For people that own Bitcoin and other crypto assets, security is one of their biggest concerns - and rightly so. Despite the best efforts to keep their coins safe, people often fall victim to hacks and attacks that may make them lose their Crypto assets.
Sometimes, people lose their coins because of their own carelessness, but you may also lose your assets due to reasons that are beyond your control. For instance, Bitfinex which is one the largest Bitcoin exchange platforms has been breached several times in the past. The first attack that took place in 2015 led to a loss of over $400,000. Two years later, the platform was attacked again leading to a loss of over 119,756 Bitcoins. Other popular platforms like Mt. Gox and Binance have been hacked in the past as well.
Despite the best efforts to secure these platforms with multi-signature systems and 2-factor authentication, they are not completely free from hackers. On your own, there are certain things you can do to protect your crypto assets from attacks like these. One of such is to create a secure Bitcoin hardware wallet for storing your Bitcoin.
A hardware wallet is often referred to as a cold storage device. This is a special type of cryptocurrency wallet that keeps your private keys locked in a physical device rather than digitally on a mobile wallet, desktop wallet or exchange wallet. One major benefit of this is that the physical device can always be kept within arm’s reach.
But more importantly, storing your Bitcoin and other assets in a hardware wallet is typically more secure. Your coins are kept offline where they are less likely to be lost to hacking attacks.
In this guide, we will be focusing on how to create a secure hardware wallet in Dubai using Ledger. Ledger is actually one of the most popular hardware wallets in the UAE. The company has sold more than three million devices with its own firmware and dedicated OS.
Although the Ledger company has its headquarters in Paris, users in Dubai, UAE, can use this hardware wallet to store and manage their crypto assets with ease. Ledger can store up to 1800 types of crypto assets including Bitcoin and NFTs.
This guide will focus more on the process of creating a ledger hardware wallet in Dubai. However, the process and tips we’ll cover is similar for other wallets and should be adaptable for them as well. Here’s an A to Z guide to follow if you want to create a secure hardware wallet for storing your Bitcoin.
The first step would be to buy a hardware wallet. A note of warning here: make sure you’re purchasing your wallet from a verified retailer. Scammers usually sell cheap hardware wallets that look like the original. These fake wallets are preloaded with viruses that make it possible for them to steal your tokens. Since you will be storing your valuable assets on this device, you should beware of these scammers.
Also, make sure you buy brand new wallets and not second ones. Ledger offers two hardware wallet options. The more expensive Ledger Nano X costs 10,619 Dirhams while the Ledger Nano S costs 5,265 Dirhams.
To simplify the process of setting up your hardware wallet, the device typically comes with custom software that runs a setup wizard as soon as you connect it. This will assist you through the process of setting up your device to begin using it.
To start the setup, connect your Ledger device to your PC using a USB cable. The device should light up to show that it is connected and automatically take you to the ledger live site from where you will set up your device. Follow the prompts from there to complete the setup.
Once the setup begins, follow the prompts on the screen until you get to the point where the pin code for the hardware wallet is generated. Make sure you write down this pin code somewhere you won’t forget. You’ll need it to access your wallet anytime you want to.
In fact, you should write it down in multiple places. Fortunately, most Ledger devices come with little sheets you can use to write down the pin.
But don’t store your pin digitally-don’t even take photos of it. The very idea of using a hardware wallet is to keep your wallet safe from getting hacked. Storing it on your mobile device or computer opens you up to that possibility.
You will also be given a 24-word recovery phrase. You should write this down in multiple places offline as well. It will be impossible to access your account forever if you lose this recovery phrase.
Finally, when the setup is completed, you will be prompted to confirm your recovery phrase. This is to ensure that you have written it down correctly. A bit of extra security tip, after writing down your recovery phrase, you should use it to reset your wallet and restore it. This ensures that you’ll have the phrase written down correctly and you can always recover your wallet safely with it whenever you need to.
Using a hardware wallet is one of the best ways to safeguard your Bitcoin and other cryptocurrency assets. With this device, you can easily access all your digital assets when you need to and keep them securely protected from online attacks. Hardware wallets provide the added layer of security that you need to keep all your crypto assets safe and secure. As you can see from this step-by-step guide for creating your secure hardware wallet, setting up one for yourself is quite straightforward.