TREZOR Review: 5 Things to Know Before Buying (2020 Updated)

What Is Bitcoin Private Key: Beginner’s Guide

What Is Bitcoin Private Key: Beginner’s Guide
Most of the people in this sub probably already know what the Bitcoin private key is and how it works, but there are many newcomers who do not fully understand all the technical aspects of it. I hope you guys will find it useful.

Bitcoin Private Keys: The Basics

Let’s start with some main principles.
  • A private key is functionally similar to a password to your email account. Unlike your email address, you never share it.
  • You need your private key to be able to receive the crypto someone sends you and to have access to your funds.
  • The BTC network does not store your private keys, they are generated and stored by the wallet software. There are different types of wallets.
IMPORTANT: The private key concept does not apply exclusively to Bitcoin. Other cryptocurrencies use it too.
Now, let’s see how a private key looks and works.

Bitcoin Private Key Definition

Bitcoin private key is an alphanumeric piece of code. It includes letters and numbers, just like your public address.
However, while a public address is like your plastic card number, a private key is like your CVC. You know, those secret three digits on the back of a card?
A private address is created in a random manner when you get a cryptocurrency wallet. The possibility of creating two identical private keys is almost zero, due to the sophisticated encryption algorithm, we apply for the purpose.
In the BTC network, a private key contains 256 symbols, as we obtain it using the SHA256 encryption algorithm. This function always returns 256 symbols, no matter the input.

Bitcoin private key in various formats, including WIF.

Wallet Import Format (WIF)

Using such a long string of code is inconvenient, so a private key is often presented in WIF (Wallet Import Format). It’s a shortened version that includes only 51 characters (numbers from 0 to 9 and letters in the range of A-F) and begins with 5.
Here is a Bitcoin private key example in WIF:
5Kb8kLf9zgWQnogidDA76MzPL6TsZZY36hWXMssSzNydYXYB9KF
WIF has a few advantages over a full BTC private key version. As we have said, it’s shorter and more convenient to use. Also, it contains special pieces of code that serve to check the address for typos and correct them automatically.
WIF associates with only one private key and can be easily converted back into it, using an established algorithm.

Encrypting Private Keys

If a key looks like WIF but starts with 6, it is an encrypted version of a private key. People encrypt keys to ensure an extra layer of protection. To obtain such a string of code, we apply another algorithm. To decode (decrypt) the key we need to enter the password that we set when we were encrypting it.

How Bitcoin Private Key Works

You probably know Bitcoin as a digital payment system. To explain how it works, it would be better to compare it to a web-messenger, with massages transferring value. These ‘value messages’ are BTC transactions.
And what role a private key plays in sending these financial messages?
Let’s take a look at a real-life example.

https://preview.redd.it/fgtn8h63veu41.png?width=1261&format=png&auto=webp&s=9855f9aba70ebe7ca1f02b32c160ae78b2b42400

Using Private And Public Keys For a Transaction

Imagine you are sending 1 BTC to your friend Bill. You create a transaction and indicate yourself as the sender and Bill as the receiver of this amount. Then, you will broadcast the transaction to make the Bitcoin network aware of it.
  1. You start by choosing a private key. Using a special encryption algorithm, you derive a public key from it. You send this public key to Bill.
  2. You create a message for Bill and sign it with your digital signature. To obtain it, you pass your private key through a special encryption algorithm and attach the resulting code to the message. Every signature is unique, and you can use the same private address to produce an infinite number of them.
  3. Bill receives your message, public key, and signature and passes it through a signature algorithm. If it’s the message you sent, the algorithm returns ok.
Why we need a digital signature in the first place? There are three reasons. First, it tells the recipient that the message is from the sender he knows. Second, a digital signature makes it impossible for the sender to deny he sent the message. Third, it confirms that no one has altered the message in transit.
Unlike a traditional signature, a digital one cannot be forged. To produce it, you have to possess a secret private key.
https://preview.redd.it/k8n0vcg4veu41.png?width=624&format=png&auto=webp&s=9ab6c0bc25c0a638c4d3bfdbf86056f5462aa7d0

