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Author Topic: How to use a ledger hardware wallet for maximum privacy?  (Read 2836 times)
Bohollen
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September 29, 2016, 08:22:43 PM
 #1

Hi,

First of all, I'm a bitcoin noob so please bear with me Smiley I have just received my Ledger Nano S on which I plan to store all my bitcoins. Now I would like to have some advice on how to use this hardware wallet and still protect my privacy.

I do not want my ip adress connected to my bitcoin wallet when using my ledger. Is there a way to accomplish this? Can I for example use the ledger wallet toghether with TAILS? Or can I route through Tor in any other way?

All advice you can give on how to initialize and use my ledger wallet for maximum privacy would be much appreciated!

Thanks!
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September 29, 2016, 08:32:05 PM
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Electrum is contained in TAILS, so you should be able to use your hardware wallet. Although, I've never tried it.
As long as you use your wallet only with TAILS, your real IP should never connect.

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September 30, 2016, 03:21:51 PM
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I don't know if you are able to use the Ledger Nano S wallet with Electrum. On its page electrum is missing. The ordinary Ledger Nano got it. I only go the normal Ledger Nano, it is not possible for me test it.

I don't know if it is optimal to run a chrome app, as you need to connect a google account to it and it might reveal your identity. Instead you might be able to download Copay and install it inside of TAILS, as the Ledger Nano S supports Copay. I got no TAILS drive, so I can't test it. (I might be able to boot a TAILS VM and test it)

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Bohollen
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September 30, 2016, 04:03:20 PM
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I don't know if you are able to use the Ledger Nano S wallet with Electrum. On its page electrum is missing. The ordinary Ledger Nano got it. I only go the normal Ledger Nano, it is not possible for me test it.

I don't know if it is optimal to run a chrome app, as you need to connect a google account to it and it might reveal your identity. Instead you might be able to download Copay and install it inside of TAILS, as the Ledger Nano S supports Copay. I got no TAILS drive, so I can't test it. (I might be able to boot a TAILS VM and test it)

I'm not sure if it's possible to install external applications into TAILS? Electrum is preinstalled so I figured I should use that. But it sucks if the Nano S does not support Electrum. So what options do I have for retaining privacy while using the ledger nano s? Is it possible to use it without TAILS but still routing all traffic through Tor? Or would I be better off storing my bitcoins in Electrum on a regular TAILS drive?

Thank you both for taking time to reply. It's much appreciated!
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September 30, 2016, 05:06:23 PM
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I don't know if you are able to use the Ledger Nano S wallet with Electrum. On its page electrum is missing. The ordinary Ledger Nano got it. I only go the normal Ledger Nano, it is not possible for me test it.

I don't know if it is optimal to run a chrome app, as you need to connect a google account to it and it might reveal your identity. Instead you might be able to download Copay and install it inside of TAILS, as the Ledger Nano S supports Copay. I got no TAILS drive, so I can't test it. (I might be able to boot a TAILS VM and test it)

I'm not sure if it's possible to install external applications into TAILS? Electrum is preinstalled so I figured I should use that. But it sucks if the Nano S does not support Electrum. So what options do I have for retaining privacy while using the ledger nano s? Is it possible to use it without TAILS but still routing all traffic through Tor? Or would I be better off storing my bitcoins in Electrum on a regular TAILS drive?

Thank you both for taking time to reply. It's much appreciated!
I'm not a TAILS expert, so I don't know if it is possible to install external programs on TAILS. If you aren't able to do it, it completely removes all options of using your Ledger Nano S, as it requires either Chrome or Copay. (As explained above).
If you are able to install Copay (Which is preferred over a chrome extension) on an OS (Preferable a Linux distribution) and route all network connectivity via Tor, you should get 99% of your concerns privacy. Not quite as good as running directly onto TAILS.

About the second solution, that would be possible. You just need to make sure you got a secure way to import your private key(s) into Electrum each time you want to sign a transaction/message. (as it deletes your session every time you reboot) It covers your privacy better, but it is less secure. It wouldn't work as a cold storage, as your private key(s) could get compromised.

I don't know if it would work, but you could try trading your Ledger Nano S for either an Trezor or a Ledger Nano S. (Just my 4 cents)

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October 04, 2016, 01:45:40 AM
 #6

There are many things you can do to maximise privacy.

1. Initialise using the specialised air-gapped installation iso, found at http://support.ledgerwallet.com/knowledge_base/topics/how-to-initialize-my-ledger-wallet-on-an-air-gap

2. Use the Iron browser (Privacy and Security focused fork of Chrome. It should support Chrome extensions)

3. Use a different "account" in the ledger application for each transaction you make, or use Electrum with your coin selection mode set to "privacy".
FrilledShark
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October 08, 2016, 08:14:18 AM
 #7

I'm sorry to bump this thread, but the Ledger nano S is now compatible with Electrum. Which means you will be able to use your Ledger wallet with TAILS. You might need to wait for a new update including it, but after that you are able to obtain your wanted level of privacy.

Source: https://bitcointalk.org/index.php?topic=1634517.msg16438281#msg16438281

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High value lender – Within 24 hours, I can fund your 10 BTC loan. Give me 48 hours and 20 BTC will be ready.
While above stands, I do still provide loans.
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