Bitcoin security? UGH!!!
Bitcoin does so many things better than banks (trusts, escrows, programmable money, cheap transfers, instant accounts, etc.), but one area that is not quite so nice, is security.
While the bitcoin network, itself, appears bullet-proof, lots of bitcoins are being stolen, via hacking, malware and flaws in online wallets and even google's random number generator.
The answer is to get your bitcoins entirely offline, and the two ways to do this are paper wallets and cold storage. This video is an introduction to making both. Host, James D'Angelo, walks you through the software and ideas used in making 'sloppy' offline wallets (which are great to have). He also gives suggestions at making even better offline wallets. This is the first of many videos we will make on bitcoin security, and the least technical.
We hope you'll enjoy.
Here's the private keys we generate in this video with their public addresses!
PRIVATE KEY #1 (we sent one dollar to this one on Jan 5th) 5KNhmaUuPNeau7KptEhWefEcAwfMim8VABR6QhJH8JHAFBbnCe5
PUBLIC ADDRESS 17SwcawAtnCQmemPDDBGurd28tTbEbuK5z
You can see it live here
PRIVATE KEY #2 (we didn't send any funds to this one) 5J2VYxJsAktgLZ7PWNevxAEPFaKPftCYhyi1VxMHzT56kLTwtLY
PUBLIC ADDRESS #2 19ZxxVTac6zxH9a9xqXhtntepTLosFa8F9
You can see it live here
These keys will work forever, and are open wallets. You can play with them, send tiny amounts of bitcoins (very tiny because the funds in these wallets are spendable by anyone because the private key is public) and you can even withdraw the funds in them if there is still some left!!! nice.
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So I can generate just ONE paper wallet and using the same public address send money to it over time?
Meaning say I first depost USD$50 one month then next month I decide to send another USD$50 to this same public address thus I would have USD$100 in this account now?
This video advise is not preferred. Home fires, natural disasters, theft all leave exposure to entire loss. No one predicts they will have a fire! Even loss of USB storage units or can fail from static or age can suffer damage and entire loss. The average person won’t go out and buy a burglary AND fire rated safe (at least a couple thousand US dollars). Don’t like many fake or $1 paper wallets for burglars - don’t piss them off to come back. Perhaps one or so. Encrypt twice with salt SHA512 or SHA 256 and save to cloud with a 32 character passcode. I want to be able to be anywhere - emergency relocated and have access. Have multiple accounts and spread risk. Smart phone wallets should not contain much - what you need to spend. Never rely on a device only to hold your wealth. Use a virgin lap top to do your crypto and crypto only.
Great explanation, but the question that always comes to my mind is how do you know that this website is not spitting out pre-generated keys, I know that you can do the process offline but still how do you know that this website is not spitting out pre-generated keys that have been stored in a database somewhere?? What makes you trust the website??
can we do paper wallet for any kind of cryptos just like you have just done? I have different types of alcoins on different exchanges because I dont know any other way to store them safely apart form the Ledger Nano S. Please help. Thanks
After he copies the window does he save this as a document or a image? I am a total newbie at this as I had to google - how to copy the window.
Can you transfer any crypto off of any exchange on to paper wallet,?
Anybody know how to restore my secret key for a paper wallet? I made it with the source code wallet on github, the instructions were not really clear and i wrote down the encrypted secret but not the secret 😅 I have the pass phrase and encrypted secret btw
Every coin has it's own wallet format, you can not send any coin to this wallet but bitcoin..... You can also use wallets like JAXX which allows you to manage several types of cryptos, however every altcoin has its own wallet and very specific format...
So, in theory (although you said not likely), if bitaddress did generate two exact addresses to two different people on a mathematical fluke, those two could access each other's bitcoin on the blockchain? (I realize that's really really really unlikely... but for the sake of theory...)
printers are the easy way to get hacked, because they store everything from past printing events,
so never have anyone work on or share your printer / network with anyone,
and if it stops working be sure and extract the memory cards and such.
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Quick question hopefully you guys can help me with.
If you create this wallet whilst connected to the internet then technically it could be hacked, unlikely yet possible.
So you download the software as stated in the video and create the private and public key offline. Yet, if the public key is created offline then how does the block chain ever know that it exists?
Then if you send money to that public key address then how will it get into the wallet, if the internet/block chain was never made aware of it’s creation?
Apologies if this is a noob question.
Yes, you can generate a priv/pub key pair via offline software. If you then look up the public key in the blockchain you'll get an error or zero transactions (naturally as the pubkey doesn't exist yet). To have the blockchain recognise the public address you'll need to send money to it. Then if you want to spend the money you've rcvd you'll need to use your priv key to send your bitcoin to someone else, or to an exchange where you can sell your bitcoin to buy other coins (like ripple, ethereum, tron etc) or sell your coin for fiat currency (ie. USD).
