BitLab Academy teaches how to keep crypto safe and use a Ledger cold storage wallet. With high volatility and uncertainty in 2022, more people are considering self-custody to protect their investments. Major exchanges, including Coinbase, have a clause called a force majeure that absolves them of responsibility should there be any disruptions to their services. Moreover, exchanges can freeze accounts without notice and are not liable should a client’s funds be mishandled. These issues can be avoided by taking possession of one’s assets with a cold storage wallet. BitLab Academy provides clear instructions on setting up a Ledger Nano X device for safekeeping crypto.
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How to Keep Your Crypto Safe with Self-Custody: A Step-by-Step Guide
Introduction
What’s up, everyone? My name is Ajwritescrypto. And welcome to BitLab Academy! In this lesson, we’re going to teach you how to keep your crypto as safe as possible and do a step-by-step tutorial on how to put your crypto onto a brand new Ledger.
Why Is This So Important?
2022 has been a year of volatility. There’s a lot of uncertainty. And people aren’t sure what to do with their crypto. If anything, this year has been a lesson on why self-custody is so important.
The Fear of Volatility
LUNA, Celsius, FTX and inflation have all caused a lot of fear. We’ve seen what fear can do to the markets. We’ve also seen what can happen to the price of crypto when companies, especially big ones, start to go insolvent. It’s more important than ever that you don’t leave your crypto on exchanges, especially if you plan on holding for a number of years.
The Fine Print
You might not know this, but I’ve read the Terms and Conditions on every single crypto exchange. And in there, in every one, there’s a clause called a force majeure. On the screen right now, you could pause to read it if you’d like to, is section 9.6 from the Coinbase user agreement. If you want to pause and take a second to read this, do so. But basically, what it says is that if anything out of their control happens that prevents them from providing their services, they are not responsible, and you can’t do anything about it. Not to mention, they can freeze your account without telling you why. They also have to comply with the police if they want to stop you from getting to your assets. And all of this can be avoided with self-custody.
The Importance of Self-Custody
You have to understand, when you sign up for an exchange, you’re signing a contract. And in those contracts, There’s a ton of stuff on what happens if we breach the terms of agreements, but there’s nothing in there on if they breach those terms. This year alone, between Celsius, BlockFi, FTX and many others, all those people who left their bags on those exchanges were left high and dry. And if you want to play on their field, you’ve got to play by their rules. Or you can avoid all this and take control of your own assets. I’ve said it once and I’ll say it again. Not your keys, not your crypto. Self-custody is more important now than ever. Having complete ownership is essential to protecting yourself and your hard-earned crypto.
The Ledger Solution
A cold storage wallet, like this Ledger right here, is not connected to any servers. And unless you put in your keys, the door to your crypto cannot be opened by anyone. And it’s your responsibility to protect those keys.
Step-by-Step Tutorial
Here’s a step-by-step walkthrough on how to get crypto onto this Ledger:
Setting Up Your Nano
We’re going to follow along with my screen on the Ledger Live app. First, we’ll click Get started. For this, we have a Ledger Nano X. This is the first time using the Nano X, so we’re going to click that. Access your crypto. Your crypto assets are stored on the blockchain. You need a private key to access and manage them. Continue. Own your private key. Your private key is stored within your Nano. You must be the only one to own it to be in control of your money. Stay offline. Your Nano works as a cold storage wallet. This means it never exposes your private key online, even when using the app. Validate transactions. Ledger Live allows you to buy, sell, manage, exchange and earn crypto while remaining protected. You will validate every crypto transaction with your Nano. Let’s set up your Nano.
The PIN Code and Recovery Phrase
The best way to get started is to just clear your schedule for 30 minutes, grab a pen and something to write down with. You’ll want to turn on your Nano and connect it to your computer with the USB cable. Once you do that, you’ll download Ledger Live and then press right. Then, use the buttons to navigate menus and list. You’ll click set up to new device, set up to new device, and press both buttons to get started. The next step is to choose a PIN number which is 4-8 digits of your own choosing, which you want to keep written down. Once you put your PIN number in, you will put the same number in again to confirm your PIN. The next step after creating your PIN number is to write down your recovery phrase, also known as the seed phrase. Your seed phrase is 24 random words that are generated by your Ledger device. You can write them down in the sheet they give you or on your own notebook as long as you keep it in a safe place, preferably fireproof. Also, keep in mind, your seed phrase is the only backup you have to get into your Ledger. So it’s very important you keep this safe. Make sure you write the numbers down in order on your recovery sheet. And if you aren’t using a recovery sheet, make sure you number the words.
Confirming Your Seed Phrase
Once you’ve finished writing down all 24 words and checking again to make sure that they’re all spelled correctly and in the correct order, you’re going to press both buttons at the same time to continue to the next step. Once you do this, it will once again confirm your recovery phrase. Once you have your recovery phrase set, you will go back through on the Ledger and confirm that each word is in fact that word in order for all 24.
The Final Step
Here we are. Your recovery phrase is set. Please keep in a secure place. It says, “If lost, stolen or forgotten, all your assets will be irredeemably lost.” Never share it with anyone. Ledger will never ask you for it. Press both buttons to continue. Now, it says your device is ready for use. Once you click Next Step on Ledger Live, it will want you to enter your PIN code onto the app. Once we have all that set up, you’re going to plug your device into your computer. You’re already going to have the PIN, recovery phrase and everything done. And then it’s going to make sure that your device is legit, or genuine is the word they use. Then you allow…
Conclusion
And there you have it! A step-by-step guide on how to keep your crypto safe with self-custody using the Ledger Nano X. Remember, self-custody is more important now than ever. And with the right tools and knowledge, you can take control of your own assets and protect yourself and your hard-earned crypto.
