BITCOIN Forks! : The Safe Way To Store Your Bitcoins

in #bitcoin4 years ago

We are all somewhat aware of the efforts taking place now to update bitcoin and the terms thrown around, BIP91, BIP148, Segwit, Segwit2x, UASF, UAHF, Bitcoin ABC, BTU, BTCC ...

All that does is create FUD in the market, if you do not know what FUD is read about it here:

https://steemit.com/bitcoin/@joseph/fud-and-trolls

As an expert/casual bitcoin investor, or a holder of Bitcoin for any reason. What should you do to keep your Bitcoins safe and avoid all this nonsense?

You do not need to know anything about segwit activation or any of the other terms, names of possible forks. What you need to know is how to store your bitcoins safely, and in case of forks how to recover all the coins that will result from this.

Right now it seems we are looking to have one bitcoin that stays strong and no forks, but that is not 100% certain, there are many parties interested in splitting Bitcoin into branches and vowing to fight to be the top chain. Each wants his own Toy to play with as he pleases.

No matter what happens, if we end up with one strong bitcoin or 2 or 3 like ETH/ETC, you should make sure you get all these coins. Leaving your Bitcoins on an exchange will subject you to what that exchange deems as a valid forks, exchanges are not obliged to give you anything but what they approve as a valid chain, chains that might start trading on other exchanges could be completely ignored by your exchange.

So move your bitcoins to a wallet that will give you access to your private key. Move all your bitcoins to one address, with one private key.

I recommend using Electrum https://electrum.org/#download

once you create your wallet, save your seed and create a password, export the private key/s as shown here:

electrum1.jpg

electrum2.jpg

Since this is a wallet I have used often, it has 85 private keys. You should not have that many. You should save the file on a USB stick, do not save the file on your hard drive. It's also better to do this process while you computer is not online.

once you have the wallet private keys, and the seed. Save a copy of your public receive address in a text file on your desktop.

  • As a safe measure, write down the seed on paper, this will allow you to restore the wallet and all the keys in case your USB stick is lost/damaged.

Now delete the Electrum wallet and associated files from your PC. Send your bitcoins to the public address you copied to your desktop.

Now your Bitcoins are safe. Hold on to them until all the drama of the forks is over, sometime in late august or maybe as late as the end of September.

This process will give you control of all the coins that might result from possible forks. The process to load your wallet and send the coins to exchanges for trading while avoiding possible replay attacks is the subject of another post.

  • I recommend doing a full scan of your computer for viruses/malware before attempting this. For this I use Kaspersky Total Security.

  • Your wallet seed is not related to your password, a seed will give access to all your keys without the need of a password.

  • A newer version of Electrum might be available now that's different from the screenshots shown, that does not change the validity of the seed or private keys, wallets are only tools to sign TX's with your private keys.

More to read?

The more you read about this the more you will get confused. Just save your bitcoins and wait for this to pass. Whether there will be forks or not you will be on top.

Sort:  

Joseph, thanks for a well thought-out post. You are right. Sit tight and be right. Get those keys printed on paper, or engraved in silver... whatever it takes to get them OFF THOSE EXCHANGES. What BTC-C may have done here is introduce that straw that will break the camel's back for the exchanges. If they don't get a hold on all their derivatives in the next week, they are not going to be able to say anything sensical to their customers who come asking about their Bitcoin-Cash. I mention @stan's response to this in my post about BLACK SWANS

Electrum is the best! it has so much potential!

Yes the way to go is keep it int he electrum wallet. $ZCL and $BTC fork to $BTCP Bitcoin private is a good one. You can use Bitcoin Private for those transactions you don't want to be 'seen'

Treeeezzzzzoooorrrr!

Great suggestion...now the million dollar question, when to get back into Bitcoin from Tether. I def want to be in bitcoin before August 1st, just need to figure out when.

Place your bids around 2460-2380.. and get back..!

i'm putting them on a paper wallet

confused is the word for me... what about paper wallets? where do they fit in?

Is Electrum similar to a Trezor or nano ledger? Does it store every type of crypto onto a usb?

It is not the same as Trezor or Ledger Nano since your seed is entered online (hot storage - bad) and therefore is not as secure since the seed could be intercepted. This is not likely as long as you're on a SSL (and not on public WiFi!) but using a hardware wallet such as Trezor or Ledger Nano S prevents this security hole. The main point of the these hardware wallet is exactly that... your private key is never, ever connected to the internet (cold storage - good). Since there are now over 800 cryptos I don't think Electrum stores every one of them but it does store all the major currencies. The key point of this post being about bitcoin forks, I think Electrum covers that well. Or you could even do a simple wallet holding your seed/private bitcoin keys yourself on paper -- just don't lose it ;)

@sky77, your answer is substantially inaccurate, because Electrum is a wallet that supports Trezor hardware generated keys.

