Why should store First time Crypto in Hardware Wallet

Why Should Store First Time Crypto in Hardware Wallet

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by Amelia Scott — 4 months ago in Blockchain Technology 5 min. read
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You are a crypto trader but you don’t intend to trade your cryptocurrency anytime soon. It is safer to keep your cryptocurrency in a physical wallet. However, it can be difficult to set up a hardware wallet.

In one of my previous posts, I showed you how to set up a Trezor wallet. Today’s post will show you a great alternative to a cryptocurrency hardware wallet, the Ledger Nano.

This article will explain how to configure the Ledger Nano S hardware wallet, how to store crypto into it, and everything in between.

1. Ledger.com and Nano S Hardware Wallet

The Nano S was created by the Ledger SAP team. It is one of the most cost-effective, easy to use and secure ways to store cryptocurrency offline. It costs approximately USD $70 per unit and comes in a variety of colors.

The Nano S is not the only option. There’s also a higher-end (and therefore more expensive) version, the Ledger Nano X which comes with wireless access and a larger screen.

For this article, I’ll be using the Ledger Nano S.

2. Ledger Nano S Unboxing

Here’s everything to expect in your Ledger Nano S wallet.

  1. The Ledger Nano S device,
  2. One recovery page to note down the recovery phrases.
  3. One Ledger-branded Lanyard
  4. One USB cable (Male to Micro B Male), and
  5. Some not-so-important papers that you can read later.

3. How to Set Up Ledger Nano S

Let’s first get the Ledger Nano S set up.

  1. Use the provided USB cable to connect the Nano S device with your computer.
  2.  After the device has been powered up, you’ll be greeted by a “ Hello”, and then “ Click both buttons to start. To set up the device, do as instructed by pressing both buttons.
  3. To configure your Nano S, click the right button
  4. This is the most important part of the setup. Create an 8-number PIN Code for the device. The left button decreases the number count. The right button increases the number count. Pressing both buttons together confirms that you have input.
  5. Repeat to confirm your PIN code entered.
  6. Next, you receive a set of 24 recovery phrases. These phrases are as crucial as your 8-digit pin code because they are the only way to recover the cryptos within the device. Copy the recovery phrases on the provided recovery sheets and keep them safe. To navigate to the next phrase, use the right button and the left to go to the previous.
  7. After you have written them down, the device will ask you to confirm that you have used all 24 recovery phrases. This ensures that you have recorded the correct phrases in the correct order. Follow the screen instructions and select the appropriate phrases.
  8. If everything goes well, “ Your device has now been prepared” will be what you see.
  9. By clicking both buttons together, you will be able to access the hardware wallet. Here you can modify its settings and add any cryptocurrency apps directly to the device. We will do this via the Desktop app later.
Also read: How to choose The Perfect Domain Name

4. Install and Set Up Ledger Desktop App

Let’s first set up the device. Next, we will download and install Ledger Desktop. This will make your life easier. You don’t need to rely on the buttons on the device to change or make changes.

  1. Head over to https://www.ledger.com/ledger-live/download to download and install the correct Desktop Ledger app for your operating system.
  2. After installation click “ Get started”, accept the terms and conditions, choose your device’s model which is Nano S, and click “ OK. I’m ready”.
  3. Continue clicking on “ Next Step” until you reach the page that you need to click “ OK. I’m done!.
  4. To continue, you will need to complete a three-question quiz. These questions should be answered to the best of your understanding. I will share the answers with you anyway. My crypto is stored on the blockchain as a Ledger user. – My recovery phrase may not be secure or private anymore. I must transfer my crypto to a safe place. My private key is still offline when I connect my Nano S with the Ledger App. [img]
  5. When you are done, click “Finish quiz“.
  6. Click “ Next Step” then “ Check my Nano”. This will allow the app to verify that your Nano S is authentic and complete the setup process.
  7. If everything goes as planned, you’ll end up with this screen.

5. Update Ledger Nano S Firmware

Your Nano S must be running the most recent firmware. Before you install any apps, you should do this first.

To check if your Nano S needs a firmware upgrade, go to the Manage tab in the left sidebar. The message “ Update firmware for X.X.X” will appear on your Nano S. This is a sign that the firmware is out of date.

  1. To update Nano S firmware, this is what you need to do:
  2. Click the “Update firmware” link.
  3. Check “I have my recovery phrase” on the Firmware Update page. Click Continue. You should now have all 24 recovery phases.
  4. Once the firmware update is downloaded, it will begin to download. This process can take between 3-10 minutes depending on the speed of your internet connection.
  5. After the download has been completed, you will see this screen. Here you need to verify your identifier. Check the codes on your device to make sure they match. Next, click the right button on your device.
  6. Next, unlock the device using your PIN. The firmware update will begin.
  7. This screen means that your firmware has been successfully upgraded.

6. Adding Crypto Accounts in Nano S

Before you can send cryptos to your Nano S hardware pocket wallet, you must create an account for each respective coint.

This example will show you how to create an Ethereum account within the hardware wallet.

  1. Click Portfolio in the left sidebar. Next, click on “Add an account”.
  2. We will create an Ethereum account if you have the necessary cryptocurrency.
  3. Once done, click Continue.
  4. Now, go to your Nano S device. You will need to connect your Nano S device and enter your PIN. To open the Ethereum app, connect it.
  5. The synchronizing process would then begin and take approximately 5-10 seconds.
  6. Click on “ Add Ethereum account” and then click Done.
  7. That’s it. Now you should see your crypto account (in my case the Ethereum) listed on the Accounts page.

Note: You will need to create a new account for each cryptocurrency that you want to keep in your hardware wallet. You will need to follow these steps again to create each account to store Bitcoin, Ethereum, or Dogecoin in the Nano S hardware wallet.



7. Sending crypto to Nano S hardware wallet

Let’s assume we have several different crypto accounts. Now let’s transfer some coins to it.

Here’s how I send Dogecoin using my coinbase software wallet and this nano S hardware wallet.

On the Desktop App

We will first need to know the Dogecoin wallet address. To retrieve it:

  1. Click on Accounts in the left sidebar and then click Dogecoin.
  2. Click Receive and then click Continue.
  3. The Dogecoin address will then be displayed to you.
  4. Click “Show QR Code” to bring up the Dogecoin address in the QR code.

Note: Any Dogecoin successfully sent to this address will be stored in the Ledger Nano S hardware wallet.

On the Mobile Phone

Now, I will launch the Coinbase Software Wallet App on my mobile phone so that I can transfer some Dogecoin to the Nano S.

  1. Enter the DOGE number you wish to send in the Coinbase wallet and then tap Next.
  2. To activate your phone’s camera, tap the small QR Code icon on the next screen.
  3. To activate your phone’s camera, tap the small QR Code icon on the next screen.
  4. Now, point your camera at the QR code in the Desktop app to retrieve your Dogecoin address.
  5. Next, confirm the amount and address and click Send.
  6. The transaction might take some time. Once itAC/AEURA(TM), is complete, the Dogecoin amount will be reflected in your Desktop App.

This means that your Dogecoins have been successfully transferred from Coinbase’s software wallet to Ledger Nano S’s hardware wallet.

 

Amelia Scott

Amelia is a content manager of The Next Tech. She also includes the characteristics of her log in a fun way so readers will know what to expect from her work.

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