As you start to accumulate more value in crypto assets, whether from buying, earning, or mining them — security becomes more of a consideration.

Many individuals start with small purchases on exchanges like Coinbase, Kraken or QuadrigaCX — and leave their assets in the site wallets as they grow.

Doing things like transfering coins to others, making purchases, or participating in token sales may lead you to learn more about wallets and storage practices.

Once you accumulate a significant amount of cryptocurrency, you may choose to graduate to a hardware wallet in order to achieve one of the highest available factors of security.

In this post, we’re going to unbox the wildly popular Ledger Nano S hardware wallet.

Why Am I So Worried About Wallets and the like?

Without posting links to any specific horror stories from the blockchain world this past year, it’s safe to broadly say that crypto assets and their holders are potential targets for Hacking, Phishing, Fraud, Accidental Loss, etc.

Crypto doesn’t care who you are, it just cares about the private key you bring. A system can verify an account or transaction, and use math to determine if a key is correctly used, but they don’t need to know an identity. They can still send / receive the value. A virus on your computer, for example, could compromise your private key and send it to a hacker, who could then empty your wallet of funds.

Cryptocurrencies and assets differ from traditional systems like banks or government where passwords, bank cards, passports or IDs can be reset by a central authority so you can access your account. So hold your crypto keys closely, and guard them accordingly — this is your decentralized future.

So, what makes a hardware wallet so secure?

Since access to keys is all that’s needed to access funds, the private key on a Nano S always remains on the device hardware. The only way to then ‘hack it’, is by having access to your backup phrase.

This backup phrase is a sequence of secret words, given to you by your device during setup — for you to record manually by hand on the card provided.

The workflow of the device also means you can receive crypto when you’re offline. You only need to go online when you want to send something.

After sending on a computer, a Nano S must verify and sign on the device itself. The private key never leaves the device, only the broadcast result will leave the device.

Safe? Safe.

Now, back to the Ledger device.

What Comes in the Box?!?

1 — The device itself, a drive with a built-in display screen and two action buttons

2 — A cable, to connect the device to your computer via USB

3 — A card with 24 blank spaces to write your secret words, in sequence (then safely store!)

4 — Some accessories like straps, keyrings for the Ledger device

5 — And finally, some instructions on setting up your Nano S

The instruction card directs the new product owner to the following link:

start.ledgerwallet.com

This site holds a great level of detail for many areas of advice you may require, as well as information and instructions on their products and processes.

For a quick breeze through, here are a few screenshots from the site during a Nano S setup:

Select your device in the middle, and we are movin’ along …

The options next are to watch video tutorials, or install various wallets — we however, are starting with the first option Configure my device.

And this is where it gets real, you now get to connect your Nano S to a computer via the provided usb cable.

It has a very simple setup with a Left and Right button for navigating options on the device screen, while pushing both buttons at once acts as a command to confirm an option and/or continue to the next screen.

Here’s how my first breathtaking conversation with the Nano S went:

Nano: Welcome, press both buttons to begin

Me: *presses both buttons*

Nano: spiel on how to use buttons, navigating device. Press both

Me: *presses both*

Nano: configure as new device? No box (L), Yes box (R)

Me: Yes box (R)

Nano: Choose a pin

Me: Pushes both, brings to PIN screen. Use L & R to scroll numbers, using both buttons to action each selection and proceed. (Between 4–8 digits).

End scene. It was pretty great.

Now to really feel like a special agent, the device will go through your 24 unique words with you. Write them down, in order, on the supplied phrase sheet — and perhaps store a copy in multiple places to be safe.

This recovery sheet is not the kind of thing you want to take a photo of, make a machine copy of, or store on your computer.

A second (even third?) written copy for safe storage, on the other hand, wouldn’t be such a bad idea.

Once you’ve written down all 24 words in your secret phrase, the device will ask you a few questions to ensure you have the proper words — in the proper sequence.

If you pass the test and confirm the requests, you have yourself an active Nano! And you’re ready to go start downloading Wallet and Ledger Apps.

Ledger Nano S Applications

In the Apps section of the Ledger website you can find a wallet for BTC & Altcoins, a wallet for ETH and ERC20 tokens, a Ledger manager, and wallets for other cryptocurrencies like Ripple, Neo, Dash, etc.

Now that you’re set on the L and R navigation buttons on the device, you can download and connect some applications for crypto management. This is a great time to do some small amount transfers to test your setup and confirm understanding of sending and addresses.

Here’s the Ethereum Wallet Chrome App, as it displays with a connected Nano:

You can see your balance, and also use the Up and Down arrows to either Send (Up arrow), or receive (Down arrow) Ethereum and ERC20 tokens.

On the Send Ether screen, you will need to enter the ETH wallet address of your intended receipient.

You can then enter the amount you wish to send, which calculates with the gas limit and price to display your total transaction amount and fees.

On the Receive Ether screen, you will find the Wallet address where you can have any Ethereum or ERC20 tokens sent.

To Wrap it up

Q: What if my device breaks? Does all of my value sit on this drive?

A: No. Your Nano S could totally be hit by a bus, but your secret phrase could activate a new device — restoring all your value and access.

Some new owners will even completely reset the device after backing it up. This makes sure the codes are correct and acts as an additional level of backup, although it can be a bit tedious to some.

If you’re serious about accumulating crypto wealth, that means you are serious about protecting crypto wealth … hopefully!

Learning about paper wallets, desktop wallets, and hardware storage devices, all contribute to safety and peace of mind related to your crypto assets.

You can purchase a Ledger Nano S from the TokenClub Shop.

If cost is currently the only thing stopping you from shipping a Nano S, be sure to drop in on the @TokenClub Twitter and check pinned posts — where we regularly run giveaways on Ledger Nano S devices and $100USD in crypto.

It’s a jungle out there … or some say the wild west.

Either way, be safe, and with such an exciting once-in-a-lifetime opportunity — you might as well have some fun too!

To the moon.

……

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