Why Keeping Your Private Key Secret Is Important

As we have mentioned, anyone in possession of your private key can steal your funds anytime.
If your wicked colleague Alice gets your private key (because you carelessly left your paper wallet on your desk), she can use it to create a digital signature. She can then use that signature to sign a transaction that will look like yours for the network. For instance, Alice can send all your crypto to another address. You will never be able to cancel this transaction and you are highly unlikely to know that she made it.
For this reason, you should be very careful with your private keys. Never send it to anyone using a messenger, or an email client, or a social media channel. Don’t share photographs of your private key. Never store a private key in a Google Doc file.
Please note that some desktop wallet apps store your private key in a standard directory on your hard drive. This place is a honeypot for hackers who know you are a cryptocurrency user. That’s why it’s extremely important to have up-to-date anti-virus software installed on your device.
https://preview.redd.it/bg2zd50aveu41.png?width=723&format=png&auto=webp&s=0e692f5c73c7c68ea854342b7fbeaf6aaa62f71f
Also, you may encrypt this wallet file to make it immune to malware. Many wallet apps provide this option. You will have to set a password to decrypt the private key, and the hacker will have to break this password to do it. If the password is strong, it will be a really difficult and time-consuming task.

Where To Store Private Keys: Mobile, Desktop And Hardware Wallets

As we have mentioned, the Bitcoin network does not store these keys. Instead, wallet services do it.

Mobile Wallets

Some of them allow you to keep and protect your private key, others do it automatically, applying various safety measures like 2FA or encryption. Note that nobody is responsible for it, your bitcoins will be gone if the service is hacked.

Desktop Wallets

Desktop wallets may be a good option. They provide a BTC public and private keys in the format of a file that you can download and import. You can protect this file with a strong password and safely store it on a hard drive. Don’t forget about safe storage for this drive, too. For instance, use a bank vault for this purpose.

Cold (Hardware) Wallets

Hardware wallets are the safest ones. They are small USB devices designed to store your funds and private keys offline, away from anyone who could steal them. For this very reason, hardware (or cold) wallets are impossible to hack. If you accidentally lose, damage or destroy such a device, you can recover your BTC and private keys using a backup phrase. The best-selling models of hardware wallets are Tresor and Ledger Nano S, supporting several popular coins.

https://preview.redd.it/7wlozgvcveu41.png?width=803&format=png&auto=webp&s=9c438a47a47f6bb2ba5dbd4fdfba924e8c960f47

Paper Wallets

These wallets are sheets of paper with BTC private keys and public address printed on them. Paper wallets look pretty basic and not very innovational, but it’s a safe way to store your BTC-related sensitive data. The main reason is that they are not connected to the Internet and thus are unreachable for malware attacks. This format is also immune to many mishaps that can affect electronic devices. To create a paper wallet you use a special web service like WalletGenerator.

P.S. Check out our blog if you are interested in more articles on crypto and finance
submitted by EX-SCUDO to btc [link] [comments]

What Is Bitcoin Private Key: Beginner’s Guide

What Is Bitcoin Private Key: Beginner’s Guide
Most of the people in this sub probably already know what the Bitcoin private key is and how it works, but there are many newcomers who do not fully understand all the technical aspects of it. I hope you guys will find this guide useful.

Bitcoin Private Keys: The Basics

Let’s start with some main principles.
  • A private key is functionally similar to a password to your email account.
  • You need your private key to be able to receive the crypto someone sends you and to have access to your funds.
  • The BTC network does not store your private keys, they are generated and stored by the wallet software. There are different types of wallets.
Also, it is important to note that the private key concept does not apply exclusively to Bitcoin. Other cryptocurrencies use it too.
Now, let’s see how a private key looks and works.

Bitcoin Private Key Definition

Bitcoin private key is an alphanumeric piece of code. It includes letters and numbers, just like your public address.
However, while a public address is like your plastic card number, a private key is like your CVC. You know, those secret three digits on the back of a card?
A private address is created in a random manner when you get a cryptocurrency wallet. The possibility of creating two identical private keys is almost zero, due to the sophisticated encryption algorithm, we apply for the purpose.
In the BTC network, a private key contains 256 symbols, as we obtain it using the SHA256 encryption algorithm. This function always returns 256 symbols, no matter the input.
Bitcoin private key in various formats, including WIF.

Wallet Import Format (WIF)

Using such a long string of code is inconvenient, so a private key is often presented in WIF (Wallet Import Format). It’s a shortened version that includes only 51 characters (numbers from 0 to 9 and letters in the range of A-F) and begins with 5.
Here is a Bitcoin private key example in WIF:
5Kb8kLf9zgWQnogidDA76MzPL6TsZZY36hWXMssSzNydYXYB9KF
WIF has a few advantages over a full BTC private key version. As we have said, it’s shorter and more convenient to use. Also, it contains special pieces of code that serve to check the address for typos and correct them automatically.
WIF associates with only one private key and can be easily converted back into it, using an established algorithm.

