What is a Ledger hardware wallet?
Ledger is a line of hardware cryptocurrency wallets that store private keys in a secure element physically isolated from a computer or phone. The device signs transactions inside its protected environment so the private keys never leave the device. That design dramatically reduces the attack surface compared to software wallets that run on general-purpose operating systems.
Security model — why hardware wallets matter
Hardware wallets protect your seed phrase and private keys from remote attackers such as malware, keyloggers, and phishing websites. When you initiate a transaction on a connected computer, the unsigned transaction is sent to the hardware device; you verify details on-screen and approve the signature with a button press. The signed transaction is returned without exposing the private key.
Basic setup (high-level)
- Buy from a trusted source — purchase directly from the vendor or an authorized reseller to avoid tampered units.
- Initialize the device offline: choose a PIN, generate a recovery (seed) phrase on-device, and confirm it exactly as shown.
- Write the recovery phrase on a physical medium (metal backup recommended) and store it in a safe place.
- Install the official companion app (Ledger Live) from the official website; add accounts for the blockchains you use.
Recovery phrase — single point of truth
The recovery phrase (commonly 24 words for Ledger) is the ultimate master key. Anyone who knows it can restore your funds. Treat it like cash: never store it digitally, never photograph it, and never share it. Consider a metal backup plate for resilience against fire, water, and time.
Daily use — best practices
- Always verify transaction details on the device screen — attacker-controlled hosts can show misleading info on your computer.
- Keep firmware up to date — updates often patch important security issues, but verify update guidance from the official site.
- Use a separate "hot" wallet for small, frequent payments and keep larger balances in the hardware wallet (cold storage).
- Be cautious of social engineering: phishing websites, imposter support accounts, and fake firmware prompts are common.
Compatibility & advanced features
Ledger supports many blockchains via direct Ledger Live integration or third-party wallets (e.g., MetaMask, Electrum). Advanced users can use passphrases (25th word) to create hidden wallets — powerful but increases complexity and the risk of irrecoverable loss if you forget the passphrase.
Common pitfalls
- Writing the seed on a single sheet of paper and keeping it in a wallet or phone — physical loss or damage is common.
- Entering the recovery phrase anywhere other than the device during setup — that defeats the whole purpose.
- Falling for unsolicited support requests or links — always verify URLs and contact channels.
This page is an educational overview and not financial advice. Always do your own research and follow up with official documentation when performing sensitive actions.