Bitcoin Forum

0) General information
1) Unpacking
2) The Ledger Nano
3) Install
4) Using the Ledger Nano Wallet
5) Conclusion
6) How to purchase

0) General Information + Hardware Needed to buy
As said by the Manufacturer: Ledger Nano is a Bitcoin wallet on a smartcard device, small format and low weight. Comfortable and simple to use, you connect it directly to a USB port to manage your account, protect your bitcoins and make safe payments.

Specs:
Size: 61mm x 12mm x 4mm.
Weight: 5.87g.
Lifespan: 30 years / 500.000 write cycles.
Materials: Aluminum, Plastic and Silicium.
Compatibility:Windows, Mac, Linux, Chrome OS, or Android.

The Ledger Nano is one of the wallet's ledger makes to safely store your bitcoin's.  They do produce other version's of the Ledger but I wanted to start with the Ledger Nano that is the one I have seen the most talk about.  This wallet does do a good job on capability listed above, where it is not hard to find a compatible device. It is also integrated in multiple wallets or on the Chrome application, so there is a variety of wallets you can choose from.  Perhaps one of it's biggest features is the price, it is priced where even if on a budget this is likely in your range.  

1) Unpacking
Your Ledger Nano will arrive in a box that has your wallet and if you purchased accessories as well. Within the box you will find your Ledger Nano in a smaller box with packing with it to make sure it arrives to you safely.  There is also shrink wrap around the boxes within.  Within the Ledger Nano box you will find the following Included: The Ledger Nano, instructions, recovery sheet, security card, security card holder, lanyard, and key chain.  

I also have two extra accessories the Ledger Starter, and Ledger OTG for use with smart phones. The extra accessories are extra and optional to purchase.  But I highly recommend getting the Ledger Starter.   As the Ledger Starter features an isolated offline operating system, in short this means even if your computer was compromised you still start off secure. With this you can insure your seed words are secure and only in the recovery packet you write them in.





2) The Ledger Nano
Below are images to showcase the Ledger Nano Wallet.





3) Install
Before doing this I would actually update your Ledger Nano via the Chrome Extension on your regular OS.  This should save you from doing a recovery after update of the Ledger Nano.  Follow the onscreen steps on the update.  The install is very simple no matter what way you choose.  I will go over the install with using the Ledger Starter. It will start you off in a secure, offline operating system is important.  So even if your regular OS is compromised by using this via booting in USB you are still starting securely.  

1) Plug in your Ledger Starter in your USB port when the computer is off, and boot up your computer to where it boot's up via USB Operating System. (Key varies depending on computer to select what to boot from)
2) Once booted up select the Ledger Live option, this is option one as it contains everything you will need.
3) After that you will see it boot up a live Linux OS for Ledger, just let it boot up and you will be able to create a new wallet via option one.  (If needed there is also recovery and delete wallet options.  
4) After you select the new wallet first you will select your PIN number.  After you will want to write down the 24 seed words on the recovery sheet.  
5) Now type Yes and it move to part where you follow the on screen messages and will allow you to insert your Ledger Nano to create your wallet on it.


The install is also shown by Ledger above and show's from beginning to finish on making your new Ledger Nano wallet from the Ledger Starter OS. After this you will have your Recovery Sheet filled up with 24 words. Also in this recovery sheet is a QR code that links your Ledger Nano to it's security card.  You will want to store Recovery Sheet somewhere safe after you have your Ledger Nano set up.

4) Using the Ledger Nano Wallet
You now have your wallet all set up, you can send and store bitcoins safely with your Ledger Nano.  One unique thing to this wallet is how important the security card is.  When sending you will use it, so it is vital to keep this card with your wallet. To show how to use your Ledger Nano here is a short video below:


5) Conclusion
I have just started using my Ledger Nano within the past few day's.  They have been able to produce a hardware wallet to securely store bitcoin's at a low price point as far as hardware wallets go.  So far it has been a good test of it.  This wallet really does use the security card to add another level of security. This prevents compromised system sending Bitcoin as it has to do a check with the security card.  It is a unique but effective technique to keep your wallet from being compromised.

I would suggest using a different PIN for this wallet then you do for your other hardware wallets or software wallets.  With it using the computer's screen if your computer is compromised your pin could be vulnerable.  They would not be able to do anything with it as they don't have the ledger or security card. But the pin still could be captured.    

Also Ledger wanted to make sure to note this Ledger Nano is provided for a review.  I receive no compensation if you buy a wallet from them or not.  You will notice link to purchase is direct and not a short link, or other way's for tracking sales.  This is nothing new I make guides where I don't receive money off sales. This makes it where I have no reason to push for you to buy, and I am able to share an accurate review.


