Hacking is becoming more common!
I am sure most of you are aware that Bittrex, Poloniex and other exchange accounts are regularly hacked, and wallets like Jaxx got recently hacked. This is unfortunately a situation where most people don't take preventative measures until something terrible happens. I can only Imagine the stress and feeling of despair to wake up one morning only to find that all your precious crypto has been stolen and there is nothing you can do about it. I have never been hacked or had crypto stolen, and that is because I take security very seriously. Here are your best options for securely storing your crypto.
The paper wallet/ Cold storage.
The paper wallet option is cold storage, meaning that all your keys and information is kept offline, unlike "hot" wallets which are stored on your computer or online. You can easily make a paper wallet by following these steps:
(optional but HIGHLY recommended) Either start this process on a brand new computer, reinstall the OS and wipe your existing machine or install Tails. In the spirit of keeping this guide short and sweet I won't go in depth on Tails, but I will write a post about it later if this is the option you are going to use.
go to a wallet generator for your chosen currency, a quick google search will help you find a website, for this example I am choosing Bitcoin so I will go to https://www.bitaddress.org
(optional but HIGHLY recommended) either disconnect your ethernet or disconnect your wireless card. This insures that nobody is remotely monitoring what you are doing.
Once your private key has been generated, go to the "Paper Wallet" tab and select the number of addresses to generate.
You can choose the "hide art" feature just to make it less obvious as to what it is should these addresses ever be found.
Click the "Generate" button
Print this page. You can make this step safer by resetting the printer, make sure it isn't connecting to WiFi, and printing via USB. If you want extra security points use a printer that has never been connected to your network, or even better is not WiFi compatible.
Store your wallet in a secure place, preferably in a safe or lockbox.
Paper wallets cannot be hacked simply because there is no way to access your information. This option is arguably the safest method but it does come with two down sides.
- Sending crypto is a nuisance
- Having your savings locked away in a flammable, non waterproof, easily thrown away package is a lot of risk
You can avoid the second downside by buying one of the BitKee products, read more about them here or even better, if you own a laser printer, make your own!
The Hardware Wallet
Hardware Wallets are becoming increasingly popular, due to their ability to remain extremely safe and secure while still being convenient for cryptocurrency transactions. There are currently three main competitors:
Ledger Nano S
Trezor
KeepKey
There three are all fantastic options when it comes to security and to choose one is difficult. It mostly comes down to which product you like the look of the most. The benefit over cold storage is ease of use, you can send and receive crypto almost as easily as with a hot wallet. There are down sides too, of course. The main one being that unlike a paper wallet, it isn't free. Prices for the products range from 60 USD to 99 USD, and you can expect to pay more if outside the USA. I will be purchasing all three of these wallets in the future and writing a much more indepth tutorial and review on these products. Since I do not need three hardware wallets I will be doing a giveaway for the remaining two products here on Steemit. I believe in sharing and helping others.
Other options
Not all cryptocurrencies can be stored in cold storage or on a hardware wallet, unfortunately! For these currencies I recommend buying a high security encrypted USB drive, such as the datAshur PRO and storing your private keys and recovery phrases there. I will probably end up buying and reviewing this product as well at one point. It is also possible to install some wallet applications, such as Exodus, directly on the USB drive too. It goes without saying it is important unplug the drive when not in use.
There you have it folks. Make sure you keep your hard earned crypto as safe as possible! Please upvote and follow for more crypto and tech based content.
Happy Mining!
Viking