Secure Bitcoin Storage
Satoshi - 12/15/2022
Bitcoin is a digital currency that allows for peer-to-peer transactions without the need for a central authority. Because it is decentralized and based on complex cryptography, it is often considered a secure and private way to store and transfer wealth.
One of the biggest risks to your bitcoin is the potential for hacking or other forms of online attack. This is why many users choose to store their bitcoin in "cold storage," a method of securing bitcoin by keeping it offline and minimally accessible to the internet.
ENTER COLD STORAGE
One of the reasons why cold storage is considered safe is because it uses a standard called BIP39.
BIP39, or Bitcoin Improvement Proposal 39, is a widely-used standard for generating and managing the private keys that are used to access bitcoin in a wallet. BIP39 allows for the creation of a mnemonic phrase, which is a string of words that can be used to derive a private key. This mnemonic phrase can be written down on a piece of paper or stored in a hardware wallet, and can be used to restore access to a bitcoin wallet if the original private key is lost or stolen.
BIP39 also allows for the creation of a password or passphrase, which can be used to further secure the mnemonic phrase and the private keys that it generates. This added layer of security makes it much more difficult for an attacker to access a wallet, even if they have the mnemonic phrase.
Overall, the use of BIP39 in cold storage helps to ensure the security and safety of bitcoin by providing a standardized and secure way to generate and manage private keys.
WHY NOT EXCHANGES
One reason why people may choose to use cold storage for their bitcoin is because of the inherent risks associated with using exchanges. Exchanges are online platforms that allow users to buy, sell, and trade bitcoin and other cryptocurrencies. While these exchanges can be convenient and easy to use, they are also vulnerable to hacking and other forms of cyber attack.
One of the most famous examples of a bitcoin heist occurred in 2014, when the Japanese exchange Mt. Gox was hacked and nearly 850,000 bitcoins were stolen. This was the largest bitcoin theft at the time, and it resulted in the collapse of Mt. Gox and significant losses for its users.
In addition to the Mt. Gox hack, another well-known example of a bitcoin heist occurred in 2019 at the Canadian exchange QuadrigaCX. The founder of the exchange, Gerald Cotten, died suddenly, and it was discovered that he was the only person who knew the passwords to the exchange's cold storage wallets. As a result, the exchange was unable to access the majority of its users' funds, and was forced to declare bankruptcy.
There have been numerous other instances of exchanges being hacked and user funds being stolen. Because of this, many people choose to avoid using exchanges and instead store their bitcoin in cold storage, where it is safer and more secure.
By using cold storage, you can keep your bitcoin offline and minimally accessible to the internet, which reduces the risk of it being stolen in a cyber attack. This can provide peace of mind and help to ensure that your bitcoin remains safe and secure.
COLD STORAGE IN PRACTICE
Cold storage can take many forms, but one of the most common is the use of a hardware wallet. This is a physical device, similar to a USB drive, that stores your bitcoin offline. To access your bitcoin, you would connect the hardware wallet to a computer and enter a PIN code. This ensures that your bitcoin is secure even if your computer is hacked or compromised in some other way.
There are many different brands of hardware wallets available on the market, and some of the most popular options include:
- Ledger: Ledger is a French company that offers a range of hardware wallets, including the Ledger Nano S and the Ledger Nano X. These wallets support a wide range of cryptocurrencies and offer features such as secure chip technology and a built-in screen for verifying transactions.
- Trezor: Trezor is a Czech company that offers the Trezor One and Trezor Model T hardware wallets. These wallets support multiple cryptocurrencies and offer features such as a secure OLED display and a microSD card slot for added storage.
- KeepKey: KeepKey is a hardware wallet that offers a large display and support for multiple cryptocurrencies. It also includes features such as a customizable transaction speed and a recovery sentence for restoring access to your wallet.
- BitBox: BitBox is a hardware wallet offered by the Swiss company Shift Cryptosecurity. It supports multiple cryptocurrencies and offers features such as a microSD card slot and a secure OLED display.
- Coldcard: Coldcard is a hardware wallet that is designed specifically for high security and privacy. It offers a small, portable design and features such as a PIN code and air-gapped transaction signing.
These are just a few examples of the many hardware wallet options available. It is important to carefully research and compare different brands and models before choosing a hardware wallet that is right for you.
Another way to keep your bitcoin safe is to use a paper wallet. This involves generating a public and private key on an offline computer, and then printing the keys out on a piece of paper. You can then store the paper wallet in a secure location, such as a safe deposit box, and use it to access your bitcoin by manually entering the keys when needed.
A middle option for cold storage is the use of a software wallet. This is a digital wallet that is installed on your computer and allows you to store, send, and receive bitcoin. Software wallets can be a safe choice if they are used in a way that minimizes their access to the internet. For example, you could install a software wallet on a computer that is not connected to the internet, and only connect the computer to the internet when you need to access your bitcoin.
