How to decently store Bitcoins and other cryptocurrencies

How to decently store Bitcoins and other cryptocurrencies

When something went wrong …

I will tell only a few possible stories that are waiting for you in the case of lack of computer literacy:

  • If you catch some “shit” in an attempt to generate a license key for some enormously desirable game. This software will scan your hard disk, then it will find the private key. After a few milliseconds a fresh transaction emerges on the bitcoin network that will take all of your hard-earned money
  • If your email provider will liberate the database of its users. Then some fellow John will buy it in the darknet and quickly begin to run different semantic analyzers. After a duo of hours, it will lead to the disappearance of all bitcoins from all of the services that use authorization via email, after a duo of hours.
  • In other case, some fellow Peter, who works for Google and has a admin rights (like Snowden had) simply steal your Bitcoins from some service. And nobody will notice that. Will be like magic.
  • Some virtual exchange, where all of your crypt is stored will vanish along with all the money. Exactly what Mt.Gox did and dozens of others.
  • If you catch some trojan in the process of hunting for a cool porn. It can encrypt all the files on the hard disk. Afterwards it will find all links to your wallets and it quickly realize how much money you have and how much money it can request from you. If you wan’t pay your hard drive will not be decrypted. This is a tragic screenplay. After all, you can’t even send money to this hacker, because your keys will stay on an encrypted hard drive!
  • If you lose your unencrypted laptop or phone.
  • If you catch a clever Keylogger, none of your activities will save you from epic fail.
  • If you will get an email from the service where your crypto-money stored. However the name of website is not blockchain.info but, for example, blokchain.info, and all will look identical. If you click on the link and successfully authorise it, at the same time your bitcoins will vanish.
  • One morning you will wake up without your money because the NSA agent will take advantage of some delicious backdoor in Windows operating system.
  • If you determine to transfer cash to the brainy contract that you think will do what it supposed to do, in fact, it will do something else. So this brainy contract turned out to be smarter than you are.

Clearly, this is not a accomplish list. But maybe it will give you some ideas when something goes wrong. Now you see, cryptocurrencies — is not bucks. You are fully responsible for it’s safety. Neither Jesus Christ nor the Pope, nor Vladimir Putin nor Donald Trump will not be able to help you if you do something wrong. But those guys can’t take your money if you do everything in a right way.

With excellent power comes good responsibility.

My overall recommendation is to increase computer literacy. A specific recommendation is act stringently according to instructions without unnecessary deeds.

What kind of wallets I do not recommend to use?

Here is one basic rule:

Do not give ANYONE your private key.

This means – do not use any of these wallets:

  1. Online web wallets, like blockchain.info, Coinbase, etc. In generally, all wallets which keep the private key on their servers.
  2. Any hot wallets. Any app on computer or phone which is used with Internet connection. It can be used with puny amounts to make payments, but not for storing your entire money.

Use Cold Storate

Cold storage in the context of Bitcoin refers to keeping a reserve of Bitcoins offline.

Methods of cold storage include keeping bitcoins:

My scheme.

I will share my own method which I use. The main thing to understand is the basic rule:

Do not give ANYONE your private key.

Step 1 — Create a bootable USB flash drive

Create a bootable USB flash drive with permanent encrypted storage. Tails will be flawless, because it has an Electrum (Bitcoin wallet) and encryption in box. Set up two passwords for login and for encryption.

Step Two — Create a cold wallet.

Flow with Tails (without the Internet). Create your cold wallet using Electrum. Come up with a elaborate password and write down 12–13 words (seed) on paper or think of something other place.

This seed — is your money. These twelve words will permit you to regain access to the wallet from any computer in the future.

You must also select the check box on the option “View Transaction Before Signing” in the wallet Settings. Thus, you will cause Electrum to showcase the transaction details before inject a password (i.e. signature) and send the transaction to the network.

Step three — Create a “watch-only” wallet in the main OS or mobile phone.

Copy your Bitcoin public address from Electrum into a text document on a flash drive and shutdown the Tails.

Create a ‘watch-only’ wallet using your public address in any wallet app you like on main OS or on mobile phone.

Now we can view the balance of our Bitcoins but can’t spend them.

Step Four–Spend Bitcoins in a secured way

To send your Bitcoins in a secured way: run Tails again (do not use Internet).

Then make the transaction > a window will show up (as we have enabled the checkbox ““View Transaction Before Signing”).

At very first click “Sign” and then when you come in the password, click “Save”.

Do not send the transaction to the network and do not enable internet, just copy the transaction file to the flash drive.

Commence in the main OS > Open your wallet > In the menu choose something like “Load transaction from file” > fountain the signed transaction from a flash drive > and thrust “Broadcast” button

Thus the signed transaction is sent to the Blockchain from the ‘watch-only’ wallet, and your private key is not leaked anywhere from your Tails usb.

