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Ledger key: what is it exactly and why choose a Ledger wallet?
You have just bought your first cryptocurrency , or you almost plan to do so. Well done, you are now one of the Crypto investors ! But now that you have these digital assets, you must make sure they are safe. This is where a Ledger key . But by the way, what exactly is Ledger
In this article, we will clarify precisely what a Ledger , why it is essential to manage your cryptos, and what are its differences with other types of Crypto available on the market.
Table of contents
Back to the basics: what is a cryptocurrency and how does it work?
To fully understand the usefulness of a wallet, let's come back to the fundamentals quickly:
A cryptocurrency blockchain technology . This blockchain acts as a large, transparent, and secure public register, allowing to record and validate all the transactions carried out. Unlike traditional currencies such as the euro or the dollar, cryptocurrencies work fully decentralized.
This means that they do not depend on any central bank or financial institution. They therefore offer you more autonomy, less costs and increased freedom in your financial transactions, especially internationally. In return, you are completely responsible for the security of your funds, hence the need to choose a reliable Wallet to protect your digital assets.
How to buy cryptocurrencies?
Cryptocurrencies can be purchased via several methods:
- On centralized exchange platforms ( Coinbase , Binance ).
- On decentralized platforms ( Uniswap , Pancakeswap ).
- Directly from a dedicated application like Ledger Live .
Once purchased, these cryptocurrencies should be stored safely.
What is a Ledger key? Store your cryptocurrencies
The easiest way to buy your first cryptocurrencies is usually to go through centralized exchanges like B nanance, Bitvavo, Okx . . These platforms considerably facilitate purchase, sales or exchange operations thanks to an accessible interface, especially for beginners.
However, keeping your assets on a centralized platform has several risks. Since these platforms hold your private keys for you, they also retain the effective control of your funds. In the event of bankruptcy, computer hacking or sudden regulatory decisions, your cryptocurrencies can be blocked or lost, as was the case with the bankruptcy of the FTX in 2022. In addition, these platforms can freeze your funds without notice in certain situations.
To really protect your digital assets, it is therefore strongly advised to use your own wallet.
But concretely, what does your crypto wallet store?
Contrary to what one might imagine, your cryptocurrencies are never really in your wallet: they always remain recorded on the blockchain . What you store in your wallet is your private keys , that is to say secret digital information that proves that you are the legitimate owner of your funds.
Your portfolio is only the interface, the tool that allows you to interact with your funds on the blockchain. If you import your private key to another portfolio, you can also interact with these same funds on the blockchain.
Each crypto wallet has two types of keys:
- The public key : it is comparable to your email address, used to receive cryptos.
- The private key : similar to your personal password, it allows you to access and manage your funds.
The one who holds your private key really controls your cryptocurrencies. Securing this key is therefore absolutely crucial.
What are the different types of crypto wallets available?
There are mainly three categories of crypto wallets, each with its advantages and disadvantages:
1. Wallets deposit (or centralized)
- Your private keys are managed by a third party (e.g. platforms such as OKX ).
- Very easy to use but you do not really have direct control of your funds, which exposes you to the risks mentioned above (bankruptcy, fund of funds, hacking).
2. Wallets software (hot wallets)
- Your private keys are stored on an application connected to the Internet (ex: Metamask , Trust Wallet ).
- Practical for daily use but more vulnerable to hacking and malware.
3. Physical wallets (hardware wallets)
- Your private keys are stored offline.
- Offer the highest level of security as possible for your cryptocurrencies because they remain completely out of the internet threats.
- Popular models: Ledger , Trezor …
What is a Ledger key ? Why use it to secure its cryptocurrencies?
Among all the physical wallets, Ledger is today the world leader. The French brand clearly dominates the cold wallets :
- Ledger today protects approximately 20 % of unavailable global cryptocurrencies .
- More than 6 million units sold around the world .
What are the specific advantages of a Ledger key?
- Secure Element chip : the same technology as in passports or bank cards, designed to withstand the most sophisticated attacks.
- Owner operating system ( Bolos ) which isolates each application and blocks software attacks.
- Certified by the ANSSI (National Agency for Information Systems System).
Clearly, Ledger is today recognized as the absolute reference of physical wallets thanks to its robust material infrastructure.
What is a Ledger key ? The models available on the market
Ledger currently offers several models of physical wallet adapted to different uses:
- Ledger nano s plus : ideal for starting, it offers all essential features to store your cryptos in safety but requires a wired connection.
- Ledger Nano X : With Bluetooth connectivity, perfect for managing your Cryptos in mobility directly from your smartphone.
- Ledger Stax : Premium model with e-ink touch screen allowing simplified and clear management of your funds.
- Ledger Flex : the most advanced model, it offers a wide screen, intuitive navigation and connectivity facilitated to web3 .
To find out in detail which model best suits your needs, do not hesitate to consult our article on which ledger to choose .
How to manage your assets with Ledger Live?
Ledger wallets work with Ledger Live , the official application allowing:
- To buy and sell directly more than 5,500 crypto-assets.
- To easily exchange your cryptos without leaving the application.
- To practice staking on several cryptocurrencies such as Ethereum , Solana or Polkadot .
- decentralized finance services DEFI ) Aave or Compound Protocols .
Ledger Live acts as a real dashboard for your digital assets.
What is a Ledger key ? Conclusion on the security and autonomy of your assets
If you have understood what a Ledgerkey is, you now know that it is actually a protection against digital risks. Using a Ledger Wallet allows you to fully and directly own your digital assets, without intermediaries.
If security is your priority in the still very young world of cryptocurrencies, a wallet hardware such as Ledger represents the most reliable solution currently available.
Investments in cryptocurrencies are risky. Crypternon could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a property or service put forward in this article. Readers must do their own research before undertaking any action and investing only within the limits of their financial capacities. Past performance does not guarantee future results. This article does not constitute an investment .
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AMF recommendations. There is no guaranteed high yield, a product with high performance potential implies a high risk. This risk taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
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Yohan Uzzan
Training engineer, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future ahead of it, I participate in its democratization by developing Crypternon.
