The way I think of it is this. A hardware wallet is like a key box at a car dealership. You buy the key box (hardware wallet) and that key box has a lock on it (seed phrase) with a blank key. When they send it to you, there is nothing of value in the box, and the key to the key box is blank, so the manufacturer of the key box could never give someone a key to your keybox because it hasn't been cut yet. During setup of the hardware wallet, you cut the key to the wallet. Meaning that you are the only one in possession of that key. You now have a key box (wallet) that only you have a key to. NOW you can start putting the keys to the cars (your crypto) in the key box. The cars are out on the lot, and unless you have the keys to the cars, along with the car, they are safe. Each car (crypto address) has it's own key. So unless you have the right key, for the right car, you can't unlock it and steal the car (crypto). Now imagine that the cars are invisible, and that the owner of the dealership takes the locked key box home with him and no one knows where he lives....and he's got the only key to the key box. That's self custody. If he leaves the key box at the dealership with it unlocked....he is trusting the salesmen with the keys to all the cars. That's what happens when your crypto is on an exchange. If every goes well, all is fine....unless your salesman is SBF and he decides to give the car keys away to his friends. Not your keys, not your crypto.
Okay you seem knowledgeable, great comment. I’m wondering, this 24 word phrase, accesses an address right ? And anyone can randomly create one at any time and then put money on this address it seems. So this address is already there existing somewhere in the chain ? Like a house that hasn’t been sold, but now you’ve bought it and moved in once you create and enter your key? It also doesn’t seem like that many words for it to be impossible for someone to guess. I don’t know. Or it’s created when you enter that phrase ?
Hi, thanks for your efforts in explaining all these stuff to easily be understandable. I'm newbie to the crypto and I want more clarification. What make hardware wallet different from software wallet cuz they are basically the same as the 24 words is the key to wallet? The hardware wallet will be meaningless if someone found our 24 seed phases, cuz they can access to our wallet online anyway? or does the hardware wallet actually function as a disconnector between our seed phases and the cloud after finishing the wallet setup? Or maybe the hardware wallet limits the number of devices even if they got the seed phases? I can't distinguish between the two so far, could you help explaining more clearly? Thanks mate
is it possible that ledger itself steal our crypto since they created the wallet and they know everything about it and they may even know the key words since they give you the words.
Bullets on screen are always nice, maybe time stamped talking points. So we can get the value we are here for, leave a like and subscribe for making that Easy for us, and get onto the next thing. I did like and sub and comment anyways because I appreciate you posting it.
The 2mb storage is to allow you to install apps on to it. You need an app to allow it to recognise a certain type of crypto. The cheaper ones have less memory so you can only install up to 6 or so different apps therefore 6 different types of coin. This one allows you to manage up to about 100 coins. The memory isn't to store the 24 word phrases.
each to their own (as it should be). why not just write your seed phrases of all your wallets in a notepad. then encrypt the file in a container . and encrypt as many times you want containers into containers (like Russian dolls) - and then put on any usb and hide it ? chances someone even knows what the encrypted file hidden in (limitless) containers is next to none. Thanks for the video tho :)
So if your cold wallet only stores your keys and it has its own keys that you have to store somewhere, then how is it different than having hot wallet and storing its keys ?
Your laptop/computer can be hacked/keylogged. So if you ever enter you password for your hot wallet/seed phrase you can be hacked. Also you're trusting the company of that software that their software is secure. Hard wallet is 100% as secure as you make it.
Because it's a device disconnected from the network and power grid. A self contained safe house for your key that not a single person can access unless they're physically holding a gun to your head.
2024. Ledger asked all users to Update versions their COLD wallet otherwise u cannot use it. How is that cold? When THEY know ur keys and how much you have.
So how is a hardware wallet any better than just writing your private key down on a piece of paper if you're writing your 24 seed on a piece of paper anyway?
A crypto wallet allows you to sign transactions directly from the device, which means you never enter the private keys on a computer or mobile phone connected to the internet. The signature is done on the hardware and then the signed transaction is sent, greatly reducing the risk of digital attacks. If you relied solely on paper, you would have to enter the key manually for each transaction, which is impractical and could also expose you to keyloggers or malware that could capture your private key.
Great content, as always! I have a quick question: My OKX wallet holds some USDT, and I have the seed phrase. (behave today finger ski upon boy assault summer exhaust beauty stereo over). How should I go about transferring them to Binance?
God the amount of spam crypto comments I’ve seen on RU-vid is unreal. There can’t possibly be people out there stupid enough to message someone about investing while browsing RU-vid???? With thousands of videos on how to do this exact thing?????
yes it's ridicilous, like 50% off all comments are spam-bot-scammers. Just report the main comment when you see them as Spam, and they all should disappear.
Thanks for the forecast! Could you help me with something unrelated: My OKX wallet holds some USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). Could you explain how to move them to Binance?
Can someone tell me how to transfer USDT from BitGet wallet to Binance if I only have the seed phrase: scrub know faith win siren become slot notice chuckle shift few extra? I would like to avoid the risk of sending funds to the wrong address.
Great analysis, thank you! Could you help me with something unrelated: I have USDT in my SafePal wallet along with the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). How should I go about transferring them to Binance?
so it basically holds your seedphrase lol i just bought one yet i can buy sell and move crypto while nano x is off why did i buy this and whats the point of ever putting it on ?
So essentially the fancy security of this hardware wallet is no more secure than a paper wallet considering the 24 word recovery phrase grants access to the actual stored currency. The weakest point of failure is your level of security.
There is a thing in cryptography as public and private key. Private key gives you access. Public key can be seen by all and not compromise your access.
I don't understand this stuff at all. But I've won a hardware wallet at a crypto info day. So now, I'm trying to decide whether to keep the thing or sell it on eBay. 🙂
I am just afraid I'll lose crypto and money doing these transfers. I already lost money transfering money from coinbase to coinbase wallet by following instructions on YT video, it did send money to the coinbase wallet but when I tried to book it back to coinbase, the money never arrived. Turned out the address I copied on clipboard was different than address for my coinbase account. I now understand that you can put in a receive money request and copy the address it shows you on the crypto you are using.. Also to use ledger I think you have to use the coinbase wallet, which for me converts my local currency (euro) automatically into dollars..
I do not see any reason to use a hardware wallet. Just remember your worlds thats it. İmport it to metamask use delete. What will be the benefit of this wallet?
So hardware wallet is basically a Key for our Cloud asset that help us access it without logging in input phrase etc on such metamask or any wallet? And the masterkey is the Word manually written in paper or somewhere?
Great video but being new to crypto I have a question. Does my crypto still earn while it’s safe in the wallet? Or, does that mean I’ve taken it offline and now it sits there not making me money? If the answer is “No it doesn’t earn” then why would I want to lock up my assets? Obviously the point of investing is to make gains. Please help. Thanks
What kind of crypto do you own? It would still appreciate in value regardless of where it is. If you put 1 btc onto a hardware wallet and withdraw it in 10 years, your 1 btc will be worth whatever btc is worth in 10 years. The benefit of putting it onto a hardware wallet is to take it off of an exchange where it could be hacked or possibly withheld from you.
@@Michael-xb5zq I own XRP, XLM, Algorand, ETH and CRO. Thanks for answering this. This was never explained in all the videos I had searched regarding hardware wallets.
When you buy a house, the house appreciates or depreciates in value according to it's value in the current economy (determined by demand/supply). It does not need to be for sale to change in value, it just needs to exist and be yours., and you can sell it when you want. Same with BTC, whether it's in an exchange or a cold wallet. If it is bitcoin, it has the value of bitcoin, no matter how it is stored.
