How to lose all Bitcoin and cryptocurrency investments
Joking aside, you probably already know how to protect your investment in Bitcoin and cryptocurrencies. Now it’s time to talk about how to lose them all!
Suppose you want to lose all your Bitcoin (BTC) investments irreparably forever. Hey, that’s not why we wonder. It could be part of an elaborate performance art like a man who destroyed all his belongings, or he could have been a big fan of the electronic music band The KLF, which burned £ 1m on a remote island in Scotland. Or, your reason may be more mundane and you may not want to get their share of the investment that your spouse will soon divorce knows you have.
Whatever your reason, we are not here to judge. And while we are usually responsible for helping people protect their cryptocurrencies, it’s very easy to reverse engineer security and help them lose it in the quickest and easiest way possible. am.
Brag about your Bitcoin and cryptocurrency holdings
If you have and want to lose them, post them!
Want to get rid of the Rolex hanging on your wrist? In combination with a T-shirt, flash in a crowded bar and take a walk in the bad parts of town after dark. You will be released from the clock immediately.
It’s the same with Bitcoin and cryptocurrencies. You want to let the world know that you are a bitcoiner and ideally have accumulated enough soil that is worth stealing. So tell them. Add laser eyes to your social media profile, keep tweeting those diamond hands, and don’t forget the offline world.
Show off your Bitcoin and cryptocurrency proficiency to all your friends, family and, most importantly, new acquaintances. You never know who will start investigating your defenses to offload your investment.
Maintain cryptocurrencies on exchanges
In the early days of Bitcoin Wild West, losing cryptocurrencies was easy, as there were some infamous exchanges that helped lose investment.When storing cryptocurrencies in a hosted wallet, it was only a matter of time before the exchange went bankrupt as follows: Mt. GoxHacked, lose coins by committing to the Fractional-Reserve Bank, or the owner escapes (or dies) Quadriga CX) With your key.
The cryptocurrency exchange market has matured considerably in recent years, security measures such as two-factor authentication have been strengthened, and proof of reserves and proof of storage are also open to the public. Don’t be discouraged. As long as you outsource the key to a third party, something can happen. Probably so.
The exchange is still failing on a regular basis. Even more encouraging is that the government is now actively targeting a wealth of bitcoiners. And, as well as traditional authoritarians like China and Russia, the Government of Canada has recently frozen accounts of those who donate even a small amount to a “tracker demonstration” to financial institutions, including cryptocurrency custodians. I asked.
Protect your account even if you use strong passwords and 2FACryptocurrency exchangeI don’t know what other vulnerabilities could be exploited to access and flash. If you want to exchange coins, relax. The coin is in the hands of a malicious person.
Lose private key and recovery phrase
Things get a little trickier if you decide to keep your cryptocurrency offline Safe hardware wallet.. After all, when you hold the key yourself, the power to lose your cryptocurrency is entirely in your hands. Why wait for an exchange to go bankrupt when you can start adopting the “worst practices” of security today?
The secret to making your wallet insecure is in the seed phrase, which is the string of words used to generate the private key. The easiest way to lose cryptocurrency is to remember the seed phrase and then delete or destroy the record. After a few months, there is little hope of remembering all the words in the correct order.
But what if you are cursed by video memory? Easy: Write it down. Even better, it’s convenient to do it twice in the form of a physical pen and paper and keep it close to your hardware wallet. Also, as a good measure, save it in a cloud-based document that anyone with skill can access with a brute force attack.
This is especially useful if you regularly remind people that you have Bitcoin and crypto assets.
Do not inherit the next generation
This is for those who want to invest in the long run. Do you know the phrase “Can’t you bring it?” Well, with Bitcoin, you can do that! If you weren’t thinking of planning your heritage, your entire investment would go to the grave with you, an estimated 3.7 million Bitcoins already lost forever (of the coins you’ve ever had) About 18%) will be added.
Of course, this requires reversing the above principles. If you really want to exempt your child from inheritance, you need to make your child inaccessible to the key, just like an attacker.
So, if this is the way you want to go, don’t tell your heirs, write your seed phrase, and get a hardware wallet. Even better, cut the 24-word seed phrase into several pieces and store them in many hidden holes around the world without instructions for recovery. Your heirs will never thank you for your cryptocurrency!
Whatever you do, make sure that your Bitcoin storage and security providers do not have a specific robust protocol for legacy planning. You can rest assured that when you die, even the devil himself will not get your wealth.
If you want to protect Bitcoin for any reason, ignore all of the above. Better yet, do the opposite. But all you have to do is secure an investment in the only censorship and inflation-resistant store ever invented!
Jameson Lopp, Cointelegraph
Jameson Lopp has been actively building in the Bitcoin space since 2015 and has become one of the most respected voices in the Bitcoin developer community. Prior to joining Casa, a BitGo engineer and provider of secure wallet and plug-in play infrastructure solutions for Bitcoin, he developed high-quality multisig custody services.
The opinions expressed here are those of the author and do not necessarily reflect the views of Forex Quebec. All investment and transaction movements carry risks. When making a decision, you need to do your own research.
Keep your cryptocurrency safe!
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Disclaimer: This article does not contain any investment advice or recommendations. All investment and transaction movements carry risks and readers need to do their own research when making decisions.