Advertisements

Why You Should Store Your Recovery Phrase and Private Keys With CRYPTOTAG

In 2018 alone more than $1 Billion of crypto was stolen. Most people’s funds were stolen in hacks and scams. Others could not reach their crypto, because they lost their private keys or recovery phrases.

One thing all the cases have in common is poor private key management.

What are private keys and recovery phrases? And how should you protect yourself from losing your funds? Bear with us while we try to explain it in a simple way.

What Is a Private Key?

A private key is the most important information in crypto. Without your private key, you cannot access your crypto. You can compare it with the PIN of your debit card.

If you have forgotten your PIN or if you have lost your bank card, you can call your bank. Then they will send you a new PIN or a new bank card, and you will regain access to your money.

The big difference in the crypto world is that there is no bank or other central organization that can help you recover your funds.

So if you lose your private key, there is no one that can help you to regain access to your funds. If you lose your private key, you cannot call anyone for help, and you will lose your coins forever.

What Is a Recovery Phrase or Recovery Seed?

A recovery phrase is used by crypto wallets like Ledger Nano and Trezor. These phrases or seeds usually contain between 12-24 words.

Compared to a private key a recovery phrase is easier to read for humans. But more importantly, is that the use of recovery phrases enables crypto wallets to store multiple private keys with one recovery phrase.

For example, you have a Ledger Wallet with Bitcoin, Bitcoin Cash and Ethereum on it. Each coin has its own private key. You do not have to save all those private keys because by making a backup of your Ledger Wallet, you make a backup of all private keys on the Ledger Wallet.

Ways to store your crypto:

Exchanges

This is the riskiest way to store your crypto because your funds are in the hands of a third party. The exchange or custodian is holding your crypto in their wallets. So they control your private keys or recovery phrases of these wallets.

There are countless stories about exchanges being hacked and losing funds of their clients. It is ok to have some of your funds on an exchange for trading purposes. Longtime holdings should never be stored on an exchange because you are not the owner of your keys.

Software Wallets

These wallets like Jaxx, Electrum, and Exodus can be downloaded for free. They enable their users to receive, send and store different types of cryptocurrencies.

Software wallets generate private keys. And you can easily make a backup of a software wallet by saving the recovery phrase offline. This means that with a software wallet you are the owner of your (private) keys.

A software wallet does have the risk that malware or viruses can cause your software wallet to be hacked.

Hardware Wallets

The risks associated with software wallets are solved by hardware wallets like the Trezor and Ledger. The big advantage is that these wallets are secure stand-alone devices that are not connected to the internet.

Recovery phrases are used to back up the private keys stored on the devices. Owning a hardware wallet is a great step in securing your crypto because you are storing your private keys offline. The big risk here is the loss of the recovery phase.

So you did all the right things. You went online, did your research, ordered a hardware wallet, and you are ready to set it up. After a while, you are done, and you are left with a surprise.

You realize that the device itself is not the most important thing. No! The most important thing right now is the piece of paper with your recovery phrase written on it.

All this effort and eventually your early retirement is dependent on a piece of paper? No way!

The CRYPTOTAG

CRYPTOTAG closes the last line of defense with its premium backup system that enables people around the world to truly be their own bank by immortalizing their recovery phrases in titanium.

The CRYPTOTAG handles extreme circumstances like no other. Temperatures up to 3050 °F / 1.668 °C, corrosion and extreme pressure are no problem. Extreme tests have been carried out on the product, and the 6mm thick Titanium is literally bulletproof.

The Amsterdam based team has been testing different engraving methods and have developed a full backup system. During the development, they have been influenced by goldsmiths, metal workers, the aviation industry and old engraving techniques.

These influences are visible in the components included such as the hammer, punching letters, anvil and the use of titanium.

Source: Why You Should Store Your Recovery Phrase and Private Keys With CRYPTOTAG

Advertisements

Rep Soto: Cryptocurrency Regulation Belongs to the CFTC not the SEC | BTCMANAGER

United States Congressman, Darren Soto (D-Fla) has reportedly said that the issue of crypto regulation should be left to the jurisdiction of the U.S Commodity Futures Trading Commission, rather than the almighty Securities and Exchange Commission (SEC), reported Cheddar on January 10, 2019.While the SEC has been actively overseeing the U.S. cryptocurrency space, hunting down projects that go against its statutes, Representative Darren Michael Soto, an American attorney and congressman, has argued that the former should leave matters concerning cryptocurrencies to the CFTC and instead, focus solely on securities regulation.

Source: Rep Soto: Cryptocurrency Regulation Belongs to the CFTC not the SEC | BTCMANAGER

Crypto Meltdown: Bitcoin and Other Cryptocurrencies Plunge to Lowest Prices in 2018 – Julie Williams

1.jpg

Winter is coming! That is if it isn’t here already. This year hasn’t been a very good one for cryptocurrencies and it seems the worst is yet to come. Fear in the crypto sphere is being fuelled by the recent slump of Bitcoin ($5,219, -5.6%) and other cryptocurrencies such as Ripple ($0.482, -4.87%), Litecoin ($37.63, -9.74%), and Ethereum ($153.9, -11.4%).

According to a Bloomberg report from November 16, cryptocurrencies have yet to receive another blow that will bring them crashing to their knees, which so far at least was quite foreshadowing. I wouldn’t say Bitcoin got the worst hit but the analyst polled by Bloomberg has forecasted that the mother of all cryptocurrencies, Bitcoin, is likely to fall to $1,500, a drop which is calculated to be over 70% of its current levels. Trust me, this is the last thing we want in the crypto sphere.

The report by Bloomberg showed that the cryptocurrency tumbled 12% on November 14 alone, making it fall to its lowest value since 2017, and that was before today’s slump. It was also reported that Bitcoin has lost over 60% of its value in 2018 alone. Is this the end? Or the beginning of the end? Although many crypto enthusiasts are positive that the cryptocurrency will bounce back, a larger percent are troubled that this could be the end of Bitcoin.

To fuel the already burning fear, the founder of the hedge fund Ikigai, Travis Kling, gave a public statement saying that there is a small chance that something terrible could happen to Bitcoin Cash that would be strong enough to affect the entire crypto market negatively. Although he didn’t give a value, I guess that statement speaks for itself. Just when we needed a ray of light of hope. Even a single ray would be comforting at this time. Alas, none is forthcoming.

Commenting on the crypto meltdown, some crypto investors are of the belief that the hash war going on between the two variant of Bitocoin Cash – Bitcoin SV and Bitcoin ABC – is the reason for this meltdown. The continued fight for dominance has pushed crypto investors and miners away, hence the meltdown.

The Bloomberg article also stated that the negative impact of this meltdown also spread to the US-based chipmakers, Nvidia. Nvidia Corp. reported in its sale forecasts for the current quarter that the company has experienced lingering loss of demand from the collapse of cryptocurrency mining. According to the chipmaker, there was an oversupply of parts when the crypto market crashed due to a shortage in demand from miners.

This is indeed a hard time for the crypto sphere. As we hope for the market to bounce back to its old glory, I would like to advise crypto investors to tread this part carefully. There is no assurance that Bitcoin would bounce back anytime soon neither is there any proof that it wouldn’t. So, we just have to be prepared for the worst while we hope for the best. Better safe than sorry.

 

 

Donate us if you like

%d bloggers like this:
Skip to toolbar