BMB - Ledger Self Custody Wallet

Introduction to Ledger Wallets

A Ledger wallet is a hardware wallet designed to securely store cryptocurrency assets offline, safeguarding them from hacks, phishing attacks, and exchange failures. Unlike storing assets on exchanges, where the private keys are held by the exchange, Ledger ensures you are in control of your private keys, providing true ownership of your crypto.

The Ledger wallet supports a wide range of cryptocurrencies and offers robust security measures, including encryption and a secure chip, to protect your assets.

Cold/hardware wallets like Ledger are the safest place for long-term storage of crypto assets. If you have subscribed to third party services such as Ledger Recover, be aware that there are instances where someone else could potentially access your ledger wallet. You do not need these third party services as long as you have clean seed phrase storage procedures in place, such as writing your phrase on paper or a metal sheet. While third party seed recovery services have their uses, it is unnecessary to have a third party provider storing your keys, as it only adds more layers where security breaches could happen.

Setup Checklist

---

Setting up your Ledger Device

For setting up a Ledger Device, please follow the official website's guide.

Select the device you have:

• Ledger Nano S Plus - https://support.ledger.com/article/360000613793-zd
• Ledger Nano X - https://support.ledger.com/article/360018784134-zd
• Ledger Stax/Flex - https://support.ledger.com/article/8166861096349-zd

---

How to Transfer Specific Assets to Your Ledger Wallet

Important Tips for All Transfers

• Ledger Security: Ensure you have your recovery phrase and PIN in a secure location
• Ledger Setup: To access a particular blockchain, you need to download the respective apps onto your Ledger (BTC, ETH, etc.)
• Double-Check Addresses: Always confirm the receiving address on your Ledger device before sending
• Transaction Fees: Be aware of network fees, especially for BTC and ETH. They can fluctuate from a couple of dollars to a few hundred. If you encounter high gas fees, try your transaction another time
• Small Test Transfers: When sending to your ledger for the first time, send a small amount to each wallet address (ETH, BTC, SOL) to ensure you have the correct address
• Confirmation Time: Blockchain transactions may take time depending on network congestion. Average times: SOL - 1-5 mins, ETH - 15 mins, and BTC 1 hour+

Tutorial on How to Receive Crypto into Your Ledger

The example used is ETH, but the process is the same for all tokens supported on Ledger.

---

Sending Assets from Ledger (To an Exchange or Another Wallet)

Step 1: Prepare Your Destination Address

1. Log in to the Destination Wallet or Exchange:

   • If sending to an exchange, log in to your exchange account
   • Navigate to the Deposit or Receive section

2. Select the Correct Cryptocurrency:

   • Choose the specific asset you want to send (e.g., BTC, ETH, USDT)
   • Copy the deposit or receiving address provided by the exchange or wallet
   • Double-check that the address matches the blockchain of the asset you're transferring

Step 2: Connect Your Ledger Device

1. Open Ledger Live:

   • Launch the Ledger Live app on your computer or mobile device
   • Ensure the app is up to date

2. Connect and Unlock Your Ledger:

   • Plug in your Ledger hardware wallet and enter your PIN

3. Open the Asset-Specific App:

   • On your Ledger device, open the app corresponding to the cryptocurrency you're sending

Step 3: Initiate the Transfer in Ledger Live

1. Navigate to the Send Section:

   • In Ledger Live, click on the Send button

2. Choose the Asset and Account:

   • Select the cryptocurrency you want to send and the corresponding account in Ledger Live

3. Enter the Destination Address:

   • Paste the address you copied from the exchange or wallet into the recipient field
   • Verify the address to ensure there are no errors or tampering

Step 4: Enter the Transfer Amount

1. Specify the Amount:

   • Enter the amount of cryptocurrency you want to send
   • You may see options to send All, a specific amount, or a fiat-equivalent value

2. Check the Fees:

   • Review the network fee. Higher fees may result in faster transaction processing
   • Adjust the fee level (if available) based on your urgency

Step 5: Verify and Confirm the Transaction

1. Confirm Details on Ledger Device:

   • Review the transaction details (amount, recipient address, fees) displayed on your Ledger device screen
   • Confirm the details using the buttons on the Ledger device

2. Send the Transaction:

   • Once confirmed, Ledger Live will broadcast the transaction to the blockchain

Step 6: Monitor the Transaction

1. Check the Transaction Status:

   • In Ledger Live, go to the Accounts or Portfolio section to see the outgoing transaction
   • View the transaction details, including the blockchain confirmation status

2. Monitor on the Destination Platform:

   • On the exchange or receiving wallet, check the deposit or transaction history section to verify that the funds are incoming

Step 7: Troubleshooting and Best Practices

1. Ensure Compatibility:

   • Always confirm that the receiving platform supports the cryptocurrency and blockchain network you're using

2. Test with a Small Transfer:

   • For large transactions, send a small test amount first to verify everything works correctly

