2FA - what it is and how to use it.

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This is a safety standard adopted by the community, for more secure authentication in different systems. 2fa solves the problem of compromised passwords by supplementary authentication using ‘almost’ one-time passwords.

1) What is two-factor authentication meant for?


This is a safety standard adopted by the community, for more secure authentication in different systems. 2fa solves the problem of compromised passwords by supplementary authentication using ‘almost’ one-time passwords.


2) What is a one-time password? And why ‘almost’?


Many computers with the Windows operating system are infected with viruses, and when you enter your password on such computer, it becomes known for the attacker together with the one-time password, but it is only valid within 30 seconds. Therefore, exchanges usually use a timeout for 2 minutes to withdraw the funds from the balance after login. This is done to ensure that an attacker could not use the obtained one-time password and cash out the balance of your account.


3) Does it mean that I can login the exchange absolutely at any PC without to worry about any possible loss of money?


No, 2fa is not a cure-all solution, there are viruses with automatic correction, they substitute the payment details very quickly. You will think that you are transferring the money as it was intended, but the transfer will be done not in accordance with your details, but to the address substituted by the virus.


4) OK then, and how is technically organized the 2fa solution?


Two-factor authentication is an approach in general, it can be implemented technically variously. Banks use one-time passwords sent by SMS to the customer. But this approach has a vulnerability, an attacker could obtain a copy of the SIM card of the victim and intercept SMS with one-time passwords.


5) Oh no, there is always a vulnerability, what can we do with this?


There is an alternative for the 2fa solution - Google Authenticator application, it allows you to create one-time passwords directly on the user’s device, i.e. on the phone. It is advisable to install 2fa application on a separate device, not the device, from which login to the exchange is performed. Such an approach is more secure because the probability of infection of both devices is much lower. There is extensive information about the practical application of the authenticator on the Internet.

 

What is a cryptocurrency mixer?

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A cryptocurrency mixer is a tool allowing to increase the degree of anonymity for working with cryptocurrency, complicate or make it practically impossible to track transactions in the system. 

A cryptocurrency mixer is a tool allowing to increase the degree of anonymity for working with cryptocurrency, complicate or make it practically impossible to track transactions in the system. 

 

There are two types of mixers:

 

- Centralized mixers: when sending the cryptocurrency to the address of the service, the coins are mixed with transactions of other users, and then enter the store desired by sender less commission of 0.5-3% of the transferred amount. 


- Peer-to-peer mixers: act as a meeting place for users, enable exchange without the participation of third parties by forming a single transaction that takes place in several stages. With exception of the server that performs mixing, no client knows the addresses of senders and receivers. 

 

Successful anonymization is in direct proportion to the number of users who use the platforms. Peer-to-peer mixers are safer, because there are no risks associated with theft performed by a mediator.

Types of cryptocurrency exchanges.

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There are three types of cryptocurrency exchanges:
- Fiat exchanges
- Centralized exchanges
- Decentralized exchanges

Cryptocurrency traders very often think of selecting a trading platform for cryptocurrency trading. It is sometimes necessary to purchase a cryptocurrency for fiat money — in this case a service is needed for simple exchange of fiat for cryptocurrencies.

 

There are three types of cryptocurrency exchanges:

- Fiat exchanges

- Centralized exchanges

- Decentralized exchanges

 

Fiat exchanges


This class cryptocurrency exchanges is most similar to classic stock exchanges. The main function of this type of exchanges is to provide their clients with the possibility to purchase cryptocurrencies. It is worth noting that the currency can be purchased by means of ordinary online exchange services, but today this method cannot be called a right one. Online exchange services are not specialized operators for exchange of fiat money for cryptocurrencies. Exchange of money from various electronic payment systems for cryptocurrencies was added in functions of these services recently, with increased popularity of cryptocurrencies. Initially, this kind of services was intended for exchanging money from some electronic systems for money from other electronic systems.

