Your bitcoin storage is on a website prepared to hacked!
Your bitcoin storage is on a website prepared to hacked! Protect yourself by using one of these real bitcoin wallets.
Security is simply never perfect. Any amount of bitcoin you trust to humans can ultimately be lost – whether through accident, theft, fraud, or bankruptcy.
If you’ve invested time or money into purchasing bitcoin, it may be wise to invest some time into understanding it more deeply. Bitcoin is somewhat unlike other currencies – it is most safely held in a true bitcoin wallet, rather than on a website.
While it can be comforting to think, “I keep my bitcoin with Company”, in reality, you’re simply adding your money to an already large jackpot for hackers. No company is immune, and the bigger the target, the more complex hacking attempts can get. For large enough prizes, hackers have gotten themselves hired into the security and critical infrastructure teams at many large institutions – sometimes over the course of years.
Using a real wallet doesn’t have to be hard – try one of these popular open-source apps:
Shameless plug – I personally use and have contributed to Copay (both as an individual and through my employment with BitPay). I prefer it because I’m able to secure my money across several phones and desktops – protecting me from loss even if several of my devices are lost, stolen, or hacked.
For even more options, check out Choose Your Wallet on bitcoin.org.
If you’re interested in spending bitcoin regularly, here is list of wallets which is maintained by BitPay, sorted by the payment standards they support: Bitcoin Wallet Comparison – Standards Support
Tried to keep it short, but looking at the comments, it sounds like the Electrum wallet is also quite popular. Just added it to the list.
The ledger classic nano which technically could partially succumb to this attack you are referring to, except that it comes with a multifactor authentication itself. Either via confirmation on a mobile device or via a printed code card that’s unique. Please stop spreading FUD. I own both and think they are great in their own ways. The NFC ledger is multifactor and the new Nano S has a screen. All of them do hardware key signing so it’s 100% secure. Not any less secure than your trezor. Oh, btw, the original ledgers had a feature that Ledger doesn’t have which I love and the reason I keep my cold storage there and not on the trezor. If you enter an incorrect pin more than 3 or 5 times (i forget exactly) it erases the device.
Having your own private keys is critical, but it is also important to understand why the local security of these private keys is paramount. This is from our Nano S presentation blogpost.
Why the need for a hardware wallet?
If you are not familiar with the notion of hardware wallets, you may wonder what would be the advantages versus a paper wallet or an encrypted private key on a computer.
The main principle behind hardware wallets is to provide a full isolation between the cryptographic secrets (private keys) and your easy to hack computer or smartphone. Vulnerabilies of modern PCs and smartphones are well known, and if you keep your private keys there (private key = your bitcoins) it’s just a matter of time before you’ll get hacked and lose everything.
A paper wallet may be secure, but only until you want to use your funds, requiring importing your private keys on your computer. And if you think a password encrypting your keys is enough, malwares are smart enough to wait for the inevitable decryption before sweeping your funds.
Hardware wallets are convenient, affordabe, portable and backuped by a paper wallet allowing an easy recovery in case of loss. If you have any significant amount of bitcoins, using a hardware wallet should be a no brainer.