Whether you are new to the cryptocurrency space or have been here since 2009, there’s a good chance you have come across Ripple and the cryptocurrency XRP. While at first, it’s easy to mistake Ripple and XRP as the same thing, this isn’t the case by any means. In fact, many are surprised to learn that the terms XRP and Ripple are not interchangeable.
What is Ripple?
Simply put, Ripple is the company that created the Ripple Consensus Ledger. In this way, Ripple functions as both a platform and a currency. Ripple developers utilize an open-source protocol to provide users with a host of benefits. These benefits include secure, fast, and inexpensive transactions.
However, Ripple is not meant to function purely as currency such as with Bitcoin. Whereas Bitcoin was meant as a means to circumvent the traditional financial system, Ripple fulfilled a totally different market niche. The platform was designed to bridge the gap between traditional financial institutions and the blockchain sector.
Importantly, Ripple (XRP) is different than many other popular cryptocurrencies for some key reasons. Primarily, it differs from the competition because it was created by a private, for-profit company. Today, Ripple has offices in San Francisco, New York, London, Sydney, Luxembourg, Singapore, and Mumbai. The firm serves more than 300 financial institutions across over 40 countries.
The history of Ripple begins back in 2013 when a group of intuitive developers decided to join forces to create something unique within the market. At that time, Jed McCaleb, best known as the creator of the EDonkey network, invited a team of advantageous investors to participate in a project known as Ripple Labs. Importantly, McCaleb is also a major figure in the sector. He was pivotal in the creation of numerous crypto-based startups including Ripple, Stellar, and Overnet.
Ripple Labs is the official name of the tech firm that developed the Ripple payment protocol. Notably, this San Francisco-based firm was founded officially in 2012. Originally, Ripple Labs entered the market under the name Opencoin. However, in 2015, the firm rebranded into its current name.
Ripple Labs was founded by a well-known angel investor and privacy activist, Chris Larsen. Larsen is a charismatic figure who is best known for co-founding online mortgage lender E-loan back in 1996. He was joined by the programmer and entrepreneur, Jed McCaleb.
Notably, McCaleb is best known as was one of the co-founders of the infamous Mt.Gox exchange. Mt.Gox was one of the first Bitcoin exchanges in the world and for a long time, it was the largest Bitcoin exchange in the world. At one point, the exchange handled 70% of all Bitcoin trading volume. Importantly, he sold his shares and was not affiliated with the exchange during the June 2011 hack that sent Bitcoin prices plummeting for months.
RippleNet is the community of banks, financial institutions, and professionals that make up the Ripple business community. Since its inception, Ripple worked hard to secure this vast network of industry professionals. These firms are privy to Ripple’s advanced blockchain system.
The network enables banks to enjoy a frictionless experience as they send funds globally in seconds. Today, the RippleNet includes some of the best-known institutions in the sector. Here are some of the major milestones during the RippleNet expansion so far:
Bank of America
In 2016, BOA announced a partnership with Ripple. It turned out that the bank had been secretly testing the firm’s technology as a way to improve inter-bank infrastructure for months prior to the announcement.
In 2016, SBI Holdings and Ripple inked an agreement to integrate the bank into the RippleNet. The move was seen by banking executives as a way to streamline remittances and instantaneous cross border payments. Not surprisingly, since the concept emerged, more than 47 banks have signed on to the project.
Standard Chartered Bank (SCB)
In 2016, Standard Charter Bank joined a team of other investors to put forth $55 million towards further development of Ripple’s technologies. In total, the investment took Ripple’s Series B funding round up to $93 million in total.
Santander and American Express
In 2017, Ripple partnered with the credit card firm American Express and major banking firm Santander. The strategic partnership was meant to further streamline cross border payment systems. Notably, the news helped bolster XRP prices at that time. Specifically, XRP’s market value shot up over 35% when the news went public.
Royal Bank of Canada
In a surprising maneuver, the Royal Bank of Canada released a detailed report titled “Imagine 2025” in which the bank went into detail regarding their testing of Ripple’s technologies. Specifically, the report states that RippleNet can reduce average banking costs by 46% per payment. Additionally, RBC’s report states that the settlement time for transactions processed through Ripple is only 3-5 seconds. This is a huge improvement over the current system that takes 2-3 days on average.
In June 2019, Ripple secured a partnership with one of the most recognizable names in the remittance sector. MoneyGram. Again, the goal of the project was to provide money gram access to Ripple’s cross-border payment technology:
- National Bank of Fujairah PJSC (NBF)
- Westpac Institutional Bank and Bank of Australia
- UniCredit, Reisebank, ATB, National Bank of Abu Dhabi, UBS
- MUFG Bank
Together, RippleNet continues to work on the development of a new framework to implement across the network. Notably, the guidelines cover important aspects of the functionality of the network. These points of concern cover legal compliance, operational custody and, other standards for acting as the intermediary.
XRP serves a very important purpose within the Ripple Ecosystem. This token is the digital asset that facilitates the use of the network’s utilities. In this way, XRP functions as a utility token. This token represents the transfer of value across the Ripple Network.
You can think of XRP as the mediator for exchanges. These exchanges can include both cryptocurrencies and fiat currencies. In essence, XRP is sort of a wild card. It allows participating banks the ability to facilitate global money transfers without the need to consider exchange rates and such.
For example, let’s say a bank in the US needs to send $5 million to another institution located in the EU. Under normal conditions, this transfer would be a costly and time-consuming process for many reasons. Firstly, the funds would need to go through a number of third-party verification systems to ensure they are actually available and sent securely.
Each of these parties adds to the total cost of the transactions, as well as the amount of time it takes to complete the transfer. On top of these fees, banks would have to consider the international money conversion rate. In the example listed, the US bank will lose some of its holdings in the conversion over to Euros.
XRP to the Rescue
Here is where XRP serves its utility purpose perfectly. The previously listed example would go much smoother via the Ripple ecosystem. The US bank could simply convert its funds over to XRP. This process is as simple as selecting the number of funds you desire to convert and clicking a button.
Now that the bank’s fiat currency is XRP, its easier to send the funds anywhere in the world. Best of all, the transfer costs only a fraction of the traditional systems in place currently. To put the savings in perspective, sending a payment of $1,000,000,000 through your bank internationally can cost you thousands of dollars. Using Ripple, the exact same transaction only costs cents.
Additionally, since there is no cap on how many funds you can send via XRP, it provides banks with more flexibility in the market. Currently, sending over $1 million globally requires banks to meet a host of additional regulatory requirements. These requirements can delay transactions for up to 3 days. XRP eliminates these issues within the Ripple ecosystem.
Ripple Protocol Consensus Algorithm (RPCA) – A Cryptocurrency Without a Blockchain
While you might consider blockchains a core part of all cryptocurrencies, this isn’t the case with Ripple. Ripple uses a proprietary decentralization technology and consensus mechanism – the Ripple Protocol Consensus Algorithm (RPCA). The Ripple Protocol consensus algorithm (RPCA), is applied every few seconds by all nodes, in order to maintain the correctness and agreement of the network. In the RPCA system, each server publishes a list of new transactions to the network known as the “candidate set.”
Then, each server compares its list to the current state of the network and the proposed changes. Once the comparison is complete, the servers will vote on the state of all transactions. In the end, 80% of the nodes must agree on the new transactions to reach a state of approval. The system adds all the transactions that met these requirements to the distributed ledger. The system then closes the ledger. This closed ledger provides a point of reference to verify the next RPCA.
Ripple currently offers two main products to its users. The first product is known as xCurrent. xCurrent was among the first products Ripple Labs developed for the market. This global real-time gross settlement system provides users with some pretty impressive functionality.
