Ledger Nano S: Bitcoin and Ethereum Hardware Wallet Beginner’s Guide

126 Pages·2017·3.53 MB·English

by  Shokoyo Matsushita

Ledger Nano S

Bitcoin and Ethereum Hardware Wallet
Beginner’s Guide

Shokoyo Matsushita
Copyright 2017 – Shokoyo Matsushita.
All rights reserved.

The information in this book represents only the view of the author. As of
the date of publication, this book is presented strictly for informational
purposes only. Author has made every attempt to verify the information in
this book and assumes no responsibility for errors, omissions, or
inaccuracies. The presentation of the information is without contract or
any type of guarantee assurance.
It is illegal to reproduce, duplicate, or transmit any part of this document
in either electronic means or in printed format. Recording of this
publication is strictly prohibited and any storage of this document is not
allowed unless with written permission from the publisher.
The trademarks that are used are without any consent, and the
publication of the trademark is without permission or backing by the
trademark owner. All trademarks and brands within this book are for
clarifying purposes only and are the owned by the owners themselves,
not affiliated with this document.
Table of Contents

Introduction
What’s in the box?
Contents
Basic Setup
Plug-in Baby
‘Welcome’
‘Configure as new device?’ or ‘Restore Configuration’
‘Configure as new device?’
‘Choose a PIN code’
‘Write down your recovery phase’
‘Your device is now ready’
Restore configuration
Resetting your device
Why do I need PIN code and recovery phrase?
PIN code
Recovery phrase
What if my device gets lost/stolen?
Recovering funds using a new Ledger Nano S device
Recovering funds using your computer
What if I lose my recovery phrase?
Hidden accounts
Introduction
Why use hidden accounts?
Setting up a second PIN code
How to set up hidden accounts on your Ledger Nano S
Introduction
‘Passphrase attached to a PIN’
‘Temporary passphrase’
How to recover hidden accounts
Using your Ledger Nano S for Bitcoins
Securing your Bitcoins
What is stored on your Ledger Nano S?
‘How many coins can I store on my Ledger Nano S?’
Using Ledger’s Bitcoin wallet app
‘Which Bitcoin chain do you want to use?’
Bitcoin
Legacy or SegWit
Legacy
Receive BTC
Send BTC
SegWit activation
Legacy versus SegWit
Scalability
‘Soft fork’
‘Hard fork’
Why choose legacy?
Why choose SegWit?
What are signatures?
SegWit and signatures
Bitcoin Cash
Using your Ledger Nano S for Ethereum
Disable third-party apps
Disable ‘Browser support’
Ethereum and Ethereum Classic
Sending/receiving Ether
Sending Ether
Ethereum: ‘gas’
‘Gas Price’
‘Gas Limit’
‘ADVANCED MODE’
Receiving Ether
Using your Ledger Nano S for Ripple (XRP)
Installing the Ripple app
Installing the Ripple app on your Ledger Nano S
Ledger Wallet Ripple
Send XRP
‘ADVANCED MODE’
Destination tags
Receiving XRP
Overview of Ledger apps
Introduction
How many apps can I use at the same time?
Bitcoin app
Ledger Manager
Which coins does the Ledger Manager have apps for?
Ethereum ERC20 Tokens
Using Ledger Nano S with MyEtherWallet
Guide to using MyEtherWallet with your Ledger Nano S
Sending Ether
Sending ERC20 tokens
Using Ledger Nano S for 2 Factor Authentication (FIDO)
About hardware wallets and cryptocurrencies
Why do I need hardware wallet?
What is cryptocurrency?
Cryptocurrency addresses
What is blockchain technology?
Transactions
‘Mining’
Bitcoin – Limiting the Supply
Blockchain – Unharnessed Potential
Blockchain – trust and responsibility of the users
Thanks!
Introduction
Congratulations on purchasing (or thinking about purchasing) a Ledger
Nano S cryptocurrency wallet. The Nano S is widely regarded as one of
the best wallets on the market today, with tens of thousands of
cryptocurrency enthusiasts, the world over, opting to trust Ledger’s sleek
little device with the task of protecting their precious crypto assets (or,
more specifically, the corresponding private keys – more on this later!).
This book will guide you through the process of setting up your Nano S,
step-by-step, in a simple and straightforward manner, while explaining
some of the jargon you’ll encounter along the way. All the relevant
websites and apps will be explained, i.e., the Ledger Wallet Bitcoin
Chrome app and the Ledger Wallet Ethereum Chrome app, along with
complimentary third-party tools, such as MyEtherWallet.
Don’t worry if some (or all!) of the above sounds alien to you at this point;
you’ll soon be well-versed in all that relates to the Ledger Nano S and, as
such, will be fully primed to get the very most out of your shiny new
device. We’ll begin by briefly listing and explaining each item in the box,
before going on to take you through the first-use process, i.e., what
happens when you plug your Ledger Nano S into your computer, using
the USB cable provided, for the very first time. So, let’s dive in!
What’s in the box?
Contents:
Ledger Nano S
Micro-USB cable
Lanyard
Keychain with key ring
Recovery sheet for documenting recovery phrase
Ledger obviously took a leaf out of Apple’s book when it came to the
presentation of the device. The packaging is beautifully constructed, with
the device displayed like an expensive jewel in the centre of a soft foam
rectangle and the accompanying accessories and welcome booklet
housed neatly behind. Upon opening the box for the first time, you’ll no
doubt be wowed and reassured by Ledger’s sleek and sexy design.
Please note, it’s possible that you might have come across some
customers’ videos of unboxing their new Ledger Nano S devices with a
grey ‘anti-tamper’ sticker on one side of the box. Ledger no longer
employs these stickers so please do not be alarmed if your device arrives
with no sticker on the side.
Ledger uses a much more reliable method of authentication than a
sticker which could be easily counterfeited. Upon first usage, your Ledger
Nano S device will be checked by the Ledger application to ensure that it
is genuine and that it has not been tampered with in any way, so there’s
no need to worry…
For clarity, Ledger includes a ‘Did you notice’ card with your Ledger Nano
S which explains this. If you misplace your card, the same information
can be found here on Ledger’s blog post.
When initialising your device for the first time, your Ledger Nano S will be
fully set up to open a wallet which you will be the only one to know/have
access to. Just remember to ‘create a new wallet’, during configuration
(this is covered in more detail in the next section).
Also, the genuineness of your device will be checked by the Ledger
application which you will use to manage your addresses/funds (more on