Some tips related to software wallets on PC/Mac and backup.
1. Open your wallet only when it's absolutely necessary.
Don't access your wallet every time you check your balance. Store your address somewhere so you can use block explorers to check your balance. Manage your portfolio using an app or use my Google template to track your balance. (https://steemit.com/cryptocurrency/@mix1009/cryptocurrency-portfolio-template-version-2-for-google-sheets)
If you aren't sending coins, don't open the wallet. Use a block explorer. To receive, you don't need to open your wallet. Use block explorer to check if you received the coins.
Here are two popular block explorers:
- https://blockchain.info : Bitcoin
- https://etherscan.io : Ethereum and ERC20 tokens
Google for block explorer for other coins.
Write your addresses. This aren't private keys, but if someone can edit your files, they can trick you to send your coins to their address. I keep my address inside a password protected note in Mac/iOS Notes app. I also save links to the block explorer so I can access it faster.
Since many bitcoin wallets change it's receiving address, it's better to just write down your coin holdings. Since figuring out how much you hold is hard to figure out from block explorer. If privacy is important to you, you'll have to open your Bitcoin wallet to check the new address. If privacy is not too important you can reuse the old address to receive BTC. For some coins you have to use new address for each transaction.
2. Unique password for each wallet
If you are using a software wallet and it saves private key with a passphrase, make sure you use different passphrase for each wallet.
3. Use encrypted drive
Use encrypted drive to save your private keys(keystore files). If you have to enter a private key(which I think is a bad wallet) to access the wallet, save it where it's encrypted. I used to use Jaxx and it had weak security. Jaxx used to encrypt private key with common key (not sure now), so I encrypted the config folder. I only open this encrypted drive when accessing Jaxx. It's a bit technical to achieve this(using symbolic link) and I don't know how to do it in Windows. I don't use Jaxx anymore. My Ethereum keystore files are stored in an encrypted drive.
I recommend using a encrypted container file. Not a physical drive thats encrypted. Encrypted drive data is stored in one container file. You can connect/disconnect faster and it's easier to backup.
How do you create an encrypted drive?
- You can use VeraCrypt(https://www.veracrypt.fr/) on Windows or Mac.
- If you are using a Mac, you could also create an encrypted drive from "Disk Utility". http://technology.pitt.edu/help-desk/how-to-documents/creating-encrypted-disk-image-mac-os-x
- Windows 10 seems to support encrypted drives: https://www.howtogeek.com/193013/how-to-create-an-encrypted-container-file-with-bitlocker-on-windows/
Only connect(decrypt/mount) when you access it, and disconnect right after use. If you copied something important to the clipboard make sure you copy something useless to the clipboard. And don't use a clipboard management app.
My wallet files (which is needed to send coins) are stored in one encrypted drive.
My backup files that stores 24 restore words for hardware wallet & Authenticator screenshots are in another encrypted drive with different password.
4. Backup your encrypted drive.
I also make a backup of the encrypted drives. I zip the encrypted drives with different password and store it in external drives located in multiple distant locations.
5. Always double check addresses when transferring
Make sure you send to the right address. Double check the receiving address. There is report about malware replacing addresses from clipboard.
If you are using a Ledger hardware wallet, please read https://cointelegraph.com/news/newly-discovered-vulnerability-in-all-ledger-hardware-wallets-puts-user-funds-at-risk .
Photo from https://www.pexels.com/photo/ethereum-and-bitcoin-emblems-730569/
These are all great tips. I admit I am guilty of not following all of them. Truth is, in this space, we need to be as careful as we can.
If someone will smash a window in your house and take your TV and jewelry, someone is looking to do that same thing to your crypto. Believe it.
Good topic, thanks for sharing.
I guess we are still in a transition period. If you don't know about security or you are not technical, it's way to easy to loose your crypto. I hope there is some enhancement to how wallets are implemented and managed.
to bad we cant store out steem power in a ledger
Totally agreed.
I own BadaBings (name changed to protect the innocent). My club is home to Miami's most beautiful women. Last month two of our dancers began to invest in crypto. In this industry it is hard to promote financial literacy although our budget manager Ms. Kay preaches this faithfully. The young ladies typically bring in $1,000 on a bad night so you do the math. One Friday night after shutting down one of the girls mentioned Bitcoin and with that conversation a future crypto millionaire was born. We now have setup all the girls with a Coinbase account and provided them all with a Nano wallet. There is no pension or 401K for dancers, but they deposit 25% of their nightly earnings into Bitcoin. After viewing the charts they understand the growth potential. Go figure? With Bitcoin expected to reach $50K this year I feel good about this innovative move.
Spam is discouraged by the community, including comment spam.
Tips to avoid being flagged
Thank You! ⚜