Very significant. Always check address AFTER you have copied it in the field. Just going back to wallet, reminisce the very first two digits and last Two, and then go to the form and check whether these are the numbers that you copied! Very first, we sometimes make mistakes. Practice shows that fairly often. 2nd, now there are so clever viruses that will determine when you copied the bitcoin address to the clipboard, and substitute it to another address.

What about other cryptocurrencies?

The same logic can be used in relation to all other cryptocurrencies.

I agree that this scheme is not the most comfy to use, because you need to make a lot of manipulations with numerous OS and usb devices.

If you are looking for a good usability — look at buying a hardware wallet. These hardware wallets works by scheme described above, but also they have some unique advantages:

  • private keys are often stored in a protected area of a microcontroller, and cannot be transferred out of the device in plaintext
  • immune to computer viruses that steal from software wallets
  • can be used securely and interactively, as opposed to a paper wallet which must be imported to software at some point
  • You can feel like James Bond

Some of these wallets support not only Bitcoin but also Ethereum, Litecoin, Dogecoin, ZCash, DASH, Stratis. And also it has integrations with many wallet apps like Electrum, BitGo, Copay, GreenBit and others.

If you overlooked all of the above, or strongly believe to other people, or indeed appreciate the convenience or maybe all at once — you can even make a credit card linked to your bitcoin wallet.

That’s all. I hope you got the main rule. Please, write your comments and questions below. And one more thing: let’s spread the skill. Recommend and Share this article. Thank you for reading!

How to decently store Bitcoins and other cryptocurrencies

How to decently store Bitcoins and other cryptocurrencies

When something went wrong …

I will tell only a few possible stories that are waiting for you in the case of lack of computer literacy:

  • If you catch some “shit” in an attempt to generate a license key for some utterly desirable game. This software will scan your hard disk, then it will find the private key. After a few milliseconds a fresh transaction shows up on the bitcoin network that will take all of your hard-earned money
  • If your email provider will liberate the database of its users. Then some boy John will buy it in the darknet and quickly begin to run different semantic analyzers. After a duo of hours, it will lead to the disappearance of all bitcoins from all of the services that use authorization via email, after a duo of hours.
  • In other case, some boy Peter, who works for Google and has a admin rights (like Snowden had) simply steal your Bitcoins from some service. And nobody will notice that. Will be like magic.
  • Some virtual exchange, where all of your crypt is stored will vanish along with all the money. Exactly what Mt.Gox did and dozens of others.
  • If you catch some trojan in the process of hunting for a cool porn. It can encrypt all the files on the hard disk. Afterwards it will find all links to your wallets and it quickly realize how much money you have and how much money it can request from you. If you wan’t pay your hard drive will not be decrypted. This is a tragic script. After all, you can’t even send money to this hacker, because your keys will stay on an encrypted hard drive!
  • If you lose your unencrypted laptop or phone.
  • If you catch a clever Keylogger, none of your activities will save you from epic fail.
  • If you will get an email from the service where your crypto-money stored. However the name of website is not blockchain.info but, for example, blokchain.info, and all will look identical. If you click on the link and successfully authorise it, at the same time your bitcoins will vanish.
  • One morning you will wake up without your money because the NSA agent will take advantage of some delicious backdoor in Windows operating system.
  • If you determine to transfer cash to the clever contract that you think will do what it supposed to do, in fact, it will do something else. So this wise contract turned out to be smarter than you are.

Clearly, this is not a accomplish list. But maybe it will give you some ideas when something goes wrong. Now you see, cryptocurrencies — is not bucks. You are fully responsible for it’s safety. Neither Jesus Christ nor the Pope, nor Vladimir Putin nor Donald Trump will not be able to help you if you do something wrong. But those guys can’t take your money if you do everything in a right way.

With fine power comes excellent responsibility.

My overall recommendation is to increase computer literacy. A specific recommendation is act rigorously according to instructions without unnecessary deeds.

What kind of wallets I do not recommend to use?

Here is one basic rule:

Do not give ANYONE your private key.

This means – do not use any of these wallets:

  1. Online web wallets, like blockchain.info, Coinbase, etc. In generally, all wallets which keep the private key on their servers.
  2. Any hot wallets. Any app on computer or phone which is used with Internet connection. It can be used with puny amounts to make payments, but not for storing your entire money.

Use Cold Storate

Cold storage in the context of Bitcoin refers to keeping a reserve of Bitcoins offline.

Methods of cold storage include keeping bitcoins:

My scheme.

I will share my own method which I use. The main thing to understand is the basic rule:

Do not give ANYONE your private key.

