Is storing your private key on a physical Bitcoin the best Bitcoin wallet protection?
This just has to be the single most ludicrous idea I have seen in this space to date. The novelty of a coin does have its own appeal, but the level of trust to be placed in something like this as a means to be the gatekeeper for your portfolio... No thanks.
Consider the source; who is making these coins, and how much trust do you have in them being above the line in their business dealings?
Personally, I would be giving these a very wide berth, but ensured that I included them in this review so you were aware of them and had the opportunity to evaluate them based on your own risk management approach.
Potential Problem | Potential Solution |
Someone who can access the physical coin could steal it. |
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The manufacturer may not be completely trustworthy. |
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Have the manufacturer's systems been somehow compromised, e.g.
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The private key is printed on to a combination of plastic and paper which is then secured to the coin via a tamper-evident seal. |
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As this is such a new space to be in from an asset protection perspective, there are many different ways you can protect your investment. I believe that the best Bitcoin wallet is a Nano Ledger. And the best Bitcoin wallet protection as fas as your recovery seed for the Nano Ledger should be one that you believe is suitable for your needs. The potential problems and potential solutions provided here are by no means exhaustive. If you have any that you think would add value, please share them in the comments below.
Apologies for the inconvenience caused here, this is the last part of the post Hot or Cold; What is the Best Bitcoin Wallet? which appeared out of sequence on the original post. To address this and improve your viewing experience I've resubmitted the last part here and removed it from the original post as it was not populating in the correct location.
This article was recenty posted on my website TechMagy and shared here with the Steemit community to add value.
I totally agree that wallets where someone else has generated and accessed the private keys are not good storage methods. However, Casascius Coins were an important early development for the growth of bitcoin. While not a secure method these days, they were once at the cutting edge of offline storage. In fact, 3 of the 5 1000 BTC Casascius Coins remain unredeemed (source).
It's really good to see that there has been some serious progress towards improving security in this space. What I'm excited to see is when the convenience and the security elements meet to form that sweet spot which will contribute the increase in adoption. Once again, thank you @dhimmel for your poignant insights and contribution.
Ill stick to ledger.
That's my first choice also @steemek. Thank you for your contribution to the discussion. May I ask, is there a particular ledger you prefer, and why?
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Ah, my old friend @magic8ball, again, your wisdom is boundless. Thank you for being the oracle in our darkest hour
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I would suggest ProtonMail over Outlook @magic8ball from an encryption and security perspective. Have you heard of ProtonMail?
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There you have it Settmians! @magic8ball endorses ProtonMail. You can find out more about ProtonMail at http://techmagy.com/starting-with-bitcoin-encrypted-email-and-2fa/
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Impressive, you may also rely on TechMagy according to @magic8ball. Nice!