While software wallets are not as secure as hardware wallets or paper wallets, they are often seen as a more practical and user-friendly option. They are also typically free to use, unlike hardware wallets which can be expensive.
Some examples of software wallets include:
- Electrum: Electrum is a widely-used and well-respected software wallet that offers support for multiple cryptocurrencies. It is available for Windows, Mac, Linux, and Android, and offers features such as a built-in exchange and support for hardware wallets.
- SecureBtcWallet: Open-source, lightweight, secure, free.
- Exodus: Exodus is a software wallet that offers a user-friendly interface and support for multiple cryptocurrencies. It is available for Windows, Mac, and Linux, and includes features such as a built-in exchange and a mobile app.
- Blockchain.com Wallet: Blockchain.com Wallet is a software wallet that is offered by the popular blockchain explorer website Blockchain.com. It offers support for multiple cryptocurrencies and includes features such as a built-in exchange and support for hardware wallets.
- Jaxx Liberty: Jaxx Liberty is a software wallet that offers a user-friendly interface and support for multiple cryptocurrencies. It is available for Windows, Mac, Linux, iOS, and Android, and includes features such as a built-in exchange and a mobile app.
- Mycelium: Mycelium is a software wallet that is designed specifically for mobile devices. It is available for Android and offers features such as hardware wallet support and integration with popular bitcoin debit card providers.
However, it is important to note that mobile wallets, which are software wallets that are installed on a smartphone, are generally not considered to be a secure form of cold storage. This is because smartphones are easily lost or stolen, and they are also constantly connected to the internet, making them more vulnerable to hacking and other forms of online attack. Additionally, smartphones are often shared among multiple people, making it more difficult to keep your bitcoin safe from third-party access.
These are just a few examples of the many software & hardware wallet options available. As with hardware wallets, it is important to carefully research and compare different software wallets before choosing the one that is right for you.
Regardless of the method you choose, it is important to keep in mind that cold storage is not a perfect solution. If your hardware wallet or paper wallet is lost or stolen, your bitcoin will be inaccessible. It is also possible for hardware wallets to be hacked, so it is important to research and carefully choose a reputable brand.
In addition to using cold storage, it is also important to practice good online security habits to protect your bitcoin. This includes using strong and unique passwords, enabling two-factor authentication, and avoiding phishing scams and other forms of online fraud.
By combining cold storage with good online security practices, you can help ensure that your bitcoin is safe and secure.
What is a non-custodial Bitcoin wallet?
Satoshi - 12/14/2022
A non-custodial Bitcoin wallet is a type of Bitcoin wallet where the user is in complete control of their own private keys. This means that the user is responsible for securely storing their own private keys, and they have complete control over their Bitcoin funds. In contrast, a custodial Bitcoin wallet is one where the user does not control their own private keys, and the keys are instead managed by a third party.
One of the key benefits of a non-custodial Bitcoin wallet is that the user has full control over their funds, and they are not reliant on a third party to manage their keys. This can give users more peace of mind, as they do not need to worry about the security of their keys being compromised by a third party. Additionally, non-custodial wallets tend to offer more privacy, as the user's keys are not stored on a central server that can be accessed by the wallet provider.
There are several different types of non-custodial Bitcoin wallets, including software wallets, hardware wallets, and paper wallets. Software wallets, such as those that can be downloaded onto a computer or mobile device, allow the user to store their private keys on their own device. Hardware wallets are physical devices that securely store the user's private keys offline, making them less vulnerable to cyber attacks. Paper wallets are offline wallets that are created by printing the user's private keys onto a piece of paper, which can then be stored in a secure location.
In summary, a non-custodial Bitcoin wallet is a type of wallet where the user is in full control of their own private keys, and they are responsible for securely storing them. This gives users more control and privacy over their Bitcoin funds. SecureBTCWallet is the leading non-custodial Bitcoin wallet, you can trust.
What is Bitcoin Cold Storage and Why is it safer?
Satoshi - 12/13/2022
Bitcoin cold storage refers to the practice of storing Bitcoin in a way that is not connected to the internet, in order to reduce the risk of the funds being stolen by hackers. Cold storage can be achieved through the use of a hardware wallet, a paper wallet, or by storing the private keys on a device that is not connected to the internet.
There are several reasons why cold storage is considered to be safer than hot storage (online storage) for Bitcoin. First, by keeping the private keys offline, they are less vulnerable to being hacked or stolen by cybercriminals. This is because hackers would need physical access to the device or paper on which the keys are stored in order to steal the funds.
Second, cold storage reduces the risk of accidental loss of the funds due to human error, such as forgetting a password or misplacing a device. Finally, cold storage can also offer more privacy, as the user's keys are not stored on a central server that can be accessed by the wallet provider or other third parties.
In summary, Bitcoin cold storage is the practice of storing Bitcoin in a way that is not connected to the internet, in order to reduce the risk of the funds being stolen or lost. This is achieved through the use of hardware wallets, paper wallets, or offline storage of private keys, and it offers increased security and privacy compared to hot storage methods.
