Category Archive : Bitcoin

How to Hide Your Bitcoin – Opsec, Anonymity, Cold Storage, Brainwallet, Dexes and Non-Custodials

How to Hide Your Bitcoin (Opsec, Anonymity, Cold Storage, Brainwallet, Dexes and Non-Custodials)

In an era of increasing economic uncertainty, surveillance, specialized cybercrime and hacking, knowing how to hide bitcoin safely has become a paramount concern for crypto holders. Whether it’s by way of taking wise opsec measures, utilizing noncustodial tools, leveraging a DEX, or even storing seed phrases in your brain, there’s no shortage of measures that can be taken to protect your stash. This article seeks to detail some of the best ways anyone can use to ensure their coins remain safe from bad actors.

Also read: Get Ready for the Bitcoin Halving – Here Are 9 Countdown Clocks You Can Monitor

Safekeeping for Sats

A “satoshi” is the smallest unit of bitcoin, and when it comes to the popular cryptocurrency, keeping one’s stash safe down to the last sat is important. For those new to the space — and perhaps even for more experienced hodlers who’ve overlooked certain security precautions and tips — what follows is a list of ways to ensure your stack of satoshis remains in good hands: your own.

Opsec Best Practices

Opsec, or operational security, is highly important when securing crypto holdings. It’s not sufficient just to have any old two-factor authentication (2FA), for example, as some variants of the measure like SMS-enabled 2FA can still leave easy attack vectors. SIM jacking is one example of this, and all that’s required is an overly cooperative and friendly customer service worker at a cellular provider.

When it comes to hacks like SIM jacking, where an attacker swaps your device data to a new SIM card by way of social engineering, phone number 2FA won’t help, and gives an infiltrator keys to whatever account is secured by that means. Instead, using a 2FA app such as Google Authenticator — and not a phone number, is a better bet. Be sure to disable SMS 2FA on sensitive accounts — especially crypto exchanges — and switch to a more secure option. When a phone number can serve as a key to your crypto safe, hiding bitcoins behind such info is a bad idea.

How to Hide Your Bitcoin - Opsec, Anonymity, Cold Storage, Brainwallet, Dexes and Non-Custodials
Axl Rose may be your favorite frontman, but using his name for a password over and over is not advisable.

For account passwords, usernames, pseudonyms, and other such information used for accounts, be sure to use unique and secure choices. Though you may be a huge Guns n’ Roses fan, having “Axl6969” as a password for everything probably isn’t a good idea. Trusted and verified password managers can make maintaining even a long list of unique and strong passwords fairy easy, and quality services allow users to keep their master password stored locally, and not on any central server.

Anonymity and Social Awareness

Where anonymity is concerned, be sure all records, memos, or other account information which might tie your real identity to accounts and usernames are encrypted. Phone numbers should not be given out publicly, and a secure virtual number service can be used to route public calls to your personal device. The more you secure sensitive information, the less likely it is a bad actor or social hacker will be able to connect the dots and gain access to your bitcoins.

Further, simply knowing when to keep quiet is a great tool for keeping bitcoins secure. As mentioned above, sharing a phone number publicly is not a good idea. Nor is exclaiming to the whole bar on karaoke night that you just made huge gains on Binance and are buying everyone a round. The more people know about your holdings, the more potential interest can be piqued in malicious actors who seek to gain as much info as possible to access accounts. This type of openness can even endanger personal safety, as one of the quickest ways to get to someone’s device for criminals may just be to steal it.

Cold Storage

Cold storage refers to storing bitcoins and their private keys offline for greater security. With private keys never being exposed to the internet, the security levels of cold storage options can be significantly higher than other avenues. Examples include hardware wallets such as Trezor and Ledger, which allow funds to be spent without private keys leaving the device, paper wallets created offline, and even more extreme options like fireproof seed phrase capsules. Perhaps most James-Bond-like of all the choices is storing a wallet in something hopefully not cold, but undeniably secure: your own mind.

How to Hide Your Bitcoin - Opsec, Anonymity, Cold Storage, Brainwallet, Dexes and Non-Custodials

Known as a “brainwallet,” storing a bitcoin seed phrase in your brain is definitely secure, as long as you don’t forget it or get mixed up. Using a mnemonic device such as a colorful, vivid story, particularly sharp bitcoiners can retain a 12-word seed phrase entirely in their heads. As with all such measures though, there’s a trade off. If you’ve got to run from a bad actor or flee the country and can’t take anything with you, this option is undeniably appealing. But beware: once forgotten, no customer service group on the planet is going to be able to help you retrieve the lost mental bitcoins.

