I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.
See all posts Frank GogolLedger Nano X: What You Need to Know
Updated on August 25, 2024
Written by
Written by
Reviewed by
Rohit Mittal
Reviewed by
Rohit Mittal
Rohit Mittal is the co-founder and CEO of Stilt. Rohit has extensive experience in credit risk analytics and data science. He spent years building credit risk and fraud models for top U.S. banks. In his current role, he defines the overall business strategy, leads debt and capital fundraising efforts, leads product development, and leads other customer-related aspects for the company. Stilt is backed by Y Combinator and has raised a total of $275M in debt and equity funding to date.
See all posts Rohit MittalAt a Glance
- A Ledger Wallet is a cryptocurrency wallet that stores private keys and allows users to interact with their blockchain accounts.
- Ledger is a leading hardware wallet company offering models like Nano X and Nano S.
- The wallet enables users to check their account balance, view transaction history, and make crypto transfers by securely signing transactions with private keys.
- Hardware wallets like Ledger Nano X provide enhanced security by storing private keys on a separate device, protecting against computer or phone hacks.
Ledger is a company that makes crypto hardware wallets. The Nano is one of the most well-known crypto wallets and supports numerous coins and tokens on dozens of blockchains. Read on to learn more about Ledger Nano X.
What Is a Ledger Wallet?
A crypto wallet is a way to interact with an account on a blockchain. The wallet stores your private keys and uses them to authenticate any transactions you want to make. A cryptocurrency wallet also shows you your current account balance and full transaction history.
Ledger is a company based in Paris, France that was founded in 2014 by a group of specialists in cryptocurrency, computer security, and business.
Since its launch, the company has become a world leader in hardware wallets with its Nano series of crypto wallets. Currently, the company offers two models of Nano wallet; the Nano X and Nano S. Each of them has slightly different features.
Ledger also provides other supporting products that allow people to interact with their crypto, including software applications such as the Ledger Live smartphone and desktop apps.
How a Ledger Wallet Works
The main way that people interact with their crypto is by using a crypto wallet. The job of the crypto wallet is to read the blockchain record and submit transactions on behalf of its owner.
When you use a crypto wallet to check how much crypto you have, the wallet software looks through the list of addresses in the record until it finds yours. Then it displays all of the cryptocurrency which the record shows is associated with your address.
Crypto Transfers
The other thing that a wallet does is transfer crypto from your address to someone else’s. When you use your wallet to send crypto, the wallet software composes a packet of data and sends it to one of the computers that operate the blockchain. These computers are called nodes.
The data includes some basic information: your address, the address of the receiver, the amount to send, and the signature. The signature is a representation of the other data, mathematically operated on using your private key.
Signature of Proof
The signature is proof to the computers on the blockchain that you know the private key for the account. The private key is proof that you, the account owner, are the one who wants the transaction to happen.
The main thing to understand is that a crypto wallet’s job (whether hardware or software) is to store your private key safely. When you want to perform a transaction, your private key will be used to prove to every node on the blockchain that you (the account owner) are the one who is trying to perform the transaction.
Hardware Wallets
Hardware wallets work somewhat differently from software wallets, even though they are designed to achieve the same thing. A software wallet stores the private key on your computer or smartphone. A hardware wallet stores your private key on a cryptographically secured memory chip.
Since the private key from a hardware wallet is never at any point on a computer or smartphone, that means your crypto is not vulnerable to theft if your computer or phone gets hacked or stolen.
Ledger Nano X Setup
To set up your Nano X you will need to follow the steps listed below:
- Download and install the Ledger Live app for your device (Windows, Mac, Linux, iOS, Android) then connect it to your Nano X wallet.
- Your Nano X wallet will generate a secure 24-word recovery phrase. You must keep this in a secure location. You will not need it for everyday use. It is only for if your Nano X is lost, stolen, or destroyed.
- You will also choose a PIN that will secure your wallet for everyday usage. The PIN you choose must be at least 4-digits long. The wallet will only produce transaction data if the PIN is entered correctly.
Please note that the 24-word recovery phrase is the only way to ever recover your crypto if your Nano X is damaged or stolen. You must keep the recovery phrase in a very safe place.
Ledger Nano X Explained
In this section, we will introduce some key aspects of the Ledger Nano X crypto wallet.
Features
The Nano X has several features that make using it more convenient. A few of these features include:
- Integrated crypto exchange on Ledger Live
- USB and Bluetooth interfaces
- 8-hour battery life
- iOS and Android support.
Currencies
One important aspect of a crypto wallet is the number of different cryptocurrencies it can store. This is especially crucial for hardware wallets because they are costly. Being able to store many different cryptocurrencies means you won’t have to buy a separate wallet to store coins from different blockchains.
The list below is just a few of the cryptocurrencies that the Ledger Nano X currently supports:
- Bitcoin
- Ether
- Litecoin
- Algorand.
In total, the Nano X supports about 1800 different cryptocurrencies. Most of these are tokens. In terms of native coins, the Nano X supports 27 different coins. In other words, it is compatible with 27 different blockchain protocols.
Security
One of the major benefits of hardware wallets is that they are more secure than software wallets. Compromising a hardware wallet requires the attacker to have physical access to the device and know your secret PIN.
The majority of crypto theft happens online through scams and hacked computers. This means the Ledger Nano X is inherently safer than a software wallet.
Price
Perhaps the biggest weakness of hardware wallets is cost. Many of the best software wallets are free to use and completely open-source.
The Nano X costs about 130 USD. Although this seems expensive compared to getting similar functionality for free from a software wallet, this cost is significantly less than losing all your crypto.
If your crypto holdings are worth more than the cost of a hardware wallet, then the extra security provided is a very good investment in keeping your crypto safe if worst comes to worst.
Ease of Use
The Ledger Nano X is designed to be as convenient to use as credit or debit cards. Taking out a credit or debit card from your wallet and using it at a payment point or for an online purchase is a very simple process.
Similarly, the process of using a Ledger NanoX to (for example) transfer crypto from your address to someone else is straightforward. In addition, Ledger Nano X’s large screen and simple two-button interface mean you won’t be overwhelmed or confused when trying to use the device.
Mobile Apps
To increase the convenience of using it, Ledger also provides smartphone applications called Ledger Live for iOS and Android that interface with the Nano X.
You can connect the app with your wallet to make crypto payments anywhere, instead of only when you are in front of a computer. All you need is an internet connection.
Read More
- How to Make Money with Cryptocurrency
- How to Withdraw from Binance
- How to Transfer From Coinbase to Coinbase Pro
- How to Transfer from Coinbase to Binance
- How Does Cryptocurrency Gain Value?
- How to Read Crypto Charts
Final Thoughts
Ledger Nano X is the latest model of hardware wallet from Ledger. It supports numerous cryptocurrencies and has many useful features. Although it costs more than most software wallets, the extra security it provides is a worthwhile investment.
Frequently Asked Questions (FAQ)
What is Ledger Nano X?
Ledger Nano X is a hardware wallet designed to securely store and manage cryptocurrencies.
How does Ledger Nano X work?
Ledger Nano X uses a combination of secure hardware and software to protect your private keys and perform cryptocurrency transactions.
Is Ledger Nano X compatible with multiple cryptocurrencies?
Yes, Ledger Nano X supports a wide range of cryptocurrencies including Bitcoin, Ethereum, Ripple, and many more.
Can I use Ledger Nano X with my mobile device?
Yes, Ledger Nano X can be connected to your mobile device via Bluetooth for convenient access and management of your cryptocurrencies.
How do I set up Ledger Nano X?
To set up Ledger Nano X, you need to download the Ledger Live app, follow the on-screen instructions, and create a new wallet.
Is Ledger Nano X safe?
Yes, Ledger Nano X is designed with multiple layers of security to ensure the safety of your cryptocurrencies. It features a secure chip and offers PIN code protection.
Can I recover my funds if I lose my Ledger Nano X?
Yes, Ledger Nano X provides a recovery phrase during the initial setup. With this recovery phrase, you can restore your funds on a new device if your Ledger Nano X is lost or damaged.
Can I use Ledger Nano X on a computer without an internet connection?
Yes, Ledger Nano X allows you to securely manage your cryptocurrencies on a computer without an internet connection, providing an extra layer of protection against online threats.
Can I use Ledger Nano X with multiple computers?
Yes, you can use Ledger Nano X with multiple computers by installing the Ledger Live app on each computer and accessing your wallet with your device.
How do I update the firmware on Ledger Nano X?
To update the firmware on Ledger Nano X, connect it to your computer with the USB cable, open the Ledger Live app, and follow the instructions to install the latest firmware.
Frank Gogol
I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.