Ledger Nano S Complete Setup - Cryptocurrency Hardware Wallet

welcome to crosstalk solutions my name's chris and today we are checking out something entirely new for this channel and that is a cryptocurrency hardware wallet this is the ledger nano s and we're going to talk all about the ledger nano s we're going to set it up from start to finish as part of this video but first and foremost why do you need a hardware wallet for your cryptocurrency and how is a hardware wallet different from some of the online services where you can store your cryptocurrencies such as bittrex or coinbase let's talk about all of that we're going to cover everything as much as possible as part of this video but first if you are new to the channel make sure you like and subscribe to crosstalk solutions for two to three tech videos every single week and if you'd like to buy me a beer or donate some cryptocurrency there are links down in the description to do that as well what exactly is a hardware wallet okay so think about this right you have a standard wallet your normal wallet you put your money in here you put your cards in here if you lose this wallet you lose all of that money your credit cards you can usually get back by proving your identity with the provider of the credit card but by and large if you lose your wallet any cash money that you have in that wallet is gone so a hardware wallet is not exactly the same thing what you're storing in a hardware wallet is not money but the private keys to access your money okay so when you have money let's say bitcoin right if you have some money in bitcoin you got a thousand bucks worth of bitcoin it's stored in a wallet id and that wallet id as well as the amount of money that you have in that wallet is part of the blockchain right it's actually stored as part of this overall concept of blockchain but in order to access that money so in order to spend any of the money or in order to put money into the wallet in order to do transactions of any kind you need to have a private key so the wallet id is essentially a public key the private id is how you access the money that is stored in that wallet so a hardware key from ledger or anyone else is essentially just a secure offline place to store your private keys for accessing your various cryptocurrency wallets so then why would you want your private keys stored on a piece of hardware instead of on of one of the many many different sort of online you know bitcoin trading websites again the ones that i use are bittrex as well as coinbase if you're interested in either of those two sites there are links down below you can check them out but essentially they're just websites where you can buy sell trade cryptocurrency and you get wallets as part of those trades right so in coinbase for instance i've got ethereum and litecoin and bitcoin and i have wallets for each of those different cryptocurrencies as part of my coinbase account the problem is the private keys to access those wallets are also stored with coinbase so if coinbase ever got compromised or any of these places ever get compromised if my private keys are leaked out people can access the money in my bitcoin wallet or my other cryptocurrency wallets whereas with a hardware device you have to have this device in order to authenticate yourself because this is where your private keys are actually stored if i want to give someone you know two bitcoin i wish i had two bitcoin then i would have to physically plug this into my computer in order to make a connection that verifies the private keys stored on this device okay so this hardware wallet here is the ledger nano s as you can see right here now this is the more popular and smaller it's probably one of the most popular hardware wallets that you can purchase they have a larger version of the nano s called the nano x which i'll do a little bit of comparing and contrasting but essentially the nano x has a lot more space for applications it has a battery so that it can be on sort of standby without having to be plugged into usb in order for it to function and it has bluetooth so that you can actually access it via bluetooth as well as plugging it in with usb and so i know the first thing that you might be asking is well what happens if you lose your hardware wallet have you just lost all of your bitcoin or have you lost access to your bitcoin to your various cryptocurrencies well the answer is no and the reason is because the wallet can be restored if this device ever breaks they have what's called mnemonics and mnemonics are basically a 24 word code where you have to have all of the words in the correct order in order to re-access your private key so we're going to go through that process as well and it's all part of the setup of this device so let's take a look at a couple of things that come with this device so first of all we have our getting started guide and it says getting started with the ledger nano s and you basically just go to start.ledgerwallet.com and follow the instructions right so super easy to get started and then you also have these recovery sheets that come with this device as well and if you notice when i flip this over there's 24 different items here and this one is currently completely blank so the first thing we're going to do here is we're going to go to start.ledgerwallet.com and then we're going to get started by setting up this ledger nano s right from the beginning all the way through to actually making a trade of some cryptocurrency into the wallet that is accessed by the private keys stored on this device on my laptop i have gone to start.ledgerwallet.com which actually resolves to ledger.com start and it says just received your device follow these four steps to get started so the first thing that we need to do here is get ledger live which is the application that runs on my computer in this case my laptop that will be accessing the hardware wallet so we're going to go ahead and download that app and you can see it's available for windows mac linux or it's in the app store or the google play store so i'm going to get the windows version and here we go with the install very simple we're just going to click install and we can click finish all right welcome to ledger