Leveraging DEXs, Noncustodial Options

While popular centralized exchanges like Coinbase, Binance and Kraken can make getting into bitcoin easy, and even storing it for day-to-day transactions, it is never advisable to leave bitcoins sitting around online when not trading. Exchanges have been hacked multiple times, are subject to governmental regulation and technical difficulties, and as such are not secure for stashing sats. Once such an exchange is shut down, hacked, or frozen, so is your money.

How to Hide Your Bitcoin - Opsec, Anonymity, Cold Storage, Brainwallet, Dexes and Non-Custodials
Custodial exchanges and wallets are commons ways many users find significant amounts of bitcoin lost to the sands of time and chance.

Better options include decentralized exchanges (DEXs) with open source code and where software and network data is stored locally. Also, such networks allow for greater anonymity with minimal to no registration requirements, and can afford features such as encrypted chats for P2P trade and blind escrow. The Bisq network is one example of such an exchange. Local.bitcoin.com, another, is a peer-to-peer bitcoin cash marketplace where users need only to enter an email to trade BCH privately for a variety of traditional assets.

Where crypto wallets are concerned, noncustodial options (wallets where the private keys are solely in the user’s possession and are not centrally stored) are always best, as a seed phrase can restore the wallet if an accident happens or a device is lost. When it comes to custodial wallets, however, once the provider is compromised, so is the user. Always be sure to verify any wallet you are using is noncustodial, as the whole point of bitcoin is for you — and nobody else — to be in control of your money.

How to Hide Your Bitcoin - Opsec, Anonymity, Cold Storage, Brainwallet, Dexes and Non-Custodials

The Less Trust, the Better

Trust between humans can be a beautiful thing, but when it comes to stashing bitcoins, the less trust, the better. Satoshi himself cited this as the central issue concerning traditional financial systems. The Bitcoin creator noted “the inherent weaknesses of the trust based model” in the Bitcoin whitepaper, and developed the cryptocurrency in answer to these challenges.

When hiding your bitcoins, then, it’s always paramount to remember the reason for the asset in the first place: so you don’t have to trust any central entity to keep your money safe. At the end of the day things like customer service laziness at AT&T, human forgetfulness, and having to trust certain tools or developers may always be an issue, but the closer we can get the trust level to zero, the better.

How do you recommend hiding and securing your bitcoins? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Images courtesy of Shutterstock, A.PAES, fair use.


Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The Local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

The post How to Hide Your Bitcoin – Opsec, Anonymity, Cold Storage, Brainwallet, Dexes and Non-Custodials appeared first on Bitcoin News.

Lightning Solves Bitcoin’s Speed Problem, But Watch Out for Fraudsters

Lightning-based fiat-bitcoin systems could popularize crypto payments, as long as fraud and bitcoin’s non-reversibility don’t get in the way.

China Adopts Security Standards for Blockchain Applications in the Financial Sector

China Adopts Security Standards for Blockchain Applications in the Financial Sector

Keeping the focus on blockchain development, banking authorities in China have issued a set of rules pertaining to the secure application of crypto-related technologies in the financial sphere. The new standards, the first of this kind, are to guide the work of developers and service providers operating in the industry.

Also read: China Issues Digital Currency Guide for Party Cadres

Central Bank of China Issues DLT Security Specification

The Financial Distributed Ledger Technology Security Specification (JR/T 0184—2020) comes as a result of joint efforts between major banks such as Industrial and Commercial Bank of China, Agricultural Bank of China, and Bank of China, under the guidance of the People’s Bank of China (PBOC). The main purpose of the document issued earlier in February is to standardize the deployment of blockchain technology in the financial field, Chinese crypto news outlet 8btc reported.

With the new regulation, the central bank of China puts an emphasis on improving information security of distributed ledger technology (DLT) applications. Organizations engaged in the development of blockchain systems for the financial sector as well as various service providers that are using DLT-based solutions are expected to comply with the standards in their activities.

China Adopts Security Standards for Blockchain Applications in the Financial Sector
People’s Bank of China

The 35-page instruction paper demands the implementation of secure financial DLT technologies and addresses various aspects of such systems like basic hardware and software, cryptographic algorithms, consensus protocols, communication between nodes, smart contracts, operational and maintenance requirements. The document also deals with matters related to identity management, privacy protection, compliance support, and governance mechanisms.