For example, users can clear and settle transactions in minutes. Traditional money transfer systems can take 2-5 days to complete. Additionally, users gain access to the RippleNet messaging services which allows the network to maintain instant communication.
xRapid takes xCurrent a step further and eliminates the need for accounts at all. This protocol is able to source liquidity from the local market to complete the transactions. For example, when a bank may want to send $1 million to another bank in the network, the xRapid system would buy XRP with the sender’s money and then sell XRP on the side of the buyer to complete the transaction.
This process allows banks to send smaller amounts internationally because it eliminates much of the overhead in doing so. Additionally, it enables banks to send money to locations that may cost well above the average transfer rate. Consequently, these products enabled Ripple to compete in the market from day one.
xRapid is revolutionary because banks don’t want to hold XRP, or any cryptocurrency, for long periods of time. Instead, the system exchanges the funds to and from XRP in second. This speedy transaction is possible because the XRP ledger can handle 1500 transactions a second.
Investing in Ripple
Investing in Ripple is easy nowadays. To start your Ripple investment, you will need to head over to a reputable exchange. Currently, Ripple is available on most major exchanges including Binance, Kucoin, Bittrex, and Poloniex. Once you choose an exchange to work with, you are ready to begin investing.
First, you will need to sign up for an account. Depending on your location and the exchange you decided on, this process can include various verification procedures. For example, Binance can require you to send in a government ID.
Once you have an account ready to go, you need to decide how you will load the account. If you already have some cryptocurrency that you want to trade for XRP, you can just send those funds to your exchange wallet. It should only take a few minutes for these funds to appear. Once they appear, you can simply go to the Bitcoin/XRP trading window and complete your trade.
Fiat to XRP
The process can take a bit longer if you are planning to enter the market with fiat currency. In this scenario, you will need to connect your bank account or debit/credit card to your exchange account. This process can take days as some platforms send a verification transaction to the bank. This transaction is usually just a couple of cents. You will need to verify its amount to prove you own the bank account attached to your exchange account.
Once you have proven that the account belongs to you, you will then need to purchase one of the cryptocurrencies that have a fiat pairing. Basically, not all cryptocurrencies are available to purchase directly with fiat currency. Many exchanges require you to purchase Bitcoin or Ethereum first. Once you possess one of these major cryptos, you can then trade them for any exchange pair they qualify at.
Invest in Ripple Stock
Ripple Stock is another way that you can participate in Ripple’s growing ecosystem. Unlike XRP, Ripple stock is a direct investment into Ripple. Purchasing Ripple stock requires you to meet all the current securities laws in place in the US. As such, investing in Ripple stock can be a bit more difficult for those unfamiliar with the stock market.
Since Ripple isn’t a publicly-traded company, the only way to acquire shares in the firm is via private investors on the secondary market. To buy and trade Ripple stock you will need to qualify as a “sophisticated investor”. Consequently, you must be an accredited investor to buy shares of Ripple Inc. at this time. To qualify as an accredited investor, you will need to show that you possess $1 million in liquid assets at this time, or that you earned over $200,000 per year for the last 3 years in a row.
Once you are able to prove your investment qualifications, you are ready to invest. The first thing you will need to do is head over to shareposts.com or the Microventures app. Here you will need to register for an account. Once you are qualified and approved, investing is a simple as finding Ripple Inc. and deciding how many shares you desire.
The Ripple Ecosystem
Ripple continues to see growing adoption across the sector and for good reason. This future-oriented firm has effectively carved out their niche in the market for years to come. Consequently, you can expect to hear a lot more from this community as XRP and Ripple expand their presence in the traditional financial markets. For now, Ripple appears to have a bright future ahead of it as more financial institutions express interest in joining the RippleNet.
Traditional Banks Ramp Up Custodial Services for Digital Assets
In recent weeks, we have seen an increase in the adoption of blockchain services, among traditional banks. First, U.S. based banks were given the green light to custody cryptocurrencies by the Office of the Comptroller of the Currency (OCC). Now, we learn that one of the largest banks in South Korea, KB Kookmin Bank, is already working to develop similar services.
