Practical and very sensible advice on how to store Bitcoins safely, according to expert Jameson Lopp…
On its own, Bitcoin is a P2P digital payment system with solid security conditions. However, depending on how the user stores their cryptocurrencies, they could be more or less at risk.
Who is Jameson Lopp?
Jameson Lopp is an American software engineer , cypherpunk , and avid Bitcoin advocate . He worked as an engineer at BitGo and is now CTO at Bitcoin security company.
In other words, this is a specialist with enough credentials to talk at length about the best methods to store Bitcoins safely.
How to store Bitcoins safely? 5 tips from Jameson Lopp
1- Discretion above all…
Do not say how many Bitcoins you have in your possession, let alone where. Something as basic as fundamental can save your skin.
Lopp referred to the danger of commenting publicly on the Bitcoins one owns.
In this regard, he referred to a case from 2017, in which a user commented on Twitter that he had all his funds in Coinbase. Then, in less than 24 hours, through an attack to replace the SIM chip in his cell phone, he lost everything.
Easy: don’t call attention to the holy button.
Thieves can’t steal what they don’t know you have ,” warned Jameson Lopp.
2- Metal plates to store private keys
Accidental loss of private keys is one of the most common and dreadful situations as there is nothing that can be done in such a scenario.
According to estimates provided by Lopp, there are about 4 million Bitcoins missing , ” almost a fifth of all bitcoin that will ever exist “. An atrocity.
To minimize this risk, the use of metallic devices for the storage of the private key or the use of multi-signature wallets is suggested.
The specialist recommends writing down the private key or seed (seed) on metal plates specially designed for it, instead of doing it on paper, a material that is very vulnerable to humidity, fire, etc.
Several of these metal supports are the size of a credit card and have a grid matrix, in which the respective letters for each word are indicated with a hole in the corresponding square.
Even if the board is subjected to fire, there is no data loss.
In accordance withinformation published on the Jameson Lopp website, the price of these metal plates ranges from 20 to 365 euros.
On the other hand, to prevent the theft of private keys, it is advisable to keep them in hiding places, safes or better yet: distribute the 12-24 words in different places.
3- Do not think that because you are a simple little fish they will not rob you
You may think that, given the amount of BTC you have in your hands, you will never be a tempting target for hackers. Ok, but keep in mind that in case you are robbed, ” that action is almost always irreversible “, warned the expert.
That lack of prevention can be seen in the amount of BTC stolen to date, estimated at 2 million , Lopp said.
Prevention is the key , regardless of how many BTC you have. Otherwise, you will regret it. It’s that simple.
More importantly: if no one applied prevention and security measures, this could impact the perception of the value of Bitcoin, something little considered but real. In this regard, Lopp noted:
“If everyone were careless about properly guarding their assets, they wouldn’t be worth much.”
4- Cold storage, THE alternative to store Bitcoins safely
Currently, the safest method of storing Bitcoins is to use a hardware wallet, also known as a cold wallet .
Use one of these special wallets, instead of delegating custody to third parties like centralized exchanges, apps, or online wallets.
Another very secure option is multi- signature wallets .
Jameson Lopp also referred to the existence of multiple scams that are difficult to prevent, such as sending official-looking emails from cold wallet providers, noting that due to technical failures the user had to enter their seed.
A cold wallet provider will NEVER ask you for your private keys. NEVER. ALWAYS keep this in mind. Providing your private key is giving away your funds.
5- BTC inheritance
The inheritance of Bitcoins and Bitmix is a subject that is rarely talked about, but it is just as important as the inheritance of any kind of fund. Failure to contemplate it can amount to the silent loss of funds.
Casa , Jameson Lopp’s company, offers fund protection plans, which grant conditional access to the heirs of the private keys.
To close, we suggest you read this guide , where you can find practices to store Bitcoins safely: