Is Ledger (Crypto wallet) Safe? An Honest Review
The Ledger Nano S and Ledger Nano X are affordable and secure cryptocurrency wallets with enhanced security features, like a proprietary operating system and a secure chip. Giving users control over their private keys, the wallets store over 1,100 cryptocurrencies.
While some of these tokens are supported by Ledger, others require third-party app installation. Considering this, you might have concerns about the safety of this wallet. Is Ledger safe? Can you use it to store your crypto without worry?
In this guide, we’ll go over the security features of Ledger. Plus, we’ll discuss the pros and cons of crypto Ledger.
Is Ledger safe? How is Ledger Protecting Your money?
The Ledger hardware wallets have several security features to ensure your crypto is safe. The most basic of these features is the wallets' inherent design.
They are a separate storage space that is completely isolated from the rest of your computer. It means no malware or viruses can access sensitive data, like passwords and private keys for cryptocurrencies.
This includes any malicious software already present on your PC. Additionally, Ledger wallets cannot be infected with malware by connecting them to an unknown computer. Besides this, Ledger wallets have the following security features.
Ledger Secure Element
The Secure Element is a chip that stores your private keys in isolation from the rest of the device. It is tamper-proof and resistant to physical attacks.
This means that even if someone gets their hands on your Ledger wallet, they would not be able to extract your private keys.
The Secure Element also includes a built-in random number generator (RNG). It is used to generate the private keys in a completely random way.
That makes it impossible for anyone to predict or guess your private keys.
BOLOS
Ledger has a proprietary operating system called BOLOS. The software ensures that the wallets are always in readiness to sign transactions, making it easy for you to use your Ledger wallet on any device.
It also makes sure that private keys never leave your hardware wallet and are completely isolated from the rest of your computer or mobile phone.
Passphrase
The most recent of Ledger's security features is the Passphrase. It is an advanced security feature that allows you to create a different set of addresses. The benefit of these addresses is that no one can access them with just the 24-word recovery phrase.
Plus, you can choose the 25th word of the recovery phrase. In this way, you can ensure the uniqueness of the recovery phrase and rest easy, knowing no one will be able to access your wallet.
However, if you use Passphrase, you must remember every character since they can be up to 100.
Common Criteria EAL5+ Chips
The common Criteria is an internationally recognized set of standards that define the requirements for security products.
EAL5+ is the highest level of assurance that can be awarded to a product and means that the product underwent an exhaustive and methodical review of its design and implementation.
The chips used in Ledger products have all been awarded an EAL5+, ensuring their enhanced security. In addition, these chips are tamper-resistant, meaning they cannot be physically modified without being detected.
Independent Audit
In addition to the EAL5+ certification, all Ledger devices are audited by an independent authority called the National Agency for the Security of Information Systems (ANSSI).
The French cybersecurity agency audits the Ledger products to confirm that they meet the stringent security requirements of EAL5+.
Ledger Security Rules
As per Ledger's website, the most important security rule is not to forget your 24-word recovery phrase. You can use this phrase to recover your account if you ever lose access to it.
Another essential security rule is never to share your 24-word recovery phrase with anyone. If someone else knows your recovery phrase, they can gain access to your account and steal your funds.
Ledger recovery phrase
Keep in mind that Ledger will never ask you for this phrase. So, if you get an email that's supposedly from Ledger and it's asking you to reply with your recovery phrase, know that it's a scam.
It's important to note that Ledger had a security breach in 2020. While this breach did not cause any monetary harm, it exposed wallet users' phone numbers, names, and addresses.
Since then, Ledger has been vocal about security practices, publishing blogs and guides on its website about personal security. The company has also removed over 170 phishing websites.
Moreover, Ledger does not have open-source firmware. It means that the code that powers Ledger devices is not available for public scrutiny. As a result, it may be a security concern for some users. But you can put your worry aside, knowing that an independent firm audits Ledger.
Personal Security Precautions
Here are some things you can do to ensure the safety of your wallet and keep the Ledger scam at bay:
Know Your Recovery Phrase: Your wallet's recovery phrase is the most integral part of its security. If you lose your wallet or it is stolen, this phrase is the only way to recover your funds. Make sure you understand what it is and how to use it before storing any money on your Ledger device.
Write It Correctly: Do NOT store your recovery phrase on your phone or computer since the whole point of a hardware wallet is to keep your assets offline. Instead, you can write down your recovery phrase. Make sure you write it down correctly since even one spelling error will make the phrase useless.
Get a Second Device: If you have a lot of coins, you might want to buy a second Ledger wallet as a backup. You can use the same recovery phrase from your first device on this second one. If your first device is lost or stolen, you can use this one to access your funds.
Ledger Pros and Cons
Before you use the wallet, it’s important to read Ledger reviews so that you can determine the usability and security of the wallet. Likewise, it’s important to know the pros and cons of the crypto Ledger.
👍 Ledger Pros
• Has a simple setup
• Relatively affordable
• Is inconspicuous since it resembles a USB stick
• Lightweight
• Device-connected private keys
• Supports over 1,100 tokens and coins
👎 Ledger Cons
• Limited storage for apps
• Nano S isn’t a touchscreen
• Limited mobile-friendliness
Summary
Is Ledger Safe? Looking at the security features and its independent audits, Ledger is a safe wallet option for storing your cryptocurrencies. However, it's essential to keep in mind the security risks associated with using any type of wallet, including Ledger.
Make sure you always use strong passwords, never share sensitive information like your private keys or backup phrases, and be aware of phishing scams. Although the Ledger hack did not cause any monetary loss, it showed the importance of practicing certain personal security habits.
If you're looking for a simple and affordable way to store your cryptocurrencies, Ledger may be the right choice for you. Just make sure you take the necessary precautions to keep your account secure.
Top 10 Ledger Reviews
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Comment
I regret to say that my experience with Ledger was highly disappointing. The customer support was practically non-existent, leaving me feeling abandoned when I encountered issues. Furthermore, the lack of transparency regarding fees and the occasional glitches only added to the headache. Overall, I would strongly advise against using Ledger for your crypto trading needs.
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Comment
There are a lot of reviews about Ledger on the Internet, and I came across only negative ones. People write that there are problems with withdrawing money. Of course, I do not want to check whether this is true or not ...
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Comment
I do not recommend this exchange for buying crypto. This company will not guarantee the safety of your assets. She can't guarantee anything at all. Everything is very muddy here.
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Comment
The main advantage of LedgerWallet is reliability. Have you ever seen an exchange that makes it a requirement to have a Ledger Nano hardware wallet? Here I am no. And LedgerWallet seems to care about keeping customer assets safe. Otherwise, the exchange is available: a deposit from $1, leverage 1:1, so it’s just right for beginners. For risky pros, it is hardly suitable. Yes, and there are only 27 cryptocurrencies. Although there are about 1500 tokens. So the question is what do you like to trade more. By the way, I know that LedgerWallet has a Bounty program: you get a reward for finding problems in the system. So the exchange improves the technical part, security. Cool.
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Comment
I have been using Ledger for a long time and even thinking about establishing cooperation. I have several wallets and I can say that it is not the second to none option, of course, but not bad either. It will be great for newbies in general because the interface is convenient and simple. If you are a professional, then it is better to buy several models because there are not enough available currencies. If we talk about reliability and functionality, then everything is fine; and no problems arise during use. The exchange is also lightning-fast, you can work with multiple accounts and track the transaction ID. For me, Ledger is currently the premier crypto exchange.
