Daily PSA: Not your keys, not your coins!

 

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Given the rapid rise of bitcoin value, feels like a daily reminder wouldn't be a bad idea. Please, recommend other reputable wallet in the comments for others.


Did you purchase your bitcoins on an exchange? You think those coins are yours? You are wrong. If you do not have access to the private keys controlling those bitcoins, they are not yours. The exchange merely promises you to pay them out whenever you request those bitcoins. If the exchange collapses, your coins are gone too.

So where should I store my bitcoins?

Any wallet, to which you actually own the private keys. So, not a hot wallet.

There are many of them, ranging from computer software (like Electrum, Jaxx, etc.), Android wallets (like Mycelium, Jaxx or Samourai Wallet, etc.), iOS walltes (like BreadWallet or Jaxx, etc.).

Software wallets still face threats, but less than hot, online wallets or exchanges. If you want absolute security and plan on holding a significant about of money in bitcoin, choose a hardware wallet.

It requires an initial investment into the hardware but it pays off. Why? In short, hardware wallets isolate your private keys away from the internet. The most known are Trezor and Ledger

Threats

Exchanges: Hacks (Theft), Liquidity Problems, Closure

Software: Malware stealing private keys, data corruption, physical theft

Hardware: Physical theft and PIN extortion

Threats to exchange-based wallets and software wallets are remote, over the internet. Threats to hardware wallets are physical; requiring physical theft and extorting a PIN from its owner.

submitted by /u/POTEU
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247 Bitcoin

Bitcoin & Crypto & NFT News

247 Bitcoin -1 Bitcoins -247 BTC - 1 Crypto - Kryptous

1 News - 247 News - 1 Search - 1 eBooks

 

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