Additional security measures when your Bitcoin net worth increases

[Poker Player]

Lately I've been thinking whether as Bitcoin net worth increases it might not be worth taking additional security measures.

If you have some Bitcoin, I think it's OK to have it all in just one hardware wallet. At the moment this is not a problem for me, but I imagine to keep buying Bitcoin regularly as I have been doing, and that the Bitcoin price keeps increasing on average, then, within 1 or 2 cycles, my Bitcoin can become a very important part of my net worth.

I imagine that if someone today owns 100 Bitcoins, bought cheaply in the past, it is crazy to have them all in one hardware wallet.

Not long ago I saw a news item about this:

Family Goes All In On Bitcoin At $900, Has Keys Stored Around The World

I don't know if you have taken additional security measures or plan to take them in the future.

[NeuroticFish]

I imagine that if someone today owns 100 Bitcoins, bought cheaply in the past, it is crazy to have them all in one hardware wallet.

Clearly.
But there were already discussions on this in the past and I'm sure that whoever has such amounts of money did some research and implemented some measures.
Splitting in multiple wallets has pros and cons.
Crypto steel and similar backups may be pretty much popular.
Shamir backup and other splitting techniques are not new.
Multiple copies of the seed are a must.
And afaik keeping your mouth shut is also a must, since no matter how good you encrypt your seed, a 5$ wrench may easily be the key.

[BlackHatCoiner]

Additional security measures shouldn't concern you that much if your Bitcoin net worth increases. Every person who owns money, acts similarly to how a Bitcoiner does. We all have liquidity, but we aren't carrying it all in our pockets, neither into one object that can be stolen.

Instead, we keep some of it for our daily transactions and leave the rest somewhere safe. Some may consider the bank a safe place to keep your money. When you've run out of liquidity in your home, you'll cash out some from an ATM. In the case with Bitcoin you should hold some of your coins into a hardware wallet for your daily transactions and leave the rest to a cold storage. You decide how much is the “rest”.

[Lucius]

Hardware wallets are still vulnerable to some attacks particularly to the ransom one which is possible  in the case  the computer you have to connect to is compromised.

I don't understand what you're talking about here, because hardware wallets are designed (at least some) to be safe to use even on an infected computer - because every action must be confirmed at the touch of a button before execution - which means everyone has complete control in their hands. Two dangers lurking on wallet hardware users are clipboard malware and fake sites that mimic original sites and require users to enter their seed.

I imagine that if someone today owns 100 Bitcoins, bought cheaply in the past, it is crazy to have them all in one hardware wallet.

So much BTC in one place is certainly not a smart move, especially if we know that one should not believe blindly that any hardware wallet is completely safe from any future vulnerabilities, and by that I mean those that could be executed remotely. But if you don't have a better option than a hardware wallet, then it's definitely advisable to make more wallets and protect each one with a unique passphrase - which means that even if the seed is compromised, all other wallets are still safe. All this on the assumption that the hardware wallet does not contain something that spies on the user and sends all the data to a secret server.

[NotATether]

I wouldn't go as far as distributing the hardware wallets on different continents like they did, what if you need money urgently and a plane ticket is infeasible to get, whether it being expensive or there not being enough time?

Hardware wallets are still vulnerable to some attacks particularly to the ransom one which is possible  in the case  the computer you have to connect to is compromised.

I don't understand what you're talking about here, because hardware wallets are designed (at least some) to be safe to use even on an infected computer - because every action must be confirmed at the touch of a button before execution - which means everyone has complete control in their hands. Two dangers lurking on wallet hardware users are clipboard malware and fake sites that mimic original sites and require users to enter their seed.

Doesn't mean you should do it though, it's never worth the risk.

Airgapped machines are just one part of the measures - you either want to keep a low profile, so robbers don't find you, or else, store the airgapped machines and hardware wallet in a high-security room with alarms, cameras, Kensington locks and such, useful when you are trying to protect dozens of bitcoins.

[ranochigo]

Please, read the following ^article, that explain what would make this attack  possible if hardware wallets ware attached to machine compromised with relevant malware. The vulnerability was discovered for bunch of hardware wallets. To make my post even more intriguing, I’ll quote for you some sentences from that article:

It isn't a vulnerability per se, your seeds aren't compromised in that case. The premise for the "attack" requires the malware to be in knowledge of the master public key as well as ensuring that the user doesn't store the PSBT file used on it. It is such a novel attack and certainly isn't as bad as it seems; fact that competitors are willing to continuously try to break their competitor's wallets is pretty beneficial for the enduser.

