Bitcoin Cold Storage – Keep Bitcoin and other crypto currencies secure
How to keep cryptocurrencies, especially Bitcoin, safe?
The main risk of investing is not hacking or security flaws, but a user error. It’s so incredibly easy to lose access to the private keys. The risk of hacking remains to be taken seriously, and the measures described here help to mitigate that risk as well.
Keep Bitcoin safe: Steps for Bitcoin and Co.
Don’t hold coins on exchanges!
Keeping the coins securely on a stock exchange, even a reputable one, even when two factor authentication is enabled, is risky. Someone could impersonate you and steal your money within minutes while you sleep. The exchange could be hacked. You’re not going to get your coins back when that happens.
Centralised exchanges are terrible at storing your money
Use a hardware wallet
The only sensible way to store Bitcoin and other cryptocurrencies is to use a hardware wallet. Get a model you like. A hardware wallet allows you to securely receive coins and carry out transactions, even on a computer infected with malware.
But beware: There are fraudulent walkers hardware walletfrom Hardware Wallet s on eBay and Co. Make sure your hardware wallet comes from an official source. Don’t use the hardware wallet it already comes with a Recovery Seed (for example, on a scratch card)!
Recovery Seed is the be-all and end-all to keep Bitcoin safe!
While setting up your hardware wallet , you’ll be asked to write down a 24-word recovery key (the “Recovery Seed”). Securing this recovery seed correctly is the most important step of the setup. This is the recovery key you should stamp on a metal plate to preserve for decades. There are also ready-made products for keeping Recovery Seeds safely, such as Cryptosteel.
Losing or destroying the hardware wallet would not affect you in any way, as long as you secure the Recovery Seed, you still have access to your funds.
The Recovery Seed is private!
Keeping Bitcoin safe requires you to be the only person who knows this recovery key. Don’t ask anyone to stamp or store it in metal for you.
Keep the Recovery Seed away from electronic devices!
NEVER enter your recovery seed into an electronic device, file, website, or even password manager. The Recovery Seed will show you ONLAL on the screen of your hardware wallet , but will never leave storage. It should never be entered on a desktop computer/Smartphone as these environments are vulnerable to hacking by malware. You can temporarily write it down on paper in a private room until you have the opportunity to secure the materials for punching on metal. Never write the Recovery Seed on an electronic device.
Practice the process of recovery!
You need to practice restoring the hardware wallet . If the Recovery Seed is recorded or stamped in metal, delete your hardware wallet and restore it to make sure you’ve copied the Recovery Seed correctly. Do it all before you send large amounts of money to the hardware wallet . And repeat this every time you duplicate your recovery seed to a new medium. Don’t expect an “untested” seed to spare you the day you need it.
Keep the Recovery Seed safe!
By default, the 24-word Recovery Seed is the only thing required to access private keys and thus your coins. While there is often an option on hardware wallets to get an extra password, this option is to be activated with caution. You have to dare to remember this password for 10 years. Securing and storing your recovery seat correctly is much more important than securing your hardware wallet. You should treat your hardware wallet like a throwaway device that can be lost, destroyed or wiped out at any time, but can be replaced with a small amount of money. Your Recovery Seed cannot be replaced. Therefore, I recommend storing the seed in metal, for example with Cryptosteel.
Inform friends or relatives!
It’s important that you inform someone who, at worst, knows how to use your cryptocurrencies . For example, write in your will a small guide to safely restoring the Recovery Seed so that the coins don’t get lost.
Any questions about Bitcoin Cold Storage?
Once you understand the principle of cryptocurrencies , Bitcoin is certainly not difficult to store. If questions remain unanswered, you can ask them in the support area . I am pleased to hear comments on the guide in the comments. Read the English original at bulletproofbitcoin.com .