5) How to purchase
Below is link to order direct
1) Direct - https://www.ledgerwallet.com/products/1-ledger-nano

A feature I have been testing out is the ability to use the Ledger Nano in combination with an Android device.  This allows you to have access to your Ledger Nano Account on the go.  I have the setup below to import your Ledger Nano to your android Mycellium wallet.  To show how to send I will use a great video from Ledger.  To be able to do this I am using the OTG cable that Ledger sales in it's store.



How to use:
1) Select the cold storage from the settings option with Ledger Nano attached via OTG cable.
2) Select the advanced button on the next screen to allow you to see import options.
3) It will then give you a good option of what account to import, select the Ledger option.


4) A box will pop up asking for your PIN.  After you enter your PIN it will move to the import account screen.
5) It will then allow you to select the account, if you use multiple it will show them all.  Click on mobile device the account you want to use.
6) Now it ask you for an account label.  Enter one to be able to move on to next screen.
7) You now will successfully imported your Ledger Nano account. You can now use it on your mobile device.   







This is a nice feature to have if you need access to your Ledger Nano on the go.  Users who are mobile a lot will get a lot out of this.   You retain security needing to have Ledger Nano plugged into the device, the PIN, and also when sending the security card. The video does a great job showing how the use of the security card on the mobile wallet when sending.

So this is a good feature to have if you need to spend more then you carry on your hot wallet.  It is much more secure then your standard hot wallet so I feel better using it on the go personally.  Depending on your situation this might be a great feature for you.

As I was saying, great write up as usual and I enjoy reading your 'hands on'  threads!  ;D

Thank you for posting :).   I enjoy doing these.  I do plan on expanding a few of them a little more.    I'm glad that people enjoy reading them. 

This latest set of hardware wallets has been fun to try and compare them.

You've been doing some quite nice reviews/write ups :) Any plans on doing one on Ledger HW.1?

Thank you! Possibly in the future.  I still have a few features I feel I have not touched on with current one's.  I really do plan on using that expansion space.  

...

notlist3d

A very nice write-up, thank you for posting. 

I bought a Ledger Nano a little over a year ago and am very happy with it.  It works just fine, and has a great price.

I have not bought (nor, obviously, tried to use) the Ledger Starter for safer installation of the Ledger wallet, but I will have to look into that.  Perhaps I can have Eric L. help with that at the TNABC in Miami in late Jan.

Can I send and receive a Bitcoin with the Ledger Starter OS, or it just work with the Chrome extension?

hey Nolist this is an other good review, are you planning to review all the hardware wallet? there was those two usb HW wallet(i forgot the name) that interested me, they cost a very low amount of money

The Ledger Starter is a offline OS so you won't be able to send from it.  You can create a new wallet, recover a wallet, or delete a wallet.   

It does work with the Chrome extension.  You need it to do an update when you get it.  But after you do have a choice of many different wallets that can use Ledger Nano.

My plan it to do more, but I currently don't have any others on order.  I still have a few features I would like to cover in ones I already have.  If you or anyone has a suggestion for one feel free to let me know I can't promise I can do them all but I don't mind requests.

Thanks for the detailed review :D. What happens if the USB breaks down or gets stolen? which will be the procedure to recover the wallet?

does this offer the same protection as the trezor, when you plug-in in a infected pc for example?

As far as recovery same as any other ones.  You can get a new one and recover it from the 24 seed word's you get during the Ledger start creating a wallet.  As mentioned above you write down in Recovery Sheet.  You MUST do that step as it allows you to recover it.  

This is why Recovery Sheet should be stored safely it is the same as other hardware wallets in this aspect.

It uses a different way  to offer protection.  If computer is infected it's possible that it might get the PIN.  With this you could view inside if Ledger Nano was in computer, it would need it to be connected to infected computer.  This is why I mention I would use a different PIN then wallet's with LCD where it randomizes numbers where when you click on screen a infected computer has no idea what is being clicked.

But it still could not send even if PC was infected and had the PIN.  When sending you need to have the security card.  It will ask challenge question that if you don't have the card you would not be able to send. Part 4 if you click on that image it show's this being used.

Also with Ledger Nano if you enter PIN 3 times wrong, it erases wallet.  So if stolen or lost it cannot be brute forced on the PIN.  You can recover it with seed words if you accidentally did it yourself.  

They did a good job of making it work with regular USB drives.  I think it is a little better built as far as most USB drives, they estimate around 30 year's which mean's it has a lot of writes till device start's to fail.

It is a small form factor I need to take a few more pictures to show lanyard on it.  It is much harder to lose with included lanyard or key chain which both are included.

i have already two of them and is great! I have buy one of them through their official store in OpenBazaar before months :) They have and a great support if you ask something they answer very fast/ Before some time i ask for their android app .apk file and they give it to me. I have ask the same and from bitpay(copay) and coinbase and i am still waiting for response...is three months now.. :P

does the challenge question asked is different each time? because an advance keylogger with screen logger, can see everything the user is typing and screening

The video implies that there are 4 challenge characters that must be entered, and that the 4 are different every time.
A really sophisticated key logger could potentially duplicate the security card by collecting the answers over many uses, but that threat is mostly theoretical at this time.

