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11th November 2022 > > Ledger Nano X.

tl;dr

Your Ledger Nano X is an invaluable tool in these uncertain times.


Market Snap








Market Wrap

Cryptos failed to join the broader risk market rally following inflation figures of “just” 7.7% last month in the US, for obvious reasons. There are rumours that Sam Bankman-Fried, founder and CEO of beleaguered centralised cryptocurrency exchange FTX, has been arrested trying to leave the Bahamas.


That should help focus some minds on the due process around the handling of customer funds.


Curious Cryptos’ Commentary – FTX and Ledger

(For the uninitiated, Ledger produce a hardware wallet for self-custody which looks much a USB stick. It doesn't store cryptos as such - it allows access to your cryptos by signing transactions with your private key off line. It is simply the safest storage option available today for your crypto portfolio).


This is probably the most surprising story to come out of the FTX fiasco.


Chief Technology Officer at Ledger, Charles Guillemet tweeted that:


“​​​​After the FTX earthquake, there's a massive outflow from exchanges to Ledger security and self sovereignty (sic) solutions.”


That is not the surprise.


The surprise is that Ledger Live – the online app that accompanies Ledger Nano – suffered “scalability challenges” and that there was “an unusual load on the device manager service”.


It seems that the cause of these problems was the movement of crypto assets off the FTX exchange into self-custody facilitated by using Ledger Nano.


The key point to stress here is that moving assets into self-custody via Ledger Nano does not require the use of Ledger Live. All it needs is knowledge of the public key. If users do not know their public keys, I have grave doubts they know how to find their private keys.


Likewise the problem with the device manager service has been attributed to a mass upload of the latest firmware. Again, if users do not keep software up to date, then it simply isn’t going to do it itself.


These two issues arose because some people continue to store large portions of their cryptos on centralised exchanges and are just not familiar enough with the concept of self-custody.


I have two reminders for you.


I believe that 5-10% of your crypto portfolio – and not a cent more – is an appropriate amount to store on an exchange.


The remainder should be in self-custody facilitated by a Ledger Nano X.


Two simple rules, which one day might save you a shed load of cash.


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