Course 17

Metamask to Ledger (long)

What you will learn:

Not Trezor sorry, but still a good read to learn the principles.

This is long and part of it is really for new entrants – Crypto masters will get bored for sure - but bear until the end to really grasp the details.

If you are a master of blockchain and you don't want to understand the details, go to this page.

Why doing this?

Simply to prevent any hacking and loss of your assets. Hackers will ask you to share your seed phrase (or private key), and then access your wallet and empty it. “I will never type in my seed phrase I can’t get hacked” – Correct, but your computer can get hacked and someone can access the wallet and do what he wants with it, without having your seed. I believe in takings risks, I love risks, but there are risks I don’t take. Being exposed to losing all my funds is not a risk I am taking. Neither should you.


Concept of Blockchain. People do transactions with each other’s. You can exchange hay in person with another farmer, this is recorded on your notebook. You can exchange money via a bank transfer, this is recorded on the bank’s computer. You can exchange a good $time with your friend, this is recorded on the pictures you took together. You can exchange $Bitcoin and this is recorded on the blockchain.

You can lose your notebook and all the hay records.

The bank’s main computer can fry, get hacked, spied on, etc.

Your pictures that $memo-rates your event can burn or fade over time.

The blockchain can’t disappear. It will always be there.

Each transaction shows who sent what, how much of it and when.

When you are a teenager, you go the bank to open an account of your own and you start making transfers.

When you are $smartr, you go to a crypto provider (e.g. @coinbase), and you open an account and start making transactions. In reality, you did more than just opening an account, you created a wallet (bank account) with a wallet address (account number).


Heading to @Metamask. Now you go to @Metamask and you open a new account – meaning, you create a new wallet. You now have 2 wallets. You will take the address of your @Metamask account and input it into coinbase to do your transaction. You hit send and at this point, history is made.

The blockchain will record that wallet # 0x99fw25g4w6s3vf4abcdefghij (Coinbase) had 1 Bitcoin and it sent it to wallet # 1y8841513abskvuivrneoia (Metamak) which had 0 bitcoin before. At this point, Coinbase can fry, your computer and @Metamask can burn, the blockchain will for ever have the record of that transaction.

Where are my coins stored? On the blockchain. Not on @Metamask.

When you stake a coin, e.g. $Time, you basically do a transaction. What does that mean? The blockchain recorded that wallet # 0Hgf8965sjhvs25366ck (random @Metamask wallet) has staked so much of that coin to the staking address.

Will I lose my staking if I transfer from MM to @Ledger? No, because the staking occurred on the blockchain, not your MM or anything else.

Now, how do you prevent anyone from sending a transaction on the blockchain with my address? This is where the private key enters. Now, let’s use the proper wording: the “address” I have been referring to is called the “public address”.

When you do a Tx on the blockchain, the record shows public address wallet A sent 1 Bitcoin to Public address wallet B.

In reality, any wallet on the blockchain has 2 types of address: the public one and the private one. So when you create an account on MM, you will be given a private address. This is the one only you should have and never lose. This private address is connected to your public address.

Back on the bank example, if the account number was your public address, then the private key is your pin number or password to access your bank account.

Anyone can have your account number but they can’t do anything unless they connect to your bank account with you pin/password and do a transaction.


This part is very important. The process of validating the transaction.

Imagine you go on your online bank account, and you click on “Save password”, your browser Chrome or any other, has the password to access your online bank account. Let’s say you leave your computer on and someone goes on it, they now can access to your bank account and do what they want, including doing a transaction (e.g. a wire transfer to them with your money).

When you add @Metamask to Chrome, and you create a wallet, the private key (your password or pin) will be AUTOMATICALLY – or, by default – saved and stored on the browser. This is the same as leaving your online bank account open on a public computer at the library.

Any hacker can connect to your computer remotely, open your browser, open @Metamask and do any transaction they want. Since the private key is stored on Chrome, the right to make a Tx, meaning the right to VALIDATE a Tx is given to anyone accessing Chrome MM.

Side note. The private key (0x99fjf45156874as2casf4631c756b6ac75) which is an impossible password to remember, is actually translated into an array of words (House Boat Car Grass Goat Horse Carrot Other Words) and this is called the “Seed phrase”. When you create a MM wallet, they tell you to write it down on a piece of paper and store it safely. This is your access to your funds on the blockchain. Do it.


Now the solution.

Have you ever seen a movie where someone has his eye scanned in order to access his vault? This is a physical validation to access the funds.

This is the same with our crypto assets, the vault is the blockchain, we can use @Metamask to interact with it, but we need to physically validate stuff. This is what the @Ledger is for.

Instead of relying on Chrome and MM to keep the private key, meaning to store the private key, also meaning to give the right to do transactions, we will rely on @Ledger, which will require you to physically push buttons to allow a transaction to happen.

Back to the movie, do you also remember when the bad person cut the guy’s eye so that he can access his vault? Well, same here, if someone wanted to steal you, they would need to come to your house and push the buttons on the @Ledger for you. Is this possible? Yes. Is this likely? No.


Now, the video I share with you here, is a guide on how to remove the private key (the pin/password of your bank account) from @Metamask and instead put it into the @Ledger. You will remove the right to validate transaction from @Metamask. MM will not be able to validate Tx. Only the @Ledger will be able to do that one part.