Encrypting Private Keys

If a key looks like WIF but starts with 6, it is an encrypted version of a private key. People encrypt keys to ensure an extra layer of protection. To obtain such a string of code, we apply another algorithm. To decode (decrypt) the key we need to enter the password that we set when we were encrypting it.

How Bitcoin Private Key Works

You probably know Bitcoin as a digital payment system. To explain how it works, it would be better to compare it to a web-messenger, with massages transferring value. These ‘value messages’ are BTC transactions.
And what role a private key plays in sending these financial messages?
Let’s take a look at a real-life example.
https://preview.redd.it/lt1gwme8seu41.png?width=1261&format=png&auto=webp&s=87137c6ad2566affef82a6513090022f7dbb931e

Using Private And Public Keys For a Transaction

Imagine you are sending 1 BTC to your friend Bill. You create a transaction and indicate yourself as the sender and Bill as the receiver of this amount. Then, you will broadcast the transaction to make the Bitcoin network aware of it.
  1. You start by choosing a private key. Using a special encryption algorithm, you derive a public key from it. You send this public key to Bill.
  2. You create a message for Bill and sign it with your digital signature. To obtain it, you pass your private key through a special encryption algorithm and attach the resulting code to the message. Every signature is unique, and you can use the same private address to produce an infinite number of them.
  3. Bill receives your message, public key, and signature and passes it through a signature algorithm. If it’s the message you sent, the algorithm returns ok.
Why we need a digital signature in the first place? There are three reasons. First, it tells the recipient that the message is from the sender he knows. Second, a digital signature makes it impossible for the sender to deny he sent the message. Third, it confirms that no one has altered the message in transit.
Unlike a traditional signature, a digital one cannot be forged. To produce it, you have to possess a secret private key.

https://preview.redd.it/8ta8ds3jseu41.png?width=624&format=png&auto=webp&s=79186fecbe58ecd8a393f644ad35e590361fbe86

Why Keeping Your Private Key Secret Is Important

As we have mentioned, anyone in possession of your private key can steal your funds anytime.
If your wicked colleague Alice gets your private key (because you carelessly left your paper wallet on your desk), she can use it to create a digital signature. She can then use that signature to sign a transaction that will look like yours for the network. For instance, Alice can send all your crypto to another address. You will never be able to cancel this transaction and you are highly unlikely to know that she made it.
For this reason, you should be very careful with your private keys. Never send it to anyone using a messenger, or an email client, or a social media channel. Don’t share photographs of your private key. Never store a private key in a Google Doc file.
Please note that some desktop wallet apps store your private key in a standard directory on your hard drive. This place is a honeypot for hackers who know you are a cryptocurrency user. That’s why it’s extremely important to have up-to-date anti-virus software installed on your device.
https://preview.redd.it/187j0ucmseu41.png?width=723&format=png&auto=webp&s=c9bccdd66ffabde2e623846c7e95930d5e62a625
Also, you may encrypt this wallet file to make it immune to malware. Many wallet apps provide this option. You will have to set a password to decrypt the private key, and the hacker will have to break this password to do it. If the password is strong, it will be a really difficult and time-consuming task.

Where To Store Private Keys: Mobile, Desktop And Hardware Wallets

As we have mentioned, the Bitcoin network does not store these keys. Instead, wallet services do it.

Mobile Wallets

Some of them allow you to keep and protect your private key, others do it automatically, applying various safety measures like 2FA or encryption. Note that nobody is responsible for it, your bitcoins will be gone if the service is hacked.

Desktop Wallets

Desktop wallets may be a good option. They provide a BTC public and private keys in the format of a file that you can download and import. You can protect this file with a strong password and safely store it on a hard drive. Don’t forget about safe storage for this drive, too. For instance, use a bank vault for this purpose.

Cold (Hardware) Wallets

Hardware wallets are the safest ones. They are small USB devices designed to store your funds and private keys offline, away from anyone who could steal them. For this very reason, hardware (or cold) wallets are impossible to hack. If you accidentally lose, damage or destroy such a device, you can recover your BTC and private keys using a backup phrase. The best-selling models of hardware wallets are Tresor and Ledger Nano S, supporting several popular coins.

https://preview.redd.it/jmpyl3yoseu41.png?width=803&format=png&auto=webp&s=ef70101a853eaaedea8d0fb5d2d1690cce16c989

Paper Wallets

These wallets are sheets of paper with BTC private keys and public address printed on them. Paper wallets look pretty basic and not very innovational, but it’s a safe way to store your BTC-related sensitive data. The main reason is that they are not connected to the Internet and thus are unreachable for malware attacks. This format is also immune to many mishaps that can affect electronic devices. To create a paper wallet you use a special web service like WalletGenerator.

