Bitcoin Forum

New BTC adapter here.  I'm waiting to get verified by coinbase.  I was planning on using there online wallet to store my bitcoins but with all the news last week I see some people are saying not to store your BTC online.  Do you guys think it is safe?  Otherwise I guess I'll download the bitcoin wallet app for android but what happens if I brake my phone are my bitcoins gone?

You can backup your wallet so that if something happens to your phone you can recover your bitcoins. Basically you need to backup your private keys. These are stored in the wallet file. As long as you have a recent backup of the wallet file you can get access to your bitcoins.

As far as exchanges go it is not a good idea to store large amounts there because they tend get hacked. If you do decide to store significant amounts there take every precaution. Choose a good password and enable 2 factor authentication.

That depends on how risk tolerant you are.


Create a backup before you phone gets broken.


That depends.  Did you create a backup?

I'm not sure about Coinbase, but with Blockchain.info you can get your wallet back up emailed to you or just download it yourself. I'm sure you can just log in to Coinbase online as well.

What's wrong with downloading the bitcoin-qt (https://bitcoin.org/en/download) onto your laptop? You may just learn a bit more about Bitcoin and have the easy option to make backups of your wallet.dat

I personally feel much safer when I have the coins in a wallet on my own computer, as opposed to an online wallet. Even better if the computer isn't connected to the internet (to prevent some malware stealing the private keys)

The "wallet" on Coinbase and bc.i work in a completely different way.
In coinbase (or other exchanges and gambling sites), you do not have any control of the private keys of your "deposit addresses".
In bc.i, you have the sole control of the private keys. You never need to send your private key to the server.

I would suggest that you don't store the majority of coins on any online wallet, download a client on your PC (Electrum is n00b friendly) and make a couple of copies of your wallet on separate usb sticks.

The biggest problem in cryptoconcurrency industry is keeping money in safe place, we can't trust online wallet as well as our own personal computer. Since the value of money is very high, these are all unsafe procedures

And that's why you should store your bitcoin (especially if you have a good amount of btc) in an offline wallet or a paper wallet.

Blockchain encrypts your private keys with your password on your computer in your browser, then they send the encrypted keys to their servers to be stored in their database. As long as you are using a strong enough password, nobody else should be able to access your decrypted private keys.

If you aren't using 2 factor authorization, then anybody can get a copy of your encrypted keys from the blockchain.info servers, and if you are using a weak password they can take as much time as they need across multiple computers to try to brute - force your password and steal your bitcoins.

Therefore if you use blockchain.info it is important to choose a strong password,  and it is a very good idea to use 2 factor authorization.

I personally like having my wallet in my possession. If you have a reasonably good computer you could always go for the bitcoin-qt client... however, the blockchain is a good 20GB, and it takes a long time to get it all downloaded, at first. But once you have it, you have it - back it up and no issues anywhere can take it away from you. I can't speak for any of the other options or websites because I went straight for the vanilla client.

[EDIT:] if you're worried about security, have an old computer that is used *purely* for wallets, and only turn it on when you need to! Lukewarm storage!

I don't even have a computer.  I'm one of the people bitcoin is trying to win over to make it more mainstream.  I'm not really tech savy.  One thing holding bitcoin back is it seems you need to be somewhat tech savy to use them. They recomend you don't keep your coins on a exchange due to hackers. Ok, so I send them to my phones wallet. Ok, now if I lose or break my phone my coins are gone. Not going to walk around with thousands of dollars in bitcoins in my pocket either. Ok, so now they say you need to back up your keys with a flashdrive or external hard drive, computer, or print out a paper wallet. WAAAYYY to many steps for your average user. It really needs a US based coin exchange thats regulated that people would feel safe keeping there coins in a online wallet then transfer small ammounts to there phone.

Ah, then bitcoin is not for you. You don't use computers and you don't trust foreigners. Bitcoin requires, first and foremost, an open mind and a willingness to learn new things.

The same could be said about the internet in the 1980's.  Bitcoin is still in its infancy as a technology and a protocol.  Mainstream use will come later.  There is a LOT of innovation that needs to come first.  Of course those entrepreneurs that are able to provide that innovation will be the billionaire owners of the technology and finance companies of the future.


Not all of those things are necessary for everybody.  It really depends on your personal needs.  Many people who have less than $100 worth of bitcoins that they won't be devastated over loosing are perfectly happy to store them with blockchain.info and access them through their phone.

If I have U.S. dollars, they reccommend that you dontt store them all in the stock market due to volatilitiy, Ok, so I put them in my back pocket.  Now if I encounter a pick-pocket, they are gone.  Not going to walk around with thousands of dollars in my pocket either. Ok, so now I need a safe in my house, or a security guard, or an alarm system. WAAAYYY to many steps for your average user.  (And yet, many people seem to figure out how to use cash just fine?)

Until further innovation comes along, it really is a LOT easier to manage and secure your bitcoin finances if you have at least one computer.  If you are trying to secure a large value of bitcoins, it's significantly better to have 2 computers (one that can be kept offline at all times).


What you are describing is essentially a bitcoin "bank".  Something regulated, insured, and audited.  I'm sure it will come along eventually, but it will take a while.  The financial world is slow to adopt new technology and paradigm changing concepts.  We are probably many years away from something like that, but when it happens, it will be a MAJOR shift in the world of finance.

Is there a hardware wallet yet that I can store my bitcoins on and just put in my safe?

Not yet, but there are some in development.  I expect to seem some come to market in the next 2 to 5 years (maybe sooner)

Yes, there is one. As soon as I can remember where I saw it, I will post a link.

EDIT:

found it  :D

https://bitcointalk.org/index.php?topic=349465.0 (https://bitcointalk.org/index.php?topic=349465.0)

http://i62.tinypic.com/6gbhol.jpg



You do realise your coins are stored on the blockchain and not in your wallet?

coinbase is fine i have tired using it to transfer 100000 satoshi bifour end it allow me