Knowledge base | Ledger

Are my bitcoins stored securely?

The following mechanisms are used to protect your bitcoins using your Ledger Wallet :
  1. You generate the keys stored within the Ledger Wallet, during an initialization procedure. We never even get the chance to make a copy of your private keys.
  2. Your private keys never leave  the smartcard. Whenever a payment needs to be made, the transaction is signed inside the secure element and the private keys are not even visible by the computer the Ledger Wallet is connected to.
  3. Every time you insert the Ledger Wallet in the USB port of your computer, you need to enter a PIN code. Fail to enter the proper PIN code three times, and the Ledger Wallet is reset, erasing its entire contents.
  4. Every time you want to sign a transaction, you need to enter a code stored on a separate offline card, providing an additional off-line security mechanism for the Ledger
  5. During the initialization process of the Ledger Wallet, a passphrase is generated and given to you (a sequence of 24 random words).This passphrase allows you to retreive your bitcoins should your Ledger Wallet be stolen, lost, or damaged.