3. Double-Check Details:

   • Always verify the recipient address multiple times to avoid errors

---

Buying and Selling Assets on Ledger

Ledger Live Exchange is an addition to the suite of Ledger software that allows you to buy and sell assets directly from Ledger Live, without taking assets off your device. Note:

• Buying and selling crypto on Ledger Live Exchange is not the most efficient process as you will be charged more in fees, but if this is your only option then it is safe
• If you are transacting with larger amounts of fiat currency, it is best to transact through your major exchange account (Coinbase, Kraken, Binance, etc.)
• Buying assets requires credit or debit cards similar to a normal hot wallet
• Selling/swapping assets (BTC → USDT) can be done to realize profits

---

Lost or Stolen Ledger Device

If you lose your Ledger device but still have your secret recovery phrase (also known as the seed phrase), you can recover your cryptocurrency assets. This is why it is so important to keep your secret phrase safe and hidden. The recovery phrase is the key to your wallet, and your funds are stored on the blockchain, not the device itself. Here's what you should do:

Steps to Recover Your Wallet

1. Obtain a New Ledger or Compatible Wallet:

   • Purchase a new Ledger device (or any hardware or software wallet that supports recovery phrases)
   • Ensure the new device is purchased directly from the manufacturer to avoid tampering

2. Set Up the New Device:

   • During the setup, select the option to "Recover Wallet" or "Restore from Recovery Phrase" instead of creating a new wallet

3. Enter Your Recovery Phrase:

   • Enter the 24-word recovery phrase exactly as you wrote it down
   • The order of the words is crucial, so ensure they are entered in the correct sequence

4. Access Your Assets:

   • Once the recovery process is complete, the new device will recreate your original wallet
   • Your cryptocurrency balances, accounts, and transaction history will be restored

What If Someone Finds Your Lost Ledger?

If someone finds your lost Ledger:

• Without the PIN code, the device is useless to them
• After 3 incorrect PIN attempts, the Ledger will automatically reset to factory settings, erasing all data
• As long as your recovery phrase is secure, they cannot access your funds

By keeping your recovery phrase safe, you retain full control over your assets, even if the physical Ledger device is lost or damaged.

---

Pros and Cons of Each Ledger Device

Ledger Nano S Plus

Pros:

1. Affordable: One of the most budget-friendly options for secure asset storage
2. Compact and Lightweight: Easy to carry and store
3. Supports Multiple Cryptocurrencies: Handles up to 100 apps simultaneously
4. USB Connectivity: Simple and reliable connection method for desktop use
5. Great for Beginners: Ideal for those new to crypto or hardware wallets

Cons:

1. No Bluetooth: Cannot connect wirelessly to mobile devices
2. No Battery: Requires a USB connection for every use, limiting mobility
3. Small Screen: Can be harder to read or verify long addresses compared to larger-screen models
4. Basic Design: Lacks premium features like touchscreens or advanced interactivity

Ledger Nano X

Pros:

1. Bluetooth Enabled: Wireless connectivity for managing assets on the go
2. Larger Storage: More storage capacity (2 MB) than Nano S Plus
3. Portable: Includes a rechargeable battery for standalone use
4. Supports Desktop and Mobile: Works seamlessly with Android and iOS devices
5. Compact Design: Easy to carry without sacrificing mobility

Cons:

1. Higher Price: Costs more than the Nano S Plus
2. Small Screen: Similar display size as the Nano S Plus, making some operations less intuitive
3. Battery Lifespan: Battery may degrade over time, limiting long-term usability

Ledger Flex

Pros:

1. Enhanced Screen: Larger 480×600 px touchscreen for better interactivity and easier verification
2. Bluetooth Connectivity: Allows wireless transactions from mobile devices
3. Improved Battery Life: Offers up to 10 hours of use
4. Stylish Design: Modern design adds aesthetic appeal
5. Customizable Features: Advanced features cater to tech-savvy users

Cons:

1. Price: More expensive than both Nano models
2. Bulky Compared to Nano Devices: Slightly larger size may be less convenient for portability
3. Advanced Features May Overwhelm Beginners: Best suited for intermediate to advanced users
4. Bluetooth Connectivity: Some users are concerned that increased Bluetooth connectivity could open up security issues, although this is extremely unlikely

---

Other Assets on Ledger

Some crypto assets such as TAO (Bittensor) cannot be sent directly to a Ledger wallet in the same way you can with Bitcoin or Ethereum. This is because Ledger Live, the software used to manage Ledger devices, doesn't natively support these networks.

They can be stored on a Ledger via compatible third-party wallets.

You can check if the crypto you hold is supported on Ledger by searching here:

https://www.ledger.com/supported-crypto-assets

If your token does not appear, you will need to connect via a compatible wallet.

Please reach out to Ryan for more information if you are trying to store unsupported assets on Ledger.

The Ledger Nano X is what Luke and the BMB team use.

---

As always, if you have more questions or need a clearer explanation, please reach out to the BMB team on Slack.