If you’ve been loyally listening to the Neocash Radio podcast over the past four years, you’ve undoubtedly heard us talking about using hardware wallets for cryptocurrency security. Near the end of Wednesday’s podcast, Randy made mention of some tools that Pedro showed him which allow users to hold Ethereum-based tokens—like Golem Network Tokens (GNT), Augur (REP) tokens, SingularDTV (SNGLS) tokens, etc.—on a hardware wallet. Randy said he’d make a post about it for the blog later in the week and well, here we are!
Tokens built to utilize the Ethereum blockchain conform to a “token standard” called ERC20; this standard ensures that wallet apps, exchanges, etc. can accept and interact with any ERC20 token, all without having to code unique integrations for each new token system.
Some of these tokens can be purchased using ShapeShift.io or OpenLedger; others can be found at decentralized exchanges like cryptoderivatives.market. When you purchase these tokens, a smart contract grants ownership of them to your Ethereum address. But as of the writing of this post, the wallet apps provided by the hardware wallet manufacturers don’t display token balances as part of your ETH holdings.
You can receive tokens to your ETH address no matter what kind of hardware wallet you are using, but the hardware wallet manufacturers haven’t yet programmed a way to display these tokens or let you send them. This functionality will likely come to later firmware updates, but until then, there is an open-source client-side web wallet for Ethereum called MyEtherWallet.com that does display the token balances and allow you to send tokens.
- How to interact with ERC20 tokens on a Ledger Nano S hardware wallet
- How to interact with ERC20 tokens on a Trezor hardware wallet
(Best to test it with a small amount first to ensure that it works as desired for you. And of course, this isn’t meant to be financial advice or speculation of price on any asset or token or coin. We don’t do that on Neocash Radio; we just share news and our personal thoughts on that news. No hype. No pump and dump.)
More functions are frequently being added to hardware wallets, and while Randy hasn’t used a Trezor yet, the KeepKey and Ledger Nano S have some great features. Beyond just Bitcoin functionality, the KeepKey also supports creating DASH, Ethereum, Dogecoin, and Namecoin wallets. The latest Ledger Nano S hardware wallet firmware upgrade (v0.13) supports Bitcoin, Dash, Ethereum, Zcash, Dogecoin, Litecoin, Ethereum Classic, Stratis tokens, and Fido U2F authentication.
One of the major benefits of hardware wallets is that even if the device is lost or damaged, all of the user’s digital currency holdings can be recovered with a mnemonic seed phrase. If you’re looking to create cold storage wallets, know that hardware wallets generate your cryptocurrency addresses & private keys offline—similar to a paper wallet—and your hardware wallet signs any transactions on the device, never revealing or transmitting your private keys.
The Ledger Nano S hardware wallet also allows for multiple login identities on the device, which is helpful for plausible deniability in the event that someone in the meatspace tried to physically force you to hand over your device and PIN/passphrase for your hardware wallet.
Did you catch this week’s Neocash Radio podcast yet?!
Venezuela wrestles with a dictatorship as the Supreme Court toys with the opposition-led legislature. Also the Venezuelan Bolivar is hyper-inflating past 200% over the last year. Japan now recognizes Bitcoin as a legal method of payment. Litecoin jumps in value and and may be activating SegWit. Pedro joins us in-studio to talk about the Golem Super Computer that runs on the Ethereum blockchain. DASH has an open house and founder Evan Duffield reveals his DASH holdings. GlassHunt hackers have a double-spend tool that may have helped double-spend more than 630 BTC. Vitalik Buterin shares the Casper Contract Code, Ethereum’s future Proof of Stake consensus solution. Slock.it raises $2 Million in funding for the Universal Sharing Network, turning everyday items into smart objects. Bitfinex has made good on their BFX token exchange after last year’s hack. Seedsplit allows you to divide a passphrase or wallet seed into multiple parts to be reassembled later. We discuss hardware wallets and how to handle passing on your crypto post-mortem.
Stream this podcast: “Ep201: Japan Treats Bitcoin Like Gold, Ethereum Casper Contracts Revealed, DASH Open House” (Wednesday, April 5th, 2017)
or Direct Download the podcast as an MP3 – Neocash Radio episode 201
or catch this episode of our podcast on YouTube!