The purpose of this blog post is to provide a quick overview of hardware wallets and to provide easy steps for new Cardano (ADA) users on how to delegate and stake using the Ledger Nano series hardware wallets and Yoroi.
Hardware Wallet Overview
So what’s a hardware wallet?
A hardware wallet or often referred to as a hard wallet is a type of cryptocurrency wallet that allows you to securely store your private keys in a physical device. What does this mean? Well, if you remember, your private keys are the all-important “passwords” to your cryptocurrency “bank accounts”. If anyone gets access to these “passwords”, they can access your account and withdraw funds. However, with a hard wallet, you can trust that your private keys are kept safely in the physical device and never exposed, therefore, reduces the risk of being compromised. You mainly use the device to sign or approve transactions. Think of it as a sophisticated key to unlock your bank vault.
Recommended Hardware Wallet: Ledger Nano
We at 8SQRD Cardano Staking Pool have chosen to use the Ledger Nano series (both S and X) hardware wallets to “cold delegate” our ADA. While there are a growing number of hardware wallets that support Cardano, our decision to use the Ledger Nano series wallets (simply referred to as “Ledger Nano”) is due to Ledger’s long-standing reputation as an industry leader in hardware wallet design and is one of the hardware wallets accepted by Yoroi. As well, security, a user-friendly interface, and support for multiple cryptocurrencies puts the Ledger Nano at the top of our list.
We won’t go into further details about different wallet types nor the specific technical details of Ledger wallet, but we encourage you to read more about cryptocurrency wallets and Ledger wallet comparisons.
Steps to Delegate using Ledger Nano
Delegating ADA with a Ledger Nano is a fairly simple process with using hardware wallets, especially if you’re combining it with the Yoroi wallet. If you need a quick refresher on the Yoroi wallet, you can read our previous post on how to delegate your ADA. This post covers very briefly for new users on how to set up your Ledger Nano for use.
In order to delegate your ADA using Yoroi and Ledger Nano, generally, there are 3 steps:
Step 1: Set up your Ledger Wallet
Step 2: Download Ledger Live and Install Cardano
Step 3: Interface between Ledger Nano and Yoroi
You should note that Steps 1 and 2 are very high-level instructions to get your Ledger Nano to work so that you use it to interact with the Yoroi wallet. These steps are more for new users, so if you’re already comfortable using Ledger Nano, feel free to jump straight to Step 3.
Step 1: Set up your Ledger
The first step to set up your Ledger Nano hardware wallet is very important. During this configuration process you create a pin and generate a 24-word recovery phrase (similar to the Yoroi wallet set up) that provides you ultimate control and access to your device, transact with your cryptocurrencies, and a means to recover your wallet on another Ledger Nano device if required. The Ledger website offers a lot of support and resources in getting your Ledger Nano set up, so we won’t get too in-depth about this process, but we’ll share some quick guidance notes below:
- Powering on the device: Connect your Ledger Nano to your computer via the USB cable provided.
- Navigating: Simply use the left and right buttons and double click both buttons to confirm any actions or to move forward to the next step.
- Configuration: Follow the prompts to set up your PIN (you create) and your 24-word recovery phrase (created automatically).
- Confirmation: There will be confirmation steps for the PIN and 24-word recovery phrase set up to ensure you’ve avoided any errors. Pro-tip: Make sure you’ve carefully written down your recovery phase and store it safely to avoid your Ledger being compromised!
Step 2: Download Ledger Live and Install Cardano (ADA)
The Ledger Live application allows you to interact with your Ledger Nano wallet on a computer to manage your assets and to transact (send and receive). The Ledger Nano comes as a blank slate in terms of cryptocurrencies you have access to, so you will have to use Ledger Live to install the Cardano app on the Ledger Nano device in order to interact with the Yoroi wallet in Step 3. Again, Ledger offers support and resources to download and install Ledger Live, but the following steps summarizes what you’ll need to do:
- Ledger Live Set up: Download Ledger Live and install it like any other application on your computer.
