so you looking to receive some crypto on your
Ledger wallet you think how you know who can
be bothered unlocking the ledger I'll just
grab the receive address of a previous transaction
from Ledger live and just give that to someone
to get them to send the crypto there... What could possibly
go wrong well actually quite a bit and we
are just going to look at that today and if you haven't
already done so hit subscribe and that way
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help you to stay safe in the crypto space
and how to navigate your way in the crazy and often hostile
landscape that is cryptocurrency I was asked
to help by someone who found themselves and
situation where they thought they were withdrawn
from coinbase their funds never appeared but
when they look at the transaction they could
see that all gone through on coinbase's end.
What they had done was basically go into
Ledger live that found the last withdraw from
coinbase and they just copied the first address
at the list but unfortunately for them that
was coinbase is change address not the address
for their Ledger so when they use this address
as the rush
the address on coinbase rather than withdrawing
their funds from coinbase onto their Ledger
wallet they actually would just pretty much
sending them back to coinbase though to an
address it was associated with their account
so the funds basically were lost to them and I
in the end they contacted coinbase and after
several weeks of frustrating backwards and
forwards emails are they finally had those
credited back into their account where people
have got themselves into trouble is they will
just assume that the first address in the
list of outputs belongs to them which is not
the case at all. To be fair to Ledger they actually
do have this link it says why multiple addresses
when you click on that link it takes you to
this docco on Ledger's website and it
gives you a good explaination, a short explanation
about how change addresses work and while it
does mention down here that it isn't possible
for you to know which one is actually your
address out of the outputs it doesn't really
warn you in an obvious way of that unless
you read the whole thing in detail and again
for people who have unfamiliar with how to
start work so it can be an easy detail for
Miss in a similar way how you can send an
email to multiple people you can actually
send Bitcoin to a number of people as well
so when you look at the transaction in Bitcoin
there maybe one output there maybe two there
may be doesn't see if you're using Ledger
live there is simply no consistent way to
identify which of those addresses and outputs
belongs to you this behaviour and Ledger
Live is really different to what we see an
Electrum if you're go into electrum and
open at same transaction will actually highlight
your address in green because they could be
any number of outputs for a transaction likewise
in a trezor wallet for exactly the same wallet
it will actually show you just in the transaction
summary the address of yours that was used
to receive the funds for any block Explorer
you use if you look at the output of a given
transaction
really no indication which one was yours at
which one belongs the person who sent you
the funds so there you go this is meant to
be a criticism of Ledger and their approach
but it's important to understand that there
are multiple different design philosophies that are at play
between different crypto wallets and even
now they still isn't a huge amount of consistency
in the way that outputs the belong to your
wallet are highlighted vs are outlets in Myponga
other people might be changed vs you something
else if you find yourself in a situation where
you've sent money to someone else's change
address your first port of call is a contact
the person who sent you the funds but at the
same time without doing some fairly detailed
analysis of a transaction coming from a specific
wallet there's no easy way to prove that this
address for example is actually the change
address from the sender and not simply another
address that was being sent at the same time
so you need to be really careful about making
sure you select the right address to do a
received on rather than just opening the last
transaction and copying the one that is
first if you don't want to go unlocking your
Ledger all the time just to receive funds
there are a number of ways that you can have
two or three different watch only wallets
that you can use a multiple devices to verify
that you are in fact seeing the right one
and that your desktop wallet hasn't been compromised
but again the simplest and most reliable way
to do this is to simply verify the receiver
address on your Ledger every time thanks for
watching you have that was it like if you
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