?
A crypto hardware wallet like the Ledger Nano X stores your cryptocurrency private keys offline, providing an additional layer of security against hacking and theft. You can use the hardware wallet to securely manage and sign transactions on the blockchain.
‘Not Your Keys, Not Your Coins’.
When you use a hardware wallet, you manage your own Private Keys so you have access and full control of your crypto assets stored on the blockchain.
Some benefits to using a hardware wallet:
- Security: Because the private keys are stored offline, it is much harder for hackers to steal them.
- Convenience: Hardware wallets are portable and easy to use. You can make transactions from any device that has a compatible software.
- Support for multiple cryptocurrencies: Hardware wallets support multiple cryptocurrencies, so you can store and manage multiple assets in one place.
- Recovery: If you lose your hardware wallet or it is damaged, you can use a recovery phrase to restore your private keys and access your funds, simply by getting a new wallet.
I wrote this guide to document the steps required to set up and use the Ledger Nano X in hopes that it might help you. I am far from a ‘crypto expert’ and was hesitant and fearful that I might screw it up and lose my crypto (what little is left). But, after the FTX mess and my basic understanding of why people use hardware wallets, I knew it was probably the smart thing to do. I’m also a tech nerd and curious learner, so I wanted to see how the whole process worked since the crypto world still makes my head spin a little.
Hardware wallets are considered ‘cold storage’ as the Private Keys are never exposed online so they cannot be hacked or stolen unlike ‘hot wallets’ that are managed online. Private Keys are protected by a PIN Code required to unlock the Ledger Nano X and the Private Keys can be recovered or restored using a secret 24-word Recovery Phrase if the Ledger Nano X is either lost or damaged.