How To Set Up A Ledger Nano Or HW.1
You can use this tutorial for either the Nano or the HW.1 because they basically function the same. The first thing you should note is that you must use Chrome as a browser and must run it on a Windows, Mac, or Linux computer. Unfortunately the Ledger extension does not work on a Chromebook.
The first step is to download the Ledger Wallet Chrome extension. In Chrome, go to the menu button in the upper right of Chrome.
In the Extensions screen, go to the bottom and find Get more extensions.
The setup will ask if you want to set up a new wallet or restore a wallet. If you don’t get this screen and the extension asks for a PIN it means your Ledger already has a wallet on it. I would guess that you bought it used from someone. Do not worry. You can still set your Ledger up securely. Just enter random numbers. It will fail. Pull the Ledger out of the USB slot and put it back in. Do this two more times and it will clear the unknown data off the Ledger. You can then continue with the setup. Click on Create a new wallet.
The Security information screen is important information. It basically says that you need to trust the computer you’re setting your Ledger up with. If you have viruses or malware on your machine you should clean that up first. Or you can get a Ledger Starter. This a product with which you can boot your computer into a secure environment just to set up your Ledger. If you trust your computer, hit continue.
On the PIN screen you can either use the Automatic PIN code or you can chose Manual PIN code. I prefer to use a PIN I’m familiar with, but a random one would probably be more secure. It’s really up to you. Make your pick and click continue.
Enter your PIN again and click continue.
Now the Ledger will present you with your recovery phrase. With this phrase you can use any Ledger device to recover your wallet. For this reason you need to keep this absolutely secure. Write this phrase down on the Recovery Sheet that came with your Ledger and keep it secure. If you bought your Ledger used, don’t use the one that’s written down in the card. Write yours down on another sheet and keep it with the card. And don’t bother using the one I show here. I used it to make this tutorial and then never used it again. I’ve erased the wallet associated with it.
Put in how much you want to send, a Bitcoin address to send to, and then a level of Transaction Fees to attach to the transaction. The higher the fees, the faster the confirmations.
You will then be asked if you want to pair a smartphone or use the security card. I will leave pairing a smartphone for another Tutorial. For now, select use the security card.
On the next screen you’ll need to punch in a code based on the key printed on the security card and the address to which you’re sending Bitcoin. You will be asked to punch in 4 characters, each one in turn. For the letter highlighted on the screen look at the security card and punch in the character below. Remember that, just like in Bitcoin addresses, upper and lower case letters are different and that difference is important.
Once you punch in the 4 characters it will finalize the transaction and you’ll get a success message. Congratulations, you’ve sent Bitcoin to your Ledger Nano or HW.1 and sent Bitcoin out of it again. You’re now ready to securely store your Bitcoin long term.
Once you’re done just pull your Ledger out of the USB port and store it somewhere safe. Be sure to store the recovery sheet and security card somewhere safe as well. If possible store them in separate places.
I’ve written another Tutorial about how to connect it to Mycelium so you can use it on mobile, not just on a computer.