With regard to South Korea, the plan is for KB Kookmin Bank to begin offering custodial services for digital assets. This is a group effort involving the following companies,
This collaboration is particularly noteworthy, as KB Kookmin Bank is not just any old bank. They are currently the largest bank in South Korea. Moves made by a bank of this stature are followed closely by many. Although KB Kookmin Bank and its partners may be first to the table, expect to see others take a seat in the near future.
Future Asset Expansion
While initial services will centre on the custody of cryptocurrencies, it is believed that this support will eventually grow, encompassing various types of digital assets. More specifically, it is expected that in time, these custodial services will support digital securities.
In commentary released by Hashed, this expansion of supported assets was touched upon. Hashed states that through this collaboration, participants anticipate, “…that the digital asset industry will not only involve cryptocurrencies, but also other traditional assets such as real estate, artwork, and other reified rights that will be issued and traded on blockchain platforms.”
Although cryptocurrencies stand to benefit first, the development of such custodial services has the potential to transform and usher forth new growth among the digital securities sector.
Office of the Comptroller of the Currency
In the weeks preceding the news surrounding KB Kookmin Bank and its forthcoming custodial service, we saw the OCC release of an interpretive letter on the subject.
In this letter, the OCC breaks down, not only what digital assets are, but how banks can support the growing use. The OCC summarized its stance, stating,
“The OCC recognizes that, as the financial markets become increasingly technological, there will likely be increasing need for banks and other service providers to leverage new technology and innovative ways to provide traditional services on behalf of customers. By providing such services, banks can continue to fulfill the financial intermediation function they have historically played in providing payment, loan and deposit services.”
“…we conclude a national bank may provide these cryptocurrency custody services on behalf of customers, including by holding the unique cryptographic keys associated with cryptocurrency. This letter also reaffirms the OCC’s position that national banks may provide permissible banking services to any lawful business they choose, including cryptocurrency businesses, so long as they effectively manage the risks and comply with applicable law.”
Which came first, the chicken? Or the egg? This old saying could easily be applied to the current world of blockchain. Are these traditional banks jumping on board the train due to the recent resurgence being seen in the sector? Or is the sector surging due to banks jumping on board. Regardless of the answer, signs of blockchain adoption within traditional industries is a definite positive.
Hopefully, this swing in sentiment among banks continues to gain momentum, as banks have not always viewed digital assets in a positive light. Only months ago, we were reporting on difficulties being faced by German companies, as they were refused services by traditional banks.
KB Kookmin Bank
Founded in 2000, KB Kookmin Bank maintains operations in Seoul, South Korea. Since launch, KB Kookmin Bank has grown to employ over 25,000, while providing customers on a global scale with access to commercial banking services.
CEO, Hur Yin, currently oversees company operations.
Office of the Comptroller of the Currency (OCC)
The OCC is a U.S. based regulatory body, tasked with supervising national banks. This supervision is undertaken with the goal of ensuring fair and transparent financial services to all customers.
Acting Comptroller, Brian P. Brooks, currently oversees operations at the OCC.
What is Cryptocurrency Trading?
Ever since 2017, cryptocurrency trading has been an area of interest for new and old investors alike. Notably, cryptocurrency trading involves speculating on future price movements within the market. In its simplest form, trading requires the buying and selling of cryptocurrencies in a manner that produces profit. In order to accomplish this task, you need to have a firm grasp on what cryptocurrencies are and what affects their market movements.
Cryptocurrencies are decentralized digital assets that rely on a network of computers to validate their authenticity and the overall state of the network. Unlike fiat currencies such as the dollar, there is no government or central authority backing these coins. Instead, cryptocurrencies rely on mathematical protocols to reduce human intervention and provide the world with a truly unique financial instrument.