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Comment
I found the Ledger website 3 weeks ago, but despite this, I browse it constantly, because the information is up to the minute, and the news is on point and without any wasted words. My daughter also started trading, and I advised her to visit the Block School, where the information is presented very clearly and free of charge. She is overjoyed, because I could not properly explain the information to her, and here she began to apply the tasks and learn the ins and outs. I've bought several Ledger wallets and they all work smoothly. The only nuance that can be a real problem for a beginner is the first replenishment of currency. But you can figure it out, you just need to carefully read the instructions. And then it will be convenient and simple to use.
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Comment
Ledger is a site that I use most of all, no cap. I started making money on cryptocurrency precisely because of the expertise I got here. The feed always contains news on the case and with all the important links. You can also take a quality training course. Information is presented in a comprehensive manner and with examples. I think I'll set aside some money and buy a wallet soon. Since safety is paramount, I can’t rely on my smartphone and its security.
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Comment
I’m on cloud nine since the Ledger website and wallet are fantabulous. The site provides traders with a great news feed and updates, and the hardware wallet app is amazing. This is exactly what is needed, both for a beginner and a person with experience in selling and buying crypto. Everything is transparent and straightforward, without unnecessary wordiness. I generally have a news feed in the “Chosen One” so that everything is immediately at hand.
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Comment
After passing all possible courses in cryptocurrency trading, including passing the Block School sponsored by Ledger, I decided to kick the tires and try my hand in this business. In terms of analytics and training, I liked the Ledger site the most: everything is convenient and understandable there. The news is constantly updated, plus they have a lot of useful tips and good support. Their hardware wallet is also pretty good. It’s not only for storing tokens but it can also be used to buy and sell Bitcoins occasionally. There are few currencies available here and this is the main disadvantage of the Ledger wallet.
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Comment
I have been in the cryptocurrency market almost from the time they first appeared. And during this time, I have heard about so many frauds that were carried out with the owners of cryptocurrency. Therefore, as soon as I found out that they had developed a hardware wallet, I decided to protect myself. It's great that the developers have added a swap function with which you can buy and sell crypto. Now I use the Ledger wallet not only for storage but also for exchanges. Overall, I like how the wallet works. It copes well with its functions, although there are minor flaws, but not critical. I hope Ledger makes future wallet models even better.
FAQs
What is Plausible Deniability?
Plausible Deniability is the ability to deny knowledge of or responsibility for something while remaining believable. In a crypto wallet, plausible deniability means that a person who does not have the password or encryption key would still be able to deny ownership of the wallet, as they would not be able to access its contents. It can be helpful if someone's wallet is stolen or seized by authorities, as it makes it more difficult for them to prove that the wallet belongs to the person in question.
What is the 25th Word on Ledger?
The 25th word on Ledger is a part of the recovery phrase. It is a backup phrase that can be used to recover your wallet if you forget your password or lose your device. It is important to keep this phrase safe and secret, as it gives anyone who knows it full access to your wallet. Typically, Ledger has a 24-word recovery phrase. But wallet users can add a 25th word to it for extra security.
What is Passphrase?
On Ledger, Passphrase refers to an optional additional layer of security that can be used in conjunction with the recovery phrase. It is a random string of characters that users must enter along with the 24-word recovery phrase to access their wallet, giving them extra protection against unauthorized access.
What Happens If I Lose My Ledger Device?
If you have lost your Ledger device, you should first try to find it. If you are unsuccessful in finding your device, the next step is to create a new wallet using your recovery phrase. Once you have created a new wallet, you can transfer your assets from the old wallet to the new one. However, if you do not have the recovery phrase and can no longer use your device, your assets will be gone forever. Keep in mind that you should not share your recovery phrase with anyone. If someone else knows your recovery phrase, they have access to your assets.
Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
The area of responsibility of Mikhail includes covering the news of currency and stock markets, fact checking, updating and editing the content published on the Traders Union website. He successfully analyzes complex financial issues and explains their meaning in simple and understandable language for ordinary people. Mikhail generates content that provides full contact with the readers.
Mikhail’s motto: Learn something new and share your experience – never stop!
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.
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