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Die Funktionsweise von Hardware Wallets verstehen

Regardless of whether you use ELLIPAL, Ledger, Trezor or another brand of hardware wallet, there is a basic technical concept that you should understand. If you understand this concept well, you will never fall for scammers or accidentally lose your cryptocurrency.

Ledger Nano S Plus Title Ledger Nano X Semi Closed
Model Ledger STAXLedger Nano S PlusLedger Nano X
PlatformWindows, Linux, Mac, Android, Chrome OS, iOSWindows, Linux, Mac, Android, Chrome OSWindows, Linux, Mac, Android, Chrome OS, iOS
Altcoin Support
Supported Coins5.500+ (to the complete list)5.500+ (to the complete list)5.500+ (to the complete list)
Open Source
Secure Element
Display as 2FA
InterfacesUSB, BluetoothUSBUSB, Bluetooth
Input OptionsTouchscreenButtonsButtons
Detailsto the shopReviewto the shopReviewto the shop

What are private keys?

When you create a new account with any wallet – ELLIPAL, Ledger, Trezor, etc. – the wallet will use your password and random elements to generate your private key. This long string of numbers and letters is unique only to you, and the wallet uses it to derive your receiving addresses (public key) and grant permission to send coins. As the private key creates the wallet and enables access to the wallet, it is the most important piece of information that you need to keep secure.

Benutzereingaben + Zufallselemente –> Privater Schlüssel –> Öffentlicher Schlüssel

Privater Schlüssel = Erstellt die Wallet und ermöglicht den Zugriff auf die Wallet

Öffentlicher Schlüssel = Deine Empfangsadressen, die sich aus dem privaten Schlüssel ableitet und mit anderen geteilt werden kann

How do you store your private keys?

Since the private key is the root of your wallet, you can use your private key to recover your wallet if you accidentally delete it. However, since it is difficult to write down or memorize a private key, mnemonics have been developed.

Mnemonics is a set of 12 or 24 words derived from the private key. They serve as a backup for your wallet and can be used in any wallet to restore your coins. The wallet derives them for you and only displays them once. Use this opportunity to write them down on a piece of paper. Alternatively, there are also backup products that do this job better than a piece of paper. Find out more about the backup products here.

Anyone can steal your mnemonics and restore your coins to your wallet if you’re not careful. So be careful where you keep them.

What is the purpose of the hardware wallet?

Cryptocurrency theft usually takes place online, so hackers will not try to steal your mnemonics, but will try to steal the private key in the wallet you are using. If your wallet is an online wallet for cell phones or PCs, it is easy to hack. It is better to use a device such as a hardware wallet that is specifically designed to protect your private keys.

A hardware wallet uses many security technologies to help you keep your wallet safe. For example, the ELLIPAL Titan hardware wallet can create a 100% offline environment for your private key, which means that no one will be able to steal it.

If you own a lot of cryptocurrencies, a hardware wallet can be an excellent investment and help you sleep well at night.

Hardware Wallet and its app

Hardware wallets are offline; therefore they cannot carry out transactions without help. Each hardware wallet is designed to be linked to an app on a cell phone or PC. Since the app is online, it helps the hardware wallet to carry out the transaction.

This explains the process:

  1. The user wants to carry out a transaction.
  2. The user creates a transaction in the app
  3. The app obtains confirmation from the hardware wallet.
  4. The hardware wallet uses the private key to confirm the transaction.
  5. After confirmation, the app sends the transaction.

Different hardware wallets use different methods for confirmation. The most important point, however, is that the private key always remains secure in the hardware wallet. Even during a transaction, the private key remains offline and never comes into contact with the app. If your computer or cell phone is hacked, your private key is still secure.

What happens if the hardware wallet breaks or the app doesn’t work?

Once your private key has been generated and your wallet created, it is no longer tied to a single hardware wallet or app. If your hardware wallet is destroyed or the app fails, your coins are still safe because you still have the private key. Use the same private key and create the same wallet again in a new hardware wallet.

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