Wait, earlier you said Bitcoin is “mostly” safe
This page is a discussion of the different ways of storing bitcoins, whether for investment purposes or as a medium of exchange.
As bitcoin is a digital asset, it can be very un-intuitive to store safely. Historically many people have lost their coins but with proper understanding the risks can be eliminated. If your bitcoins do end up lost or stolen then there's almost certainly nothing that can be done to get them back.
Have your wallet create a seed phrase , write it down on paper and store it in a safe place or several safe places, as backups. The wallet should be backed by your own full node. See Backup and Storage Methods for a review of published storage methods that give instructions for how to store a wallet.
The art and science of storing bitcoins is about keeping your private keys safe, yet remaining easily available to you when you want to make a transaction. It also requires verifying that you received real bitcoins, and stopping an adversary from spying on you. In the past many people have accidentally lost bitcoins because of failed backups, mistyped letters, forgotten hard drives, corrupted SSD devices, or numerous other slip ups.
The key to protecting yourself from data loss of any kind is to have redundant backups so that if one is lost or destroyed, you still have others you can use when you need them. All good wallet software asks their users to write down the seed recovery phrase of the wallet as a backup, so that if your primary wallet is lost or damaged, you can use the seed recovery phrase to restore access to your coins. If you have more than one backup location, they should be in places where various disasters won't affect both of your backups.
For example, its much better to store two backups in a home safe and in a safe deposit box as long as your seed is protected by a passphrase than to store two backups in your bedroom and one in your garage.
Also important is regularly verifying that your backup still exists and is in good condition. This can be as simple as ensuring your backups are still where you put them a couple times a year. The best practices for backing up a seed is to store the seed using pencil and paper or stamped metal and storing in multiple secure locations. Storing a seed phrase only stores private keys , but it cannot tell you if or how many bitcoins you have actually received.
For that you need wallet software. If you received cash banknotes or gold coins as payment, you wouldn't accept them without inspecting them and verifying that they are genuine. The same is true with bitcoin. Wallet software can automatically verify that a payment has been made and when that payment has been completed by being mined into a number of blocks.
The most secure kind of wallet is one which independently verifies all the rules of bitcoin, known as a full node. When receiving large volumes, it is essential to use wallet software that connects to a full node you run yourself.
If bitcoin is digital gold, then a full node is your own personal digital goldsmith who checks that received bitcoin payments are actually real. Lightweight wallets have a number of security downsides because they don't check all of bitcoin's rules, and so should only be used for receiving smaller amounts or when you trust the sender.
See the article about full nodes. Your wallet software will also need to learn the history and balance of its wallet. For a lightweight wallet this usually involves querying a third-party server which leads to a privacy problem as that server can spy on you by seeing your entire balance, all your transactions and usually linking it with your IP address.
Using a full node avoids this problem because the software connects directly to the bitcoin p2p network and downloads the entire blockchain , so any adversary will find it much harder to obtain information. See also: Anonymity. So for verification and privacy, a good storage solution should be backed by a full node under your own control for use when receiving payments.
The full node wallet on an online computer can be a watch-only wallet. This means that it can detect transaction involving addresses belonging to the user and can display transaction information about them, but still does not have the ability to actually spend the bitcoins.
Possession of bitcoins comes from your ability to keep the private keys under your exclusive control. In bitcoin, keys are money. Any malware or hackers who learn what your private keys are can create a valid bitcoin transaction sending your coins to themselves, stealing your bitcoins. The average person's computer is usually vulnerable to malware, so that must be taken into account when deciding on storage solutions. Anybody else who discovers a wallet's seed phrase can steal all the bitcoins if the seed isn't also protected by a secret passphrase.
Even when using a passphrase, a seed should be kept safe and secret like jewels or cash. For example, no part of a seed should ever be typed into any website, and no one should store a seed on an internet-connected computer unless they are an advanced user who has researched what they're doing. Seed phrases can store any amount of bitcoins. It doesn't seem secure to possibly have enough money to purchase the entire building just sitting on a sheet of paper without any protection.
For this reason many wallets make it possible to encrypt a seed phrase with a passphrase. Some users may not need to actually move their bitcoins very often, especially if they own bitcoin as an investment. Other users will want to be able to quickly and easily move their coins. A solution for storing bitcoins should take into account how convenient it is to spend from depending on the user's needs.
In summary: bitcoin wallets should be backed up by writing down their seed phrase , this phrase must be kept safe and secret, and when sending or receiving transactions the wallet software should obtain information about the bitcoin network from your own full node. Hardware wallets are special purpose security-hardened devices for storing Bitcoins on a peripheral that is trusted to generate wallet keys and sign transactions.
A hardware wallet holds the seed in its internal storage and is typically designed to be resistant to both physical and digital attacks. The device signs the transactions internally and only transmits the signed transactions to the computer, never communicating any secret data to the devices it connects to.