we're going to click get started here's the terms of service privacy policy we're going to pretend like we read those and then our device is the nano s and here we have the option of recovering so if you already have your mnemonics if you already have your 24 word phrase and you're just replacing a device that got lost stolen or damaged well in this case you can go down here to already have your recovery phrase and then we can recover the private keys in order to access your you know cryptocurrency wallets in this case though we're going to set this up as if it's the first time we've ever set it up so we're going to say set up a new nano s and here's the basics access your crypto your crypto assets are stored on the blockchain remember they're not stored in this wallet they are stored on the blockchain the wallet just stores the private keys to access your funds that are on the blockchain your private key is stored within your nano you must be the only one to own it to be in control of your money your nano works as quote cold storage wallet this means it never exposes your private key online even when using the app and ledger live the application i just installed allows you to buy sell manage exchange and earn crypto while remaining protected you will validate every crypto transaction with your nano all right let's set it up okay we'll start by setting up your nano security let's do this okay so the best way to get started plan 30 minutes and take your time now i agree with this the first time that i did it probably didn't take me a full 30 minutes but probably took me about 20. grab a pen and stay alone and choose a safe and quiet environment because again these keys are everything if you lose these keys or if someone else knows your 24 word mnemonic plus the order that they're in they can access your private keys and they can you know make changes to your crypto assets so make sure you're completely alone and that no one ever sees your recovery phrase at least no one that you you know don't trust 100 percent okay so we're going to say i'm ready please be careful make sure you follow the instructions on this app at every step of the process got it all right so number one turn on the nano now the nano i'm gonna plug this in the nano does not have a battery the nano s does not have a battery the nano x does have a battery but in this case we're just going to plug this in like so and there we can see that it is booting up and it says learn how to interact your with your device by reading the on-screen instructions now what you see here are two buttons that's literally the entire interface you can go left and right and in order to make a selection or press you know enter so to speak you click both buttons simultaneously so welcome to ledger nano s press left or right button to navigate yep so we can go back and forth press both buttons to validate get started at ledger.com start set up as a new device so when it's in this bold face type i don't know how clear that comes across on camera but like this one is not bold face this one is bold face when you're in the bold face type font that's when you can click both to select whatever is on the screen so you have the option to set up as a new device or restore from a recovery phrase we're going to set up as a new device choose your pin okay so let's do that first we're going to choose a very secure pin again i'm not afraid to show you guys all of this stuff on camera because i'm literally going to destroy this and reset this whole device by the time this video is released so we're just going to say one one one two two two three three three four four four five five five that's the stupidest combination i ever heard in my life that's the kind of thing an idiot would have on his luggage now you can have up to an eight digit pin code of course the more digits the more secure it is but also the more pain in the butt it is every time you need to access the device and enter your pin you got to go through eight digits with this sort of up and down scrolling through you know one through zero times eight as opposed to however many but the minimum is four so anywhere from four to eight i think six is a good compromise for this i'm just doing five you then wanna put on the check mark and click both confirm your pin now so one two three four and five one two three four five yes that's amazing i've got the same combination on my luggage all right so we're gonna confirm that now your device will generate 24 words this is the mnemonic they are your recovery phrase it is your only backup to restore your account if needed write it down on your recovery sheet in the correct order press both buttons to continue so this is the part where i cannot stress this enough take your time and make sure that everything is correct all right so press both buttons to continue word number one all right so here's the words and this is where we want to just write down the words as they come up on the nano device [Music] all right now i have my 24 word recovery phrase and i cannot stress this enough keep this information as secure as possible and i mean literally put it in a safe or safe deposit box or something like that because if you lose this recovery phrase your host alright that's it game over man all right so let's keep going hopefully i have driven that point home enough uh now it says press left to verify your word so you can basically scroll back through and make sure that you got them all correct in fact i'm going to go ahead and do that now okay next step is to confirm the recovery phrase so i just went through and double checked that i have all of the correct words in the correct order now we need to confirm it to do that we're going to hit both buttons confirm word number one so now we can just go left and right until we find word number one which in this case is outer and then we're gonna say okay word number two is thrive word number three we gotta find salute there we go and on and on i will fast forward the camera here but you get the idea it's gonna ask me from 1 through 24 to pick which word it is out of these list of words okay your recovery phrase is set keep it in a secure place if lost or stolen or forgotten all your assets will be irremediably