# Understanding Ledger Wallets: How Hardware Crypto Wallets Operate

## What Is a Ledger Wallet?

A Ledger wallet is a cryptocurrency wallet made by Ledger, a company that makes physical cryptocurrency wallets that look similar to USB drives or other storage devices. Ledger provides several hardware and cold wallet options and assures users that their wallets are secure for crypto assets.

There are several different models of Ledger wallets, with different networking features and cryptocurrency compatabilities. While they can be used to provide secure storage, it is important to understand the limitations of these devices to prevent theft or loss.  

### Key Takeaways

*   Ledger wallets are hardware devices that store private keys offline, increasing security against online threats.  
    
*   The company offers four wallet models: Ledger Flex, Ledger Nano S Plus, Ledger Nano X, and Ledger Stax.  
    
*   Ledger wallets support more than 5,500 cryptocurrencies, providing wide compatibility and versatility.  
    
*   They feature a Secure Element chip and generate a backup recovery phrase for added security.  
    
*   Hardware wallets are considered the most secure type of crypto wallet because they keep keys offline until needed.

## Understanding Different Types of Cryptocurrency Wallets

To understand the types of wallets Ledger makes, it's important to know what wallets do and how they are classified. Here's a quick refresher.

To use your [cryptocurrency](https://www.investopedia.com/terms/c/cryptocurrency.asp), you're required to use private keys to access them. These private keys, which are long hexadecimal numbers, are what thieves and hackers are after because they are the weak link in a blockchain. Originally, cryptocurrency users wrote or printed these keys on paper—hence the term "paper wallet"—and removed their keys from their computers to prevent theft. However, paper is easily damaged, and as you might imagine, many users lost their keys.

Applications with user interfaces that ran on personal computers, laptops, and mobile devices were developed to make blockchain more user-friendly, attract more users, and store the keys for you. However, these programs introduced an additional risk—they were accessible to hackers and thieves because they are software-based.

To address concerns over private key security and longevity, cryptocurrency developers created other types of wallets. Cryptocurrency wallets are now generally classified into three categories:

*   **Hardware**: Devices like USB drives you can transfer your keys to
*   **Software**: Wallet applications on devices that store your keys
*   **Paper**: Keys written or typed on a piece of paper, sometimes with quick response (QR) codes printed on them

Hardware and software wallets can be further classified into:

*   **Hot**: Has an active internet connection
*   **Cold**: Has no active internet connection
*   **Custodial**: Another entity stores the keys for you on a device or in an app they control
*   **Non-custodial**: You hold the keys on a device or app you control

## How Do Ledger Wallets Secure Your Cryptocurrency?

Ledger offers cold, non-custodial hardware wallets. These multicurrency wallets store private keys offline on a secure hardware device. These wallets are device-based, which means they use storage mechanisms (like USB drives) to store private keys, thereby making it difficult for hackers to access them from an online location. The private key is moved to a certified secure chip by the software on the device and Ledger's application.  

The company offers four different hardware wallets: the Ledger Flex, the Ledger Nano S Plus, the Ledger Nano X, and the Ledger Stax. These hardware wallets work with the Ledger Live app, which the owner uses to access the keys and purchase and manage their crypto. All [transactions](https://www.investopedia.com/terms/t/transaction.asp) that are executed must be authorized by the user.

These storage wallets let you perform various functions, including sending and receiving cryptocurrency and using [two-factor authentication (2FA)](https://www.investopedia.com/terms/t/twofactor-authentication-2fa.asp) applications.

All Ledger products combine a Secure Element and a proprietary operating system designed specifically to protect a user's cryptocurrency [assets](https://www.investopedia.com/terms/a/asset.asp). They generate a 24-word, 96-character backup recovery phrase to access your cryptocurrencies if the device is lost or stolen. For the extra-cautious, the 24-word phrase can be etched into steel in a Billfodl, which holds seed phrases or keys in a sturdy physical form.

