The CEO of the largest, most important and famous crypto exchange of all; Changpeng Zhao (CZ) and Binance, gives us a number of important tips to keep our crypto hodls active rather than safe.
Before, in the crypto verse the issue of security was seen as a secondary objective by companies that provide some type of service. But it is a matter of watching the news of years ago, and observing the amount of pirates that were generated day by day.
But, with the price of crypto rising, and crypto market increasingly full of life; and regulations, things could not go on as it was. And fortunately the number of hacks has decreased.
Therefore, here the advice given by the leader of Binance, Changpeng Zhao. If you missed the first part, you can read it here.
2- Do not lose them yourself
In the first episode on cryptocurrency.com we summarize what were the advice of the Binance CEO with the first point 1. Let others not rob you. So we recommend you take a look first at this content, and then quickly return to it.
Now, it touches another big point of the security problems that we could all find; not only new users; but all of us in general.
You could lose or damage at any time either your smartphone, or the hardware wallet we talked about in the last episode.
CZ: Make backup copies
The first advice that CZ gives us regarding this issue is that we make several backup copies. And for this there are almost infinite methods that have their own pros and cons.
But, basically what you are trying to achieve is that for each wallet there are multiple backups in different geographical locations which; intuitively, be encrypted and that no person can access them easily.
- Write the seeds on a sheet of paper: This is one of the best methods, because the most important thing is that it is offline; and it is also very easy to write 12 or 24 words in English.
- Be very careful with private keys: With this method CZ advises us to be very careful when writing down the keys. Well, it is very easy to make mistakes with capital letters, 0 and o. “It would be almost impossible to find out that something went wrong.”
Be careful when storing your Backups
Although it is one of the simplest, easiest and not at all expensive methods of storing our access codes, whatever they may be. They still have big problems; For example, who has not forgotten an ATM password, or an email, or forgotten where we leave the house keys.
Well, all these problems have not so expensive solutions. But, when we talk about cryptocurrencies, things change abruptly; and how easy and cheap it was to maintain our credentials; It can fade from one second to another.
The 3 main problems with these methods for the Binance CEO are the following
- Lost or thrown away Among other roles.
- Damaged: In a fire or flood.
- Easy to read by others: As these do not have any type of encryption, it is a matter of knowing what wallet you use for someone who is intentionally done with the possession of their hodls.
This is why crypto users who store large amounts of money in cryptocurrencies use the services of bank vaults to store their piece of paper with 12 or 24 words in English, or a username and password. But for CZ this is not a recommended option because we end up the same depending on the banks.
Another tip that Changpeng Zhao gives us is that for no reason we take a photograph of the paper or the screen of its seeds or private keys; let alone synchronize it to the cloud. Well then we would return to the first episode of this series a bit disturbing.
“If a hacker hacks your email account or your pc, you will find it easily. In addition, the cloud provider can have multiple copies stored in different places and have employees who can see them. ”
CZ: So what should we do?
For the ringleader behind Binance one of the best options is to carve the seeds on stainless metal labels. These are supposed to be almost indestructible, they cannot be damaged by fire or water.
Although this solves these problems, it does not solve those that are easy to read. Again, some people store them in bank vaults, usually along with their gold or other metal. If you use this approach, you must understand its limitations and risks.
The approach I recommend is to use some USB sticks, but it requires a bit more technical participation.
Express Changpeng Zhao.
There are USB flash drives resistant to shock / water / fire / magnetic. You can store encrypted versions of your private key backup on several of these USB sticks and store them in multiple locations, be they friends or family. And you can also encrypt it at your discretion.
For that, there are many tools in the market, which have evolved over time. For the Binance CEO, CZ VeraCrypt is a noobie level tool that provides a decent level of encryption for most of us.
Economics student of the UCV. Defender of individual freedoms and of course also of the market and cryptocurrencies.