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Ledger key: what exactly is it and why choose a Ledger wallet?
In this article, we will clarify precisely what a Ledger , why it is useful for managing your cryptocurrencies, and what its differences are with other types of cryptocurrency wallets available on the market.
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Back to basics: what is a cryptocurrency and how does it work?
To fully understand the usefulness of a portfolio, let's quickly review the fundamentals:
A cryptocurrency blockchain technology . This blockchain acts as a large, transparent, and secure public ledger, allowing for the recording and validation of all transactions. Unlike traditional currencies such as the euro or the dollar, cryptocurrencies operate in a completely decentralized manner.
This means they are not dependent on any central bank or financial institution. They therefore offer you greater autonomy, lower fees, and increased freedom in your financial transactions, especially internationally. In return, you are entirely 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 through several methods:
- On centralized exchange platforms ( Krake, OKX , Binance ).
- On decentralized platforms ( Uniswap , PancakeSwap ).
- Directly from a dedicated application like Ledger Live .
Once purchased, these cryptocurrencies must be stored securely.
What is a Ledgerkey? Storing your cryptocurrencies
The easiest way to buy your first cryptocurrencies is usually through a centralized exchange like OKX. Centralized exchanges greatly simplify buying, selling, and trading.
More information about the rewards can be found here.
However, keeping your assets on a centralized platform presents several risks. Since these platforms hold your private keys on your behalf, they also retain effective control of your funds. In the event of bankruptcy, a cyberattack, or sudden regulatory decisions, your cryptocurrencies can be frozen or lost, as happened with the collapse of the FTX in 2022. Furthermore, these platforms can freeze your funds without warning in certain situations.
To truly protect your digital assets, it is therefore strongly advised to use your own wallet.
But what exactly does your wallet store?
Contrary to what you might think, your cryptocurrencies are never actually in your wallet: they always remain recorded on the blockchain . What you store in your wallet are your private keys , that is, secret digital information that proves you are the rightful owner of your funds.
Your wallet is simply the interface, the tool that allows you to interact with your funds on the blockchain. If you import your private key into another wallet, you will also be able to interact with those 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 cryptocurrencies.
- The private key : similar to your personal password, it allows you to access and manage your funds.
Whoever holds your private key truly controls your cryptocurrencies. Securing this key is therefore absolutely crucial.
What are the different types of crypto wallets available?
There are primarily three categories of crypto wallets, each with its own advantages and disadvantages:
1. Custodian (or centralized) wallets
- Your private keys are managed by a third party (e.g., platforms such as OKX ).
- They are very easy to use, but you do not really have direct control of your funds, which exposes you to the risks mentioned previously (bankruptcy, freezing of funds, hacking).
2. Software wallets (hot wallet)
- Your private keys are stored on an application connected to the Internet (e.g., MetaMask , Trust Wallet ).
- Practical for everyday use but more vulnerable to hacking and malware.
3. Physical wallets (hardware wallets)
- Your private keys are stored offline.
- They offer the highest possible level of security for your cryptocurrencies because they remain completely safe from internet threats.
- Popular models: Ledger , Trezor …
What is a Ledger Why use it to secure your cryptocurrencies?
Among all physical wallets, Ledger is currently the world leader. The French brand clearly dominates the cold wallet market .
- Ledger currently protects approximately 20% of the world's cryptocurrencies secured offline .
- Over 6 million units sold worldwide .
What are the specific advantages of a Ledger key?
- A Secure Element : the same technology as in passports or bank cards, designed to resist the most sophisticated attacks.
- Proprietary operating system ( BOLOS ) that isolates each application and blocks software attacks.
- Certified by ANSSI ( National Agency for Information Systems Security).
In short, Ledger is now recognized as the absolute benchmark for physical wallets thanks to its robust hardware infrastructure.
What is a Ledger Models available on the market
Ledger currently offers several physical wallet models adapted to different uses:
- Ledger Nano S Plus : ideal for beginners, it offers all the essential features to securely store your cryptocurrencies but requires a wired connection.
- Ledger Nano X : equipped with Bluetooth connectivity, perfect for managing your cryptos on the go directly from your smartphone.
- Ledger Stax : premium model with e-ink touchscreen allowing simplified and clear management of your funds.
- Ledger Flex : the most advanced model, it offers a large screen, intuitive navigation and easy connectivity to Web3 applications.
To find out in detail which model best suits your needs, feel free to consult our article on which ledger to choose .
How to manage your assets with Ledger Wallet
Ledger wallets work with Ledger Wallet , the official app that allows:
- To buy and sell directly over 5,500 crypto-assets.
- Easily exchange your cryptocurrencies without leaving the application.
- To practice staking on several cryptocurrencies such as Ethereum , Solana or Polkadot .
- decentralized finance (DeFi) services , such as the Aave or Compound .
Ledger Wallet acts as a dashboard for your digital assets.
Cryptocurrency investments are risky. Crypternon cannot be held liable, directly or indirectly, for any damage or loss resulting from the use of any product or service mentioned in this article. Readers should conduct their own research before taking any action and only invest within their financial means. Past performance is not indicative of future results. This article does not constitute investment advice.
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AMF Recommendations. There is no guaranteed high return; a product with high potential returns implies high risk. This risk must be commensurate with your investment goals, your investment horizon, and your ability to lose some of your savings. Do not invest if you are not prepared to lose all or part of your capital.
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Yoann
Trained as an engineer, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future, I am participating in its democratization by developing Crypternon.