- Password Set up: Complete the password set up for Ledger Live on your computer.
- Install Cardano ADA: Navigate to the “Manage” tab on Ledger Live to view the list of cryptocurrencies supported by Ledger and find Cardano ADA to install.
- You will see Cardano (ADA) on your Ledger Nano device home screen if successfully installed.
Step 3: Interface between Ledger Nano and Yoroi
Now that you have your Ledger Nano set up, you can use it to interact with the Yoroi wallet. You’ll have to go between devices in order to move forward.
On your Yoroi
If you recall, you’ll have to first download the Yoroi Chrome browser extension to use the Yoroi wallet. Yoroi will push you through a series of easy step-by-step prompts for initial set-up.
Initial set up: Instead of the ‘Create wallet’ or ‘Restore wallet’ options, choose “Connect to hardware wallet”. You’ll be prompted with set-up options. Simply choose the following options:
- Ledger Hardware Wallet
- Shelley-era Wallet
Ledger Nano Model: Next, you’ll be prompted to choose between Ledger Nano S vs Ledger Nano X options. Choose whichever one you have on hand (both are very similar).
Make the connection: You’ll be prompted to connect your Ledger Wallet. Once connected, you’ll need to confirm on your Ledger Nano to export the public keys to Yoroi. This just means that you will be creating a wallet that is linked with your Ledger Nano.
On your Ledger Nano
You won’t be able to move forward on your Yoroi set up until you’ve connected your Ledger Nano and approve the request from Yoroi on your Ledger Nano. Remember: Your Cardano app must be first installed and remain open on your Ledger Nano device.
- Access Ledger: As always, you need to enter your PIN to access your Ledger.
- Open Cardano: Access Cardano (ADA) app from the home screen of your Ledger Nano. Keep this app open at all times to receive further prompts.
- Make the connection: Ensure that your Ledger Nano is connected to your computer.
- Confirm Export of Keys: Confirm on your Ledger Nano to export the public keys.
Back to your Yoroi
You’re almost there. Once you’ve confirmed the export of public keys on your Ledger Nano, you’ll be prompted to name your wallet and save it to create your new Yoroi wallet linked with your Ledger Nano.
Delegate Your Cardano ADA
Once you’ve completed the above steps a new wallet will be created that is linked with your Ledger Nano. You’ll notice that the interface is exactly the same as if you had created a new or restored a previous wallet. The only difference is that you can only transact and delegate when your Ledger Nano device is connected and active. Without the device connected, it’s impossible to do anything useful with this wallet (that’s kind of the point!). You’re now ready to delegate to earn rewards!
How do I delegate to 8SQRD?
Delegate to 8SQRD Cardano Stake Pool for low fee delegation, reliability, and most importantly to support the fight against anti-Asian racism. 8SQRD Cardano Stake Pool uses a portion of pool-owner ADA rewards to make donations to worthy nonprofit and charitable organizations. We’re proud to say that we recently donated more than $225 to Stop AAPI Hate and Stop Asian Hate Canada after receiving our first block reward. Continue to help organizations like these, by delegating to 8SQRD Cardano Stake Pool.
In order to delegate to our Stake Pool, the steps are the same as before on Yoroi. Simply search up ‘8SQRD’ or our Pool ID under the ‘Delegation List’ tab and click ‘Delegate’.
- Ticker: 8SQRD
- Pool ID: pool1vvesqladm29fuzrv93px5qse0upw82a579lz9063xsfrz7yef7z (6333007fadda8a9e086c2c426a02197f02e3abb4f17e22bf51341231)
Congratulations, you have now successfully delegated your ADA using your Ledger Nano.
Please read our Disclaimer.
8SQRD Cardano Stake Pool operations is founded on the traditional, ancestral and unceded territories of the xʷməθkʷəy̓əm (Musqueam), Sḵwx̱wú7mesh (Squamish) and səlilwətaɬ (Tsleil-Waututh) Nations.