About a month or so ago, I decided to get back into the whole crypto currency scene. I’d played with BTC back in the day and wish I’d HODL’ed but it is what it is and there’s no point looking back at things you can’t change and all that jazz.
I bought my XRP using Bitstamp and I store them in a Ledger Nano s.
Why use a Ledger Nano S to store digital currency and coins?
I opted to use a Ledger for a number of reasons mainly security.
If you use a wallet stored on a computer, it’s vulnerable to being hacked, as are mobile devices and the apps that we install upon them.
I quite like the idea of a physical device that stores things offline. You can read about the security elements here .
That said, nothing is foolproof and in theory a hacker *could* hack the app that you use to connect your ledger and steal your coins with false credentials. I also wonder if they could also brute force it too. Ultimately, anything is possible; all we can try and do is mitigate risk and for me, the Ledger makes it that little bit more difficult.
There are downsides, so if you do get one, then be sure to keep the device and your secret words in safe separate places. Don’t store the secret words digitally as you’ll effectively be posting them on the internet for anyone to see.
Keep them on a piece of paper, photocopy them if needs be. Put them in a little tin and bury them in the garden in the dead of night even. Just keep them safe.
Ledger even have a metal version which comes with a spare ledger nano s, but it seems a little overkill!
Crypto Trading and Other Apps
There are of course, hundreds of different apps out there and I do use one or two of them, mainly because it’s easier to trade. However, the main stash is kept offline where hackers can’t get to them. I’ve used 4 so far, Jaxx, Bitstamp, Coinbase and Ripple Wallet.
All work just fine and are handy intermediaries for moving digital tokens and assets off the exchanges when purchased.
I once stored all my bitcoin on BTC-E which was snagged by The FBI so was pretty fed up for a while and kicked myself a little. ( I did get it all back eventually via wex but that’s another story) The important takeaway was that in these choppy waters of digital currency trading where rules and regulators are in a constant state of flux you never quite know who is behind an exchange or how their government will move on concerns of money laundering or consumers being ripped off, so best buy and move it to something that you have more control over as soon as you can.
Round up – So, if you want to buy some XRP then get on over to an exchange that you trust, or buy some other crytpo coins on your existing exchange and trade them across to an exchange that allows for cross currency exchange.
haven’t tried it yet, but like the idea of ShapeShift, which enables for this very thing. I used it earlier.
I bought LTC on Coinbase and moved it to my Ledger using ShapeShift.
Steps were > Buy LTC at Coinbase with Debit card > Set up Transfer at ShapeShift entering sending (refund LTC address on fail) and receiving addresses (Your XRP Address) > Note the receiving (LTC) address provided by ShapeShift > Send LTC using Coinbase to address LTC specified by ShapeShift > Verify Transaction at Coinbase using whatever double authentication method you use > wait for confirmation.
Took about 3 mins from start to finish. Only real pain point was the initial fee charged by Coinbase for the LTC purchase.