What is the best way to securely store Bitcoin for the long term?

Hackers and thieves are always looking for their next victim; you certainly don't want to be in their line of vision. In fact, it's probably safer to just stay unassuming and keep your investment a secret.

The easiest way for you to lose your coins is if you just keep them on an unsecured and unsafe digital wallet. This includes leaving your crypto on your exchange wallets.

There have been many instances of trading platforms getting hacked. The most famous example is the Japanbased Mt Gox bitcoin exchange which was hacked in 2014. At the time, Mt Gox was the world's leading bitcoin exchange. Approximately 850,000 bitcoins were declared missing, and these totaled almost $450 million in 2014 dollars which, quite obviously, was already a significant
amount. In today's dollars, 850,000 bitcoins would be worth billions. Many people lost their fortunes in an instant, simply because they trusted the platform and didn’t move their bitcoins to more secure storage.

After the Mt Gox fiasco, bitcoin owners started being more careful with their cryptocurrencies, and paper wallets, and hardware wallets rose in popularity.

In terms of convenience, digital wallets are far more superior to paper or hardware wallets. All you need is an Internet connection, and you’d have access to your crypto. You could log in to any web browser or your mobile wallet, and
you can easily make purchases anytime you want. While storing small amounts of crypto in online wallets is perfectly fine, it's best if you move the bulk of your crypto-wealth to offline storage.

Yes, offline or cold storage is less convenient, but it's definitely safer for you and your cryptocurrencies. This is why hardware wallets are selling like hotcakes right now. It's the best of both worlds basically. You're storing your crypto
offline, but if you need to make a transaction, say, you want to transfer a few coins to your online wallet, you can do so quickly just by plugging it into your computer.

Hardware wallets are very secure, and so far, we haven't read any
reports of hardware wallets getting hacked. You do need to shell out some cash though, but when you consider what you’re electronically protecting, you can easily look beyond the price.

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19 Replies to “What is the best way to securely store Bitcoin for the long term?”

  1. You can choose Hardware wallet or Paper Wallet (Read The full Article)

    Hot Wallets (i.e Online Wallets like Coinbase, UnoCoin (India), CoinSecure or Exchange wallet : Like : Cex.io, Poloniex) or are never completely secure. Your password can be misplaced , their server can be hacked , your security can be compromised anytime – anywhere.

    • Your computer is hacked and web wallet password is stolen
    • Web wallet server gets hacked and bitcoins are stolen
    • Web wallet company goes bankrupt
    • FBI or other enforcement agency announce Bitcoin as illegal Then Your web wallet company must to shutdown the operations.
    • Web wallet provider points to Term of Service violation and takes coins
    • Owners of web wallet company run away with coins
    • Bug in web wallet software leads to loss of coins
    • Your computer or cell phone is stolen while you are logged in and thieves then steal your coins

    HARDWARE WALLET

    If you want to store your completely secure then go for Hardware Wallets. They are hack proof. My First best is Ledger S Nano ( I and My Family member using). and The Second one is Trezor (I am using) .

    Ledger S Nano is only available for 58$and they ship to all over the world.

    Ledger Wallet – Hardware wallets – Smartcard security for your bitcoins

    PAPER WALLET

    You can Make gat a paper wallet for free by going this site.

    WHY I PREFER HARDWARE WALLET OVER PAPER WALLET

    • You can’t send a partial bitcoin to other account, You have to send it all
    • A situation like hard fork it better to go with Ledger/Trezor as they support the double coins but you can’t do the same with Paper Wallet.
    • You can’t store Multiple crypto coins in Paper wallet but The same can be done on Ledger S Nano and Trezor Hardware Wallet

    Hope I answered your question Successfully.

    If You like it Please Upvote it

    http://www.coingyan.com

  2. For the best security, you require cold storage. Cold storage in the blockchain realm simply means a device that is disconnected from the Internet. This is the toughest security measure possible to safeguard any crypto-investment from the prying interests of hackers.

    Even if your wallet were to fall into the wrong hands, cold storage solutions offer high-end encryption to deter even the toughest hacks.

