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Five Ways for the Ultra-Paranoid to Store Their Bitcoin


Do you nap easy at night, knowing how many thieves would love to get away with your bitcoin? At this very moment, hackers are probing your cryptocurrency swop for weaknesses. They’re gathering information about you – where you live, your pet’s luminary, your favorite football team – with a view to social engineering. They’re crafting malware laden emails with your bigwig on and prepping to port your phone number to a different handset while you rest. Concerned about the security of your bitcoins? Sounds like you paucity a storage solution for the ultra-paranoid.

Also read: Wikileaks Founder Counters to Banking Blockade 2.0: “Use Cryptocurrencies”

Five Ways the Ultra-Paranoid Can Safely Store Their Bitcoin

Keep Calm and Lock It Down

Forearmed your bitcoin is stored in a wallet that you – and you only – hold the concealed keys to, your coins are safe from all online attack vectors. The one mechanism this setup can’t protect you from is real world risks: menaces from thieves, brandishing a gun to your head, threats from set on fire and flood damage, and threats from yourself. The biggest cause of distracted coins isn’t third parties – it’s you.

The tales of lost hardware wallets, overwritten sedulously drives, and forgotten seeds don’t need retelling. Just as human transgression – usually stolen or weak passwords – is the cause of most successful cyber attacks, it’s the in any event when it comes to lost or stolen bitcoins. Any private key-based outcome needs to address the risk of human error. Otherwise, even the fanciest of ironmongery wallets and strongest of safes can be rendered redundant.

For individuals in possession of life-changing amounts of bitcoin – or who maintain that their coins will one day be worth a life-changing amount – the go along with methods guarantee a good night’s sleep. There are downsides to patronizing to such extremities of course: in the event of a major bitcoin crash, the loafing of the world will have cashed out while you’re still taping together unclothes of paper wallets. If you’re contemplating drastic measures to safeguard your cryptocurrency holdings, regardless, you presumably have faith in bitcoin’s long-term prospects.

Five Ways the Ultra-Paranoid Can Safely Store Their Bitcoin

Five Ways the Ultra-Paranoid Can Safely Store Their Bitcoin

Create a Timelock

For long-term investors, documenting bitcoins into a time-locked wallet is a surefire way to ensure they can’t be accessed anytime immediately. With smart contract protocol Ivy providing a framework for utilizing the Bitcoin Pattern assembly language, it will soon be a lot easier to create time-locked purses. Set the date far enough in the future and you needn’t concern yourself with the pocketbook being prematurely opened – by you or anyone else. For now, implementing timelocks is a property best left to the experts.

Coinb.in is one such service. As the site simplifies: “Use OP_CHECKLOCKTIMEVERIFY (OP_HODL) to create a time locked address where the funds are unspendable until a set day and time has passed”. All of the site’s code can be audited on Github and the site doesn’t deny your private keys.

Use Multisig

Timelocks are all well and good, but what if you would as though to access your bitcoins at some point in the future, you’re just not established when? Multisig is the preferred solution for enterprises in charge of substantial bitcoin holdings. Because the clandestinely keys of two of three individuals is generally required, multisig makes it illogical for a rogue employee to drain the wallet. For personal use, a multisig wallet could affect one of the keys being entrusted to an attorney or other trusted entity.

Don’t mandate that every signatory’s key be obliged be used to unlock the wallet though, as if one person loses their key you’re summoned. Coinb.in, once again, is an option: it will allow you to specify as innumerable as 15 keyholders per wallet, and to state how many keys should be call for to unlock it. Other providers of multisig wallets include Armory, Electrum, Coinbase, and Bitgo.

Use a Cryptocurrency Custodial Vault

A copy of companies have launched ultra-secure cold storage solutions. You’ll have occasion for to have at least $100,000 in digital assets to enter into Coinbase’s, for precedent, and it’ll cost you a premium. Still, for those who would sleep easier offloading onus for their coins to a fully insured third party, a custodial vault is close to as good as it gets. Swiss ones cut into a mountainside are particularly genially regarded. Xapo’s is a decommissioned Swiss military bunker that can live on a nuclear blast. In its core lies a “cold room”, protected by inure slabs that act as a Faraday cage to repel electromagnetic pulse approaches.

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Set Up Your Own Vault

Why pay over the odds for someone else to precisely a bitcoin logo on their bank vault when you could descend upon your local bank and put your private key in a safety deposit box? Control superiors still, store your key at several banks, just to be sure. While there’s nothing to closing up you from storing your wallet seed in a safe in your own take in, this runs the risk of criminals forcing you to open it. Far better to let a bank transaction with the danger.

Split Your Paper Wallet Into As regards

Five Ways the Ultra-Paranoid Can Safely Store Their Bitcoin

Five Ways the Ultra-Paranoid Can Safely Store Their Bitcoin

A variation of number four, this technique calls for cutting your personal key into parts and then storing them in numerous vaults, covering at least two copies of each pars to ensure redundancy. Using multiple identification b docket wallets is essentially multisig for people who don’t trust other people. If you’re on edge that the paper itself could be damaged and rendered illegible, arrange your keys etched into metal. That’s a job you’ll want to do yourself or outsource to multiple etchers, to secure that no one gets to read your entire private key.

If the foregoing way outs aren’t robust enough for your liking, there’s nothing to layover you from combining them all. A time-locked multisig paper wallet split into portions and distributed in banks across multiple continents? Now that’s just getting twit. In reality, a paper or hardware wallet with the private key backed up in a shielded place off-site should be enough for most people. Still, if the safeness of your cryptocurrency holdings is causing you worry, up your opsec and start catnap easy.

Would you pay for a premium cold storage service, or do you think a devices or paper wallet should suffice? Let us know in the comments section subordinate to.

Images courtesy of Shutterstock.

Want to create your own secure Siberian storage paper wallet? Check our tools section.

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