Basic Security (Hot & Cold Wallets)
Basic Bitcoin (SV) Wallet Security is as simple as understanding basic Bank Account types: (A) a Checking Account, which holds funds you plan on spending, or just keeping quickly available; and (B) a Savings Account, which is more like Set-it-and-Forget it money.
The best way to get into BitcoinSV is with a Wallet App on your Smartphone. You can use most Wallet Apps as either a “Hot Wallet”, or as a “Cold Storage Wallet”.
HOT Wallets: Hot wallets are for spending (like a checking account). Most people just keep this on their primary smart phone. Like a checking account, you usually just keep necessary amounts on a Hot Wallet. Rockwallet.com is the Official Hot Wallet of the BitcoinSvIsComing campaign.
At the current low BSV price, all you really need to begin is a Hot Wallet. Let’s suppose you had 10-20 BSV (currently less than $1000) and the price of BSV went to $10,000. That would be $100,000 – $200,000, and you’d probably start feeling uncomfortable with that much ‘money’ on your phone. So you make a Cold Storage Wallet, and transfer the bulk of your funds to the Cold Wallet.
COLD STORAGE Wallets: These are your “Savings Account”. Satoshi Nakamoto (the Creator of Bitcoin) once said that one of the most secure ways to make a Cold Storage Wallet was simply to take a deactivated old Samsung phone that you don’t use, take out the SIM, load a copy of Centbee.com, transfer in funds, then shut the phone down and keep it turned off in a safe place. Whenever you want to transfer funds out of “Savings” and into your active Hot Wallet – pull it out, turn it on, connect via wireless, send funds, then turn it off and put it back. This is one of the safest, and simplest, Cold Wallet strategies there is. Again, don’t forget to write down your Mnemonic and follow the 4 K’s (see below).
We still believe Centbee.com still makes a fabulous Cold Storage Wallet. It also makes a good secondary Hot Wallet. Centbee.com is the Official “Cold Wallet” (and runnerup “Hot Wallet”) of the BitcoinSvIsComing campaign.
The “Security Protocol” for either of our recommended Wallets (Rockwallet.com, or Centbee.com) is called a Mnemonic. Mnemonics are 12 – 24 Word Combinations, written in order. Most Smart Phone App Wallets use 12 Word Mnemonics + a Pin. NEVER store your 12 Word Mnemonics electronically where hackers might be able to access the file!
Here are the 4 K’s of Mnemonic Security:
(A) Keep It Safe! (B) Keep It Private! (C) Keep A Backup! (D) Keep It On Paper!
Your 12 Word Mnemonic can restore your Wallet from anywhere, on any smart phone. If you lose your phone, you can get a new phone, and restore your wallet, and regain full access to your funds. If you lose your PIN, and have your 12 Word Mnemonic, you can just Reinstall & Restore your Wallet, and set a new PIN. The Pin can be changed. The PIN is specific to the installation on your specific phone. The PIN is just in case someone gets access to your phone (i.e. suppose you left it on, unlocked, and on the table) and send your BSV funds out to aother wallet. The PIN is also called a “Spending PIN” because you enter it to authorize a transaction.
Whenever you create a new Wallet – immediately follow the 4K’s regarding writing down and securing your Mnemonic, which are the most basic level of security needed to hold, store, use BitcoinSv. Good usage practices, such as holding the majority of your funds in a secure “Cold Wallet”, and only keeping reasonable amounts in your “Hot Wallet”, are the 2nd level of security. These are simple, common sense practices that are easy for everyone.
It may be a good idea when starting out, to install a copy of both Rockwallet.com and Centbee.com. You can then practice moving funds back and forth, and get familiar with the way wallets work. Later, you can get an Old, Used Phone (“OUP”) and restore your Centbee wallet on the OUP using the Mnemonic from your original Centbee install (Again – more practice). Then you can, if you wish, just delete the Centbee Wallet from your active, walking around phone. For those of you that are scared of this new technology, or nervous… playing around and practicing with your two wallets is a great way to get comfortable while keeping all the control “in your own hands” so to speak 🙂
It really is easy, and you will get used to it very quickly.