Why is a Cold Wallet important?
Often considered the safest option when storing cryptocurrencies, a cold wallet is a device similar to that of a usb drive that is not connected to the internet.
This means that the wallets store someone’s address and private key on something that is in no way connected to any network.
Furthermore, these cold wallets, often described as hardware wallets, come with the software pre-installed to allow the user to view their portfolio without putting their private key or cryptocurrencies at risk.
As mentioned by bitdegree.org, “The fact that your codes are nowhere else but in that little device surely offers a huge feeling of calmness.”
Due to this fact, it is far less likely for the device to be compromised. A Hot Wallet, like ones found on the Binance platform, is an online device connected to the Internet since you are logging onto a web-based platform.
Meaning that it is vulnerable to attack because the public and private keys are stored on the internet.
As well as running the risk of being compromised, hot wallets also face another serious threat, such as the case with Mt. Gox.
Thus causing approximately 850,000 bitcoins belonging to customers to go missing.
One of the most secure cold wallets available to store cryptocurrency offline is to use a paper wallet. This is a cold wallet that you can generate off many websites, which then generates public and private keys.
You would then print these keys out on paper, keep it safe, and even make copies to store in various locations.
The only way to access your cryptocurrency is if you own that piece of paper with your public and private keys; otherwise, there is no possible way to access it. Making a paper wallet one of the most secure cold wallets available.
Is the Nano X Better than the Nano S?
One question that gets asked quite a lot is whether the Nano X is better than the Nano S? However, this is merely a matter of perspective since the Nano X has features that the Nano S doesn’t.
But some people might not want more features. When comparing both models, the Nano X holds up to 100 apps as well as over 100+ compatible cryptocurrencies.
Whereas the Nano S only has 3 to 20 apps installed, but can also hold over 100 compatible cryptocurrencies. One massive difference between both models is that the Nano X has Bluetooth compatibility with Ledger Live Mobile and 8 hours of battery life.
Moreover, the Nano S doesn’t have any Bluetooth compatibility, and it doesn’t have any battery capability, so you would have to connect it to your computer to use it.
Legacy Addresses or SegWit Addresses?
Legacy addresses or Segwit addresses? What’s the difference? Well, the legacy address is the original bitcoin address and the first of its kind. Segwith is the newer bitcoin address, and with it, there are much lower fees and improved services when it comes to processing blocks.
It is said that you should use SegWit for a number of different reasons, one of which is that the transaction data is a lot smaller.
This means the network can properly process the transaction faster, as well as process more transactions per block. The seller also ends up paying lower transaction fees.
Another reason why it is advisable to use SegWit is that it is backward compatible. This means that you are able to send cryptocurrency from a SegWit address to any legacy address. A more detailed explanation for SegWit addresses can be found by clicking on the link.
You must buy Ledger Nano X on the official website
When it comes to purchasing your Nano X, the best and safest way to purchase one would be from the official website. There are many other outlets where you could purchase the device.
However, you run the risk of falling victim to criminals who could sell you a fraudulent device.
This means your credit/debit card information is secure and protected from attackers. Other marketplaces might not have this level of sophistication or technology, making them susceptible and vulnerable to attack.
Furthermore, you are more likely to have your personal information stolen from you using a third party marketplace.
To express my point, back in 2018 a story featured on Cointelegraph explained how someone’s life savings were stolen because they bought a second-hand ledger wallet.
The man’s $34,000 life savings were stolen because he purchased a second-hand Ledger Nano hardware wallet off eBay.
The seller used a man-in-the-middle attack by inserting his own recovery seed rather than the random seed assigned by Ledger themselves.
Ledger was established back in 2014 by eight people who are experts in their field. Those fields are focused on security, cryptocurrencies, and entrepreneurship. Those eight people joined forces and decided to create a solution that was secure for blockchain-based applications.
Since then, Ledger now has 139 employees worldwide, ranging from Paris, Vierzon, and San Francisco. Their mission is to secure all kinds of crypto assets, whether that be old or new.
They are also looking for solutions for financial assets like cryptocurrencies, initial coin offerings (ICOs), data assets such as Sensors.
Ledger is also taking into account the rise of the Internet of Things (IoTs), which are regular everyday devices connected to the internet.
Ledger can boast of clients in 165 countries with over 1.5 million ledger wallets that have already been sold, with 100 global resellers.
Ledger Nano X Features
- Extensive Security: Ledger Nano X has one screen and only 2 buttons. It houses the CC EAL5+ certified secure chip and its proprietary operating system known as Bolos.
- No Limit: With the Ledger Nano X, you can install up to 100 different crypto applications at the same time, along with more than 1500 coins and tokens.
- CSPN Certificates: Ledger is CSPN certified, which means it has the following embedded into their system:
- True Random Number Generator: Ledger Nano X relies on the security of a randomly generated number to generate your private keys. It is generated by the Secure Hardware and is then fully post-processed by Ledger through its operating system BOLOS.
- Root of Trust: This means that Ledger promises that their Ledger Nano X has been issued by Ledger.
- End-User Verification: This feature is the Personal Identification Number (PIN) that users must enter correctly for them to access all services available to them on the Nano X.
- Post-Issuance Capability over a Secure Channel: This feature means that Ledger can add new features to increase the device’s security.
- ANSSI Certification: The Ledger Nano X has been independently certified by ANSSI.
- Bluetooth Capability: Bluetooth compatibility with Ledger Live Mobile
- Extensive Battery: Ledger Nano X has an 8 hour battery life in standby mode
- Weight: Ledger Nano X weighs 34g