However, @queeneleanor, Electrum is a Bitcoin only wallet. You can use the Trezor online wallet for Bitcoin, Bitcoin Cash, Ethereum and various ERC-20 tokens, which most of the ICO coins are. As long as you are using it with the Trezor, you are 99% safe.

This article goes into detail as well:
Why the $BCC Fork Will Cause a Short Squeeze in Bitcoin That Affects You

Ok great. I was wrong about Electrum compromising your private key. What's the value of using Electrum with Trezor? Where's the value beyond Trezor's own Bitcoin app? Also, ERC-20 token support is available in Trezor 1.5.0 firmware in conjunction with MyEtherWallet.

This is a good solution For me and my friends. At first I thought our bitcoin would be safe alone Without the need to do special security Like the way that @joseph describe. Before I say thank you very much for this interesting informaai. Let me Follow the latest information from you @joseph.

Please help me Upvote and Follow Me

I would suggest purchasing a Trezor wallet. They are a great investment and make keeping your Bitcoin in cold storage a breeze.


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Trezor sounds great....too bad there is a waiting list of forever to get one.

bitcoin is again gone down that effect the other currency

i upvote

Thanks for the info. Great read. Ive heard that ppl are saying hardfork is happening in an attempt to drive down the price so they can aquire more on the cheap. Not sure if true or not though.

Hey there @joseph,
thanks a lot for your detailed Post. It´s good to get some easy information on what´s going on and what´s the best to do :)

Hardware wallets are just perfect for that

This is a great countermeasure! I was going to buy a hardware wallet, but I'll probably do this instead.

You can always convert to USD or other crypto while you wait for this update to calm down.

Follow me @Yehey
Thank you.

Thats what I plan on doing as well. Although since bitcoin is number one, it has a big impact on how crypto prices trend

My plan was to sell to USDT but no I've decided I'm just keeping what I have on a paper wallet and will cash out bitcoin cash after the fork but only after sweeping all my BTC to another paper wallet.

The new coin should now officially be referred to as bitcoin crash because that's all that's gonna happen to it

I would suggest that you don't ever leave coins on echanges, only sending them there to sell or trade and safely removing them to an address you control when done. This will remove (or reduce as much as possible) the risk of losing coins in a Mt Gox style exchange collapse.

Further more, of you are holding more than a token amount of bitcoins etc I would strongly suggest a hardware wallet. Trezor or Ledgers are availiable. I have never used the ledger but have a Trezor and think it's an excellent device

Your advice is appropriate if you are buying and holding. One caution though - if you are trading actively (in small quantities or on a daily/weekly basis), the mining fees to transfer can very quickly erode your coin holdings. Evaluate the relative risk/reward and decide accordingly.

Agreed, but if you are trading for small quantities, you are probably less concerned about loss in the event of a corrupt or failing exchange. Still a very valid point though.

Was hoping to avoid this forking fork...

Thanks for the useful info :) Exodus a possibility as well as far as im aware

Thanks @joseph for sharing this helpful information about securing BTC wallets... learnt a lot!

Thank you for the information. Now to put the process into action! Hoping to see better days for bitcoin in the coming months.

This is a great easy to follow guide thanks!
It seems quite likely that we will see a bitcoin hard fork on august 1st into bitcoin cash, its already supported on a few exchanges, and the electrum wallet supports this UAHF.
for more info on bitcoin cash check their website
https://www.bitcoincash.org/

They just made an announcement today agreeing to implement strong replay protection, which is an essential step in the Trezor hardwallet fully supporting the fork as well.

Lots of news today.

This is s great post about BTC!!

My BTC are all safely in wallet and waiting :) Good article - written very clearly!

It's such a shame that the Chinese decided to take advantage of the situation and fork off with their own bitcoin :/
https://steemit.com/bitcoin/@cardboard/bitcoin-update-war-has-come

Another good way to story your bitcoins to prep for the split (assuming you don't mind them being on an exchange) would be to use http://btcpop.co . I've been there about a year as a hobby investor/trader/chat troll, and they will be allowing withdrawals and trading of your BCC after the fork. Hope to see you there. :)

muchas gracias por esta informacion de verdad que es de mucha ayuda para todas aquellas personas que trabajamos en esta valiosa criptomoneda llamada BITCOIN y estaremos atentos a tus recomendaciones fefliz dia.

