As John McAfee said during his keynote speech at the Blockchain Money event in London: “One day, all of the Bitcoins on all of the software wallets, will vanish..” which he goes on to claim is due to spyware which is probably already running silently in the background of your device. If you’re new to crypto-currencies then you need to understand that you are your own bank and must perform all of the actions that would normally involve large teams and corporate compliance. This includes duties of the branch manager and security compliance officer, all the way down to the teller. Like most security conscious investors, I don’t like to store idle funds with untrusted sources. But this time around, rather than build my own encrypted drive, I grabbed a Ledger Nano S from Amazon. Now, I know that there is a lot of debate as to which manufactured cold storage device is the best, but without entering that debate, here are my takes on the Nano S.
Pro’s
- Great device for the less than computer literate. The set-up process is very Mickey Mouse and new users can get their bearings very rapidly. This is great if you lack the time or know-how on how to build your device, but want to secure your investments immediately.
- Ledger claims that it is malware proof, since the initialization & restoration of the user’s configuration are done in the device, and never leave.
- Private keys are never held by a 3d party – though I can’t seem to view them either.
- 6 digit pin code allow for 100,000 possible combinations, and you have to enter your pin every time to you enter a wallet, switch between wallets, or transfer funds from your device.
- As soon as the funds are ‘pending’ in your wallet, you can disconnect the Nano S, minimizing exposure to the web or infected devices.
- Its small size and accessories allow for it to be carried or stored very easily. This is great for you preppers out there, because in a SHTF scenario where cryptos are universally accepted as legal tender, it will definitely be easier to carry this out of the country than several kilo's of gold, lol.
- Navigating the device with the two buttons is very simple. Left or right to move left/right & up/down. Double-press to select.
- The Nano S supports multiple currencies, which are easy to manage from the Ledger Manager application. As a disclaimer, it comes with Bitcoin and both Ethereum types from the factory, but you can add the others from the manager.
- The Ledger product support team and CEO are very active on twitter, so help is just 140 characters away.
- Ledger has created numerous videos and online tutorials for new users.
Con’s
- User must use a Google(In-q-tel) chrome application for the wallet, which I’m sure tracks every single transfer with the user’s meta-data profile. IMO – this could be one of the biggest concerns for those whom wish to keep their crypto activity off of the grid.
- Forced use of google may expose the Ledger Nano S users to hackers, as it is one of the most targeted and least secure places to hold accounts. This could expose the user to MITM attack, regardless of how safe the device itself is.
- Every one of their ‘integrations’ (aka mobile applications) only supports Bitcoin, which negates the point of a multi-currency cold storage device can integrate with a mobile phone via OTG cable, though I am sure that this will change in the very near future.
In summary, I think that this is a great device for beginners to get started with and a solid way for any user to rapidly transfer their currencies to a cold storage while bringing up their computer security skills. It’s certainly better than keeping your coins on a ‘hot storage’ wallet, but, this is by no means the end all solution and users should constantly educate themselves on how to safe-guard their investments.
I'm sure that a lot of this has been covered here in the past, but be sure to ask If you have any questions on things that I did not cover. I'd be glad to help!
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I am so old school. Still using paper wallets for my Bitcoin. 😎
Paper wallets seem like a great way to go, but I guess that I don't understand them enough, hence the reason that I'm a bit nervous about them falling into the wrong hands, getting tampered with, etc.
Thanks @lenartbedrage ! I never even knew this existed. I'll actually go ahead and buy one.
How do you 'backup' your ledger nano s?
I have already recorded all the recovery phrases, but does the wallet backup automatically, or is this a manual process that I need to do, and if so then how?
You need your phrases. If you lose your device, you buy a new one and it will restore your funds
What version of the ledger software where you running at the time?