Step 1 — Create a bootable USB flash drive

Create a bootable USB flash drive with permanent encrypted storage. Tails will be ideal, because it has an Electrum (Bitcoin wallet) and encryption in box. Set up two passwords for login and for encryption.

Step Two — Create a cold wallet.

Blast with Tails (without the Internet). Create your cold wallet using Electrum. Come up with a sophisticated password and write down 12–13 words (seed) on paper or think of something other place.

This seed — is your money. These twelve words will permit you to regain access to the wallet from any computer in the future.

You must also select the check box on the option “View Transaction Before Signing” in the wallet Settings. Thus, you will cause Electrum to demonstrate the transaction details before come in a password (i.e. signature) and send the transaction to the network.

Step three — Create a “watch-only” wallet in the main OS or mobile phone.

Copy your Bitcoin public address from Electrum into a text document on a flash drive and shutdown the Tails.

Create a ‘watch-only’ wallet using your public address in any wallet app you like on main OS or on mobile phone.

Now we can view the balance of our Bitcoins but can’t spend them.

Step Four–Spend Bitcoins in a secured way

To send your Bitcoins in a secured way: run Tails again (do not use Internet).

Then make the transaction > a window will show up (as we have enabled the checkbox ““View Transaction Before Signing”).

At very first click “Sign” and then when you inject the password, click “Save”.

Do not send the transaction to the network and do not enable internet, just copy the transaction file to the flash drive.

Commence in the main OS > Open your wallet > In the menu choose something like “Load transaction from file” > geyser the signed transaction from a flash drive > and thrust “Broadcast” button

Thus the signed transaction is sent to the Blockchain from the ‘watch-only’ wallet, and your private key is not leaked anywhere from your Tails usb.

Very significant. Always check address AFTER you have copied it in the field. Just going back to wallet, recall the very first two digits and last Two, and then go to the form and check whether these are the numbers that you copied! Very first, we sometimes make mistakes. Practice shows that fairly often. 2nd, now there are so wise viruses that will determine when you copied the bitcoin address to the clipboard, and substitute it to another address.

What about other cryptocurrencies?

The same logic can be used in relation to all other cryptocurrencies.

I agree that this scheme is not the most comfy to use, because you need to make a lot of manipulations with numerous OS and usb devices.

If you are looking for a good usability — look at buying a hardware wallet. These hardware wallets works by scheme described above, but also they have some unique advantages:

  • private keys are often stored in a protected area of a microcontroller, and cannot be transferred out of the device in plaintext
  • immune to computer viruses that steal from software wallets
  • can be used securely and interactively, as opposed to a paper wallet which must be imported to software at some point
  • You can feel like James Bond

Some of these wallets support not only Bitcoin but also Ethereum, Litecoin, Dogecoin, ZCash, DASH, Stratis. And also it has integrations with many wallet apps like Electrum, BitGo, Copay, GreenBit and others.

If you disregarded all of the above, or strongly believe to other people, or truly appreciate the convenience or maybe all at once — you can even make a credit card linked to your bitcoin wallet.

That’s all. I hope you got the main rule. Please, write your comments and questions below. And one more thing: let’s spread the skill. Recommend and Share this article. Thank you for reading!

How to decently store Bitcoins and other cryptocurrencies

How to decently store Bitcoins and other cryptocurrencies

When something went wrong …

I will tell only a few possible stories that are waiting for you in the case of lack of computer literacy:

  • If you catch some “shit” in an attempt to generate a license key for some utterly desirable game. This software will scan your hard disk, then it will find the private key. After a few milliseconds a fresh transaction shows up on the bitcoin network that will take all of your hard-earned money
  • If your email provider will liberate the database of its users. Then some stud John will buy it in the darknet and quickly begin to run different semantic analyzers. After a duo of hours, it will lead to the disappearance of all bitcoins from all of the services that use authorization via email, after a duo of hours.
  • In other case, some dude Peter, who works for Google and has a admin rights (like Snowden had) simply steal your Bitcoins from some service. And nobody will notice that. Will be like magic.
  • Some virtual exchange, where all of your crypt is stored will vanish along with all the money. Exactly what Mt.Gox did and dozens of others.
  • If you catch some trojan in the process of hunting for a cool porn. It can encrypt all the files on the hard disk. Afterwards it will find all links to your wallets and it quickly realize how much money you have and how much money it can request from you. If you wan’t pay your hard drive will not be decrypted. This is a tragic script. After all, you can’t even send money to this hacker, because your keys will stay on an encrypted hard drive!
  • If you lose your unencrypted laptop or phone.
  • If you catch a clever Keylogger, none of your activities will save you from epic fail.
  • If you will get an email from the service where your crypto-money stored. However the name of website is not blockchain.info but, for example, blokchain.info, and all will look identical. If you click on the link and successfully authorise it, at the same time your bitcoins will vanish.
  • One morning you will wake up without your money because the NSA agent will take advantage of some delicious backdoor in Windows operating system.
  • If you determine to transfer cash to the clever contract that you think will do what it supposed to do, in fact, it will do something else. So this brainy contract turned out to be smarter than you are.

