Can we keep a secret?… Can we REALLY?
This is the demand of the Blockchain — the very computer network assembled to generate and secure precious cryptocurrencies, like Bitcoin.
Before we even set foot on the imaginative vessel that carries us to the heaping rewards and value that are due in the Cryptoverse, we had better have OUR…(Y)-O-U-R… (y)our security scheme set in place.
Blockchain deals in complex passwords for our security. When we create our wallet we agree to the one true challenge that the Blockchain demands of us to prove ownership of a public address: the private key. Each public address has a private key, so they come in pairs. Whomever owns the private key can spend the funds of a public address, and no one else.
Currently, deterministic wallets are some of the most accepted wallet software selections for cryptocurrency management. Be aware of mobile app wallets like Copay and Airbitz, desktop wallets like Exodus plus hardware wallets like Ledger’s Nano S that generate a seed phrase of 12 to 24 random words for coin ownership and wallet recovery.
This. IS. Personal.
¡ WRITE THIS DOWN… IN PEN…ON AT LEAST 2 DIFFERENT PIECES OF PAPER…HIDE THEM IN SEPARATE PLACES!
THEN, Place it only where you and your most trusted loved one know. A safety deposit box could work for this. Alternative approaches would resemble a treasure map protocol similar to my favorite movie ‘The Goonies’ , in order to locate this passcode to your treasure.
Deterministic wallets create new addresses per each new receipt of coins. This seed phrase is the wallet’s root and is connected to every address and private key pair created and managed by our wallet. This keeps users’ coin balances from being in one singular, central address. This basically DECENTRALIZES our funds so that they aren’t easily targeted for attack.
Now that our wallet data is secured, let’s ensure all of our exchange holdings are secured at their best by using 2-Factor Authentication, (2FA). ‘2FA’ is a must. Enabling this on our exchange account produces a Secret Key, that is just as important as a private key/seed phrase. We handle this the same way as our wallet’s ownership security protocol.
This. IS. Personal.
¡ WRITE THIS DOWN… IN PEN…ON AT LEAST 2 DIFFERENT PIECES OF PAPER…HIDE THEM IN SEPARATE PLACES!
We’ll download the Google Authenticator app and enter this secret key so that our login sequence requires 1. our user/password combo and 2. our 6 digit code generated by the Google Authenticator app. To confirm enabling 2FA, the site will ask us to input the secret key, effectively linking our phone with the login sequence. This needs to be done for every crypto site to protect our login.
Two factors of security are better than one!
One could also type this seed phrase or secret into a text file, encrypt that text file, save this file onto 2 separate jump drives then hide these jump drives separately. Know that each of us are responsible for safekeeping our passwords, private key pairs, 2FA secrets and any other codes associated with Blockchain assets. It’s key to be strategic with our safekeeping efforts.
Whatever your security scheme may be, this is how we roll from day one.
SE-CUR-I-TY is PRI-OR-I-TY.
Here’s to sound Security,
- Jovial Joel the CryptoCoach