The separation of the private keys from the vulnerable environment allows the user to spend bitcoins without running any risk even when using an untrustworthy computer. Hardware wallets are relatively user-friendly and are one of the best ways to store bitcoins. Some downsides are that hardware wallets are recognizable physical objects which could be discovered and which give away that you probably own bitcoins. This is worth considering when for example crossing borders.
They also cost more than software wallets. Still, physical access to a hardware wallet does not mean that the keys are easily compromised, even though it does make it easier to compromise the hardware wallet.
The groups that have created the most popular hardware wallets have gone to great lengths to harden the devices to physical threats and, though not impossible, only technically skilled people with specialized equipment have been able to get access to the private keys without the owner's consent.
However, physically-powerful people such as armed border guards upon seeing the hardware wallet could force you to type in the PIN number to unlock the device and steal the bitcoins. A multisignature wallet is one where multiple private keys are required to move the bitcoins instead of a single key. Such a wallet can be used for requiring agreement among multiple people to spend, can eliminate a single point of failure, and can be used as form of backup, among other applications.
These private keys can be spread across multiple machines in various locations with the rationale that malware and hackers are unlikely to infect all of them. The multisig wallet can be of the m-of-n type where any m private keys out of a possible n are required to move the money.
For example a 2-of-3 multisig wallet might have your private keys spread across a desktop, laptop, and smartphone, any two of which are required to move the money, but the compromise or total loss of any one key does not result in loss of money, even if that key has no backups. Multisignature wallets have the advantage of being cheaper than hardware wallets since they are implemented in software and can be downloaded for free, and can be nearly as convenient since all keys are online and the wallet user interfaces are typically easy to use.
Hardware and multisignature wallets can be combined by having a multisignature wallet with the private keys held on hardware wallets; after all a single hardware wallet is still a single point of failure. Cold storage and multisignature can also be combined, by having the multisignature wallet with the private keys held in cold storage to avoid them being kept online.
A cold wallet generates and stores private wallet keys offline on a clean, newly-installed air-gapped computer. Payments are received online with a watch-only wallet. Unsigned transactions are generated online, transferred offline for signing, and the signed transaction is transferred online to be broadcast to the Bitcoin network.
This allows funds to be managed offline in Cold storage. Used correctly a cold wallet is protected against online threats, such as viruses and hackers. Cold wallets are similar to hardware wallets, except that a general purpose computing device is used instead of a special purpose peripheral. The downside is that the transferring of transactions to and fro can be fiddly and unweilding, and less practical for carrying around like a hardware wallet.
A hot wallet refers to keeping single-signature wallets with private keys kept on an online computer or mobile phone. Most bitcoin wallet software out there is a hot wallet. The bitcoins are easy to spend but are maximally vulnerable to malware or hackers.
Hot wallets may be appropriate for small amounts and day-to-day spending. Custodial wallets are where an exchange, broker or other third party holds your bitcoins in trust. The following is a quote of waxwing on reddit  :. Web wallets have all the downsides of custodial wallets no direct possession, private keys are held by a third party along with all the downsides of hot wallets exposed private keys , as well as all the downsides of lightweight wallets not verifying bitcoin's rules, someone could send you a billion bitcoins and under certain conditions the dumb web wallet would happily accept it.
Paper wallets also do not provide any method of displaying to the user when money has arrived. There's no practical way to use a full node wallet. Users are typically driven to use third-party blockchain explorers which can lie to them and spy on them. A much better way to accomplish what paper wallets do is to use seed phrases instead. Main article: Paper wallets. This means storing your encrypted or not wallet file on a cloud storage solution such as Dropbox, or emailing them to yourself on gmail.
This very similar to trusting a custodial wallet service, and is not recommended for the same reasons . You might say you use encryption for two-factor authentication, but uploading the wallet to the cloud reduces this to one-factor. Those articles recommend using GPG for encryption or a printer, instead a better solution is seed phrases.
Physical Coins and other mechanism with a pre-manufactured key or seed are not a good way to store bitcoins because they keys are already potentially compromised by whoever created the key.
You should not consider bitcoin yours if its stored on a key created by someone else. It only becomes yours when you transfer the bitcoin to a key that you own. An interesting unconventional solution.
The idea is to use time-lock contracts to create a wallet which cannot be spent from until a certain date.
Be careful with online services
One of our employees asked me recently what the best way to secure bitcoin is. I had no idea. Cryptocurrency is probably here to stay, and although some countries, such as China, have banned its use, many countries -- including the U. Some large organizations began accepting payment for products and services in bitcoins; however, recent fluctuations in the value of bitcoin led some companies, like Valve and Stripe, to drop support of the cryptocurrency. Still, many companies continue to accept bitcoin and other forms of cryptocurrency. A top benefit for customers paying with bitcoins is that they leave no data behind that can be used in identity theft. In addition to financial benefits, there are several elements that secure bitcoin from theft.