Importantly, cryptocurrencies exist only as a shared digital record of ownership. This means you can’t handle or even touch a cryptocurrency. Instead, these assets exist only in the digital realm. Consequently, no crypto transaction is complete until it is verified by the network nodes (miners) and added to the blockchain.
Different Blockchain Assets Require Different Approaches
Interestingly, there are multiple different types of blockchain assets one can trade today. Each asset has its own regulatory and trading requirements that you must adhere to. The three main types of blockchain assets in the market today are cryptocurrencies, utility, and security tokens.
Luckily, buying and selling cryptocurrencies has never been easier. Today, there is a multitude of exchanges in the market at your disposal. Each of these exchanges provides a different UX and features. As such, it’s recommended that you take a look at a few exchanges before you make your final decision. Also, savvy investors will also trade between exchanges when there is an opportunity to earn revenue on the spread of a certain asset.
It’s recommended that you stick with reputable exchanges. The reasons for this are simple, every couple of months some exchange experiences a hack that drains the platform of its holdings. When this occurs, you can lose your cryptocurrency if the exchange doesn’t have the ability to refund your losses. A perfect example of this scenario playing out occurred during the now infamous Mt.Gox hack where investors lost millions. Here are some of the most recognizable exchanges to consider:
The Binance exchange entered the market in 2017 with the goal to simplify the trading process for normal investors. The firm’s founder, Changpeng Zhao was already well known in the FinTech sector as the premier developer of high-frequency trading software. This technological know-how helped Binance create a unique UX and cement its position as an industry leader.
This simplicity helped the exchange grow. By 2018, Binance was the largest cryptocurrency exchange in the world in terms of trading volume. Today, the exchange still dominates the sector. Binance has since opened multiple platforms including Binance US, Binance DEX, Binance KR, and Binance Australia, to name a few.
The Singapore-based crypto exchange KuCoin was one of the first platforms to enter the market. Reports confirmed that developers began market research for this exchange as early as 2011. In 2013 KuCoin entered the crypto market as a dominant player.
Today the platform is known for its state of the art technology. The exchange features a combination of reliable and extended technical architecture. In this way, developers have been able to streamline the standard trading operations encountered by users.
The Poloniex exchange entered the market in 2014 with the aim to provide US clientele safe access to digital assets. Currently, the firm has a headquarters located in the Greater Philadelphia Area of the Southern US. The founder of the exchange, Tristan D’Agosta, is known for living a private lifestyle, despite making Fortune magazine’s 40 under 40 list.
Poloniex is known for its accessibility and overall market positioning. Today the platform offers over 100 BTC trading pairs. Additionally, traders are privy to advanced charts and data analysis tools to help further their investment strategies. Notably, the exchange charges a 0.2% transaction fee on all trades.
Bittrex is another market leader to consider. This firm has been in operation since 2016. The developers behind this platform wanted to create an institutional brokerage firm that could help bridge the gap between the traditional financial sector and the crypto markets.
Bittrex is well known for its industry-best security practices. Currently, the platform is one of America’s leading blockchain technology providers. As such, it enjoys a reputation as one of the most reliable exchanges in the world.
Let the Cryptocurrency Trading Begin
Once you have chosen an exchange that is known for its quality and security, you are ready to begin trading. Keenly, the setup process is simple. You just need to register with your new platform and fund your online wallet. Funding your wallet can vary in the processes required and depending on if you want to fund it with fiat currency or using other cryptocurrencies.
Notably, there is a tiny learning curve that you must overcome when switching between platforms. Each exchange utilizes a slightly different approach and interface. Additionally, there are variances in transaction times, costs, and daily limits to consider.
You will also need to take into account your location. Certain exchanges do not permit users from specific countries to participate in their platform. For example, you can only trade on exchanges that require KYC and AML regulations if you live in the US.
Whenever you are investing directly in cryptocurrencies, you purchase the coins themselves. This strategy means that you will hold the cryptocurrency you own and not just some form of ownership rights. It also means that you must pay the full value of the asset to open a position. Additionally, you will be responsible for finding a reliable wallet to store your holdings.
