How to Use Ledger and Trezor Hardware?
A hardware wallet is basically a methodology to add an extra layer of security to your crypto coins in case of a malware or virus attack. The principal objective of the hardware wallets is complete isolation such that the private keys remain a secret. The wallet will remain secure even if the system (PC or smartphone) is hacked. The hardware wallet is backed up by the paper wallet and is portable. This way the lost data can be easily recovered. The cryptocurrency wallet, Ledger has distinguished security features. It is a safe haven for storing digital assets and executing digital payments. Ledger is compatible with contemporary gadgets and is easy to use as it comes in the shape of a USB drive. Trezor is a ‘cold storage device’, in other words, an offline Bitcoin wallet. Till now, considered to be one of the trusted ways of securing the cryptocurrencies, it provides great flexibility during trading or exchanging cryptocurrencies. Sporting the shape of the USB drive, Trezor wallet can be used to sign transactions even on ‘unsafe’ computers.
How to Setup a Trezor Hardware Wallet on Your Mac/PC
Firstly, the Trezor device has to be connected to the Mac/PC through the USB cable.
The browser plugin from myTrezor needs to be downloaded. It is an automated process and on connecting a pop-up arrives that asks the permission to install the plugin.
On activation of the plugin, you will have to choose a PIN.
Instead of typing the PIN, you will have to select it from an obscured numerical pad that is displayed in the browser.
The position of the numbers on the numerical pad constantly changes. Therefore, you need to constantly check your Trezor device while inserting the PIN.
If a hacker has complete control on the desktop’s remote access then also s/he will not be able to determine the numbers. This is because the numbers are displayed exclusively on the Trezor device.
The next consists of writing the ‘seed’. It is a sequence of 24 words that are randomly written.
The seed is the only backup that enables reconstruction of your Trezor wallet in case of loss or theft.
BIP39 and BIP44 are the standards used for the creation of new Trezor wallets. Therefore, the seed can be recovered through other compatible wallets.
The users are always advised not to make a digital recording of the recovery seed as every digital device can be hacked at any moment. It is always safe to use a pen and paper.
How to Setup a Ledger Hardware Wallet on Your Mac/PC
The Ledger device firstly needs to be connected to the PC through the USB cable.
You have the option to create a new cryptocurrency wallet. You can even use your Bitcoin or Ethereum account.
Just follow the instructions displayed on the small screen step-by-step.
The next step involves selection of the PIN code. It is a four-digit PIN. If wrong PIN code is entered 3 times successively then the device will reset the PIN automatically.
This is a vital step. You will have to copy the 24 words that appear in a sequence on the ‘Recovery sheet’. Only then will the configuration process complete.
You will have to install the Ledger Apps on your device after the configuration process is completed.
Your Ledger device is now ready to store the cryptocurrencies.
Recovery phrase of Ledger
Restoring your previous wallet to Ledger will require the recovery phrase of that wallet. Any wallet that supports BIP39/44 will be able to generate the seed (recovery mnemonic phrase). Once again, you will have to create a PIN. Then, the device will ask you to enter the recovery phrase. It is a little time-consuming process as you need to scroll through the letters with the help of the left and right hardware buttons.
Recovery phase of Trezor
In case of losing your Trezor device or it having destroyed somehow, follow these recovery steps:
Get a new or formatted Trezor device
Then, fill up the Trezor recovery card
Install the Trezor bridge
Connect it to your Mac/PC and go to Trezor Wallet.
Insert the name of your Trezor device after pressing the recovery button.
Click on Continue. If you had changed any advanced options then, you will have to reset it first.
Bitcoin (Bitcoin Cash) Wallet
For Ledger:
You need to install Bitcoin application on your Mac/PC. This works with Nano, HW.1, Nano S or Blue Ledger. You can install the Bitcoin Cash application from the Ledger Manager. After this, you will have to open your Bitcoin Cash account.
Choose the Bitcoin Cash chain after launching the Bitcoin Chrome app on your device.
Enter the PIN code after connecting the Ledger.
You can open the Bitcoin Cash application of the Ledger wallet itself.
Disable the “Browser support” setting if you have a Nano S or Blue.
Your Bitcoin Cash wallet finally opens.
For Trezor:
Your Trezor device should be updated to the version 1.5.1 at least.
Connect Trezor Wallet to your Mac/PC.
Insert PIN code to authenticate yourself.
Then, select BCH in Trezor Wallet.
Enter the address after clicking on the Receive tab.
Then, verify the address on your Trezor wallet.
Thus, the Bitcoin wallet is connected to the Trezor Wallet.
Sending & Receiving Bitcoins using Ledger
The following points elaborate on Receiving Bitcoins:
Open the Bitcoin Chrome application on your device.
A pop-up window opens up after clicking on ‘Receive’.
Copy the displayed ‘Bitcoin address’ to the send/receiving address of the Bitcoin Wallet, holding your crypto coins at present.
Complete the verification process.
The Ledger Bitcoin wallet will generate a new address every time you receive a payment, making it more secure.
For sending Bitcoins, follow the given steps:
Click on “Send” after launching Bitcoin Chrome application on your Mac/PC.
The form will ask for recipient address, amount and the level of fees.
Then, click on the “Send” button.
Ledger wallets like Nano S require manual verification. You will have to press the button above the “V” check icon to initiate the verification process. Wait till the Chrome app shows “validated”.
After the miners confirm the transaction in accordance with Bitcoin protocol, it is validated. Sometimes the Ledger device may get disconnected during the validation process. When you reopen the wallet, the transactions will be synchronised.
Sending & Receiving Bitcoins using Trezor
The following points elaborate on Receiving Bitcoins:
You have to click on “Account #1” in myTrezor. It is situated on the left-hand side of the screen.
