For Bitcoin Bulls who close the crying, risks grow

Or should be bought cryptocurrency Because a long -term holding can be the biggest solution that investor is interested in digital assets bitcoin May be the next.

After forest fires earlier this year in California, reports on social media began to appear with claims for Bitcoin’s loss, and some users show that metal plates are designed to protect seed phrases that are burned and unintelligible or described the complexity of recovery -classes stored in a bank security. Although it is impossible to check individual claims to the fires that consume hard drives, laptops and other storage devices containing the so-called solid and cold crying wallets and seminal phrases, which is sure that Bitcoin self-education is a unique safety problem. And these risks grow.

Crypto owners usually use some form of what can be called “wallet”, and there are several basic features – whether this wallet is connected to the Internet, and what control is directly built into the wallet and gear wallet. There is also a major problem whether the cry is a third -party custody, or maintains full control over the care and trade control over their possessions.

Standard Third Platform “Hot Wallet”-Learn about the offer from Base Or blockchain.com – constantly connecting to the Internet. Cold storage And “cold wallets”, on the other hand, include hardware devices (such as USB -stick) containing private keys, or even just a seed phrase (the main recovery code, a collection of 12 to 24 words used to restore access to the Cathedral) on paper/metal. Equipment wallets or autonomous backups of seed phrases can be used to access the crypt when connecting to the Internet through another device.

With the options that are on third parties, there is steps to help owners stay vigilant Against the threat presenting cybercrime that can access the Internet platform, including the use of two -factor authentication and strong passwords. The US Marshals’ service at the Ministry of Justice, which is responsible for the confiscation of US law enforcement assets, uses Coinbase Prime to provide custody for the seized digital assets.

Many crystals prefer an independent digital asset, like bitcoin, for the same reasons they are interested in cryptocurrency to start with: lack of faith in some forms of institutional control. Crypto Brokers trades are convenient to risk hacking, shutdown or fraud, as in the case of high -profile FTX implazing. And forest fires are just one example in recent lines of global events that raise more questions about changes in the crystance. In the Middle East and Russia-Ukraine, the conflict continues Krypto-bulls from abroad to reconsider your approach to dedication.

Nick Noiman, co-founder and CEO of Self-Service Casa, said physical risks in the world as a natural disaster, are the opportunity to reconsider how Bitcoin’s security works, and general security are in the practice of most people. “Most people are fixing their bitcoin with one private key. If the key is on one device or recorded on paper as a seed phrase, this is the only point of refusal. If you lose this key, your bitcoin is gone,” he said.

It must be obvious that keeping seed phrases on paper offers the lowest level of protection against fire, but this is a common practice, said Neuman. Sliding these pieces of paper into fire bags and safe provides some protection, but not much, and even there are additional steps to have seed phrases on “indestructible” metal storage plates are several points of refusal. For one, they may not be so indestructible, in second, they can be impossible to find among the rubble.

“Logically, given the location of the fires in California and the history that are divided into X, it was probably lost bitcoin,” – said Noiman. “Some of them are quite convincing,” he said.

Casa is performing annual Stress -Testes on the backup of the seed phrase.

Some self -exceeding services such as Casa offer multiple settings that reduce the risk of refusal at one point. Many Crypto Crypto may include mobile phones, a few equipment keys and a recovery key that the company loves Casa holding on behalf of the owner.

The approach to multiplayer care allows the owner to hold most keys, while the trusted partner has a minority of the keys. John Haar, head of Swan Bitcoin, says that the owner will need to lose all physical devices and all copies of seed phrases at the same time. As long as the owner can access at least one device or one seed phrase, they will be able to restore their bitcoin. This approach should significantly limit the potential so that all devices are lost in an event such as a natural disaster, Haar said.

“You can distribute these keys to several regions and even countries, and you need three of the five keys to approve the Bitcoin transaction,” Neyman said about the five key approach Casa.

Jordan Baltazor, Chief Administrative Director of Fortress Trust, Adjustable Crypto, says that the best practices we use in other areas of personal life should be applied to cryptocurrency. For one diversification of the approach to storage and weighing risks. Digital assets are no different, he says when it comes to backup personal and sensitive data in the cloud to provide data against losses or corruption.

Companies including Coinbase and Jack Dorsey’s Block Offer products that try to combine some of these ideas by creating a safer crying version that remains convenient to use. There is a Vault Coinbase that includes extended security steps before the user will be able to access the crystals for trading. And there is a Coinbase and BitKey wallet that has mobile applications that work as a traditional wallet that makes moving bitcoin around the lung, but with the ability to combine with hardware wallets and add safety more often related to cold shelter.

Bitkey’s equipment requires multiple transactions for additional security, similar to “many wallets”. BitKey also offers Tools for recovery Thus, one of the greatest risks of well-being-shot codes or phrases required to restore the cold wallet-less problem.

Dorsi solutions such as Dorsi can help resolve the tension between convenience and safety; At a minimum, they emphasize that this voltage exists and is likely to become something with a checkpoint for a wider spread. Outside the risks in the form of forest fires, all types of natural disasters and wars, the self -restraint of Bitcoin can be vulnerable to the biggest personal risk of all: the unexpected death of the bitcoin owner. Perhaps there is nothing more complicated than inheritance when it comes to unlocking the cry of custody.

Coinbase requires a will of court documents and specific designations before releasing funds custodyWhile physical wallets are practically not supporting, potentially leaving all this digital value that is stuck on the private key. BitKey rolled up its inherited decision In February, the BitKey leader called: “The view of the multi -billion dollar problem is waiting.”

“People who have material investments in Bitcoin must think about how to protect it,” Neuman said. He says that after a catastrophe, such as California Forest Fires, or when exchanges go to the bust, like FTX, the industry sees more cryptor owners who take measures to move to safer storage facilities. “I guess human nature wait for the” bad things “to improve the action to improve your personal situation,” he said. “But I think people would be better if they were more active. Otherwise, they run the risk of “bad thing” to happen, and then it is too late, “he said.