What Moves Cryptomarkets
Cryptocurrency trading requires you to make educated guesses as to market movements in the future. While no one can predict these movements with 100% accuracy, there are still some techniques used by professionals to mitigate risks while trading.
The first thing you need to understand is what actually effects market movements in the sector. Unlike stocks, cryptocurrencies are uncoupled from many of the economic and political concerns that affect traditional markets. In most instances, the cryptocurrency market moves according to supply and demand. Here are some important factors to consider:
The supply of a particular cryptocurrency refers to the total number of coins the firm will issue over the entire lifespan of the project. It also references the time frame and structure that these coins will be introduced to the market. Importantly, you also need to take into consideration the number of coins destroyed or lost as well.
The next factor you need to examine is the total market capitalization of the project you are interested in. The market cap is the total value of all the coins in existence for a certain project. Understanding the growth and retractions of a tokens market cap is critical to making informed price speculations.
Importantly, not all factors that affect the market’s movements are technical in nature. One of the most influential market movers in the sector is the media. You must pay close attention to how the media portrays cryptocurrencies. You will want to be aware of any potential developments that could boost or hinder large scale adoption in the sector.
Specifically, regulatory news can play a huge role in the market capitalization of a cryptocurrency. For example, the market took a big hit when China began a large scale cryptocurrency crackdown at the end of 2017. Considering the sheer size of the Chinese market, investors could easily tell that this decision would negatively affect the market in some way.
The next point to consider in your investment strategy is how well the coin in question is able to integrate into the current financial system. Tokens that feature easier integration are more likely to experience rapid growth in the market. This growth can be substantial when a coin is introduced to an already existing network.
A perfect example of integration providing a huge potential for upside growth can be found in Facebook’s Libra token. While this token is still under development and undergoing regulatory approval, it has more upside potential than most new projects in the sector. The reason for this inherent value stems from the fact that the Facebook network encompasses billions of international users.
Major events within the sector can provide a boost to the value of your investment in different ways. One such event, known as the halving recently took place within the Bitcoin ecosystem. This event occurs roughly every four years when mining rewards are halved. Historically, these events are followed by rising market values.
Cryptocurrency Trading Terminology
Like any profession, trading cryptocurrencies requires you to learn some new terminology. Luckily, this terminology is standard across the trading industry. Consequently, you will also gain valuable insight into trading other assets such as stocks and commodities.
The spread is the price difference at which you buy or sell your cryptocurrency. As such, spreads are variable depending on the assets, time of the trade, and the time it takes to complete your transaction.
When discussing trading assets, you may encounter the term lots. In this instance, lots is simply the term used to describe batches of cryptocurrencies used to standardize the size of trades. In most scenarios, a lot can consist of a single coin. These small lots are popular in the crypto space because they help to mitigate risk to volatility.
Cryptocurrency futures are agreements to purchase or sell crypto at a set price. Notably, these financial instruments allow investors to earn profits from cryptocurrencies without the need to actually own the assets directly. Nowadays, futures are used by investors to maximize profits. Miners also use futures to lock in profits against drops in value.
One of the advantages of trading futures is the ability to utilize leverage. Leveraged trading is an advanced investment strategy. It requires an investor to take a short term loan to fulfill their investment. In this way, investors can gain access to larger investment opportunities without the need to fully pay for the assets upfront. Leveraged traders only need to pay a small deposit when they open their position. This deposit is also called the margin.
The margin is the initial deposit you put up to open and maintain a leveraged position. Keenly, you need to be aware that margin requirements will change from broker to broker. Also, the size of your trade will play a part in how large of a margin is required.
Pips are units used to measure movement in the price of a cryptocurrency. The Pip can change depending on the platform and the pairing used. For example, in the US you can say that a coin raised one Pip in value if its market value went up one dollar. The key point here is that pips refer to a one-digit movement in the price at a specific level.