Fiat cryptocurrency exchanges favorably differ from the online exchange services mentioned above by regulation by central banks and, as a result, by high financial reliability. If you want to purchase a cryptocurrency for fiat money, cryptocurrency exchanges that sale cryptocurrencies for fiat money are the best choice for you.

In view of the fact that fiat crypto exchanges are strictly financially regulated by state authorities (usually by central banks), the list of cryptocurrencies available for purchasing offered by these platforms is very limited. Usually you can purchase for fiat money only the most popular cryptocurrencies that are leaders in terms of capitalization (Bitcoin, Ethereum and some other currencies).


Examples of fiat crypto exchanges are Coinbase and Gemini.


Centralized exchanges


Centralized cryptocurrency exchanges allow you to purchase from a more extensive list of cryptocurrencies. However, unlike fiat crypto exchanges, it is not possible to purchase cryptocurrency for fiat money here. All cryptocurrency is purchased here for the most marketable cryptocurrencies, for example for Bitcoins and Ethereum. In other words, in order to purchase cryptocurrencies on a centralized exchange, you will have to first convert the fiat currency on a fiat crypto exchange.


Centralized cryptocurrency exchanges allow you to purchase from a relatively large list of cryptocurrencies. Here you can easily buy almost all liquid altcoins: Monero, Ripple, ZCash etc.

If we talk about the list of cryptocurrencies available for purchasing, we should mention the fact, that centralized crypto exchanges are also regulated by state authorities, although less strictly than fiat exchanges. In this regard, centralized exchanges offer for purchasing only cryptocurrencies having certain persons and companies behind them. Trading on the stock exchanges of this class, you can be sure that you will not accidentally purchase any illiquid assets that might subsequently just depreciate.


It is also worth noting that such exchanges are quite appropriate for trading with cryptocurrencies. Of course, trading with derivative financial instruments for cryptocurrencies is available for quite some time now, for example bitcoin futures on Chicago Mercantile Exchange (CME) and Chicago Board of Options Exchange (CBOE). However, trading conditions of such trading platforms are high even by the standards of professional traders. So, for new traders and traders with little capital, centralized cryptocurrency exchanges remain the most appropriate choice.


Examples of centralized crypto exchanges are Binance and Kucoin.

 

Decentralized exchanges


From the technical point of view, it is the most advanced version of cryptocurrency exchange organization. Unlike the first two types of exchanges, exchanges of this type do not centrally store user information of the clients and their money. From the point of view of information security, it is an undoubted advantage. It is almost impossible to crack a decentralized crypto exchange, at least by the common practices of carrying cyber attacks.

From a financial standpoint, exchanges of this type are less reliable: on such exchanges, new cryptocurrencies appear almost every date and often have doubtful reliability. For this reason, purchasing of cryptocurrency assets on such trading platforms may result in loss of investment. Regulation of decentralized crypto exchanges is carried out to a significantly lesser degree than for centralized and fiat exchanges. This type of crypto exchanges is therefore more appropriate for experienced traders and investors who can competently assess the level of risk when purchasing lesser-known cryptocurrencies. A beginner should better choose a centralized or fiat crypto exchange.

An example of a decentralized crypto exchange is Bitshares.

What is a fork of a cryptocurrency?

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In order to understand what a fork is and what the essence of this phenomenon is, it is necessary to begin with understanding of how the cryptocurrency works.

In order to understand what a fork is and what the essence of this phenomenon is, it is necessary to begin with understanding of how the cryptocurrency works.

The technological basis of any cryptocurrency is a mechanism called blockchain. Now, that you have understood, how blockchain works, we can start discuss about what a fork is.

 

What is a fork?


A chain of transactions is continuous and linear. It means that usually it does not fork.   This refers to a phenomenon in the system, whereby one large chain forks into two chains, and after separation they continue to work independently.

 

How does the system work thereafter?