I have a question......so if i generate a new paper wallet while disconnected from the internet and the paper wallet or any of it's keys never touch the internet then how do my keys become part of the block chain? And if i created a wallet and for instance put $20 of bitcoin onto the paper wallet (having never touched the internet) then one day when I import my private key onto a desktop wallet that $20 will just appear having never touched the block chain in the past? I have done tons of research but this is the one question that I have and has stopped me from actually using a paper wallet to move my funds to, I am cautious of losing my money.
You can check the status of a processing of a pending unconfirmed transaction and and all the history of all confirmed tranactions of in any Cyprtocurrency wallet easy... ______It sometimes helps to get and look up the TXID number of a pending or confirmed trasaction.------ YOU EASILY CHECK IT BY GOING HERE. Chain.so. | blockexplorer.Info. | https://chainz.cryptoid.info
what do you mean transfer money very cheap? all the wallets have 3% fees and coinbase charges 4%, by the time your bitcoin will get where it needs to you will be down 10%. Once i tried to transfer 50$ and the fee was 26$! but i didn't send the money and waited a little more because the fee was 3% still very expensive considering that i transfer my cash money for free nationaly and internationaly with 1$ for any amount!
He says to do it all offline but he's using bitaddress to generate the wallet in the first place. I'm confused. Isn't that a window of vulnerability? How would I generate a paper wallet on a computer that is not and has never been on the internet?
You could use something like Encipher.it to scramble the text but you would have to be confident about using it over having the original paper or digital version. Maybe using encryption for your cold wallet files is best but I'd always have multiple copies on more than one hdd/usb.
Thanks, I have concerns around that as well. I suspect I could become more of a risk to myself than any random hacker. I wonder how many people have lost Bitcoins in the process of trying to protect them.
That makes sense. I plan to create a couple test wallets this Saturday to experiment. I've grown uncomfortable with keeping Bitcoin online after the recent price run ups.
Next question: Is there any reason I can't simply change a few characters in the private code and then print it out? Seems to me that would be almost fool proof. I could then leave it anywhere without worrying about it. Anyone who tried to use it would fail yet I would know how to restore it to it's original state when I wanted to use it.
Its a good point you make. But...Bitaddress is designed unlike most webpages in that it works perfectly if you save the page to your hard drive, disconnect from the internet and open it in your browser. You can even, as I did, move the page to a computer that cannot or has never been on the internet and then use it from there. That is how I generated my paper wallets which have all worked great for me.
Where can we find nowadays a computer that has never been connected to the internet? Even a brand new comp, you need to connect it at some point to set it up or install the operating system, even for a short time.
@ 19:20, you go to your desktop to find your private key. How did you do to record this private key on your desktop in the first place? Did you just hit the keys on your keyboard to copy the key that was printed on your paper wallet? (there is a high risk of making mistakes in the process and losing the key if that was the case).
Great video! Thank you.
One question though: how can funds be transferred so quickly between the Coinbase account and paper wallet? Or between a paper wallet and other wallets? I thought it was taking some time before the transaction could be recorded on the Bitcoin blockchain. Does that mean that these transactions are so quick because they are nor recorded on the blockchain? In that case, how can we prove we own bitcoins?
Don't understand as I did not get a clue on how the public key was restored. Did't see it happen on your vid. I tried this at same site and a blue dialog box popped up and pretty much said a no go. Is there something I am missing? Please correct me if I am wrong. Like your vids.
you say don't put all your bitcoins from first time all on a cold wallet, but the stash has to be held somewhere :), kinda contradicting yourself, if you say is not safe on paper then where else you can send? :)
I didn't say a paper wallet is not safe. What I suggested was that if you don't know what you are doing and how to handle and take care of your paper wallet, you'd be a fool to use it and you could lose your bitcoins. But I keep all my bitcoins on paper wallets, have for years. They work great...WHEN YOU KNOW WHAT YOU ARE DOING.
Wolv....but u have to download the wallet so u have exposed the USB....if ur computer is compromised then so will ur USB......also soon as u open it and want to sell anything u have to put ur private key online and that's where it is exposed....2 of us set up wallets on a offline computer with even a partition that required specific key strokes to access and one of my paper wallets and one of his were wiped clean
Hi say I've made my paper wallet, I'm using an exchange say coins.co.th. They make me set up a wallet and I use thier private key to send to my paper wallet right? 1. how do I buy btc without using exchange
2. cash out ie money in a bank from my paper wallet. thanks in advance. very new to this.
I'm a complete noob - If i take a screen capture, print it and then delete the file, isn't it possible for some hacker to recover the file? Is there some way of me printing the wallet without generating a file image that would be stored in my computer?
When people will have domestic androids which are connected to the internet and potentially could be hacked and taken control of. Hackers will order them to search for your paper wallets and scan private keys with their eye-cameras.
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