I believe many were scared by the Ledger Wallet outage yesterday (24th, Jan., 2018). Most of the crypto currencies APIs were out of order for several hours and BCH API is still not full recovered: http://status.ledger.fr
I am amazed to realise so late myself that the ‘Ledger Wallet’ products are centralised solutions for decentralised cryptocurrencies:
If their APIs went off (due to hacking or natural disaster), not only one’s trade is off one could also loose access to its fortune indefinitely!
The fact that Ledger’s official tweet said nothing about the outage shall worry EVERYONE.
So the solutions:
1. Local wallets in a PC:
– If the wallet is encrypted AND private key backed up AND the PC is kept clean, you shall be fine.
– A DEDICATED trading PC is a much safer choice.
MUSTDO: run a recovery drill with the wallet backup files in another PC.
2. Local wallets with storage on a USB key:
The setup is similar as 1, but you choose to put the wallet files in an external USB key. This way, you can unplug the USB key once your transfer is done. You now have a ‘Ledger Wallet’ without the API outage risk.
MUSTDO: Wallet backup and recover drill as in 1.
3. Virtualbox OS on a USB key:
It’s a little advanced but doable:
– Get a metal USB key
– Download the virtualbox and the ‘extension pack’ for your OS and install.
–Install the Virtualbox ‘Guest Additions’ CD.
– Plug in the USB key ( >256 GB if you play to install full node wallets) and choose the external USB storage as the destination during the OS (use the downloaded Linux/Windows ISO files) installation process. You can even encrypt the installation to make the USB key theftproof.
– You can do everything (trading, wallet installation etc.) in the virtualbox OS.
- Virtualbox allows backup of the whole OS into one file and restore in another PC with the virtualbox installation. That’s a backup strategy on its own.
MUSTDO: Wallet backup and recover drill as 1.
The solutions above concentrate on maximising the availability with the Ledger Wallet API outage in mind.
Bitcoin whales OUGHT to invest in a better decentralised cold wallet than Ledger.