You will have to select the “Receive” tab in order to receive the first Trezor Bitcoin address. In case of a transaction through a mobile wallet, you have to scan the QR code.
In case of an incoming transaction, a green signal appears on the screen. Initially, marked as “unconfirmed”, it takes up to 15 minutes usually to complete one transaction.
For sending Bitcoins you will have to follow the given steps:
In the “Account #1” page of myTrezor click on Send. The payment page will be displayed.
You will have to give the transaction address and the amount you will send. You can scan the QR code that is connected to the receiver’s wallet.
The ‘Add recipient’ option on the page allows you to send Bitcoins to multiple addresses at the same time. Multiple transactions can be covered by clicking on the “Import from CSV” button.
Then, you will have to enter the PIN.
The confirmation process starts now. It will ask whether the inserted amount and address is correct and you have to select the right option (Yes or Cancel).
Ledger Manager
Ledger Manager is basically an app store, from where you can install and uninstall applications and update them. The Ledger Manager is not for managing crypto coins or accounts.
A Nano or an HW.1 does not require Ledger Manager. This is because the device can support only one application- Bitcoin wallet. For other Ledger devices (Nano S or Blue), you can find it on Chrome extension (Ledger Manager is an extension).
For the uninstallation process of Ledger Manager, paste the address chrome://extensions/ on the Chrome browser. Search out Ledger Manager there and then, click on the bin icon.
A list of Ledger FAQs
What are the requirements for using a Ledger hardware wallet?
A computer with a USB port (for Nano, Nano S, HW.1), Chromium 50+ or Google Chrome, Windows (above XP) or Mac (10.7+) or Linux.
You need to install a Chrome application to use the Ledger device. You do not have to install any software.
Do I need to create an account?
No, you do not need to create an account.
How different is Nano S from Nano?
Nano S is the latest version of the range. It has improved security, the firmware and other features. Nano S consists of a screen and two buttons. PIN entry, seed configuration and transaction validation- all are directly done on the device. Nano and HW.1 require an additional security card, unlike Nano S.
How is HW.1 different from Nano?
Ledger HW.1 is cheaper than Ledger Nano but has same features and level of security.
How are Ledger wallets different from other hardware wallets?
Ledger is based on smartcards while other hardware wallets rely on regular microcontrollers. Thus, Ledger prevents private key leaks due to code exploitation.
How is a Ledger wallet different from cold storage?
Cold storage is an efficient way of securing your Bitcoins. Ledger wallets maintain the same level of security with convenience.
How is a Ledger wallet different from a software wallet?
In case of software wallets, the private keys get stored in computer memory when you are doing transactions. This way if your computer is targeted by malware, it will be exceedingly easy for the malware to take away your Bitcoins.
What are the coins supported by Ledger?
Supported coins: BTC, BCH, BTG, ETH, ETC, LTC, DOGE, ZEC, XRP, DASH, STRAT, KMD, ARK, EXP, UBQ, VTC, VIA, NEO, XST, XLM, HSR, DGB, QTUM, PIVX
What happens if I lose my Ledger wallet?
The Ledger wallet holds only the private key. So, if you lose the wallet you can easily restore the words on another Ledger.
Does the restore method restore all my wallets?
Yes, it will restore all the wallets. You just need to remember the seed for the restoration process.
What happens if I lose my 24 words?
You will simply lose all your private keys to your wallet.
Can I resell my Ledger wallet?
Yes, you can resell your Ledger wallet as the device can be reset by entering a wrong PIN thrice.
A list of Trezor FAQS
Will Trezor support upcoming Bitcoin forks?
Trezor is completely aware of the current scenario of cryptocurrencies. In order provide a secure environment to your current cryptocurrency holdings, we will thoroughly study and analyse the upcoming forks before we support them.
What are the supported crypto coins and tokens?
Supported crypto coins: Bitcoin(BTC), Litecoin(LTC), DASH, Zcash(ZEC), Bitcoin Cash/Bcash(BCH), Bitcoin Gold (BTG), Ethereum (ETH), Ethereum Classic (ETC)
Supported tokens: Expanse (EXP), UBIQ (UBQ), NEM (XEM), Namecoin, Dogecoin, Bitcoin Testnet.
How does the recovery seed operate?
The recovery seed is vital in case you lose your device. By entering this sequence of 24 words in a new Trezor device you will be able to recover the data stored in it.
What is a passphrase?
The passphrase can be a set of letters, a word or a sentence. It the 25th word of the recovery seed. You need to memorise it as the passphrase is required to generate an entire wallet. It has a triple security effect. You can create multiple passphrases.
What happens if my recovery seed is stolen?
Unfortunately, if your recovery seed is stolen and you do not have a passphrase then, you will lose your crypto coins. Having a passphrase in place eliminates this risk.
Why Get a Hardware Wallet
A software wallet is never as secure as a hardware wallet like Ledger or Trezor as a virus or malware can easily steal your private keys through a key logger. It also provides an extra layer of protection against fake websites that use “phishing” to steal your private keys. The private keys are ‘invisible’ if you are using a hardware wallet. In case your hardware wallet becomes damaged or lost, you can use the long recovery seed to restore your wallets.
Ledger is considered to be the first physical storage utility for Ethereum with full support. Till now, Ledger supports more crypto coins than Trezor. The cost of a Ledger wallet is comparatively less than a Trezor wallet. You can recover a Ledger wallet without connecting it to your Mac/PC.
Trezor is the first physical storage utility for Bitcoins. Trezor sports a better wallet software and transaction data can be synced with a Dropbox account. The passphrase feature of Trezor adds an extra layer of security. The feature also enables the user to create innumerable hidden accounts by password protecting the user’s seed. The password recovery directory of Trezor can be accessed easily.
