Bitcoin storage and security tips

[headingnorth]

In light of the recent debacle with a bitcoin dev named Luke Dashjr who allegedly lost all his bitcoin due to his poor security practices, here are some tips to more safely store your bitcoin. Feel free to add to the list.

It cannot be emphasized enough. Even if you are computer and tech savvy and already know this stuff it is always a good idea to review best practices once in a while because even the best of us can have a lapse in judgment or let our guard down, make a mistake, etc.

1. Don't keep large amount of btc on any exchange or hot wallet. Think of a hot wallet like the wallet you carry around in your pocket.
You carry only some spending money in your wallet or purse not your life savings.

2. Never store your recovery seed phrase (aka private keys) on your computer like Mr. Dashjr did. This is one of the golden rules of self custody that was violated by someone who should have known better.

3. Use a good hardware wallet to store larger amount of bitcoin. If you can't get a hardware wallet or don't want to deal with learning how to use one because it is more complicated then at the very least use a good software wallet such as Trust Wallet, Mycelium, Exodus wallet, etc. These allow you keep your private keys offline.

4. Always use good antivirus and anti-malware software and scan your machine at least one a week or before you move any large amount of crypto.

5. Good idea to also use good software firewall in addition to firewall built into your router.

6. Don't visit any shady websites or use public wifi for any financial or crypto transactions.

From the official Trezor website:

Do not keep digital copies of your recovery seed (this includes screenshots, photographs, emails, Dropbox backup etc).

https://trezor.io/learn/a/how-to-use-a-recovery-seed

https://youtu.be/qSwQCfTUGVo

From the official Ledger website:

Do not make a digital copy of your recovery phrase. Do not take a picture of your phrase. Do not save your phrase into a password manager.
Your recovery phrase needs to stay strictly offline.

https://support.ledger.com/hc/en-us/articles/360005514233-How-to-keep-your-24-word-recovery-phrase-and-PIN-code-safe-?docs=true

https://youtu.be/TkCHQfroMQc

[Lida93]

It astound me really hard to know that people still store huge sum of money on exchanges seeing how others have disappointed leading to the loss of many crypto investors and traders assets. Non-custodial wallats are just the best way to keep full control and charge of your assets but a few crypto users are perhaps shying away from the responsibility of taking absolute of their private keys or seed phrase which sounds laughable to me.
Here's a thread I came across here on the forum on how to safely secure and store your private keys and I think the process it's pretty cool as it's money we're talking about here.
https://bitcointalk.org/index.php?topic=5389446.msg61499517#msg61499517

[headingnorth]

It astound me really hard to know that people still store huge sum of money on exchanges seeing how others have disappointed leading to the loss of many crypto investors and traders assets.

It's crazy to me ever since Mt Gox was hacked many years ago people are still storing large sums on exchanges. Why would you do that with an exchange like FTX that is located in the Bahamas. That alone is a huge red flag to me which is why I never did any business or signed up with FTX. I only deal with Coinbase since they are headquartered and regulated in the US as a public company that must disclose all their financial information.

Even worse are people who are staking their crypto on these exchanges to gain some interest. Staking is just a scam IMO and ought to be against the law.

[dunfida]

For a Bitcoin Dev then it is really somewhat mind puzzling on how the heck that someone who has that knowledge would really be hacked out and dont know on whats the main reason
but pretty sure that it would really be just included into those things mentioned on OP. If  Dashjr  would be saying that its none of those things could possibly happened
then what would be the last reason? Bitcoin could be hacked?

[mendace]

I'm not sure if he lost his Bitcoin he was a dev and he had to know better than many what to do and what not, so he was either not capable at all or he is lying for obvious reasons that could be evading the taxman or the attackers and lowering his privacy profile. You know lately it seems to me a rather used practice to lie about the possession of Bitcoin, maybe someone is beginning to understand.

[headingnorth]

For a Bitcoin Dev then it is really somewhat mind puzzling on how the heck that someone who has that knowledge would really be hacked out and dont know on whats the main reason
but pretty sure that it would really be just included into those things mentioned on OP. If  Dashjr  would be saying that its none of those things could possibly happened
then what would be the last reason? Bitcoin could be hacked?

We should be clear Bitcoin was never hacked. Dashjr said in one of his tweets if bitcoin was hacked then many others would lose their bitcoin not just him.

He admitted that he stored his private key on his computer which you are never supposed to do. He also said his personal server was hacked in November last year.
If he stored his private key on his server and his server was hacked  then it's obvious that's likely how they gained access to his bitcoin.

If he stored his private keys offline like you are supposed to do then the hackers never could have stolen his bitcoin even if they hacked his computer.

[jackg]

3. Use a good hardware wallet to store larger amount of bitcoin. If you can't get a hardware wallet or don't want to deal with learning how to use one because it is more complicated then at the very least use a good software wallet such as Trust Wallet, Mycelium, Exodus wallet, etc. These allow you keep your private keys offline.

Airgapping can work out being cheaper than a hardware wallet and might be harder to.make a mistake with.

Also I don't think your keys can be said to be "offline" if they're stored in software wallets. They're generally well encrypted but only as offline as the computer with them on it is.

[tranthidung]

• Reminder: do not keep your money in online accounts
• Security Checklist

If you download a wallet software (after choosing a good open-source non-custodial wallet to use and download), it's more safely to verify what you download.

• Verify Electrum wallet
• Verify Bitcoin Core wallet. It is outdated. You can get more details from Bitcoincore.org/en/download page and its guide to verify your download.