P.S. Check out our blog if you are interested in more articles on crypto and finance
submitted by EX-SCUDO to Bitcoin [link] [comments]

Bitcoin. 5 wichtige Sicherheits-Tipps

Lebensversicherung, Autoversicherung, Brandschutzversicherung usw. In nahezu jedem Lebensbereich beschäftigen wir uns mit dem Thema Absicherung. Damit eine Versicherung erst gar nicht zum tragen kommen muss, solltest Du Dich aber vorallem auch mit der Vorbeugung befassen. Dies trifft so in der realen wie auch in der digitalen Welt zu. Im heutigen Artikel gebe ich Dir 5 wichtige Tipps zur Hand wie Du Deine Bitcoins vor externen Zugriffen, Diebstahl und Hackern absichern kannst. Es gibt eine Unmenge an skurrilen Geschichten über Bitcoin/Datenverluste. So sucht beispielsweise ein britischer Informatiker seine aus Versehen auf dem Müll entsorgte Festplatte, auf der angeblich Bitcoins im Wert von 81 Millionen gespeichert sind. Fakt ist, dass durch Datenverluste rund ein Viertel aller sich im Umlauf befindlichen Bitcoins verloren gegangen sind. Laut einer Studie von Chainalysis liegt die Zahl nahezu bei 4 Millionen.
Besser doppelt gesichert Um Bitcoins zu erhalten, oder mit ihnen bezahlen zu können, benötigt man eine sogenannte “Wallet”, eine Art digitalen Geldbeutel, in dem die Schlüssel für den virtuellen Bitcoin-Tresor verwahrt werden. Wallets gibt es als Desktop-, Mobile-, Online-, Hardware- und Paper-Variante. Alle Lösungen werden von den Anbietern als sicher angepriesen. Aber alles, was digital läuft, ist prinzipiell ein Angriffsziel für Datendiebstahl. Ich halte Hardware-Wallets – oder auch Ledger genannt – für die sicherste Variante. Dabei werden die Daten elektronisch auf einem speziellen USB-Stick verschlüsselt gespeichert. Wer von diesen noch eine Sicherheitskopie an einem anderen Ort deponiert, ist auf der absolut sicheren Seite. Ebenfalls ziemlich sicher sind Paper-Wallets, die das Beste aus allen Welten vereinen: Papier aus der analogen sowie QR-Codes aus der digitalen Welt.
Hackern gezielt das Handwerk legen Das A und O, um seine Daten vor Hackerangriffen zu schützen, ist ein sicheres Netzwerk. Hierbei gilt der einfache Grundsatz: Die neuste Methode ist meistens die sicherste. Ein Virenschutzprogramm sowie eine Firewall erhöhen die Hürden für „ungebetene Gäste“. Die beste Sicherheitsarchitektur nützt nichts, wenn sie nicht von einem kompetenten Administrator aufgesetzt und kontinuierlich gepflegt wird. Die größten Gefahren lauern im ganz normalen Berufsalltag. Unaufmerksamkeit ist der häufigste Grund für böse Überraschungen. Deshalb bitte niemals Anhänge oder USB-Sticks von unbekannten Absendern öffnen.
Keine Chance für Passwort-Knacker Das Wallet-Passwort ist ein weiterer Baustein in der Bitcoin-Architektur. Denn wer sein Passwort verliert oder vergisst, hat automatisch alle seine Bitcoins verloren. Das Passwort sollte aus mindestens zwanzig Zeichen bestehen. Wer Angreifern ihre kriminelle Arbeit richtig schwer machen möchte, wählt einen noch längeren Code. Wem die Phantasie fehlt, nutzt einen kostenlosen Passwort-Generator, der automatisch ein sicheres Passwort erzeugt. Viele machen den Kardinalfehler, zwar ihre Daten durch Passwörter zu schützen, aber nicht das Passwort selbst. Eine empfehlenswerte Lösung zur sicheren Passwortverwaltung ist der Pleasant Password Server.
5 Bitcoin Sicherheits-Tipps 1. Verwende am besten ein Offline-Wallet Speichere Deine Bitcoins in einer digitalen Geldbörse, die nicht ständig mit dem Internet verbunden ist. Nutz das Wallet nur dann online, wenn Du auch wirklich Transaktionen durchführen. Eine ständige Computer- oder Smartphone-Verbindung mit dem Internet auf denen ein Wallet vorhanden ist, steigert unnötig die Gefahr eines Datendiebstahls. 2. Mach Dir immer eine Sicherheitskopie Deiner Bitcoin-Wallet Um Dein digitales Geld zu schützen, solltest Du ein verschlüsseltes Backup Deiner Wallet-Datei machen. Dabei muss das physikalische Backup an einem sicheren Ort verwahrt werden. 3. Verschlüssle Dein Offline-Backup Verschlüssle Dein physikalisches Backup-Medium. Im Falle eines Verlorengehens oder Diebstahls sind die schutzbedürftigen wertvollen Daten Dritten nicht einfach zugänglich. Beachte aber, dass Du Dich nicht selbst aussperrst. Aus diesem Grunde solltest Du wenigstens die Verschlüsselungs-Keys separat an einem anderen Ort speichern, um im Fall der späteren Rücksicherung eines Backups auch Zugriff auf die Daten zu bekommen. 4. Verwende keine Cloud-Wallets Wie auch bei normalem Geld – sei es Bargeld oder Beträge auf dem Konto – Kriminelle könnten versuchen auf Ihr Geld zuzugreifen. Wie auch bei „normaler“ Daten- und Computernutzung sollten Virenscanner und andere Sicherheitsprogramme auf den neuesten Stand sein. Bitcoin-Wallets in der Cloud zu nutzen, ist zwar bequem, aber schwer abzusichern. Die Handelsplattformen oder Wallet-Provider können jederzeit gehackt werden. Dieses Risiko können Sie zu keiner Zeit real einschätzen. 5. Verschlüssle Deine mobile digitale Geldbörse Wenn Du Dein Bitcoin-Wallet auf einem tragbaren Gerät mitführst, sollte dieses immer verschlüsselt sein, damit andere Personen nicht darauf zugreifen können, wenn Du das Gerät verlierst.
https://followmikecee.wordpress.com/2018/02/01/bitcoin-5-wichtige-sicherheits-tipps/
submitted by followmikeCee to u/followmikeCee [link] [comments]

