Trust No One

[Nolybab]

Newbies: Trust No One (especially yourselves)...first thing I would recommend to any true bitcoin noob would be to first do some research, then download and install the client. After that, go to a few sites that offer free 'bits' that out there...then you can practice backing up your wallet, making archive copies, restoring your wallet on a another computer, sending bitcoins to yourself by creating new account keys, etc..this way, if you mess up, you only lose a few bits that were free to begin with.

also, if you think you're going to be anonymous with bitcoin, think again. even going to a free site that sends you coins, they track your IP, some have you sign in with your google account (and gain access to your email address), etc., etc..so if you think you're going to go onto silk road and get your party on, you'd better slow down and do your research.

so yeah, don't trust anyone, and until you know what you're doing, don't trust yourself.

we're not late to the party, we're just in time for the true revolution!

also, dacoinminster, i read your "second white paper"...although the title is a bit presumptuous, the overall idea has much merit. good work...

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[CoinDiner]

Hi

OK so a real noob question!


Why cant I just store my encrypted wallet on a portable drive and stash it somewhere totally offline

that way only I know where it is

[Kazimir]

Hi

OK so a real noob question!


Why cant I just store my encrypted wallet on a portable drive and stash it somewhere totally offline

that way only I know where it is

From the HOWTO: create a 100% secure wallet topic:

you also have to make sure that you have at least one, preferably multiple remote backups somewhere (otherwise, what happens if your house burns down?) and any backup must be encrypted as well (otherwise, what happens if the remote backup location gets hacked / confiscated by the feds / stolen by a fraudulent employee / etc?)

Furthermore, at some point you will want to use the wallet or spend the coins. When you do so, make sure that:

you only insert the USB stick in a computer that is guaranteerd free from malware/virus/spyware/keyloggers/trojans/etc (or at least whenever you actually enter your password to unlock the wallet and confirm any payments)

[HonorMe]

Thank you for this sound advice

[CoinDiner]

Thanks Kazimir

I would probaly boot from a livecd then and not have to worry about virus and stuff

Hi

OK so a real noob question!


Why cant I just store my encrypted wallet on a portable drive and stash it somewhere totally offline

that way only I know where it is

From the HOWTO: create a 100% secure wallet topic:

you also have to make sure that you have at least one, preferably multiple remote backups somewhere (otherwise, what happens if your house burns down?) and any backup must be encrypted as well (otherwise, what happens if the remote backup location gets hacked / confiscated by the feds / stolen by a fraudulent employee / etc?)

Furthermore, at some point you will want to use the wallet or spend the coins. When you do so, make sure that:

you only insert the USB stick in a computer that is guaranteerd free from malware/virus/spyware/keyloggers/trojans/etc (or at least whenever you actually enter your password to unlock the wallet and confirm any payments)

[KajiMaster]

The whole stash your wallet on a SDcard is my method of securing my investment.  I have my "Bank Stash" address for the wallet that is on a ext4 file system formated onto a Virtual HD and stored in TrueEncrypt file and saved on a MicroSD card which is stashed in my safe. I make deposits to it every time I buy bitcoins or make a profit from gambling or other ventures and it has provided the perfect safe haven.  I also use the LiveCD idea that was mentioned but through a VM.

KajiMaster

[ALOIS]

Why not to trust Anti-Virus Software? It is the wizard that keeps hackers out of our computers.

[billybob]

Very interesting stuff.

[LioMori]

Seriously. Don't trust the exchanges, don't trust online wallet services, don't trust your anti-virus software, and don't trust anybody online.

If you absolutely must trust someone with your bitcoins, for the love, choose carefully!

• Do you know their full name?
• Do you know where they are located?
• Have they demonstrated trustworthiness in the past?
• Are they asking you to trust them? (red flag)
• Do they have insurance?

Insurance? Impossible, you say. Not so!

