Source: https://www.ledger.com/
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I am not a financial advisor. This post is to provide information and not provide financial product advice. I discuss why I personally chose to invest in a stock, ETF, REIT, investment fund or cryptocurrency (which I have held for over a week) and also share information that is public about the following stock, ETF, REIT, investment fund or cryptocurrency and they are based on my own personal opinion.
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I do not work in the financial industry, so just because I write about it, doesn’t mean you should own it. So, consult with a financial advisor and do your due diligence, RESEARCH!
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I purchased the Ledger Nano S back in 2017.
It was no doubt state of the art for its time and it was the safest, and still the safest, secure way to keep your cryptocurrency in a hardware wallet and not be online unless you want to buy, receive or sell crypto through the hardware’s Ledger Live software.
While my initial thoughts was that the Ledger Nano S was great in 2017, the company created something better with the Ledger Nano X, which allows for more space to hold more cryptocurrency.
Part of what I dislike about the Ledger Nano S, it’s that certain cryptocurrency take up so much space that it limits on how much cryptocurrency you can store on the Ledger hardware. Ledger says it can install up to 3 applications on each hardware device, sometimes 4-5, depending on the cryptocurrency.
The Ledger Nano X allows up to 100 apps installed. Granted, the X goes for $119, while the Nano S goes for $59. Space alone, I would say to go for the X over the S if you are wanting a hardware wallet.
But how the Nano S works…If you intend to buy, send or receive, you would need to establish a crypto asset for the one you want to sync with Ledger Live.
And because you may own more than three types of cryptocurrency, more often that you would have to delete a crypto asset on your Ledger Nano S in order to get a different asset onto your Ledger device and Ledger Live.
But once you get that down, because you are limited to a few buttons on the Ledger and you can select certain menus. Then you will see how it interacts with Ledger Live, especially once your asset is added to the software (both on your PC/Mac and via smartphone).
Now, owning a Ledger is not without its problems.
Since 2017, I’ve had a few firmware issues that I had to do a hard reset (fortunately your data is backed up to Ledger Live) and the most annoying thing that I have is that the USB cable used, some work and some don’t. And I have had issue where it kept losing connection over and over.
But do know that you will need to update your Ledger Live software and the firmware for your Ledger device’s hardware.
Granted, I have been able to use the device to send and receive crypto and I like the idea of having certain crypto backed up on a hardware wallet and to get away from an online wallet.
But in 2021, with Coinbase and Celsius offering rewards for cryptocurrency, especially tokens and stablecoins. While BlockFi allowing for interest gained for leaving your cryptocurrency in it, like a crypto bank and you will start earning passive income. And similar to a bank, crypto can be issued as a contract to those who are requesting cryptocurrency loan (such as an exchange). And if you want to withdraw your crypto, the company sets a sizeable amount of collateral to the side, so you can easily withdraw funds.
If you love passive income, it makes more sense to have your cryptocurrency stored in DeFi over a software/hardware wallet.
Granted, these services are still in the early stages and currently allows support for only a few, established cryptocurrency for now but there is hope that we will see more cryptocurrency to be added in the near future.
DeFi is awesome and I feel that if Ledger can find a way to incorporate a way to gain interest for leaving your crypto in their hardware wallet and staking it or earning rewards via Ledger Live, it would make it more appealing.
With that being said, I know friends who are not comfortable with DeFi and prefers to use their Ledger hardware wallets for storing their crypto, as they feel its safer than these services. The worries are that these services don’t offer insurance if your account gets hacked and yes, that is a risk.
The positives of owning a hardware wallet like Ledger is security and safety. Ledger Live may be online but it requires for your device to be attached via USB cable to access Ledger Live and to transfer, sell or buy crypto. But there is also risks, what if you broke your Ledger and need a new one? What if there was a fire and not only did you lose your Ledger device, but you lost the paper or the USB drive storing your security codes?
There is always risks. But with that being said…
In 2021, while it will always be important to have a secure way to store your crypto. With DeFi, more and more people interested in passive income will need to make an important decision, invest in a hardware wallet that is secure but where you crypto remains locked in the wallet and is receiving no gains, no interest. Or to keep their crypto in a service which allows for staking or storing while earning interest.
For me, I think having crypto in a hardware wallet and also gaining interest in a service like BlockFi is great! Right now, I have crypto in my Ledger hardware wallet, while adding to what I feel is a comfortable amount to keep on BlockFi (which is great for Bitcoin, Ethereum, Litecoin, Link and stablecoins such as USDC, GUSD, BUSD, PAX and PAXG) and allowing it to gain interest for additional passive income.
If anything, to not keep my eggs all in one basket, just in case.
But in the end, the decision is yours and what you feel comfortable with, when it comes to your cryptocurrency.
But definitely research and see which has more positives rather than negatives and see what works with your investment portfolio.