I will advice you sall your bitcoin now it early due to market crisis and I know the company that buys bitcoin the price you bought it when it was high
If you lose your wallet, hopefully you still have the 24 word recovery phrase in a safe place somewhere. If you have that, you do not lose your access to your coins.
Imagine if you bought a rolex. A really rare one that appreciates over time. If you placed the rolex in a safe and the market moves up. Your rolex moves up in price with the market value.
One would only realize the fiat (eg: $) value of their crypto, once they sell the crypto for the fiat - presumably that is sold at the market rate.. During when crypto is held and not sold, it could be valued according to anything at any time (market rate or not; and if you want to choose market rate, whose exchange’s market rate would you chose? They are all often slightly different at any moment ), as its value then is just “on paper” (theoretical, because it hasn’t actually been sold yet). Same dynamic for anything else (eg: a house).
Thank you, very informative. What I need to know is how much is the fee for withdrawing your crypto from Ledger. I have a software wallet and found that the fees are very high for transferring crypto out of the wallet.
Many companies exchanges etc are insolvent and going through problems. The biggest problem is that as a customer you can't take your money away. So you don't have to make any videos anymore when customers lose their money to these defaulting institutions. CEO FTX already says that many more tear 3 exchanges are going to collapse and people will lose their money. Focus your videos on that. Because losing your money is negative advertising for crypto. And people are already cautious. So stop with videos and find out which exchanges are at risk first.
Very informative video! Can you make a duplicate backup copy the first hardware wallet into a new, blank second hardware wallet, in case the first wallet has a hardware failure? If there is a catastrophic event and the crypto network is down indefinitely, how do coin owners recover their coins?
You can have a second hardware wallet so you can important your assets immediately after losing the first. If you have second before losing the first, you'll end up importing the assets into the second wallet with nothing in the first. I haven't looked at the corner case of "if all copies of ledgers are lost" then what happens. This is unlikely since the ledger (the accounting of the coins, not this physical device) is duplicated many times across the network. If a number of computers are down, one can still have a copy of the ledger.
@@BeatTheBush Thanks for the clarification about the duplicate hardware wallet. If there is a catastrophic WW3 and the crypto networks are not functional for an extended period then it may be difficult to recover the coins in the aftermath, unless the networks can recover and be operational again just like where they left off before the catastrophe.
@@ytviewer172 I think what BeatTheBush is calling the ledger is what others call the blockchain. Although I am not an expert, my understanding is that the blockchain is a complete list of all crypto transactions that have taken place. Each transaction on the list is verified by and then stored by multiple different servers at various locations within the network. This may be thousands or tens of thousands of servers (maybe even millions) around the world since crypto currency is world wide. If 90% of all servers that contain the blockchain were wiped out at the same time, the information is still stored somewhere on the other 10% of the original servers. Most of the infrastructure around the globe would probably be in ruins and therefore accessing the remaining 10% of the servers would probably be nearly impossible until the required infrastructure was rebuilt. I think if ever there was a catastrophic event that bad, we would all be in survival mode and nobody would probably be using crypto for anything for quite some time. We would probably be bartering real goods and services for for necessities to survive.
Okay, excellent. This, I never understood fully. Thank you so much. This is my issue at present: I have Cardano staked on Yoroi, some Elrond staked on Maier, and some Harmony Staked from their chrome browser extension. I recently purchased a nano X and a nano S for the harmony. (The x doesn’t support) How do I use my hardware wallets and keep staking? Do I need to move everything from the online wallets? I’m just not sure how to make this transition.
So what I’m understanding is the company that produces the hardware wallet could easily have a data breach with your recovery phrase and then you can have all your crypto stolen?
@@markm0000 the recovery key is generated by the device itself (once you turn it on).No one knows your private key unless the device is tampered before hand. This is what is important getting a genuine hard wallet
Cool vid. I’m still a bit confused though how you transfer the money from the exchange into the wallet. So not only is there a fee to buy Bitcoin on an exchange but also to transfer it into a wallet?
