LEDGER WALLET

Ledger Wallet Overview

Cryptocurrency ownership brings great opportunity—but also a great responsibility: safeguarding your assets. This is where hardware wallets come into play, and Ledger is among the most trusted names in the industry. In this module, you will explore the fundamentals of Ledger wallets, understanding their importance, functionality, features, setup process, and benefits over other wallet types.

Whether you're new to crypto or have been investing for a while, this module will guide you step by step through the essential knowledge required to confidently and securely manage your digital assets with a Ledger wallet.

What Is a Ledger Wallet?

A Ledger wallet is a type of hardware wallet used for storing the private keys to your cryptocurrencies offline. Unlike software wallets or exchange-based wallets, which are connected to the internet and are vulnerable to hacking, Ledger wallets provide cold storage, which greatly reduces the risk of theft.

Manufactured by Ledger SAS, a France-based company founded in 2014, Ledger wallets have become a preferred solution for both individual investors and institutions. The devices come in various models—mainly the Ledger Nano S Plus and Ledger Nano X—each offering varying levels of functionality based on user needs.

Why Use a Ledger Wallet?

The core principle of blockchain technology is decentralization and ownership. However, when you store your crypto on an exchange or a custodial wallet, you don't fully own your assets—you simply have access to them through a third party. This introduces risk.

Ledger wallets solve this problem by allowing you to store your private keys offline—in a secure chip inside the device. This ensures:

  • You control your crypto
  • No one can access your funds without physical access to your Ledger and PIN
  • Even if your computer or smartphone is hacked, your crypto remains safe

By the end of this module, you’ll understand why using a Ledger wallet is a critical step in securing your digital wealth.

Types of Ledger Wallets: Nano S Plus vs. Nano X

Ledger offers two main wallet models that are most relevant today: the Ledger Nano S Plus and the Ledger Nano X.

Ledger Nano S Plus

  • Entry-level model
  • USB-C connection (no Bluetooth)
  • Larger screen compared to original Nano S
  • Supports up to 100 cryptocurrency apps
  • Excellent value for price
  • Best for users who access their wallet from a desktop

Ledger Nano X

  • Premium model
  • Includes Bluetooth for mobile usage
  • Built-in battery (can be used wirelessly)
  • Supports same number of apps but optimized for mobility
  • Ideal for people who want full access on the go

This module breaks down the technical and functional differences between the two, helping you choose the device that aligns with your goals and lifestyle.

What’s Inside the Box?

When you receive a Ledger device, the box will contain:

  • The Ledger wallet (Nano S Plus or Nano X)
  • USB cable for connecting to your PC or Mac
  • Recovery phrase cards (to write down your 24-word backup)
  • Quick-start guide
  • Accessories such as a lanyard or stickers (may vary)

Important security tip: Always purchase directly from the official Ledger website or certified partners. Never use second-hand or resold devices, as they may be compromised.

Setting Up Your Ledger Wallet

The initial setup is simple but very critical for long-term security. Here’s what you’ll do:

  1. Connect the Device: Plug your Ledger into a computer or mobile device using the USB cable (or Bluetooth for Nano X).
  2. Choose a PIN Code: You’ll set up a secure PIN, which acts as a lock screen for the wallet.
  3. Write Down the Recovery Phrase: This is a randomly generated 24-word seed phrase. This phrase is the only way to recover your wallet if it’s lost or damaged.
  4. Verify Phrase: Ledger will ask you to confirm certain words from the phrase to ensure you wrote it down correctly.
  5. Install Ledger Live: This is the official companion app that lets you manage assets, install apps, send/receive crypto, and more.
  6. Add Crypto Apps: Depending on what coins you hold (Bitcoin, Ethereum, etc.), you’ll install those specific wallet apps on your device through Ledger Live.

Once this is complete, your device is ready to use. You can now receive crypto, send assets securely, and interact with decentralized finance apps—all with the safety of offline key storage.

Ledger Live App: Your Control Center

The Ledger Live application is where you interact with your wallet. It’s available on desktop and mobile, and includes features such as:

  • Real-time portfolio view
  • Market prices for your holdings
  • Send/receive functionality
  • Install and manage crypto apps
  • Staking options (for select coins)
  • Access to NFT and DeFi integrations

Ledger Live ensures that even though your private keys are stored offline, you can still easily and securely transact online.

Security Features of Ledger Wallets

Ledger devices are built with an embedded secure element chip (CC EAL5+), the same technology used in passports and credit cards. This protects your keys against:

  • Physical attacks
  • Malware
  • Data extraction

Ledger also uses a custom operating system (BOLOS) which isolates each crypto app from one another, reducing attack vectors. This layered security model is a big reason Ledger wallets are trusted by over 6 million users worldwide.

Common Use Cases of Ledger Wallets

Here’s how people around the world use Ledger wallets:

  • Long-term storage (HODLing): Keeping large amounts of crypto safe for years
  • Active trading: Transferring funds to exchanges temporarily, then moving them back to Ledger
  • DeFi participation: Interacting with decentralized apps through tools like MetaMask + Ledger
  • Staking: Earning passive income while keeping coins offline
  • NFT storage: Safeguarding valuable NFTs securely

This module explains how Ledger integrates with these workflows, and where to use it best.

Why This Module Matters

By understanding the full scope of Ledger wallets, users can:

  • Avoid common mistakes (e.g., losing their recovery phrase)
  • Prevent theft by keeping private keys offline
  • Gain peace of mind when dealing with large crypto holdings
  • Integrate with advanced features like staking and NFTs

Whether you’re storing $100 or $100,000, this knowledge is essential.

Module Takeaways

After completing Module 2, you’ll know how to:

  • Differentiate between Ledger wallet models and pick the right one
  • Set up and secure your device safely
  • Use Ledger Live to manage and monitor your crypto
  • Understand how hardware wallets protect against real-world threats
  • Connect your wallet to popular Web3 tools

You’ll walk away with more than just technical knowledge—you’ll have practical, hands-on confidence to protect your assets in today’s rapidly evolving digital landscape.