## Exploring the Range of Ledger Wallets

Ledger introduced its first product, the Ledger Nano S, in 2016. It was later replaced by the Ledger Nano S Plus, Ledger Nano X, and Ledger Stax. The Ledger Flex was later added to the company's products.

### Ledger Nano S Plus

Ledger calls the Nano S Plus a "Nano S on steroids." It's like a portable USB device with a USB-C connection, allowing users to manage over 5,500 digital assets and install up to 100 apps." It allows users to manage more than 5,500 digital assets with enough memory to install up to 100 apps. The company says it is compatible with more than 5,500 coins and [non-fungible tokens (NFTs)](https://www.investopedia.com/non-fungible-tokens-nft-5115211). The Ledger Nano S Plus is compatible with Mac, Windows, and Android devices.

The unit retails for $79 (USD).  

### Ledger Nano X

Ledger introduced the Nano X in 2019. Like other Ledger devices, the Nano X keeps crypto coins and NFTs offline in a Bluetooth-enabled, USB-C device. It is Bluetooth-enabled and has a USB-C connection. This device works with macOS, Windows, iOS, and Android. It has the capacity for more than 5,500 different tokens, and users can have up to 100 different apps.

The Ledger Nano X retails for $149 (USD).

> **Tip**
>
> You may be required to purchase additional items to use your devices, such as the On The Go kit to connect to a mobile device.

### Ledger Stax

The Ledger Stax is a portable storage device for cryptocurrency, small enough to fit in your hand. It is small enough to fit into the palm of your hand. Users can name their Stax, and the lock screen can be customized like a [smartphone](https://www.investopedia.com/terms/s/smartphone.asp). Some of the features include;

*   Curved 3.7 inch E ink touchscreen (wider than the other devices)
*   Bluetooth compatible
*   Wireless charging
*   Works with macOS, Windows, iOS, and Android

Supporting over 5,500 coins and NFTs, this device includes a Secure Element chip like all other Ledger devices.

The unit retails for $399 (USD).

### Ledger Flex

The Ledger Flex is a small wallet with a 2.84 inch touchscreen that allows you to navigate to the cryptocurrency you own by swiping across the screen. You can display pictures or your NFTs on the screen.

The Flex connects to smartphones and computers, compatible with Android, iOS, Windows, Linux, and macOS. Flex is also compatible with more then 5,500 cryptocurrencies and NFTs and retails for $249.  

## What Wallets Can Ledger Connect to?

  

Ledger is a wallet compatible with more than 5,500 cryptocurrencies. You can connect Ledger to MyEtherWallet, Talisman, Rainbow, DeFi Wallet, Hana Wallet, Zerion, MetaMask, MyCrypto, BinanceDEX, and more to view tokens not compatible with Ledger.

## Are Ledger Wallets Good?

Ledger wallets are very popular with cryptocurrency holders because of the custom operating system and security offered by the company.

## What Are the Disadvantages of Ledger Wallets?

First, by using a wallet designed by someone else, you're relying on them to secure your keys for you by giving its software access to your keys. Second, the wallets are electronic devices that use software to provide an interface and experience. The application you download and interface with on your computer or device is also a weakness because it is software programmed by people. Software can be hacked, and wallets are often the primary targets of thieves and hackers because they are the weakest link in most blockchains.

## The Bottom Line

Cold storage is essential for cryptocurrency investors. Devices like the Ledger allow users to safely store dozens or hundreds of crypto assets without exposing the private keys. However, these devices are still vulnerable to phishing and user error. When using a Ledger or any other cold storage device, it is essential to understand how the technology works and to keep passwords and seed phrases secured offline.

_The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our [warranty and liability disclaimer](https://www.investopedia.com/legal-4768893#toc-warranty-and-liability-disclaimer) for more info._

> **Article Sources**
>
> 1.  Ledger. "[How to Use Ledger Devices for Enhanced, Second Factor Authentication](https://www.ledger.com/fido-u2f)."
>     
> 2.  Ledger. "[The Billfodl](https://shop.ledger.com/products/the-billfodl)."
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