The PIN, however, is typed in the clear when you first connect to the Ledger Nano.

If you want higher security, you'll need to buy a more expensive hardware wallet with a screen and buttons, like the Trezor or the Ledger Blue. These eliminate the key logger threat by providing a direct interface to the user, without going through the vulnerable browser/OS.

Great points, why I use a Trezor instead of a Ledger Nano. Have you had a chance to evaluate the new Ledger Unplugged (https://www.ledgerwallet.com/products/6-ledger-unplugged)?

Yes I suggest watching the video to see how it works.  But there are uppercase letter's (26), lowercase letter's (26), and digits (10).  So a total of 62 completely different possibilities on the card to challenge against.  And to send there are 4 you have to give anwser to.   And this changes each time you send.  Also you need the PIN before this and if PIN is entered 3 times wrong it erases wallet.  

So combine this with needing the Ledger Nano plugged in it is almost impossible as I don't see user's leaving Ledger Nano plugged in when not in use.  But i see your point almost impossible is not impossible when we talk in theoretical.

And if you are worried about above not being enough there is a feature to pair with smartphone.  With this you use your smartphone after a challenge on it to confirm sending transactions.  So if you did this only 4 of the 62 possible answers is ever shown and it's answered on smartphone.  So you would need ledger plugged in your computer and smartphone to could confirm transactions after pairing.

So if the first one is not secure enough you could move to smartphone pairing.  With this the I don't see it being defeated as you would need access to the Ledger Nano itself and also the smartphone.

Smart Phone Pairing:  

there is something like trezor or ledger blue, but in the form of an usb? it's better to no get around with something that scream " hey i'm carrying a wallet.dat here" mostly in real life, a usb it's more of a reserved thing

As far as Ledger Nano carrying any key's they will not leave Ledger Nano just like other wallets I reviewed.  It sign's transactions and keeps everything safely on the Ledger Nano.

It is not like a regular usb stick where you could make a copy of a wallet file.  To make a copy you would need another Ledger Nano and the recovery seed word's which should be safely stored in recovery book offline and in a safe place.

But if your thinking this is a regular usb drive with wallet info it is far from that.

The Ledger Nano is still working very well.  I recently tried using it with android mobile phone and it is a nice feature for those who need access to it on the go.    A update to hands on is coming to show that.

There is a reason I save those posts under :).  I do intend for it to be there in the near future.

If you loose the ledger nano and you don't have another one can you still backup the wallet?
Can you backup the wallet only with the 24 seeds in another client or mobile app? as PIN is used only with ledger

Looks like the Ledger Nano is the perfect way to bring some bitcoin along on a holiday or travels for instance.

For more demanding stuff, like have traffic through the wallets in the device, it would be better to use something like a Trezor which does not have the weakness of potentially revealing the secret card code after several uses.

The good news if you lose it you can restore with seeds on another wallet here is official response: "In case of loss or theft of your Ledger Wallet, or at any time, you can restore your entire balance either on a new Ledger Wallet or on any BIP39 compatible software wallet such as Multibit HD or Mycelium."   

So the pin is just used as extra security on the hardware wallet.  Those seed's should be stored very safely as it is the way to restore your holdings.

It's all personal preference.  If you need more security you will find a post I talked about linking wallet with phone.  - https://bitcointalk.org/index.php?topic=1305888.msg13384208#msg13384208

Read that post I don't want to clutter it up and explain it twice.  But the short version is you could link it to your phone and you would never share more then 4 of your codes, so that weakness really can be whipped away if using phone to verify.

I read fast in their FAQ and was thinking why should i order 2 (1 active and 1 for backup)
Checked in Mycelium and they support restoring the wallet with 24 seeds from Ledger thanks for the helpful info.

My biggest advice  for someone getting Ledger Nano is go ahead and also get the Ledger Starter - https://www.ledgerwallet.com/products/7-ledger-starter

It is a nice metal usb with 100 percent safe and offline OS for 5.50 euro.    But this ensures your seeds are secure and even if PC was infected since booting up this live linux OS your Ledger Nano is still secure.

On second post it now deals with using the Ledge Nano on a Android device - https://bitcointalk.org/index.php?topic=1305888.msg13375015#msg13375015 .  It is a nice feature to have.  If your a mobile user on the go a lot I suggest you check it out.

Are there any news of how Ledger Nano has been upgraded/updated in 2017? I am seriously thinking to buy it but I'd like some more recent feedback.