4. Cold storage on the air-gapped machine. Hardware wallets are still vulnerable to some attacks particularly to the ransom one which is possible  in the case  the computer you have to connect to is compromised. I'm used to use Armory wallet on air-gapped machine to hold the majority of my BTC.

Most users actually don't know how to properly use and contain an air-gap and would often accidentally unknowingly break that airgap. Depends on your technical expertise, but I find hardware wallets far better for most users and that most are designed with countering common attack vectors in mind. Either is fine, it isn't particularly difficult to jump airgaps, if your attacker are persistent enough.

[Charles-Tim]

I don't know if you have taken additional security measures or plan to take them in the future.

Hardware wallet would be a very good option, but wallet on airgapped devices is a good option too while still maintaining privacy and making sure your wallet is safe and secure. If you have more Bitcoin, there is nothing bad to go for Multisig on two hardware wallets (2-of-2 Multisig), the upcoming Taproot activation will make us to take advantage of lower fee just like on single pubkey wallet. Cold storage and Multisig are the safest way, to combine both is not bad for best safety.

[Trojane]

Maybe,if commercial bitcoiners agree together with a couple of Programmers, though it is decentralised, they could create other means of identification or individual security will do..,to prevent CYBER SCAM!
Trojane💎

[tbct_mt2]

Non custodial wallets: Bitcoin Core, Electrum, Wasabi wallet. I would like to use Electrum because it is light.
Recommended wallet
[GUIDE] How to Safely Download and Verify Electrum
[Guide] Secure air-gapped crypto wallet storage method
Metal plates

[swogerino]

It all depends on the user technical know how regarding Bitcoin.If the user is well educated in that who owns the keys owns Bitcoin it will take appropriate measures on how to safeguard the keys.Even not so well educated Bitcoin users can use hardware wallets to keep their Bitcoins safe.I think most of the people in the forum know how to safeguard their coins.

[NeuroticFish]

Non custodial wallets: Bitcoin Core, Electrum, Wasabi wallet. I would like to use Electrum because it is light.

Actually the list of non-custodial wallets is bigger, one light wallet that comes into my mind is Sparrow, for example.
However, I suggest that if one has life changing funds he should not keep them on a hot wallet, even if it's non custodial. Life changing funds should be stored offline (paper wallet, steel, seed backup, HW, cold storage, name it).

[aysg76]

The security should be done at each phase whether you have small funds or large portion of money in bitcoins as they are your funds and you need to secure them in any possible way.But yes for sure you can use different addresses or divert your funds in many hardware wallets but don't go too far like digging them up in four or five different continents.You can simply have them with you and seed phrases backed up on metal plates or piece of paper for which you need to know which is best way to safe them from any damage.You just access your hardware wallet and confirm the transaction so it's okay as attack chances are not there so it is advisable instead of using any CEX or online wallets.Additional security will make your cost more but spending $100 or even more to protect $1 million is worth it so you should not have any issues with them.

[yhiaali3]

Personally I haven't taken additional measures yet, anyway I don't have much yet but I got a Trezor wallet and I think I will store bitcoins on this wallet when I get a large amount, hard wallets are one of the good options for keeping bitcoins and other digital assets but they are not enough in my opinion Because it may be damaged, lost or stolen, it is also possible to forget your private keys, so it is better to have more than one wallet, as well as to save your private keys on more than one paper copy and store them in secret places that only your family members can access in the event of any accident.

[Wexnident]

Multiple hardware wallets seem to be a good idea, but the maximum should be maybe 2 or 3? If you're the average trader. If it was someone like a whale, then more since they have the funds anyway, really, it depends on how much funds you have as Bitcoin. Besides, no matter how much hardware wallets you use, if the person themselves, in general, is quite careless, well, the funds would always have that risk of being stolen due to their mistake. Tbh the best security you could ever get is to not let anyone know you even invest in Bitcoin.

[Obito]

If you're careful with your possessions, having only one storage for your bitcoin is enough already for you to keep your bitcoin safe plus you are also cautious with your security online and offline then it's probably enough. Additional measures should be taken if your self assessment is that you know you're not cautious in your security.