lost irremediably boy that's a word never share it with anyone ledger will never ask you for it press both buttons to continue i should mention also that there may be a firmware update available for your device once you've set it up it will prompt you to go through the firmware update process in my case i've already updated firmware on this one so we're not going to see that your device is now ready let's go ahead and next press both buttons to enter dashboard there we go so now we have settings and we're going to pop back over to my computer to do the next thing here all right so next step pin code your pin code is the first layer of security okay so we already got the pin code choose the pin code confirm the pin code we already did this recovery phrase we understand next uh we already did the whole recovery phrase process confirm your phrase we already did that hide your recovery phrase your cover phrase is the last chance to access your crypto if you cannot use your nano you must keep it in a safe place okay we are done now answer three simple questions to avoid common misconceptions about your hardware wallet let's take the quiz as a ledger user my crypto is stored on my nano or on the blockchain well it is stored on the blockchain as we covered earlier in this video congrats crypto is always stored on the blockchain your hardware wallet only holds your private key which gives you access to your crypto all right next question if my recovery phrase is no longer secure or private no problem ledger can send me a copy or my crypto is no longer safe and i need to transfer them to a secure place so yes your if someone knows your recovery phrase your crypto assets are no longer safe anyone who knows your recovery phrase can steal your crypto assets if you lose it you must quickly transfer your crypto to a secure place all right next question when i connect my nano to the ledger app my private key is still offline or briefly connected to the internet again if you connect it to the internet that is a security risk that's what we're trying to get around we don't want our private keys ever exposed to the internet so we're going to say still offline so congrats your private key always remains offline in your hardware wallet even when connected to your nano the ledger app cannot access your private key you must physically authorize every transaction on your device okay so finish the quiz next step genuine check now we're going to verify whether your nano is genuine let's go ahead and check it allow ledger manager on your device so now we just need to say yes we're going to allow ledger manager boom all good your ledger nano s is genuine and ready to use with ledger live alright so we're going to say continue and now we need to add accounts to get started so let's click add account and now we can pick what crypto asset we want to put onto our hardware wallet okay so if you click the drop down box here you've got all sorts of different options i'm going to start with bitcoin and we're going to say continue as far as apps go this device has about 300k worth of storage and apps are anywhere between 50 to 100k so this says it can have up to six apps meaning you can store up to six different cryptocurrencies on this hardware wallet but in reality you probably only get about four or five maximum i've seen some like cardano for instance is 88k the app for cardano so if you had you know four apps at 50k each and then cardano you couldn't get the sixth one on there it's one of the limitations of this device so if you have a more diversified portfolio of crypto assets like if you've got crypto assets in like 10 or 20 different cryptocurrencies you're not going to be able to use the ledger s or i should say you would need multiple ledger s's to store that many the ledger x however the nano x can store up to 100 i think it has about five megabytes worth of app storage on the x okay so open the bitcoin app so we're gonna say open app bitcoin both buttons application is ready and now it says setting up device we are setting up nano s on my computer it is synchronizing that account essentially creating the wallet on this and the private key all right there we go and now we can say add account account added successfully add other accounts or return to portfolios we're going to say done so now it says application is ready if we go back to home we have bitcoin now so we have bitcoin settings and then we can install additional apps so let's go into bitcoin application ready and now we see settings so public key export or back or essentially we can go back home when you're going to be transferring say bitcoin in this case from you know if i wanted to send you some bitcoin i would need to go into my bitcoin app on the ledger nano s and authorize that transaction we're gonna do that in just a bit first thing though let me install a different one so i'm gonna click on accounts we can see that i have bitcoin with zero bitcoin inside we're gonna add a new account and let's do uh let's do doge dogecoin all right so we're gonna do that and i'll do my testing with dogecoin i own a very tiny bit of dogecoin and it's always fun to just play around with okay it's installing dogecoin app uh now it says open the device or open the app on the device synchronizing and there we go add account and done so now you can see we have bitcoin as well as dogecoin right now if i go over here and i look at the main menu of this device we now have bitcoin and dogecoin so we can see both are now in here moving right along we are now ready to trade some assets onto the ledger nano s so let's do that next okay logging into bittrex and of course i have my bittrex and coinbase accounts both secured with my ubico security key this is a hardware key for two-factor authentication i will put a link for ubi keys down below as well highly highly recommended for 2fa and check out my yubico video uh so that you can learn all about how to use that hardware key okay so in bittrex we can see that i have about 120 bucks worth of dogecoin or about 500 coins we are going to withdraw and when we click withdraw we are going to be asked for the recipient's wallet address right so the wallet address is basically the wallet that we just set up