The dangers of custodial accounts; not your keys, not your money. Security practices for long-term vs. short-term storage, trading, and transacting. I don’t leave any currency (crypto or fiat) in an exchange for longer than 15 minutes. I use these cryptocurrencies to pay my bills, so I transact very often. So far, I’ve only ever lost small amounts of bitcoin through stupid mistakes.
1. Don’t leave your money on exchanges longer than you have to. If you day-trade, make sure you understand the risk that entails.
2. Organise a tiered storage system of hot and cold wallets, factoring in the amount of bitcoin you’re storing, how you plan to use it (soon or not for a long time), and what security risks you’re willing to take with each tier.
3. Use cold storage (i.e. paper wallets) for large amounts or for bitcoins you don’t plan on using for a longer period of time.
4. Use hardware wallets that are PIN or password-protected
5. Use multi-signature multi-party or multi-factor wallets for carrying out your weekly business transactions.
6. Use hot wallets (ex. mobile wallets) for petty cash, or if you are the Oprah of cryptocurrency.
This is part of a keynote talk which took place at the Blockchain Africa Conference on March 2nd 2017 at the Focus Rooms in Johannesburg, South Africa: http://blockchainafrica.co/speakers/andreas-m-antonopoulos/
Watch the full talk here: https://youtu.be/SMEOKDVXlUo
Testimony for the Australian Senate here: https://youtu.be/XotOwt8bTeI
RELATED:
How to get people to care about security – https://youtu.be/Ji1lS9NMz1E
Welcome to TrustNet – https://youtu.be/Rrj8sjHJthU
Hardware, Software, Trustware – https://youtu.be/Etyjc1JdmFU
Andreas M. Antonopoulos is a technologist and serial entrepreneur who has become one of the most well-known and well-respected figures in bitcoin.
Follow on Twitter: @aantonop https://twitter.com/aantonop
Website: https://antonopoulos.com/
He is the author of two books: “Mastering Bitcoin,” published by O’Reilly Media and considered the best technical guide to bitcoin; “The Internet of Money,” a book about why bitcoin matters.
THE INTERNET OF MONEY, v1: https://www.amazon.co.uk/Internet-Money-collection-Andreas-Antonopoulos/dp/1537000454/ref=asap_bc?ie=UTF8
MASTERING BITCOIN: https://www.amazon.co.uk/Mastering-Bitcoin-Unlocking-Digital-Cryptocurrencies/dp/1449374042
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Outro Music: “Unbounded” by Orfan (https://www.facebook.com/Orfan/)
Outro Graphics: Phneep (http://www.phneep.com/)
Outro Art: Rock Barcellos (http://www.rockincomics.com.br/)
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Thank you..anto…
Awesome stuff, Andreas! If you're not comfortable trusting a third-party with your holdings, best to take things into your own hands.
Good advice for us all there.
love the SAP wrapping paper
This is educational. thx
This is educational. thx
love it
Great stuff. Im trying to get to this point as well. 70% on HW wallet, some on paper for family and rest on PC / mobile.
Im guilty of having more than I should on an exchange….few altoins without the good wallet.
The biggest thing I hate is that exchanges charge you so much just to withdraw your BTC, but withdrawing your fiat is so cheap. Every BTC withdrawl from my exchange (Kraken) costs on average 0.001 BTC. That's about €3 to €4
Hello Andreas! When you say deep freeze do you mean paper wallets secured with a BIP38 password? If yes, why not replace paper wallets with a hardware wallet? Let's say 1 hardware wallet for deep freeze and 1 for day-to-day use? Thank you!
Can some one please explain me what is hot wallet ? and what is cold storage wallet ?
I am not clear with this ……Appreciate your answers 🙂
Hi Andreas, followed your wise words since Jan 2017! Always amazing mind-blowing-expanding knowledge received from your talks.
As a note to this concerning wallets and cash: just a humble suggestion since this is more survival in 3rd world country perspective: is that one perhaps should have a couple hundred dollars in hand, less when there is the possibility of a hold-up (robbery/thief), that wad of cash is a full insurance to let go, and let the robber run. If we have nothing to show (I know most western countries they simply don't carry cash since they use credit card all the time) this will create a disbelief scenario for the said robber, and may end with a different consequences.
Thanx 4 spreading the word about #bitcoin
The more of our friends will start using it worldwide,
the faster will grow the cost of our and their coins! It's win-win 🙂
Great information Andreas!! I totally agree with you!! I don't trust banks with my money as well. Cold storage is the way to go in the World of crypto-currency.
3:45 "Giving everyone a bitcoin as if I'm the Oprah of bitcoin…You have a bitcoin…and you have a bitcoin"
Haha…I was seriously giggling like a little kid.
I appreciate everything you are doing good sir I send a dollar to anyone willing to start a blockchain wallet so they can see the system first hand when are you traveling to the United States I will travel to meet you good sir
Andreas – longtime proponent and supporter, but what you just described sounds like a good reason why the average person won't adopt bitcoin. The technical knowhow is just too complex… What are your thoughts on this?
needed to hear that