Clearly, this is not a accomplish list. But maybe it will give you some ideas when something goes wrong. Now you see, cryptocurrencies — is not bucks. You are fully responsible for it’s safety. Neither Jesus Christ nor the Pope, nor Vladimir Putin nor Donald Trump will not be able to help you if you do something wrong. But those guys can’t take your money if you do everything in a right way.

With excellent power comes superb responsibility.

My overall recommendation is to increase computer literacy. A specific recommendation is act rigorously according to instructions without unnecessary deeds.

What kind of wallets I do not recommend to use?

Here is one basic rule:

Do not give ANYONE your private key.

This means – do not use any of these wallets:

  1. Online web wallets, like blockchain.info, Coinbase, etc. In generally, all wallets which keep the private key on their servers.
  2. Any hot wallets. Any app on computer or phone which is used with Internet connection. It can be used with petite amounts to make payments, but not for storing your entire money.

Use Cold Storate

Cold storage in the context of Bitcoin refers to keeping a reserve of Bitcoins offline.

Methods of cold storage include keeping bitcoins:

My scheme.

I will share my own method which I use. The main thing to understand is the basic rule:

Do not give ANYONE your private key.

Step 1 — Create a bootable USB flash drive

Create a bootable USB flash drive with permanent encrypted storage. Tails will be ideal, because it has an Electrum (Bitcoin wallet) and encryption in box. Set up two passwords for login and for encryption.

Step Two — Create a cold wallet.

Flow with Tails (without the Internet). Create your cold wallet using Electrum. Come up with a elaborate password and write down 12–13 words (seed) on paper or think of something other place.

This seed — is your money. These twelve words will permit you to regain access to the wallet from any computer in the future.

You must also select the check box on the option “View Transaction Before Signing” in the wallet Settings. Thus, you will cause Electrum to display the transaction details before come in a password (i.e. signature) and send the transaction to the network.

Step three — Create a “watch-only” wallet in the main OS or mobile phone.

Copy your Bitcoin public address from Electrum into a text document on a flash drive and shutdown the Tails.

Create a ‘watch-only’ wallet using your public address in any wallet app you like on main OS or on mobile phone.

Now we can view the balance of our Bitcoins but can’t spend them.

Step Four–Spend Bitcoins in a secured way

To send your Bitcoins in a secured way: run Tails again (do not use Internet).

Then make the transaction > a window will show up (as we have enabled the checkbox ““View Transaction Before Signing”).

At very first click “Sign” and then when you come in the password, click “Save”.

Do not send the transaction to the network and do not enable internet, just copy the transaction file to the flash drive.

Commence in the main OS > Open your wallet > In the menu choose something like “Load transaction from file” > fountain the signed transaction from a flash drive > and shove “Broadcast” button

Thus the signed transaction is sent to the Blockchain from the ‘watch-only’ wallet, and your private key is not leaked anywhere from your Tails usb.

Very significant. Always check address AFTER you have copied it in the field. Just going back to wallet, recall the very first two digits and last Two, and then go to the form and check whether these are the numbers that you copied! Very first, we sometimes make mistakes. Practice shows that fairly often. 2nd, now there are so wise viruses that will determine when you copied the bitcoin address to the clipboard, and substitute it to another address.

What about other cryptocurrencies?

The same logic can be used in relation to all other cryptocurrencies.

I agree that this scheme is not the most comfy to use, because you need to make a lot of manipulations with numerous OS and usb devices.

If you are looking for a good usability — look at buying a hardware wallet. These hardware wallets works by scheme described above, but also they have some unique advantages:

  • private keys are often stored in a protected area of a microcontroller, and cannot be transferred out of the device in plaintext
  • immune to computer viruses that steal from software wallets
  • can be used securely and interactively, as opposed to a paper wallet which must be imported to software at some point
  • You can feel like James Bond

Some of these wallets support not only Bitcoin but also Ethereum, Litecoin, Dogecoin, ZCash, DASH, Stratis. And also it has integrations with many wallet apps like Electrum, BitGo, Copay, GreenBit and others.

If you overlooked all of the above, or strongly believe to other people, or truly appreciate the convenience or maybe all at once — you can even make a credit card linked to your bitcoin wallet.

That’s all. I hope you got the main rule. Please, write your comments and questions below. And one more thing: let’s spread the skill. Recommend and Share this article. Thank you for reading!

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