Topic: Holding bitcoins without intermediary? (Read 1315 times)

This has actually been quite useful.  Electrum is pretty much what I was looking for (or paper wallets, which I've learned a little bit about as well).  Since the address is generated offline, I don't have to trust anyone other than myself to hold the bitcoin.  I know that I have to trust someone when I buy them, but I don't mind that since it's only for a short period of time.  I can just buy and then transfer to the address that I control.  What I wanted to avoid was a situation where I buy some bit coin, and then someone holds it and I have no way of knowing if they actually bought it, or if they still have it, or if they could walk off with it.

This is the case with Xapo for example.  I'm not saying they are risky, I don't know.  Based on the interview with their founder that got me thinking about bitcoin, I'm guessing they are okay, but I want to take the risk myself, otherwise, I'm happy just keeping my fiat currency in the bank.

For those who got into things like "technically not encrypted" or "linux distro" you're on the edge of my technical understanding, and if bitcoin is ever going to take off, it'll have to be accessible to people much less technically inclined than I am.  I hope that is the direction it goes.  If so, it's a good time to get into it.


Thanks for your help all.

That's not necessarily true. When I want to get cash into BTC, I use Localbitcoins to meet a seller in person, pay cash for BTC. P2P trading in a public place is pretty safe, and no, you don't have to trust a 3rd party with your coins. You don't even have to use LBC as escrow when you are dealing in cash.

You want to buy bitcoin without having to trust anyone? You have to, at least, trust an exchange with your fiat. Then you buy bitcoin with your deposited fiat and transfer them to your local wallet like Bitcoin Core or Electrum. You could also buy bitcoin from an ATM a small amount at a time to minimise risk. I believe some exchanges (like Circle) are worthy of trust and you shouldn't worry if you are just buying bitcoin and transferring out.

For you i suggested to use Electrum wallet, you don't need to download data just go to online and sync. Or use hardware wallet.
For reference to secure your system:
https://bitcointalksearch.org/topic/keep-your-system-updated-and-stay-secure-tips-to-avoid-viruses-trojans-203876
https://bitcointalksearch.org/topic/edu-bitcoin-beginners-guide-1152619

You need a secure intermediary to HOLD your bitcoin. Don't store your amount on web wallet or exchanger.

Very simple. Maintain sole control of your private keys. The easiest way to do this is with a good desktop wallet. The most secure is a full node like Bitcoin QT wallet. But that is also very resource-intensive. You could look into SPV wallets like Electrum or Multibit. The important thing here is maintaining sole control of your private keys. If you send your coins to a third party, you no longer control them.

Guys for God's sake, do not let other people hold your bitcoins!!!
This is the least secure way of holding them. You have paper wallets, you have core where you can backup your private keys or you can use a hardware wallets like Trezor if you are more advanced user.

I mean, find a way, do a research, learn hiw to do it. Bitcoin has finally given you a right to be your own bank, so don't just throw this right away!

SHA256 is a HASH, not encryption. It's used as a key derivation algorithm, so it does hold some weight to security, however. Labeling it as the encryption is still horribly misleading (as if I read that without knowing 7Z I would immediately shy away from it due to that statement)

7Z's encryption is AES-256 (which itself is secure).

No, no, no. Don't use Windows. Use a well-maintained Linux distribution with just the basics you need--a wallet, minimal set of necessary libraries, firewall, tool for getting software updates. Use full-disk encryption (LUKS) if desired, or encrypt your home directory if you are on a distro like Ubuntu that supports ecryptfs.

i know that coinimal never hold your bitcoin if you need to purchase some, they arrive directly into your local wallet, i would suggest than to hold in a standard cold storage

or you can simply run a separate machine that is running the bitcoin core client and it is only used for that


i think better than any antivirus would be buying or secure erasing your current ssd and reinstalling a fresh copy of windows 7 or whatever OS you want then do not install anything else in that machine, and do not use it for browsing either, but only for your local client

it work like a beast for me unhackereable

If they control the private keys, you cant.


I like the way you think, you will fit right in. cooldgamer already gave you one example (electrum), but there are others[1]. They have their pro's and con's as most things. If you have the time and like to experiment a bit you should try most of them and see which wallet fits your needs best. That way you dont even have to trust anyone of us with a suggestion which wallet is good. At the very least you should read the little pop up boxes for each of them. Full validation (bitcoin core & armory) requires you to download and verify the entire blockchain (>40 GB) which might take a while. Keep that in mind.


Yes, if you are the only person that is in control of the private key(s) you can consider yourself holding the "cash". Most wallets hide the private keys from you e.g. in a encrypted with a password inside a wallet file.


[1] https://bitcoin.org/en/choose-your-wallet

take a look at Xapo.com

they are legit and keep the BTC safe for you.


if you want your own control (and risk), i recommend a hardware wallet:

https://bitcointalksearch.org/topic/overview-bitcoin-hardware-wallets-secure-your-coins-899253

(always install a good antivirus and maleware program on your pc)

Online wallets like blockchain.info should only be used for small amounts like spending money.  The most practical way to hold them is to use a wallet like Electrum where you are the only one that holds the private keys, but you don't have to download the massive blockchain to use (that part is held on a server).  

If you're looking into getting a large amount then you should try to use cold storage, where the wallet is made on a OS that has never and will never be connected to the internet.  This can be done with a hardware wallet like the Trezor, or using something like the Raspberry Pi where you can just put the SD card to the side after you've made a few backups on USB sticks.  

As for purchasing the coins, give a look into Circle.  Once you have verified your account with your SSN, you can purchase coins using your credit card (for a 3% fee) or directly hook it up to your bank account. 

So I'm looking to get some bitcoins securely, but I'm not sure how to go about it. 

Whatever site I use, how can I be sure that they won't run off with my bitcoins like Mt. Gox?  I just read recently that there may be issues with blockchain.info.  I'd like to know how to get bitcoins without having to trust ANYONE.  This is one of the most appealing aspects of bitcoin, but I haven't been able to figure out how to do it.  Everywhere I look, it seems like I'd just be opening a "bank" account that would hold bitcoins for me.  Maybe I could then transfer them to a different "bank", but how do I get the "cash".  (I think this would mean having the address and private key, but I don't know if this is totally correct.)



(This seems like a simple question that must have been covered before, but I haven't found anything by searching.)


Thanks for your help.