Hi, everyone.
This article will be a (non-sponsored) review on the Ledger Nano S, a cryptocurrency hardware wallet compatible with a numerous amount of cryptocurrencies including Bitcoin. Hardware wallets are renowned for being the safest method to store Bitcoins, and the Ledger Nano S is a very popular hardware wallet, so today we'll be putting the Ledger to the test.

Why can't I just use a regular exchange, or an online wallet?

This is one of the most asked questions when it comes to hardware wallets, and the most accurate answer is because regular online exchanges/wallets lack peace of mind and security.

All of this routes to the simple principle that if you don't own your Bitcoin private keys, you don't own your Bitcoin. This can be restated better as "your private keys are your bitcoins." If your bitcoins are on an exchange that doesn't allow you to export or otherwise access your private keys, your bitcoins aren't in your hands. This means that in order to store your bitcoins with the exchange, you're trusting the exchange to fulfill your transactions and withdraw your bitcoins when necessary.

But this doesn't always happen. Think Mt. Gox or BTC-e; both of them were very popular Bitcoin exchanges, until one day, basically overnight, they were shut down. This could happen to your exchange too, and if you don't have your private keys if/when it does, you're doomed.

Most people conscious about security end up with a hardware wallet, though some with a low-budget use offline wallets. If you're somewhat conscious about security but really need convenience and ease-of-use, then you would go with a computer application wallet such as Electrum or Armory (some of the best choices for one of those).

But the best option is always a hardware wallet. Why? Because computers can get compromised too. Malware, spyware, viruses, trojans, all of these can infect your computer and possibly damage/steal from your Bitcoin wallet as well. Especially if the computer is online/connected to the internet; offline computer wallets have some leeway, but its infinitely easier for hackers to get into an online computer than an offline one.

Now, after knowing the above information, you would naturally be thinking something along the lines of "Okay, now I see why security is important. Is there an option that gives me insane security, yet still has ease-of-use and convenience?"

The Ledger Nano S hardware wallet is able to satisfy these needs. Let's explore how the Ledger wallet works and find out the features of one of the top cryptocurrency hardware wallets ever.

Wallet Features

Here, we'll dive into the most useful features of the Ledger Nano S.

Wide Range of Cryptocurrencies Supported

The Ledger supports a very wide range of cryptocurrencies, ranging from Bitcoin, Ethereum, Litecoin, Ethereum Classic, Ripple, Dash, and more. Ledger even supports tokens based on Ethereum ERC-20 (using a MyEtherWallet integration).

Secure OTP Key

Ledger supports FIDO U2F, meaning you can use it as a secure authenticator key with a large variety of apps and login screens ranging from Google and Github to Dropbox and many more. This means that instead of simply signing in with your password for supported services, the service will prompt you to connect your Ledger to your computer after entering your password. If your Ledger successfully connects, the service will sign you in.

This two-factor authentication can make your logins to many services very secure and almost impenetrable.

Simple Backup

When you setup your Ledger for the first time, you'll be prompted to write down a long string of words (a mnemonic phrase, generally 24 words) on your recovery sheet. This code will serve as your Ledger backup, so as long as you keep the recovery sheet somewhere safe, you can always recover/restore your wallet and coins even if you lose your Ledger.

HD Wallet

Ledger uses a mnemonic phrase for its HD wallet. This means that using that recovery phrase, the Ledger automatically generates many wallet addresses for you to use, and using your Ledger you can control all of them with ease. This helps protect your privacy on blockchains such as Bitcoin (so nobody can trace your exact bitcoin balance), and helps you generate addresses for different people/services to pay you (one for your friend, one for an exchange service, etc).

Physical Display and Buttons

Ledger comes with a built-in display so you can see your transactions, and physical buttons on the device so you can approve/confirm them from the Ledger. This acts as another factor of security, as malware can't "press" the buttons for you, so only a person with the actual Ledger can approve transactions.

Electrum Integrations, etc

Ledger also integrates with many other services and wallets, such as Electrum. Electrum is a very popular software crypto wallet, and has a feature where you can integrate with your Ledger Nano S.

Security Features

Now, let's go over the security features that make Ledger stand out, and see why hardware wallets are much more secure than other ones.

Internal Secure Element

Your Ledger comes with a separate secure chip to ensure that your cryptocurrency won't be hacked. Also, when writing down/saving your recovery backup phrase, instead of being shown on a computer/phone (where viruses can screenshot it or others can take pictures), it's shown piece-by-piece on your Ledger built-in screen so nobody else can see/receive it.

4-Digit PIN

Just physically having the Ledger is still not enough to access the cryptos stored. When plugged into your computer, Ledger will prompt you for a four-digit code to make sure only you can get your coins.

Don't worry; if you forget your pin, you can still restore your wallet using the mnemonic backup key/code you copied in the Ledger setup (from the recovery sheet).

Isolated Environment

Everything that requires security/privacy is done on the Ledger itself, from the beginning setup of your wallets to signing transactions. Only after the transactions are signed on the Ledger are they sent over to your computer to be broadcast into the Bitcoin network (or other network depending on your crypto).

You Own Your Private Keys

This is an unbelievably important feature of the Ledger, or any other hardware wallet: your private keys are never exposed to anyone else; only you own them. Your private keys are locked into the secure element of your Ledger, and no exchange service or online wallet can access them (unless you want them to).

How to Buy

There are a few things that you need to know before buying the Ledger Nano S.

First, you should never buy from a third-party website. Never buy from eBay, Craiglist, other sketchy sites or even Amazon. These products may be compromised and may be fake. Always buy from the real Ledger website here.

Make sure the website you're buying from is "ledgerwallet.com" and that it's HTTPS-secure (green lock on browsers such as Chrome or Opera).

Second, be wary that it's not going to ship the next day generally. Ledger wallets are in very high demand, so it could take quite some time (a month or even more) for yours to ship. The estimated shipping date will usually be on the Ledger website when you buy, but don't expect it very soon.

Lastly, Ledger also sells another product called the "Ledger Blue." The Ledger Blue is basically identical to the Nano S feature-wise, except for its Bluetooth support and its larger tablet-like screen. It is, however, much more expensive. I personally think that the Nano S satisfies most users' needs, but if you need a larger tablet-like screen and/or Bluetooth support, you can buy the Blue.

Hopefully, you enjoy your new Ledger, and the security and peace-of-mind it brings with it.

If you liked this article/review, make sure to upvote/resteem/follow for more :)

Thanks for reading,
— @mooncryption