After a fork (bifurcation) occurs, one cryptocurrency is divided in two currencies, because there are two chains of transactions from this time forth. In 2017, this happened to the world’s largest cryptocurrency, bitcoin. The chain was linear, but at the beginning of the year, it became forked. This does not mean that the Bitcoin itself does not exist now. It continues to work independently of anyone, according to the same rules as before. But now there is another independent cryptocurrency called ‘Bitcoin Cash’. Thus, the word ‘fork’ does very well characterize the essence of this phenomenon.

 

Types of forks.


There are two main types of forks: soft forks and hard forks. The first type can be called a ‘soft’ modification of the source code, the second type can be called a ‘hard’ modification.

 

What is a soft fork?


In the case of soft fork, the change of rules does not require front end (software) upgrade for execution of new rules. If some nodes in the network will not accept new rules, such nodes will still be able to communicate with the nodes that use the new rules.

For better understanding, you can draw an analogy with languages: if before the fork all nodes were speaking American English, and the new rules require transition to the British variant, the nodes that will continue to use the American version will be still able to understand the British version. At the same time, the nodes that use British English will easily understand the American version.

Thus, a soft fork is a reversible modification that does not violate the consensus as related to the protocol.

 

What is a hard fork?


In the case of hard fork, the new rules contradict with the old rules so that the nodes that have not accepted them do not acquire information from the nodes that accepted new rules. If you follow the same analogy with languages, old nodes speak English and new nodes speak Chinese. Hard fork involves changing the mechanism of consensus, and in this case the entire network is divided into two parts that will never be able to communicate. This is because blocks that  are recognized as valid in one part will not be considered as such in the other part.

 

How does it work in cryptocurrencies?


In the case of cryptocurrencies, a fork can be considered to be change of operation rules related to the need to make changes in the protocol. In other words, sometimes, it is necessary to use a type of fork in order to make the bitcoin better and safer. Although in some cases the issue of forks is a security matter.

 

The difference between soft fork and hard fork.


In order to better understand this difference, let us return to the example of Bitcoin. The situation that occurred in 2017, is called hard fork. This implies that after the chain division, a new fully independent cryptocurrency appeared that had completely separated from its ‘parent’. Bitcoin and its fork have absolutely different courses, different technical parameters and different developer teams. In addition, this currency has different clients and wallets, which fact is fundamentally important in crypto industry.

If we talk about soft fork, division is softer in this case, and its goal is generally to correct operation of the system. Cryptocurrency technology is in progress, and developers sometimes decide to upgrade their system. For this purpose, they intentionally create a fork that is a more perfect clone of their currency. In this case, the user does not need to install a new client, and the system does not change the basic principles of its operation. It is just a technical upgrading of the Network.

 

The reasons for the fork.


You will not understand what a fork is and what is it needed for, if you do not know the nature of the Network operation. The main cause of both soft and hard forks is certainly the development of technologies. Generally, branches are more improved from the technical point of view now. They have a larger block size, a higher bandwidth, and a lower commission. In some cases, however, a conflict arises between developers. Some developers believe that the system should remain unchanged, other developers insist on technical transformation. This happened with the second world’s most popular cryptocurrency, Ethereum.


Many developers and Network users were dissatisfied with the new features of the system after its renovation in 2016. Fork of the cryptocurrency became more convenient for smart contracts and crowdfunding projects, but it lost some benefits, which it had theretofore.

The new Ethereum was very successful and increased rapidly in its course. However, the developers have decided to perform a hard fork to please all users and leave the old system without any changes. Thus, Ethereum Classic currency appeared. The Bitcoin’s fork appeared for the same reason, but the essence of the change was that the new currency got an extended block size and a larger bandwidth.

 

What does this mean for miners?


In fact, success of a new fork to a very great extent depends on miners. They decide whether they support the new cryptocurrency or not. Bitcoin Cash started quite successfully, and many miners used their capacities to support its work. However, nowadays its perspective is a moot point.