    There are several cold storage solutions available on the market today. They’re also referred to as hardware wallets. Here are two very popular ones:

    • Ledger Nano S (Rs. 9,995.00)

    • Trezor (Rs. 14,999.00)

    Please understand that nothing is ever perfectly secure. These wallets may give you the ultimate protection for your crypto-investment, but it is finally up to you to safeguard your treasure.

  3. There are many tradeoffs.

    There is a tradeoff between danger of theft and danger of losing your coins, and a range of options depending on technical proficiency. There is a tradeoff between security and effort, as well as expense.

    Serious enterprises like Coinbase and Gemini use very intricate schemes requiring special hardware, air gaps, and a lot of knowledgeable collaborators. Their coins have to be secure even when the incentive to rob them is in the hundreds of millions. Unless you are a crypto whale, the incentive to steal your coins is probably less, and therefore your security measures can be less extreme.

    To understand the basic principles in play you have to know the following (which you probably already know). Bitcoin is based in part on public key cryptography. (You might want to review this if Public-key cryptography – Wikipedia is unfamiliar to you). Each bitcoin wallet has a private (secret) key. Associated with that private key is a public key, and a bitcoin address is essentially a hash of the public key. Anyone can pay to your public key hash, and no one can derive your private key from your public key hash.

    The essence of protecting your bitcoins is to keep your private key private. Hardware devices do a good job of this (assuming the manufacturers can be trusted) by keeping the private key on the device. For instance if you buy a Ledger Nano S (which I personally recommend) the private key never comes off of the hardware — no one ever needs to see it. However the key will be encoded as a collection of 24 words, and it is your responsibility to keep these private, by using a fireproof safe for example. To my mind this is the optimal compromise for non-whales.

    Another option is to use a paper wallet. Paying money to a piece of paper is a pretty weird concept, but it can be done in bitcoin. There are various services which do this for you, but of course you are implicitly trusting the services with your money. Here is one method for producing a secure paper wallet:

    1. Make a disk image with Debian Linux and the bitcoind software installed.
    2. Get a cheap dedicated computer and load it with the disk image. This computer should never be connected to the internet. If you are very paranoid, you could take out the networking hardware.
    3. Use the bitcoind software to generate a private key and an associated public key hash (viz. bitcoin address). Instructions for how to do this can be found in the book Mastering Bitcoin by Andreas Antonopoulos.
    4. Write your private key on a piece of paper, and the bitcoin address on another piece of paper.
    5. Secure the paper with the private key (in a safe, for example).
    6. Pay money to the bitcoin address.

    With a little more effort (but more complexity and risk of losing your money) you could split the private key into two or more parts and store them separately, for instance in independent safe deposit boxes.

    Another option is to write the private key to a file on your airgapped computer, encrypt that file (the resulting ciphertext will be very short) and copy the resulting hex by hand into a file on a non-air-gapped computer, where you can safely store it in the cloud. Of course you will have to remember the password you used for the encryption, and your security will only be as strong as the password you choose.

  4. A paper wallet in a safe.

    Your own Swiss bank account

    Anyone in possession of this paper can feed it to a bitcoin program that would algorithm a private key out of it. That private key gives you control over whatever bitcoin had been sent previously to the addresses generated by it.

    In simpler terms, that piece of paper stores an arbitrary amount of value (as much as you want to put in it).

    It’s resistant to hackers because it’s not connected to the Internet. It’s also resistant to hardware failure because it’s a freaking piece of paper. It’s very unresistant to theft, hence the safe.

    Keep it safe, keep it secret.

    The long version: Paper wallet – Bitcoin Wiki

  5. Basically, yes.

    Paper wallets that are properly generated offline and securely stored are immune to hacking/malware/etc. The idea is you never enter the private key into a networked computer until you're ready to spend the Bitcoin, and even then you can sign the transaction on the offline computer and transfer it to an online computer for transmission using software like Armory. The only way they could be compromised is by physically stealing the printed private key, or perhaps a weakness in the cryptography.

    How paranoid are you?