Another common phrase that you will encounter if you trade cryptocurrencies in the US is KYC/AML. Know Your Customer (KYC) and Anti-Money Laundering Laws (AML) refers to a legal framework that requires exchanges to verify the identity of users. All regulated exchanges in the US and EU require AML and KYC.
Trading cryptocurrencies can be a great way for you to earn some extra Satoshis and improve your understanding of the market. Remember, the difference between a successful investor and one that fails usually comes down to the level of research and their ability to stick to their investment strategy. Savvy investors know that the secret is to stay vigilant in your market assessments and you are sure to see some gains.
Ledger Nano X Review – A Secure Hardware Wallet for Advanced HODLs
Ledger has an impeccable reputation when it comes to bitcoin hardware wallets. They have two products and the Ledger Nano X is the more advanced of the two which is perfect for the advanced cryptocurrency investor who is looking at protecting their digital assets. When it comes to quality, functionality and security this is comparable to Trezor’s Model T but with a more slick design.
In this review we will analyze the design, functionality, and most importantly the security.
What is the Ledger Nano X?
The Ledger Nano X is a premium version of the Ledger Nano S. This device is extremely compact and it can easily fit in your pocket which makes it perfect for traveling.
The first thing you’ll notice is that the device has an inscription which reads ‘vires in numeris’, this is Latin for ‘strength in numbers’. This is in reference to the cryptographic security contained in the device.
It has multiple security features and it is intuitive to use.
This device is an advanced option to keep security accessible for anyone who has cryptocurrency.
Ledger Nano X: First Impression
Nano X comes in a simple package and the box contains the device itself, 1 USB cable, one keychain and a key ring, and multiple recovery sheets for writing down the seed phrase.
The advantage of this device is how it does not stand out, from a distance most people would assume it is a simple USB stick.
Operating the Ledger Nano X
Whether you are an advanced digital assets holder, or a novice you do not need to be worried. The instructions that are provided in the package are simple and guide you on how you can set-up the Ledger Nano X.
What you should always remember is to write down the recovery seed on the provided recovery sheet and save it in a safe place. I would recommend that wherever you save it, that you choose to save two backups of the recovery seed. I personally choose to backup both in electronic and paper form. This means you will need to scan the recovery sheet and save it in a secret folder on your computer and make sure that you do not name it with anything that is associated with bitcoin, Ledger or cryptocurrency. For those who are unaware, the recovery seed is what you need to access your funds in the scenario where the device is either damaged or lost.
Again, the entire process is simple, you connect the Nano X to your computer, access the Ledger website, and then install Ledger Live. From there you click on ‘Initialize a new Ledger device’, and you are on your way.
Ledger Nano X: Security Features
Ledger takes security seriously. They offer the CC EAL5+ Security. What this means:
CC: Stands for common criteria for Information Technology Security Evaluation. This is based on an international standard (ISO/IEC 15408) for computer security certification. When it comes to a particular product, it must meet the base standards of the common criteria.
EAL: The Evaluation Assurance Level is a category ranking assigned to an IT product or system, after a Common Criteria security evaluation. The five levels of EAL are:
- EAL1 — functionally tested
- EAL2 — structurally tested
- EAL3 — methodically tested and checked
- EAL4 — methodically designed, tested and reviewed
- EAL5 — semi-formally designed and tested
Ledger ensures that all of their hardware wallets including the Nano X are fully-certified on the market certified by ANSSI, the French cybersecurity agency.
Another security element is the device does not arrive with pre-installed software– that’s installed during the set-up process. It is PIN-protected and allows you to label your device and customize the home screen to make it unique to you. You will install Ledger Live software during the sign-up process.
The Ledger Nano X is a great way to protect your cryptocurrency and offers all of the advanced security solutions that you would find with its director competitor the Trezor Model T. The safety of this device and the fact that it resembles a simple USB stick makes this this device a popular favorite for members of the cryptocurrency community.