This situation is representative for all currencies, although the new Bitcoin obtained a larger block size, it also obtained more Network complexity, which means extra costs for miners. Thus, in future they will only support the currency, which will bring revenue. And nobody knows, how the fork will help in this case, until sale of tokens begins and the course is fixed.

Conclusion

Cryptocurrencies gain pace very rapidly, so now is just the time to begin to explore this area. At first it all seems technically very complicated and confusing. It is difficult to understand, what a fork in mining is and how blockchain works, but over time it becomes clear that this is indeed an innovative technology designed to simplify our life.

A Few Words about the ‘Easiness’ of the Trader’s Profession.

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Everyone cannot be a successful trader, because not everyone is able to develop a mix of will, courage, carefulness, insight, foresight and intelligence, that makes a person to be a successful trader.
Along with the technical aspect, psychology plays a major role in trading. 

Everyone cannot be a successful trader, because not everyone is able to develop a mix of will, courage, carefulness, insight, foresight and intelligence, that makes a person to be a successful trader. 


Along with the technical aspect, psychology plays a major role in trading. Trading is therefore a continuous work, that consists primarily in self-improvement. And if trading means for you just income, you should probably seek for another way to use your efforts and skills. The situation is contrary, if you feel that you are interested in trading itself. If you see it is not only money, but foremost a fascinating and interesting practice, for which you are ready to spend the vast majority of your time and efforts. Then go ahead and remember: a journey of thousand miles begins with a single step.


1. Set real goals, aim at an average income of not more than 5% per month. This is the realistic income of a trader. Do not pursue super-profits — it is the shortest path to bankruptcy.


2. Money management rules must become an integral part of your life. By violating these rules you put an end to the trader’s career.


3. There is no such thing as easy money. There are no trading robots on sale, which would bring a stable income. On the contrary, all these robots are potentially unprofitable. No one would sell the goose that lays golden eggs. Don't get fooled by promises of hapless persons behind the mask of a successful trader. Be wiser.


4. Think once again, whether it is your profession or you maybe should do some other business which might be more suitable for you.

Mistakes of New Traders.

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Lack of money management. Decide on the size of the deposit, which will not make you not sleep at night. Your state of mind is directly dependent on money management. If we are not afraid of losing investments, our mind will be sober, and it will be much easier to work according to plan. Be patient and trade with small funds until you understand how the market works. 

1) Lack of money management. Decide on the size of the deposit, which will not make you not sleep at night. Your state of mind is directly dependent on money management. If we are not afraid of losing investments, our mind will be sober, and it will be much easier to work according to plan. Be patient and trade with small funds until you understand how the market works. Remember that the main enemy of a trader is the trader himself, and the most interfering factor for trading are emotions: fear and greed.


2) Excitement. Don’t hurry, the market will not run away. The most stupid mistakes often arise in a hurry. Don’t be afraid to miss an opportunity - the market offers opportunities permanently. It is again a matter of emotions control. Each time, before a transaction, ask yourself what you want to do and whether it's your trading plan (whether the candle is closed, whether other signals are filtered, etc.).


3) Overconfidence. Confidence is a good thing, but everything should be in moderation. The market is a chaos, although there are some rules, but they do not always work. At any time the market can destroy any ‘wishlist’ of even the most respected analysts. Do not attempt to speak for the market, listen to it. 


4) Trading against the trend. Trading against the trend is always risky, whatever the appearances. Work against the trend is relevant only when you have vast experience. Are you sure you have identified the right ‘bottom’ in a falling market? Without adequate theoretical knowledge and practical experience in building levels, you will get an excellent opportunity to get a ‘second bottom’ as a gift.


5) Lack of diversification. Diversification is meant to reduce your risks. If we talk about diversification in a crypto portfolio, we have to involve investing in various trade crypto assets. You don't want to get stuck for a long time in a crypto coin bought for $2? 