    If you're not very paranoid, you could use a web based generator like http://papercoin.org/ to generate a paper wallet. Ideally you should audit the JavaScript source code, use your browser's private browsing mode, and disconnect from the internet while generating and printing paper wallets.

    If you're somewhat paranoid, you should boot a machine using a Linux live CD, generate the paper wallet, print it, and shutdown the machine, all while completely disconnected from the internet. See: Creating the ultimate Bitcoin Paper Wallet

    If you're very paranoid you'd use an N-of-M scheme to generate M keys, any N of which could be used to recover the actual private key (e.x. 2-of-3, or 3-of-5), and you'd distribute the keys to M different safety deposit boxes

    If you're extremely paranoid you'd destroy the computer and printer after generating your paper wallets. Or just compute your paper wallets by some rolling dice and performing the math by hand 🙂

  6. The best way would be:

    1. Boot your computer up with Ubuntu Live CD

    2. Create a wallet, encrypt it using a strong password (What is your way to create good passwords that can actually be remembered?). Make sure you do not forget the password.

    3. Back up the wallet multiple times (e.g. email+Dropbox).

    4. Practice its decryption using Spaced repetition

    5. Finally, transfer the bitcoins to the wallet.

    If your password is strong enough, nobody should be able to brute force it … so online storage is good enough. Be aware that the standard Bitcoin encryption only encrypts private key – if you want to protect against anyone viewing your bitcoin addresses, you should use something like TrueCrypt instead – make sure to choose a high amount of encryption rounds.

  7. Depends actually.

    Offline wallet. Proven to be secure and non-hackable. But are prone to harddisk failure.

    So what can happen? This can happen. Gizmodo Editor Threw Out Hard Drive With Bitcoins Worth $3.75 Mln

    So better one is online wallet. You can use Bitcoin’s official wallet.

    Else I trust Xapo – Bitcoin Wallet & Vault . I have been storing in it since BTC barely existed in 2014, Priced at 17500 ~ 250$. I sold it recently after 3 years. They are extremely careful and robust in their technology.

    Hope that helped.

  8. A pretty good compromise between massively paranoid (very carefully created paper wallets) and trusting online wallets (where you don’t own the private key) to stay in business/not get shutdown by the .gov is … hardware wallets like http://trazor.io – secure enough and can still spend out of them safely (unlike paper wallets).

    Just be 100% sure you:
    1) keep the wallet restore seeds safely and securely
    2) practice the heck out of restoring those BIP39 seeds to a completely different wallet like Mycelium (just in case your hardware is lost/destroyed and Trezor went out of business).
    … repeat every year for best #infosec

  9. IMHO, hardware wallets are best for storing Bitcoins securely. Here is a list of them and their features coinnav – cryptocurrency navigator – Bitcoin hardware wallets comparison. Find which one of them suit with your needs.

  10. The Paper wallets are considered one of the most secure wallets available. The process of generating new addresses and keys can be done online using BitAddress or any other Paper wallet provider. However, it is recommended that you download their webpage and generate the addresses offline. After generating the Public and Private Keys, the user may write down the keys on a piece of paper or simply print and store in a secure place. By keeping your keys on a piece of paper, only someone that has physical access to this piece of paper can possibly steal your Bitcoins. As paper wallets may be physically destroyed or lost, it is advised that you create multiple copies.

    Recommended Paper wallet generator: BitAddress.

    Hardware wallets are physical devices especially designed to safely store your Private Keys. They are considered the safest way of storing cryptocurrencies. Even if your device gets compromised by malware, your keys will remain safe, which makes it possible to be used in any computer (even infected ones). Most hardware wallet companies provide a seed backup in case your device is lost or stolen. The only downside to this kind of storage, is that you need to have your device with you in case you want to send your Bitcoins.

    Recommended Hardware wallets: Ledger Nano S; Trezor.

    You might find this article informative. It says all about the ways of storing cryptos.

  11. A hardware wallet is always worth the investment

    However most people will find the Ledger Nano S will satisfy all their needs at a fraction of the cost.