Trezor Model T - Hardware Wallet Walkthrough How to set up your Trezor wallet Trezor - Initial Setup & First Bitcoin Wallet Transactions TREZOR Initial Setup - Best Hardware Wallet for Bitcoin, Ethereum, Zcash, Dash, + Litecoin Trezor Hardware Wallet

Trezor Model T Trezor Model T is a next-generation hardware wallet, designed with the benefits of the original Trezor in mind, combined with a modern and intuitive interface for improved user experience and security. It features a touchscreen, faster processor, as well as all the features of the Trezor One. The “TREZOR one” (formerly known just as “TREZOR”) is the oldest hardware wallet on the market and probably the most reputable one as well. The Trezor One has a nice, simple design, a very easy to understand user interface and it supports a wide array of cryptocurrencies including Bitcoin , Bitcoin Cash , Bitcoin Gold, Zcash, Dash TREZOR is a Bitcoin hardware wallet and launched in August 2014. It was the first Bitcoin hardware wallet, offering secure cold storage plus the ability to spend with the convenience of a hot wallet. TREZOR is a small, key-sized device which connects to your computer with a USB cable. It stores your Bitcoin and cryptocurrency private keys Please make sure the hologram seal on your device is authentic. If the hologram seal is missing or looks differently from the one in the video above, contact immediately our support.When we receive the information, we will analyze it and will get back to you. Trezor One Wallet Review – 7 Things You Need To Know(2020) by Kyrian Chidiebere. Tweet Pin LinkedIn Email. Today I will give you a complete review of the Trezor One, recognized as the first Bitcoin hardware wallet.

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Trezor Model T - Hardware Wallet Walkthrough

In this video I go through the process of setting up the Trezor for the first time and sending my first Bitcoins to and from the hardware wallet. In this video I share the whole process with you ... Devices like the Trezor give users a clean, relatively simple way to do this. This tutorial walks through basic setup, backup, sending and receiving transactions, wiping the device, and how to ... Got a new Trezor hardware wallet? Learn how to set up your Trezor wallet quickly and easily with Exodus. Manage and exchange your Trezor held crypto in the most secure way. Trezor Model T and ... How to setup your TREZOR Hardware Wallet for storing your Bitcoin / BTC Ethereum / ETH ERC-20 (all ether tokens) Zcash / Zec Litecoin / LTC Ethereum Classic / ETC and Dash Buy Trezor ... A TREZOR tutorial or beginners to the Bitcoin payment network. Bitcoin 101 - Getting Your BTCs out of Your Paper Wallets & Cold Storage - Fun with Sloppy Wallets - Duration: 10:54. CRI 80,373 views

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