Cryptocurrency Mining Algorithms

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Each cryptocurrency uses its specific cryptographic algorithm, which is decrypted by mining equipment in order to ensure blockchain functionality, transaction processing and to receive therefore a remuneration in form of certain cryptocurrency coins. 

Each cryptocurrency uses its specific cryptographic algorithm, which is decrypted by mining equipment in order to ensure blockchain functionality, transaction processing and to receive therefore a remuneration in form of certain cryptocurrency coins. Some algorithms are more popular and are used for several different cryptocurrencies (blockchains).


The most popular cryptographic encryption algorithms today are as follows: DaggerHashimoto, Scrypt, SHA256, ScryptNf, X11, X13, Keccak, X15, Nist5, NeoScrypt, Lyra2RE, WhirlpoolX, Qubit, Quark, Axiom, Lyra2REv2, ScryptJaneNf16, Blake256r8, Blake256r14, Blake256r8vnl, Hodl, Decred, CryptoNight, Skunk, Lbry, Equihash, Pascal, X11Gost, Sia, Blake2s.

 

As you can see, the list of algorithms is quite extensive, we'll tell you more about the most popular and reliable ones:

 

SHA256 is the base algorithm of the classic bitcoin, video cards are no longer enough to work with this algorithm, because the Chinese have invented a special equipment for it, ASIC (application specific integrated circuit). Many bitcoin copying cryptocurrencies, for example, the recently introduced BitcoinCash, are based on this algorithm.

Scrypt – Litecoin, the ‘digital silver’, is based on this algorithm. At one time this algorithm was an excellent alternative, when ASICs were designed for SHA256 only. But time is getting on, new Scrypt-ASICs have appeared, and this algorithm is also unavailable for most miners.

 

Ethash (DaggerHashimoto) is the encryption algorithm which is applied for Ethereum cryptocurrency. To work effectively, it is necessary to have a video card with a large RAM capacity preferably based on AMD microprocessors, although Nvidia 10 series copes with DaggerHashimoto. X11 is used in Dash coin and is available for modern video cards. However, at the end of 2017 — at the beginning of 2018, first series of ASIC miners for Dash will appear.

 

Decred is a modification of Blake256 algorithm applied in Decred cryptocurrency. Mining on video cards is possible. In most cases, Decred mining is launched in parallel with DaggerHashimoto in the Claymore’s Dual Miner program.

 

CryptoNight – Monero works based on this algorithm. The algorithm is notable for the fact that it is relatively well calculated on processors. Specifically for the moment, Intel Xeon E3 processor brings me about a quarter of a dollar a day (comparable figures for Intel Core I7). It’s a funny money, but a crypto investor should keep any machine mining at least in the background.

 

Equihash is the base for Zcash currency, which is nowadays quite popular among video card miners, due to the fact that the Ethereum (leader among GPU miners) network complexity increased greatly.

 

X11Gost is the base algorithm of Sibcoin cryptocurrency, which is also called ‘Siberian Chervonets’. In fact it is a fork, the Russian equivalent of the Dash currency. I will not go in cryptography, but just note that the algorithm is based on a hash function in accordance with GOST R 34.11-2012.

CRYPTO ARBITRAGE TRADING – THE PURSUIT OF HAPPINESS

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Arbitrage exists as a result of market inefficiencies and would therefore not exist if all markets were perfectly efficient. How does one capitalize on this market phenomenon?

Arbitrage exists as a result of market inefficiencies and would therefore not exist if all markets were perfectly efficient. How does one capitalize on this market phenomenon?


A trader who, in 1970, pioneered a computerized trading system once said:

The elements of good trading are: (1) cutting losses, (2) cutting losses, and (3) cutting losses. If you can follow these three rules, you may have a chance.

This is, of course, Ed Seykota, a former commodities trader. A lot has changed since he first introduced this system, with the onset of blackbox and algorithmic and high-frequency trading, it is harder than ever for point and click traders to make money. The market has evolved and the inefficiencies that it suffered from in the 70s are unlikely to return. However, while the capital and debt markets are now highly efficient and, for the most part, very liquid, the same cannot be said for cryptocurrency markets. For one, the dissemination of information to the trading community is highly inefficient. The systems that aggregate volume and other data from various exchanges are still in their infancy and most importantly, the size of the trading community is growing every day.

