Hey Cryptonauts ! Thanks for joining me.
Today we are going to be talking about how to securely store your bitcoin. As we all know, it can be quite a challenge to manage several different accounts, passwords. But when it comes to cryptocurrency never has it been more important than now to document and keep records of this kind of information. As I’m sure you have all heard, there are people who have been unable to access large sums of cryptocurrency because they do not have their seed words, or otherwise known as “private keys.”
What is a private key ?
A private key is; is really just like it sounds. A key, but instead of being for a door - it’s for information…
So lets say you have a bitcoin wallet; and someone wants to send you some bitcoin, how do they do that? You provide them you “public key” or bitcoin deposit address.
It’s safe to share your public key with anyone, because the only thing they could ever do with it is send you more Bitcoin!
It’s not safe to share your private key with ANYONE. EVER. FOR ANY REASON.
In crypto, private keys are powerful. In theory you could memorize your seed words and travel anywhere in the world, without getting harassed by airport security, or having to report any assets because technically you aren’t ‘taking’ any with you.
I’m not saying don’t follow the laws, you should. But crypto changes the way we think about money, ownership, and security. With Bitcoin, and cryptocurrency if you control your private keys NO ONE can ever do anything to take your magic internet money away from you.
You control your keys, you control your Bitcoin.
Just something to think about – Do you know what happens to your money when you put it in a bank? Really?
So if you have your cryptocurrency on an online exchange consider moving it to a more secure location such as a ledger Nano S hardware wallet. It’s one of the more popular solutions. There’s also the ledger Blue which I personally use and recommend. Another popular one is the Trezor hardware wallet.
These devices store your private keys in the most secure fashion and cannot be hacked due to the way the keep your private keys in "cold storage" or offline. Don’t get me wrong it’s okay to keep small amounts on the exchange, for trading purposes or what have you but if you keep a whole bitcoin there you’re asking for trouble.
Thanks for reading and stay cryptic !