Wow this is amazing really 😮 a fork would be the last place I'd look for Bitcoins haha.
Cheers :)

Thank you very much for this!

What Do you think? Hard fork is still possible?
⚡️Find out:

I find this very helpful, pls keep the information stream flowing ! I intend to put one of these advice to test very soon!

I have just got my ledger wallet to store and protect them until the storm is over.

thankyu for shared brother...

Very informative! Thanks! I won't sell my BTC for anything!

Goood.. nice job

The post seems it is for Electrum wallet.

Good content i think the best plaxe to safe bitcoin is to convert on steem [email protected]

I agree that there have been loads of terms being thrown around and I don't know if that is what has caused the recent dip but it will recover sooner or later.
I've been using electrum for a while but I haven't backed it up on a USB yet.
It will probably be a good idea for me to do that haha.
Thanks for the suggestion @joseph

Get you a hardware wallet

Thanks for your advice, really appreciated

Great article. The part I did not get is the public receive address. How do you get that?

you go the wallet receive section and get your public address the one you give people to send you bitcoins, or the one you withdraw from exchange to.

@joseph
Thanks for this precious information
I'm neewbie in the crypto world, but it fascinates me
I'm gonna continue to learning it
Thanks
@geemo-from-paris

Also keep in mind exchanges like Poloniex have daily withdrawal limits so if you have a lot it may take quite a few days to get it all transferred to your own wallet.

Follow me..
And..
please upvote my essay..
😊😊

So, if there is a hard fork, will the all the coins be automatically updated to the electrum wallet? Or what would be the process to have the new coins uploaded to the wallet?

i also used electrum for saving my bits you know what its good way to secure things like bits , but the info you given in this post is really good its detailed i was not have such info about fud and the link you give in this post about fub is so much informative thanks for sharing this fud article and the way you explain things its quite easy for all to understand, stay blessed

For a new user like me, would you recommend something easy for storage?

The burglar breaks in, going through the kitchen drawers to find the silver,
but find bitcoin (forks) instead. Score!

Thanks you, but there will not be Hard Fork ?

yo follow me up guys for great daily gaming content and a few laughs, follow upvote comment and resteem for more of the best gaming blog on steemit

My plan is get transfer to other currencies for a while and let it all settle down.

Might miss big gains but also safer from big losses.

trezor all the way

Your way is great

Hello sir. I read this text and I need help to u sir l. No matter what happens, if we end up with one strong bitcoin or 2 or 3 like ETH/ETC, you should make sure you get all these coins. How sure that to do and Iam still learning about bitcoin. I will wait your latest post about it. Thanks for help sir. Gladly to read your blog.
If you are free lets walk to my blog sir.

Joseph, I dont typically vote on the bitcoin post because usually the information isnt correct. But you my friend have nailed it. Uou got my upvote and. A new follower. Nice job.

Thanks @joseph Love the picture btw lol made me laugh.

Good information but as of yet I can't afford to buy bitcoins.

Thanks for the info

Thank you for this. By the way why you advised "Now delete the Electrum wallet and associated files from your PC."?

Thanks mate.. this wat I'm looking for. Im forecasting that it will ranging at this price 2000usd

its up, then its down, then its back up - and all the while... we are all freaking out. lol Just when we thought we could all rest easy with the "BIP's and bobs" lol there appears to be even more chaos on the horizon.

Thank you for the advice and yes, I agree - no matter which way it goes, its still a win win in the long run. We all just need to A) not panic.... and B) sit tight - eventually the roller coaster ride will be done with (for the most part anyway)

Anything worthwhile in life, has turbulence. To my mind... in the overall picture it is a sign of growth all round. So a little patience and staying power will see you a long way!

At the end of it all, the realization that crypto is the future of currency is what needs to be accepted.

The future is digital... so, my advice... buckle up and enjoy the ride ;)

Life is supposed to be an adventure anyway :)

@joseph - Due to recent ongoing hard fork for Bitcoin, this information is crucial for every Crypto investor. Resteeming this post!

So move your bitcoins to a wallet that will give you access to your private key. Move all your bitcoins to one address, with one private key.

One PK, specifically for the sake of convenience?

i wonder when will they add spoon lol.. then chopsticks haha. thanks for the share btw. this a good post.

Thanks for the tip! What if I save it as a paper wallet. What do I do after the fork to get multiple versions of Bitcoin? Or am I out of luck?