Trading

NOBODY KNOWS IF A STOCK IS GOING TO GO UP, DOWN, SIDEWAYS OR IN CIRCLES

Those that have seen the film “Wolf Of Wall Street” will remember the scene with Matthew McConaughey and Leonardo DiCaprio, where Matthew McConaughey goes on to say “Nobody knows if a stock is going to go up, down, sideways or in circles.”

Is trading an art, a science, or is it no different than gambling and simply requires a degree of luck? Whatever camp you side on, crypto markets provide a unique opportunity to make very good returns on your investment. You don’t always have to be a trend follower or a contrarian, the smart way to approach crypto trading is by applying arbitrage models. The problem, of course, is standardizing the API data from the exchanges. While it is not an impossible task, it can be very laborious and requires a great amount of checking to ensure consistency between the different data feeds. Despite the fact that the cryptocurrency markets are trading with extremely high-volume levels, they are not nearly as liquid as we might think. This market is still highly fragmented in a web of exchanges under very different jurisdictions. The liquidity is spread through various more or less trustworthy exchanges all over the world. The emergence of more trustworthy regulated exchanges has boosted the overall liquidity but has not yet delivered the desired effect of lowering spreads and slippage costs. Furthermore, increasing liquidity would definitely encourage significant institutional investments and promote mainstream adoption.

Arbitrage

TRADING EDGE

Volatility is something that has discouraged this much sought after mainstream adoption. This measure is related to uncertainty with regard to the extent of price changes. High volatility is evidenced in sharp and unpredictable price swings, while assets with low volatility will see little or minimal fluctuation in prices over a short-term horizon.

There are various strategies one can follow to capitalize on the potential arbitrage opportunities that currently exist across crypto markets. No one can tell for sure how long these opportunities will remain available, as the broader adoption of these assets by the general public will invariably reduce bid/ask spreads and increase trading volumes. However, for now, one can simply make comparisons between different exchanges to understand the magnitude of potential returns on capital. The following numbers should be taken as an indication, these are not fixed levels and are subject to change. The price of Bitcoin on HitBTC is 2.55% higher than the price of the same asset on Exmo. Nowhere in capital markets can such discrepancy occur with what is said to be a leading asset in the digital economy and the spread on altcoins can sometimes be even greater.

There are different ways to trade the same markets, directional, technical, contrarian, fundamental – or you can utilize a combination of the above and create a strategy that works for you.

source: http://bitcoinist.com/crypto-arbitrage-trading-pursuit-happiness/


Choose the right wallet

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The first thing to decide is how technical you want to get and whether you want to get into the nuts and bolts of bitcoin. Generally a rule of thumb is that the more technical the wallet, the higher the levels of security and the more onus on you to look after your funds. On the flip side, the more easy to use the wallet is the lower the security is and the higher the risk of third party oversight there is and generally the better availability of access options or platforms that support it. 


7 Pro Tips for Keeping Your Crypto Safe

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How to protect your digital assets from fire, flood, phishing, forgetfulness, and other forces of nature.

1. Know the attack vectors.

AKA Know your enemy. Watch out for the proverbial “man in the middle” — someone trying to get in between you and your destination. Spoof sites, malicious websites that mimic other sites, can be picture-perfect nowadays. Make sure you double check URLs. Better yet, bookmark your crypto sites, and stick to your bookmarks (MetaMask also blacklists MyEtherWallet clones for you). Verify software downloads. A copy of Tails OS is no good if it’s infested with spyware. A man-in-the-middle attack can even be literal: one guy lost his life savings to a reseller on Ebay who pulled the recovery seedfrom a hardware wallet and repackaged the wallet. Always buy your hardware wallet directly from the manufacturer. Now think two steps ahead. Maybe your URLs look good. But how do you know someone hasn’t hacked your Wi-Fi, spoofed the DNS, and redirected you to different IPs? Safe computing is like chess: always assume your opponent is smarter than you.

