Two-Step Verification is not as secure as most people thinks, email or SMS can be viewed/modified by hacker if your smartphone is compromised.
The most secure are offsite solutions like hardware wallets and properly used paper wallets. Actually hardware wallets are much more secure than any online banking I know of (they still use insecure Two-Step Verification methods)
Topic: Why do people store their bitcoin on a file, or on paper? - page 3. (Read 1965 times)
Because in the Bitcoin wallet in site is not safe i think that is their reason why they store on a file or on paper. Thats only the reason that i know because no system is safe like in the hacker movies. And if i have bigger bitcoin i dont use bitcoin wallet in bitcoin site because i want to keep it on paper wallet so that i feel safe.
Bitcoin on paper or file in your own home off of your computer is the most secure way to store bitcoin. You just need to protect the hardcopy - laminate, put in a safety deposit box at the bank, or whatever is the most secure for you.
Bitcoin stored at online wallets is risky as the wallet can have issues and nothing "online" is really secure and can be hacked.
If you do use online wallets ALWAYS enable 2FA (Two Factor Authorization).
Bitcoin stored at online wallets is risky as the wallet can have issues and nothing "online" is really secure and can be hacked.
If you do use online wallets ALWAYS enable 2FA (Two Factor Authorization).
I've been wondering for a while about this.
Why do people do it? I mean, if you use an online wallet, it way safer that having it stored on a file or paper which can be stolen at any time.
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An online wallet has too much security for this. Like Two-Step Verification, or a pin code, etc..
Why do people do it? I mean, if you use an online wallet, it way safer that having it stored on a file or paper which can be stolen at any time.
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An online wallet has too much security for this. Like Two-Step Verification, or a pin code, etc..
this doesn't make sense to me, when you have your wallet online (web wallet or any desktop wallet which is connected) you are at much higher risk than storing it in paper form.
how can paper be stolen? they have to break into my home and steel a piece of paper!!!
Online wallet providers like blockchain.info make occasional mistakes that could result in your Bitcoins getting stolen.
In 2014 a guy by the name of johoe discovered blockchain.info made a programming mistake (reusing R values) that made it easy to calculate the private keys of its user's addresses. He calculated the private keys to all the vulnerable addresses he could find and moved the Bitcoins to a new secure address. Afterwards he contacted blockchain.info and paid them back. If he'd been dishonest he could have stolen those Bitcoins.
http://www.coindesk.com/good-samaritan-blockchain-hacker-returned-255-btc-speaks/
In 2014 a guy by the name of johoe discovered blockchain.info made a programming mistake (reusing R values) that made it easy to calculate the private keys of its user's addresses. He calculated the private keys to all the vulnerable addresses he could find and moved the Bitcoins to a new secure address. Afterwards he contacted blockchain.info and paid them back. If he'd been dishonest he could have stolen those Bitcoins.
Quote
"Every bitcoin transaction is signed by two values – 'R' and 'S' – which prove that the sender knows the private key. If the same R value is used twice, the private key can be easily computed from the signatures alone."
http://www.coindesk.com/good-samaritan-blockchain-hacker-returned-255-btc-speaks/
You need to trust the company running the online wallet and managing your private keys. Just because you need 2FA and PINs to get to your coins does not mean that some system admin cannot just copy your private key or coins directly from their servers.
Edit: by "online wallet" I take it that you mean a web-based wallet and not a wallet running on your local computer that is online, e.g. Bitcoin core. A local wallet is safer but still susceptible to trojans and keyloggers.
Edit: by "online wallet" I take it that you mean a web-based wallet and not a wallet running on your local computer that is online, e.g. Bitcoin core. A local wallet is safer but still susceptible to trojans and keyloggers.
Actually the online wallets are MUCH less safe. A hacker, for example, might gain control of the server and trick you into sending your private key / pass phrase or, if the private keys are stored on a server they could just take them.
Local solutions, preferably offline, are much more safe since the only way a hacker could get access is by breaking into your home. Given most of the hackers are in China, it's kind of unlikely they are going to buy a plane ticket, get a visa, fly to your country, try to find your paper wallet, etc....
By contrast, very likely thousands of them are attempting every minute to break into online wallet sites and hack them.
Local solutions, preferably offline, are much more safe since the only way a hacker could get access is by breaking into your home. Given most of the hackers are in China, it's kind of unlikely they are going to buy a plane ticket, get a visa, fly to your country, try to find your paper wallet, etc....
By contrast, very likely thousands of them are attempting every minute to break into online wallet sites and hack them.
I've been wondering for a while about this.
Why do people do it? I mean, if you use an online wallet, it way safer that having it stored on a file or paper which can be stolen at any time.
An online wallet has too much security for this. Like Two-Step Verification, or a pin code, etc..
Why do people do it? I mean, if you use an online wallet, it way safer that having it stored on a file or paper which can be stolen at any time.
An online wallet has too much security for this. Like Two-Step Verification, or a pin code, etc..
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