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Author Topic: How to safely store your Bitcoins  (Read 41 times)

No One

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How to safely store your Bitcoins
« on: December 13, 2017, 05:26:19 PM »

Bitcoin is digital. Digital can be stolen. Period.

There are ways to safeguard your crypto currencies.

I will share mine.

1- Exchanges arenít wallets. Donít keep your coins in exchanges. Always, always, always remember Mt.Gox.
2- If you trade and need exchanges, split your coins in several of them. One goes down, losses wonít be total.
3- Mobile phones arenít a proper wallet. Keep funds in mobile phones for daily spend only. Your phone gets stolen and you donít loose all.
4- Consider buying hardware wallets. Many are well built and easy to use. Remember they are sort of flash drives. They get wet, they are gone. They get EMPed, they are gone. They get fried by an USB electrical power surge, they are gone. They get stolen, the funds are gone.
5- Private Keys can be imported anywhere to access your funds. They get stolen, all is lost. Do not keep them in an insecure computer.
6- In case you did not follow no.5 and kept your keys in your computer, encrypt the disk. Someone with physical access to your hardware will have a hard time retrieving the data from the drive. In the other hand, you may face the same difficulty in case your machine goes dead.
7- Transfer the funds to a cold wallet created in an airgapped machine. Buy an old used laptop that wonít ever access the internet. Wipe it clean and install a decent OS with a software capable of generating bitcoin addresses. Create new private and public keys. Secure the private key not allowing it to go near the internet. Transfer the funds from your internet exposed wallet to your newly air gap created public key.
8- In case you did print or took note of your private key and created a paper wallet, remember paper and ink decay. Store it inside an vacuum plastic sheet.
9- Consider printing your keys in plastic cards. You can then store these cards in hidden locations or secure private boxes.
10- Go crazy and defend yourself from paper wallet access. Create your own encryption algorithm to randomize your private key hash. Print this one. Whoever steals your paper sheet or plastic card wonít make sense of it.

While I donít trust intermediaries, if you do, I can think of two additional precautions.

11- Send your bitcoins to a third party agent. Xapo does that. You can use them as an online wallet and you can transfer funds to their Vault. The vault is nothing but a request for Xapo to transfer your coins to a cold wallet printed and stored in their custody.
12- Send your bitcoins to Coinbase or similar companies. They run a vault that implements no.10. If someone would raid their facilities they would have to torture people to learn the key to decrypt your printed cold wallet private keys.
13- There are Singapore based startups planing to implement no.12 and have their key multi signed by you and other people. Only all of you can decrypt the private key by entering your passwords together.
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J S

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Re: How to safely store your Bitcoins
« Reply #1 on: February 12, 2018, 02:22:23 PM »

How do I get bitcoins?
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