2. Generate strong passwords.

You should know the drill by now — no birthdays, street addresses, song lyrics, etc. (don’t even get me started on my mom’s passwords). But even if you mash the keys on your keyboard, that’s still not random enough (you are not a good source of entropy). Password-crackers can rifle through 350 billion guesses per second. Use a random mnemonic generator to create a passphrase, or buy a hardware wallet to generate powerful keys and signatures for you. Multiple passwords are better than one. Multi-signature wallets, like Gnosis’, require multiple keys to validate transactions. And use two-factor authentication for everything: email, exchanges, Steam, etc. Heads up: the countdown might be annoying, but app-based two-factor is much more secure than SMS. Let thisbe your warning.

3. Use cold storage.

You don’t have to go 300 meters underground, but you should keep the majority of your crypto “cold” — that is, air gapped and offline. Only keep an amount in exchanges and online wallets that you are willing to lose. You can either build an air gapped computer by removing the network card from your PC or laptop (Tails is an operating system that you can run offline), or buy a hardware wallet. When generating the seed phrase, plug your hardware wallet into a wall outlet to keep it as cold as possible. Paranoia tips: cover the mic/camera of your laptop and remove any electronic devices from the room.

4. Test everything.

Make small test transactions or practice with a tiny bit of funds on a test network before going full monty. Never manually type out addresses (over 12,000 ETH have been lost forever due to typos). Copy and paste, use Ethereum Name Service, or scan QR codes. Make sure your scan app is secure (Pro Tip #1: Know the attack vectors). Double-check the identicon of your target address. Before transferring any crypto onto your hardware wallet, test your seed phrase. If you’re building an air gapped computer, record and re-check the MD5 checksum before and after you load data onto the SD card. For the love of Ethereum, test everything.

5. Store your seed phrase(s) across different devices and locations.

A standard Bip39 seed phrase is that curious string of 24 words from which you can derive a private key. Manage your seed with utmost care. If you write it down on paper, consider making two copies and storing them in separate locations. SD cards are another storage option, but they rarely last more than five years, and they could be wiped by a pinch (EMP bomb). Use both analog and digital just in case (some people hammer their seed phrases into steel). If you want to level up: store pieces of your seed phrase in separate, safe locations. And remember: meticulously record your steps, so you (or your heirs) can recreate the seed.

6. Maintain plausible deniability.

Plausible deniability in the cryptoverse means the ability to keep certain data hidden. Here’s a helpful public emission guideline: don’t broadcast your holdings, and especially don’t tell the world (over social media) the exchanges where you keep all your crypto (again, this guy). All your crypto shouldn’t be hot anyway (Pro Tip #3: Use cold storage). You can hide accounts under different HD paths on your hardware wallet in case someone comes knocking. Also, minimize your risk exposure by distributing your holdings across multiple wallets.

7. Level up. Help the ecosystem.

Dodson finishes his GitBook by recommending four different levels of wallet setup, Level 4 being for the most rigorous users. It’s your call how sophisticated you want to get. But remember: your security choices affect not only you but the ecosystem. If you don’t use two-factor authentication, and someone seizes your email (that, say, you left open on a library computer), when that bad actor starts phishing your personal network, that’s on you. So challenge yourself to level up. Experiment with hardware wallets, Tails, and multi-sig. Channel your inner Snowden. Learn by teaching. Tell your friends about cold storage, and your mom about strong passwords. Help the community flag spoof sites and fake accounts. Dodson’s “Pro Tips” are a gift to the ecosystem, and something we can pay forward.


source: https://media.consensys.net/7-pro-tips-for-keeping-your-crypto-safe-6dfb6fef7ab9