The video has you remove MM from chrome. Most of you will shit your pant (like I did too), but this is necessary. Someday your Chrome will crash and you will lose access to your MM anyway. So, you better understand how things work now and take necessary measures.

When you remove MM, your funds are not gone. Your staking is not disappearing. Remember, all of that is stored on the blockchain. The only subtle part is that you need to know your private key to access them on the blockchain!

When you remove MM, you remove the access to your wallet from the internet. You remove the possibility for hackers to access your private key and validate transactions.

The video will help you remove the private key (seed phrase) from @Metamask and it will help you store it on the @Ledger instead.


Here is below a short recap of what the video makes you do:

1. Input your MM wallet seed phrase into your @Ledger. Now @Ledger can validate. Keep your phrase on a piece of paper just in case.

2. Remove MM from chrome, meaning delete my seed phrase from the internet.

3. Create a brand new MM on chrome (new private key and new public address, which you won’t use)

4. Import the public address from your previous wallet into your new wallet. This way, you can do all your transactions on @Metamask the same way as before.

https://www.youtube.com/watch?v=x5RBk3thpY4


For now on, any transactions from public address A will need to be validated physically from the device.

When people say “I stored my funds on a cold storage”, that is not entirely correct imo. What is stored is the private key (and sometimes public addresses too). The funds are stored on the blockchain.

In the past, we would tell you to buy a @Ledger and transfer all your funds from your wallet A to the @Ledger wallet B. This meant that the @Ledger had its own private key and with each coin you had a set of public addresses. For some reason, @Metamask grew faster and more people use @Metamask rather than @Ledger. It’s also easier to transact with MM rather than @Ledger. So now, you can if you want open your @Ledger, add all the applications of each coin etc. and then send all of them one by one. In this case everything went from Wallet A to Wallet B. But imo it is better to keep all your funds recorded to your wallet and simply remove the seed phrase from chrome and input it into the @Ledger.

So the big question: “I have heard @Ledger doesn’t support all my coins” becomes not valid. Because when you transfer from MM to @Ledger, you transfer the private key for all the coins, not the coins themselves. An all the private keys work on all the @Ledgers.


*** IMPORTANT ***

1. The video is missing one big step. Once the transfer of the phrase is done, go on your @Ledger into settings and turn on “Blind signing”.

2. Common problems with @Ledger/MM: Make sure your @Ledger is up to date. Make sure your Live @Ledger (if using chrome is updated).

3. Firefox works well too. You only need Eth app on it (though ur wallet has multichain coins)



FAQ

1 . can I use same @Ledger live app for two hard wallets?

If you are talking about the software/application on the computer, I would assume so yes. @Ledger Live is only needed because of stupid Chrome. On firefox, the connection is direct, no @Ledger live needed.


2. Is there a way to transfer staked funds from a hot wallet to an already set up @Ledger? Do I have to unstake and transfer all those funds to the @Ledger?

If you already have funds on your @Ledger (meaning the seed phrase of your @Ledger wallet is on the @Ledger), then you can't add another seed on it. You have to pick one. You can reset your @Ledger and import the MM one too, but write down the @Ledger private key before reseting


3. original wallet address will remains the same? my @Ledger address will be from now same as "old" wallet?

YES


4. all assets in soft wallet will be moved to hard wallet?

No, no assets will move. Assets are stored on the blockchain, not on MM.


5. assets on all chains will be moved?

No assets from anychain will move.


6. Assets stacked on platforms will not be affected?

Correct. Since this is all happening on the blockchain with your public keys.


7. since i have the avax network with $time on MM will that have any affect on my balance or account since its a different network than ethereum?

No because your staking is happening on the Blockchain (where your wallet is), not on your MM or your @Ledger (where your seed/private key is stored)


8. so you don't have to move all your crypto to a new address when you want to use your @Ledger right?

Yes my friend. It's important to understand that no matter what happens to your Chrome, to your @Ledger or whatever device, your funds will always be safe and stored on the Blockchain via your seed phrase. All you need to do is never lose it


9. Is it possible to link a @Ledger to an existing @Metamask that was created without a cold wallet ? Do I need to use my @Metamask recovery phrase on the @Ledger to do that ?

Yes you can. You can remove the seed phrase from MM and input it into your @Ledger. This way, you are storing it off line and nobody can hack it. Once you've done that, you have to re create a random MM wallet, and import your @Ledger wallet. Video is on YT best thing ever done


10. I got a Keystone wallet but didn’t set it up because it doesn’t seem to recognize many of my tokens. Is there a better hardware wallet where I can store all of my Erc20 tokens?

I’m not familiar with that one but I can tell you that almost every hardware wallet doesn’t see every token, if you can connect to @Metamask with it you still have access to anything. I have stuff on my @Ledger that @Ledger doesn’t support but can still interact with


11. I’m not understanding how to get the seed phrase to the ledger? Was I supposed to use the MM seed phrase as my phrase during the ledger set up?

Yes, you are supposed to put MM seed phrase into the ledger. If you have create a new seed with your ledger when you launched it, then you will need to reset it, and when you restart, instead of creating a new one, indicate that you already have one and input the MM seed.