SecureBTCWallet, with its minial exposure to the internet, provides cold storage at zero cost to Bitcoin HODLers. To ensure your safety, make sure your
file is not tempered with. You may check that with the following command:
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"The only system which is truly secure is one which is switched off and unplugged" explained
Satoshi - 12/12/2022
"The only system which is truly secure is one which is switched off and unplugged locked in a titanium lined safe, buried in a concrete bunker, and is surrounded by nerve gas and very highly paid armed guards." is a statement made by Gene Spafford, a computer science professor at Purdue University, in reference to the inherent vulnerabilities of computer systems. The statement highlights the fact that even the most secure systems can be compromised if they are connected to the internet or have any other point of entry for attackers.
Spafford's statement suggests that the best way to ensure the security of a system is to completely disconnect it from any network or external sources of input. This is because a system that is not connected to any external networks or devices is much less vulnerable to attacks from hackers or malware.
Gene Spafford is known for his work in the field of computer security. He has written numerous papers and articles on topics related to computer security, and has also served as a consultant to various organizations on security matters.
Spafford has made numerous statements over the years about the importance of computer security, and his statement about the only truly secure system being one that is switched off and unplugged reflects his belief that all computer systems are inherently vulnerable to attacks. This belief is based on the fact that even the most secure systems can be compromised if they are connected to the internet or have any other point of entry for attackers.
Spafford's statement is meant to highlight the need for individuals and organizations to take appropriate security measures to protect their systems and data. This can include implementing strong passwords, installing firewalls and antivirus software, and regularly updating and patching software to fix vulnerabilities.
However, this statement should not be taken to mean that all computer systems should be completely disconnected from the internet at all times. While disconnecting a system from the internet can certainly increase its security, it also means that the system is not able to communicate or interact with other systems or access online resources. In most cases, the benefits of being connected to the internet far outweigh the potential security risks, and it is important to implement other security measures, such as firewalls, antivirus software, and strong passwords, to protect against potential threats.
SecureBTCWallet does not disconnect your computer from the internet, but the application itself makes minimal amount of queries to the internet, maximizing the overall level of safety. However, it is still best if you use a hardware wallet, and even better if you combine multiple wallets to store your Bitcoins.
Who is Satoshi Nakamoto?
Satoshi - 12/10/2022
Satoshi Nakamoto is the pseudonym used by the person or group of people who created Bitcoin, a decentralized digital currency that uses cryptography for secure financial transactions. The true identity of Satoshi Nakamoto has never been revealed, and the name is believed to be a pseudonym.
Satoshi Nakamoto published a white paper in 2008 detailing the concept of a decentralized digital currency, and the first Bitcoin software was released in 2009. The software included a reference to a web forum post by Satoshi Nakamoto, in which he claimed to have been working on the project for several years.
Since the release of the Bitcoin software, several people have claimed to be the real Satoshi Nakamoto, but none of these claims have been definitively proven. The true identity of Satoshi Nakamoto remains a mystery, and it is likely that we will never know who was behind the creation of Bitcoin.
Some of the people who have claimed to be Satoshi Nakamoto include:
- Dorian Nakamoto: In 2014, a journalist from Newsweek magazine claimed to have found the real Satoshi Nakamoto living in California under the name Dorian Nakamoto. Dorian Nakamoto denied being the creator of Bitcoin and sued the magazine for defamation.
- Craig Wright: In 2016, an Australian entrepreneur named Craig Wright claimed to be the real Satoshi Nakamoto, and provided some evidence to support his claim. However, many experts were skeptical of Wright's claims, and some even accused him of fabricating the evidence.
- John McAfee: In 2017, cybersecurity expert John McAfee claimed to know the real identity of Satoshi Nakamoto and offered to reveal it for a fee. However, he later backtracked on this claim and said that he did not actually know who Satoshi Nakamoto was.
Other people who are thought to be Satoshi themselves, or associated with:
- Nick Szabo: Nick Szabo is a computer scientist and cryptographer who is known for his work on digital contracts and virtual currencies. Some people have speculated that he may be the real Satoshi Nakamoto, due to similarities between his writing style and that of the Bitcoin white paper. However, Szabo has denied being Satoshi Nakamoto.
- Hal Finney: Hal Finney was a computer scientist and early Bitcoin developer who was one of the first people to receive a Bitcoin transaction. Some people have speculated that he may have been the real Satoshi Nakamoto, due to his involvement in the early development of Bitcoin and his close relationship with the creator. However, Finney died in 2014 and was never able to confirm or deny the speculation.
It is also worth noting that the concept of Bitcoin was the result of a collaborative effort by a community of developers and enthusiasts, and it is possible that Satoshi Nakamoto was not a single individual but rather a group of people working together. In any case, the true identity of Satoshi Nakamoto remains a mystery, and it is unlikely that we will ever know who was behind the creation of Bitcoin.