When I needed people to trust me to hold bitcoins for a contest, I deposited 50 bitcoins as a bond with a well-respected forum member, so that even if I did something stupid and lost people's money, they would still be reimbursed. You can read about it here: http://bitcointalk.org/index.php?topic=10008.0

Consider carefully who you will trust. With bitcoins, elaborate scams may be profitable. For instance, someone may develop trust for their user name over many months with small transactions on this forum, then take advantage of that trust to make off with a lot of money. Such a scam would only be worth doing on this forum. No other forum in the world would be worth the effort.

If you want someone to hold your bitcoins for you, there are NO online services that have the transparency and security to make me comfortable using them for storing bitcoins for more than a short time in small amounts. The only way to do it is like I did - choose someone whom you believe to be trustworthy, and approach them. If they approach you, or in any way say or insinuate that they are a trustworthy person to hold your coins, STAY AWAY.

If you are thinking that I might not be trustworthy, since I am writing this post about the issue, you are approaching the appropriate level of paranoia.

If you want to store your bitcoins with maximum security, there are lots of resources about how to do it, such as this: https://en.bitcoin.it/wiki/Securing_your_wallet

Here's my summary:

1. Put all your coins in a new wallet that has never connected to the network
2. Encrypt that wallet with the maximum security you can find, using the most secure password you can keep track of
3. Delete the plaintext wallet, and distribute the encrypted wallet to every piece of physical media you own, store it online, and send it to several people you trust

Don't think you can generate and remember a secure enough password? Create a super-long password, and store clues to help you remember it. For instance, your password clue file might say:

My standard password + My throwaway password (backwards, all caps) + &#$%@ + First two sentences of first paragraph of page 19 of my favorite book (include all capitalization and punctuation) + My wife's mother's middle name + My son's favorite superhero + My favorite number times 8734 + food my wife hates (backwards, all caps) + 9-digit number stored with my paper will + 10-character password stored in my safety deposit box + . . . .

You can go on in this way to create as long a password as you want. Store this password clue file with your encrypted wallet, and optionally encrypt both with a simple standard password to keep out snoopers.

In this way, not only can you recover your coins from your "savings account" at a later date, if you get hit by a chicken truck tomorrow and die, your loved ones can probably piece together your password and recover the coins too (better make sure you trust them, and that between them they have or can get the answers to those clues).

I recommend that you practice your wallet encryption and recovery a few times with a small number of coins, until you are very comfortable with the process before you try it with the bulk of your savings.

And remember, this is how most bitcoins services get started:

https://lh3.googleusercontent.com/-lgm4poF3JWE/TgsHwby-BlI/AAAAAAAADwQ/twan94HT6p4/020.jpg

Comic from: http://bitcointalk.org/index.php?topic=13903.0

My grandma used to tell me almost the same thing!! Well... except for the stuff related with bitcoin. She would love bitcoins, i'm sure.

[Dr3AM$cAp3]

Thanks for the info!

[bvahaha]

very usefull, thanks a lot )

[BunzLee]

Thanks a lot. Better be safe than sorry.

[marika70]

so whats considered the most trusted website for bitcoin exchange right now ?

[Kazimir]

so whats considered the most trusted website for bitcoin exchange right now ?

I prefer Intersango. They seem to be very concerned with security, I've done quite some business with them already, and had nothing but positive experiences so far.

[SiliconAlchemist]

so whats considered the most trusted website for bitcoin exchange right now ?

I prefer Intersango. They seem to be very concerned with security, I've done quite some business with them already, and had nothing but positive experiences so far.

I know MtGox is huge.  I assume they are popular for a reason.  Any input regarding them?

[wildgift]

The coin might be anonymous, but I see these faucets everywhere, and none of them are anonymous - they have ads.

When you transact and buy something, you have to leak your identity to the seller.

Likewise, if you sell something, you are probably going to have to leak your identity to compete in the market.

[atm]

Especially thieves like this guy:https://bitcointalk.org/index.php?action=profile;u=57255 DavidBEnz

[silentseawolf]

great post, love the comic too! 

[auctioneeeeer]

Very interesting stuff.

[Alwaysmining]

Good to know