Hardware wallet glossary

Anti-tamper seal

A holographic sticker on Ledger Wallet packaging that shows evidence of tampering if the box has been opened. Inspect before first use. A broken seal on arrival is a serious warning.

App ( Ledger Wallet device)

A small program installed on the Ledger Wallet device that handles the cryptographic operations for a specific blockchain. Install via the App Catalog in Ledger Live. Apps are sandboxed from each other.

BIP-39

The open standard that defines how a seed phrase is generated. Ledger Wallet uses 24-word BIP-39 phrases. Any other BIP-39 wallet can import your phrase.

BIP-44

Standard for hierarchical deterministic key derivation. One 24-word phrase generates all addresses across all supported chains.

BOLOS

Blockchain Open Ledger Operating System — Ledger Wallet’s open-source OS that sandboxes each coin app and manages access to the Secure Element.

CC EAL5+

Common Criteria Evaluation Assurance Level 5+. The security certification level of the Secure Element chip in Ledger Wallet devices. The same certification used in payment cards and government IDs.

Clear signing

A Ledger Wallet feature on newer models (Stax, Flex) that displays human-readable transaction details on the device screen before confirmation, rather than a raw hash.

Cold storage

Keeping private keys on a device that is never connected to the internet when not in active use. Hardware wallets are the standard cold storage method.

Cold wallet

See cold storage. A device that stores private keys offline.

DeFi (Decentralised Finance)

Financial services built on public blockchains. Ledger Wallet connects to DeFi via WalletConnect and native integration with MetaMask and Phantom. Keys stay on the hardware device throughout.

EAL5+

See CC EAL5+. The certification level of the Secure Element chip.

Firmware

The software that runs on the Ledger Wallet device itself, managing the Secure Element, display, and buttons. Updated regularly via Ledger Live. Always update firmware before first use.

Hardware wallet

A physical device that stores private keys inside a Secure Element chip. Keys are generated internally, never exported in raw form, and every transaction requires physical button confirmation on the device.

Hot wallet

A software wallet on an internet-connected device. Faster and more convenient than hardware; carries higher baseline risk because the connected device can be compromised by malware.

Key derivation

The cryptographic process of generating private keys for different blockchains from one master seed. Ledger Wallet uses BIP-44 HD derivation: one 24-word phrase generates all keys for all chains.

Ledger Live

Ledger Wallet’s free companion app for Windows, macOS, Linux, iOS, and Android. Manages accounts, installs coin apps, sends, receives, stakes, and swaps — with every transaction signed on the hardware device.

MetaMask integration

Ledger Wallet devices connect to MetaMask as a hardware signing layer. MetaMask proposes transactions; the Ledger Wallet device signs them. Keys never enter MetaMask software.

Passphrase (BIP-39)

An optional 25th word added to the recovery phrase, creating a completely separate wallet. Adds an extra layer of protection: even with the 24-word phrase, the passphrase is needed to access these accounts. Set and remembered by the user only.

PIN

A 4–8 digit code set on the device during setup. Protects the physical device. Three wrong attempts trigger a device reset. Choose something that is not guessable.

Private key

A secret number that authorises spending from a crypto address. In a Ledger Wallet, private keys are generated and stored inside the Secure Element chip and never exported in raw form.

Recovery phrase

The 24 words generated by the Ledger Wallet during setup. These words can restore every account on any BIP-39 compatible device. Losing them with no backup means permanent loss of funds access.

Recovery Sheet

The paper form included with every Ledger Wallet device for writing the recovery phrase. Store it offline in a secure location.

Secure Element

A tamper-resistant microchip that stores private keys in hardware. CC EAL5+ certified in Ledger Wallet devices. Keys are generated inside, used inside, and cannot be extracted in raw form.

Seed phrase

See recovery phrase. The 24-word backup that restores all accounts.

Transaction signing

The process of creating a cryptographic authorisation for a blockchain transaction using the private key. In Ledger Wallet, signing happens inside the Secure Element after physical button confirmation.

WalletConnect

An open protocol for connecting Ledger Wallet to external DeFi applications by scanning a QR code or clicking a link. Keys stay on the hardware device; the dApp proposes, the device signs.