on this nano s let's go back to our ledger live app we're going to click on dogecoin and we're going to click receive so we want to receive it to our dogecoin account we're going to say continue and open the dogecoin app on your device as you can see it has popped up automatically we're going to click both buttons to open the dogecoin app on my screen now it's going to say here is my wallet so this is the address for the dogecoin now on the screen here it's going to confirm that we have the correct wallet id so you can just scroll through and if it looks like it matches we can confirm it make sure you've copied that wallet address before you approve it otherwise you can just go back and do that same process copy the wallet address first onto your clipboard and then go on to the device and approve it so we're going to say done and now we're going to go back over to bittrex and we're going to paste in the wallet address for this device and then how much do we want to withdraw we'll say you know 100 doge so we're going to say withdraw and now bittrex wants me to confirm this transaction with my 2fa code so we're going to put that in again and again my codes are stored on this hardware key but essentially if you have like google authenticator that's basically the same thing all right now depending on the coin it'll take a little bit of time for that 100 dose to show up in my account here but once it does show up we will come back and i'll show you then how to send it from the ledger nano s over to you know some other account i'm basically going to send it back to bittrex okay now in the ledger live we can see that i have 95 dogecoin i had transferred 105 dogecoin was the transfer fee but it showed up in about one minute so pretty quickly ended up in the hardware wallet that is controlled by the ledger nano s so now let's do the opposite let's take this 95 dogecoin that i have on the ledger and let's shoot it back out to my bittrex account so to do that we're going to say manage and then send we're going to put in the recipient address which is my bittrex dogecoin wallet id paste that in there and click continue and we just want to check this box here you can choose any amount to send i'm just going to check this box that says send max and then we're going to say continue and continue now since it's been a few minutes my device went to sleep so i have to enter the pin code again and then we're going to go over to the dogecoin app open the app we can see it's loading on my screen over here so review output number one this is the amount that we're sending and this is the wallet address that we're sending it to and accept confirm transaction here's the fees accept and send so there we go transaction sent your account balance will be updated when the blockchain confirms the transaction and again sending the money from bittrex to the ledger nano s while it took about one minute it would take about the same to send it back and we can see now zero doge okay so that is the ledger nano s again this is a really good idea especially if you have a significant amount of crypto assets that you want to keep secure you know bittrex coinbase these type of places can get hacked they are prime targets for hackers and if some zero day comes out where they can potentially get your private keys or anything we just don't want to chance that right it's best to have your assets as secure as possible the way that i think about it is i have my assets that i'm hanging on to long term stored on the hardware wallet and then my more liquid assets so anything that i'm sort of doing more trading with or buying selling on a more regular basis i use the you know coinbase and bittrex type online services now let's talk about the difference between the ledger nano s and the ledger nano x the main differences are the s is 59 bucks whereas the x is 119 the x has a little bit of a bigger display screen it can also have more applications it has about five megabytes of online storage versus this one has only about 300k of online storage what that translates to is you can only have about four or five different crypto assets different coins you know bitcoin dogecoin ethereum cardano hbar whatever well not hbar because one of the limitations is this does not allow for my favorite coin hbar uh but that's a story for a different day so you can only have four or five different crypto assets on a single nano s whereas you can have upwards of a hundred on the ledger nano x the ledger nano x is also connectable to your computer with usb or it also works via bluetooth which you think about it that can also potentially be a security risk the more ways that you have to connect to any device the more ways that can potentially be a malicious point of entry right so it has a battery it has bluetooth so that you can use it more easily with things like your you know your mobile phone devices and stuff like that but that also opens it up to a little bit of additional security issues i'll also be reviewing another wallet coming up soon this is the elephant titan this one does not connect to your computer at all everything is done through qr codes where you have to take pictures of the qr codes on the screen of this device that is called an air gapped hardware wallet meaning that there is no physical connection to any such device you never ever plug this into any computer or anything what do you guys think about the ledger nano s put your comments down below if i screwed anything up in this video also tell me what i talked about incorrectly in the comments below if you guys like this video give me a thumbs up and subscribe to crosstalk solutions for two to three tech videos every single week and we will see you in the next video [Music]

Channel: Crosstalk Solutions

Views: 119,172

Keywords: Ledger Nano S, crosstalk, crosstalk solutions, ledger nano s vs nano x, ledger nano s tutorial, ledger nano s setup, ledger nano s review, ledger nano s unboxing, ledger nano s setup 2021, ledger nano s coinbase, ledger nano s add account, ledger nano s reveiw, ledger nano x, hardware wallet, cryptocurrency wallet, crypto currency wallet, cryptocurrency hardware wallet

Id: 53vN-VmFdi0

Length: 26min 45sec (1605 seconds)

Published: Tue Sep 21 2021