    The Ledger Blue is the pinnacle of crypto currency and smart contract storage, management and security. It’s really been developed for the serious investor and developers.

    But it can also be worth it if you’re like me and just want latest and coolest technology.

    Check out this Ledger Blue Review to learn more and decide if it meets or exceeds your needs.

    Hope this helps.

    Cheers,

    Jaxx

  12. Best way to secure bitcoin is an website coinmama (wallet)… which helps you to keep your bitcoin freely and sell them or purchase them….

    coinmama provide a good rate of bitcoin and ethereum which is good for investor …

    point is — i suggest you to invest in bitcoin through coinmama … cause it will benefit you for a long’

    coinmama happy investing………

  13. There are lots of ways to secure your Bitcoin. The suggestions already provided aren't necessarily bad, but they exclude a lot of other options. For instance, they don't take into account your use cases. Are you planning on using the Bitcoin any time soon or are you simply looking to lock it away and hold it for future use? Are you looking for absolutely secure or are you looking for a balance of hassle and security?

    The most secure way to store your Bitcoin is to produce paper wallets from a copy of a website using a browser on an offline computer booted from a secure OS on a CD printing to a wired printer with no internal memory. I describe this process in my tutorial https://incorporatingbitcoin.com… .

    However, that only works for long term. If you're looking for security, but usable storage, I recommend installing Mycelium wallet on your phone. You can then get a hardware wallet like a Ledger or Trezor that will very securely store your Bitcoin while still being usable. I'm personally a bigger fan of the Ledger series. I use Mycelium for regular pocket money. I use a Ledger Unplugged connected to Mycelium for larger amounts of money I want accessible on the go. I also use a Ledger HW.1 connected to Mycelium for even larger amounts stored long term. The last one I have stored in a safe and only take it out when I need it.

    For more information I have use cases, tutorials, and reviews written up for all of the above on my website, Incorporating Bitcoin.

  14. Armory, Offline wallets. Dedicate a cheap computer that never connects to the internet. With Armory, you can set up your private key on there, so it would never be hijacked by any trojans, etc. Then back them up, and put the back ups in safe places, at your grandmas, or your secret spot, or something, etc.

  15. I'd recommend the ledger nano s, got mine and I’m really happy with it. If they were to go under, it wouldn't matter, you could restore your coins on most other wallets using your recovery phrases.

  16. I’d recommend a hardware wallet or cold storage, hardware wallet generally being the easier of the two for someone not experienced in holding cryptocurrency. I use the Nano Ledger S which is easy to use and high quality but there are good alternatives out there.

    Other options are using a hosted wallet (leaving your crypto on the built in exchange wallet normally) or a software wallet. I’d avoid both if you have enough bitcoin to care about losing it.

  17. With Trezor.

    And to exchange bitcoins with people, I prefer Coinbase and I keep some money on coin.ph, on Cryptopay, Xapo and SpectroCoin, between members it’s free and instantaneous to exchange bitcoins.

    On Spectrocoin, I’ve also a full Dash wallet and on Coinbase, I can have Ethereum and Litecoin.

    Soon I get the Token and Monaco card.

    To store long term, I’ve also bitcoins on Quadriga CX, it’s only available in Canada, 0.5% to buy bitcoins + 1.5% by debit card (instantaneous) and 0.2% to sell bitcoins.

    You can also buy, sell and hold ethereum, but I’ve no idea for the price, I think it’s the same.

    If I need a Hash, Mycellium is also good, for those who want a wallet that work on any devices, Bitcoin Block Explorer – Blockchain is also good, but I prefer Mycellium, because Bitcoin Block Explorer – Blockchain crash sometimes and their servers or servers seems to suck.

    Transactions are faster and cheaper on Mycellium, I don’t know why.

  18. Hardware wallets work great. If you use a online wallet, make sure you have Two Factor Authentication enabled or use a device to do that for you. You can learn more about keeping your digital assets safe if you visit websites like Cryptocurrency7 .com where they provide you with specific products to do so or http://Bitcoin.org where they can give you lots of information on the Cryptocurrency.

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