See forget COZA, NAIRALAND Or Glory Osei for a bit— DatEgbaBoy (@MaksMedia1) October 21, 2019
Shey you want to sell or buy Bitcoin?
Small or large quantity???
Exchange gift cards???
BOSCOINEX is your sure crypto plug💯💯💯💯
Holla them today...@Boscoinex_BTC pic.twitter.com/WMMaeAeFly
You mentioned “Blockchain”... what’s that?
Can you please suggest, what are the most safest ways to protect bitcoin from hackers. How to secure your bitcoin online and offline First and foremost don't even give or invest on the links or sites who say double up bitcoins. Don't ever click on the unknown links and stay away from the strangers on social medias. How to keep bitcoin safe from hackers?
First you need to invest on your security for example to be a potential hardware wallet, then you need to hold your keys and doing backup.
Dont click on fake or phishing sites but hardwear wallet is more secure then online wallet. We can keep bitcoin safe. Now I store crypto in hardware wallet because hardware wallet are most secure way for store any cryptocurrency.
Just place your bitcoins into a offline hardware wallet, and must note its private keys on a paper or a microsoft word sheet and place this sheets at a safe place where a hacker can't access this file and your bitcoins are safe.
It depends on where you store your bitcoins, if on the exchange, then connect all possible gadgets for security.
Bind post withdrawal support, connect 2fa, and of course do not use the device for purposes other than trading. Simply location your own bitcoins right into a traditional equipment pocketbook, as well as should be aware it's personal secrets on the document or perhaps an ms term linen as well as location this particular linen in a secure location the place where a hacker cannot enter this particular document, as well as your bitcoins, tend to be secure.
There are many hackers in the Internet and many seamer. For avoide rick you don't share your wallet for any one because there are many hackers stolen from your social activities. I think there are two paths you can use. The first step you can buy a hardware wallet which of course only you know because the object is separated from the connection. If you want to make safe your bitcoin from scammer you have made more harder your privacy as be very smart in making privacy then you will be safe.
I'm always keep my all coin in coinbase account. Just don't put your passwords and keys on a shared computer because anyone can access. But if it's unavoidable just look to the site if the password set to "Remember Password" if that is check or set change it to avoid hacking. I will suggest to you yobit exchanger, thisbis the one of the safest wallets in internet because they are assure that it will be safe and no one can stealed that, also you can do some tradings here and investing to doubled or tripled your money.
The hacker always try how they can hack us. According to my suggestion you can invest your bitcoin in cloud mining or yobit. It will secure your bitcoin. Just buy a hardware wallet, but they are not cheap about 70 dollarsso buy it when you will have a lots of crypto. One of the most important things is to keep our Bitcoin balance safe from the hackers who are waiting for the opportunity to steal us, so we must work to protect ourselves by choosing a safe wallet like coinbase and a secure platform like binance and not entering suspicious sites.
I think popular exchange sites are safe but if you want more safety you can keep your coins on offline wallets or you can use more safety hardware wallets. I think Trezor is safest one. To keep bitcoin safe from hackers you need to set up tight security for your account and also avoid scams and fake money double ads. As a small time trader investor of beginner to cryptocurrency world, do not worry about hackers much, scammers though!
The most ideal ways are purchasing a hardware wallet and Save your assets in Hardware wallet and furthermore we can store in Online believed wallet like coinbase or blockchain yet Don't hold in Exchanges. You need to be a member in order to leave a comment. Sign up for a new account in our community. It's easy! Already have an account? Sign in. By Bmmc1 hour ago in Crypto World.
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Crypto World. Search In. How to keep bitcoin safe from hackers. Prev 1 2 3 Next Page 1 of 3. Recommended Posts. Posted Tuesday at PM edited. Edited Tuesday at PM by Jackie Share this post Link to post Share on other sites.
Posted Tuesday at PM. Last few years I used many peper and mobile wallet for store crypto. You can use hardware wallet. Can you suggest, what are the most safest ways to protect bitcoin from hackers. Just now, Jackie said:. Create an account or sign in to comment You need to be a member in order to leave a comment Create an account Sign up for a new account in our community.
Register a new account. Sign in Already have an account? Sign In Now. Go To Topic Listing. Is cloud mining better? Crypto Market Movement. Account got banned. Are you worried for seeing fake crypto projects? Who has the nerves to sell Bitcoin only if it reached k? Multiple account that has same IP Address, could be banned? Yes my sweet friend i also heard from. Of my friends that if anyone intended to open up several accounts or more than one account in crypto it could be suspected and it could get banned bitcoin what keeps it safe the site.
So you should not open several accounts from same ip address. Thank you. Is it good to convert all fiat to crypto? At the moment, all coins are going down and.
If you want to convert fiat to crypto now then its good time because after that these coins may not be cheap like. Because its predicted in future crypto will rise. Sign In Sign Up.