Do the best of your understanding, what do you think is going to happen to Coinbase, since they have already stated they will not participate with the SegWit?

very usefull post

You are right, Electrum is really good wallet. When we know our private key, we are safe, so it's very important to remember about this.

splendid article... i was wondering, can a wallet like jaxx be used for this purpose?

Great picture!

This is a great countermeasure..

Follow me @hrswor
Thanx

@joseph, Is it confirmed the bitcoin fork on august the first, i havernt kept up to date with the story but last time i heard there was no comfirmation it was going ahead as previous deadlines had been missed?

brilliant advice. good man! :)

Hey joseph, thanks for the info... is it ok to put my bitcoin on a ledger nano while all this blows over? Also i have some in coinbase...is it ok to leave them in there?

Cool.... I go and look more this info :)

valuable info, thank you for this well written post :) it is great to share this around

Another great piece of software for those of you who don't have the money for hard-safe devices or don't want to store Bitcoins on your computers is called "Multibit." Its a nice bitcoin storage software that you can download for free and best yet install it in a thumbdrive. So now you have an external storage system that cost nothing... https://multibit.org/

Great post, thanks for the information

Great reading . Ty for sharing .

Very usefull information, as a newcomer to Bitcoin/cryptocurency i am learning as much i can!!
Resteemed!!

Thanks Joseph, speaking as someone who lost 22 bitcoins on a couple of demised bitcoin exchanges, I urge caution too. Following.

Joseph, Thanks for writing a very 'confusing' post. Should we read your future posts? :)

Thanks for this wonderful post

Good informative post. I'm just not sure I could take two months off trading haha. What is your take on hard storage wallets? I see them all over the internet and most are sold out and back ordered. Do you think the hard storage wallets are a big upgrade over what you have suggested? Thanks for your post, definitely helps

Great post that everyone should read....this is a moment to be proactive with your investments and not regret later. Great job!

Is it not safe ro have them in a digital wallet like coin base?

I'm confused. You said you can export the 12 words pass phrase for BTC with an Electrum BTC wallet on your computer but without the internet. I mean, after downloading the wallet and after having the BTC on your wallet so to speak. Then you said you can go offline to export the wallet with the BTC in it to a thumb drive or somewhere safe and offline.... and you can write out the pass phrase too on real paper with a pen....
.
So, if that is what you said, and then you delete the wallet.... then how do you import your BTC back to a wallet or to an exchange or whatever?
.
If you create a new password or I mean pass phrase from a wallet not online, and if BTC must be mined or approved or verified through the online BTC blockchain system, then how can BTC know that your pass phrase is correct if your wallet was not online when it creates the pass phrase? I mean like, if your wallet is not online and it never tells the BTC blockchain about the passphrase, the 12 random words, then how can the BTC blockchain know what those 12 random words would be in order for you to withdraw the BTC from the blockchain later on?
.
Am I incorrect about the procedure & the steps? I am confused about how a passphrase can be created offline and later verified online. Maybe, I am missing some details on how it all works.

Your seed is never verified online. Actually nothing is ever verified online unless you broadcast a signed transaction.
Your seed is good even when created offline. It's just a representation of your private key which can be generated offline as well.

@joseph, but how can your private key be authenticated from the online Bitcoin blockchain system if a new secret and brand new private key is created and invented and made offline apart from the online Bitcoin blockchain system?
.
How can the private keys unlock the Bitcoins if the private keys were not registered online?
.
Is the private key stuck in a program or encrypted file that can only be read by the online Bitcoin blockchain system? If the pass phrase or private key or password or whatever is created or generated offline but stored in an encrypted file, then I guess that only the online Bitcoin blockchain could authenticate it, then I think I can understand that maybe. As long as nobody cannot make some kind of virus that looks like an encrypted file with a private key.
.
Or I guess you are saying the seed is a code that hides your private key offline. But both cases are a little bit confusing in regards to the authentication process, I mean the verification process.

You have no idea how bitcoin works.

Bitcoin is based on cryptography and it is like a video game or program and miners mine them using computer devices and it is digital currency that can be exchanged and the value is dependent on supply and demand and the digital currency is digital which means it is kept on the online block chain systems and there are private keys for access to your share or whatever of whatever amount that you may have of the pie in the sky.

This is a good solution

Muy interesante este asunto! Gracias.

This is a great insight resteeming

I use mycelium wallet

If you want to know how to get all the private keys from your blockchain.info wallet, you can read my article, https://steemit.com/bitcoin/@hmushtaq/how-to-get-your-private-keys-from-a-blockchain-wallet-account

Wow nice thing to see today