[Lucius]

~snip~

I know this vulnerability existed, but it has also been fixed at least as far as Ledger is concerned - so while no one can claim that something similar will not reappear, hardware wallets are still the simplest and safest solution for the average user who is unable to make an airgapped wallet.

Of course, it would be ideal for everyone to have perfect cold storage, but when we look at how many people use exchanges for their storage, with the addition of all those who use desktop and mobile wallets, how many successful attacks on hardware wallet users do you personally know? Of course, this does not include those who became victims because they gave someone their seed or were deceived by clipboard malware.

[witcher_sense]

If you suddenly realized your bitcoin net worth started to grow, it is a perfect time to move your coins off a mobile wallet to more secure wallets, hardware ones. A hardware wallet is a device that has a special purpose, which is managing your private keys. With that device, you can sign a transaction in the safest manner especially when you connect and sign it not via USB cable but SD-card or QR-code. In case you prefer to use a single seed phrase for all your coins (which most people do), then it is reasonable to create multiple wallets with different passphrases. Each passphrase generates its own set of keys, which means you can split your coins across multiple wallets. This scheme is not too complicated and can be utilized by everyone including non-experts.   

[Kong Hey Pakboy]

It all depends on the user technical know how regarding Bitcoin.If the user is well educated in that who owns the keys owns Bitcoin it will take appropriate measures on how to safeguard the keys.Even not so well educated Bitcoin users can use hardware wallets to keep their Bitcoins safe.I think most of the people in the forum know how to safeguard their coins.

I think it's more of a how they're performing in terms of online security, if they have a confidence that they're really safe and cautious, I think that they will be able to just be alright with just one wallet but if they're the opposite then they might have to consider using different wallets to ensure that it won't be gone all at once.

[AicecreaME]

Lately I've been thinking whether as Bitcoin net worth increases it might not be worth taking additional security measures.

If you have some Bitcoin, I think it's OK to have it all in just one hardware wallet. At the moment this is not a problem for me, but I imagine to keep buying Bitcoin regularly as I have been doing, and that the Bitcoin price keeps increasing on average, then, within 1 or 2 cycles, my Bitcoin can become a very important part of my net worth.

I imagine that if someone today owns 100 Bitcoins, bought cheaply in the past, it is crazy to have them all in one hardware wallet.

Not long ago I saw a news item about this:

Family Goes All In On Bitcoin At $900, Has Keys Stored Around The World

I don't know if you have taken additional security measures or plan to take them in the future.

It's really important to secure your funds as early as the time you enter the cryptocurrency community. Regardless of the amount, a user must be responsible for his account because hacking incidents are rampant and so are phishing sites and links. If you own a cryptocurrency, you must know the risks, hence, investing in a nice hardware wallet is important to secure your funds and assets. After all, spending for a hardware wallet is relatively small compared to losing all your funds because of negligence.

Surely, most users here in our forum are well aware of all the consequences if they will be too complacent with their funds' security measures. Being careful not to click any doubtful links and websites can definitely help but it's still best to be sure than be sorry later.

[ranochigo]

Technical expertise of any holder must be in the direct  proportion with amount of BTC he/she has.  If this amount is considerable and it's planned to  be hodl for a period at least of  3+ years then I would strongly advise those holders to invest  some time in their knowledge on cold storage for piece of mind. They could start with the small sum to jump to airgap machine and gradually increase it   as their expertise   with chosen cold wallet raises. Apart from Armory another wallet can operate in cold storage mode and that one is Electrum. But I prefer Armory as it matches Glassier protocol for storing BTC.

Ignorance is more common than you think. Security can't be guaranteed by your conscious decisions; people often make mistakes that compromises their security though it might not appear so to them. It sounds incredibly easy; okay a clean computer and an airgap, but there are plenty of instances of airgap systems being compromised as well. Just because someone might've done their due diligence doesn't mean that security habits are ingrained in them.

Like it or not, an airgap is not immune to loads of attacks. By choosing an airgap over a hardware wallet, you're giving up certain benefits of the latter for certain benefits of the former. There isn't a one-size fits all solution for everyone. Cherry picking vulnerabilities of hardware wallets while ignoring those of the popular wallet software doesn't present the full picture.