On the central government level, China turned its attention to blockchain last year when the General Secretary of the Communist Party Xi Jinping stated that the country should step up research in the emerging field. At a politburo meeting, the Chinese president insisted on speeding up development in the sector so that the People’s Republic could gain an edge, given the importance of DLT in the new round of technological innovation and industrial transformation.

Technical Committees Introduce Government Standards in Various Sectors

In November 2019, Beijing announced the establishment of technical committees tasked to introduce standardization in various fields, from baby products and sharing economy to photovoltaic systems. The standards drafted for each sphere will be used to coordinate government objectives across the country and throughout the entire economy. Approved and published regulations will be reviewed every five years.

A working group was created for the blockchain space, too. Chinese authorities believe that as many DLT initiatives originate from the financial and banking sector, standardization will facilitate deployment of new systems in accordance with established universal security requirements. Officials also want to ensure a “healthy development” of the industry producing and implementing blockchain solutions.

China Adopts Security Standards for Blockchain Applications in the Financial Sector

Over 37,000 blockchain businesses operate in China, according to the country’s company information portal Tianyancha.com. More than a third of these entities have been registered in the past year alone. China is also a leader by number of filed blockchain-related patent applications which reached almost 13,000 in October, or over 53% of the global total, shows data compiled by the World Intellectual Property Organization.

The PBOC is also working intensively to prepare the launch of a digital version of the national fiat and test the new Digital Currency Electronic Payment (DCEP) system with the help of four state-owned commercial banks and three leading telecom operators. The digital yuan is said to be partially based on blockchain technology but as news.Bitcoin.com reported recently, the Chinese central bank has filed 84 patents relating to the digital currency.

What do you think of China’s decision to adopt security standards for blockchain applications in the financial sector? Share your thoughts in the comments section below.


Images courtesy of Shutterstock.


Do you need to track down a Bitcoin transaction? With our Bitcoin Explorer tool, you can search by transaction ID, address, or block hash to find specific details, and for a look at the broader crypto space explore our Bitcoin Charts tool.

The post China Adopts Security Standards for Blockchain Applications in the Financial Sector appeared first on Bitcoin News.

Crypto Exchanges Need Common Messaging to Comply With Travel Rule

From ATMs to cargo containers, standards make global commerce work. The same goes for crypto, which needs standards to comply with anti-money laundering rules.

Flipstarter Reveals Eatbch and BCH Development Funding Goals – Blog Post Receives $2k in Tips

Flipstarter Reveals Eatbch and BCH Development Funding Goals - Blog Post Receives $2k in Tips

On Sunday, developers of the Flipstarter.cash project announced the start of private testing for the platform’s BCH assurance contracts and the team also revealed the first two funding projects. One of the first funding goals will be raising bitcoin cash for the nonprofit food charity Eatbch in Venezuela and South Sudan. Additionally, Flipstarter hopes to raise $500,000 toward BCH infrastructure development and suggested a list of six full node teams that could leverage the application.

Also Read: Voluntary Financing: Bitcoin Cash Devs Reveal Noncustodial Funding App Flipstarter

Flipstarter’s First Two Campaigns: Eatbch and Six BCH Full Node Teams

On February 18, news.Bitcoin.com reported on a voluntary financing application for Bitcoin Cash called Flipstarter. The platform aims to be a noncustodial funding application similar to Mike Hearn’s Lighthouse project. When Flipstarter developers revealed the creation they detailed that the system would leverage BCH assurance contracts via an Anyone-can-pay Sighash. The project announcement was welcomed by the community and some people believe Flipstarter could be the answer to the ongoing Infrastructure Funding Plan (IFP) debate.

#Flipstarter The path to public campaigns, a step closer every day!https://t.co/ej5iBrxYpg

— flipstartercash (@flipstartercash) February 24, 2020

Following the original announcement, Flipstarter published another read.cash blog post giving the public more details about the project’s initial goals. The first two goals will attempt to fund BCH infrastructure and the BCH community’s most popular charity Eatbch. Fund one’s campaign for Eatbch will start as a public beta as the developers have announced:

We have a lot of respect for the EatBCH volunteers in Venezuela and South Sudan. We would like to help them by funding one month of activities in both countries with the first Flipstarter campaign.

Flipstarter Reveals Eatbch and BCH Development Funding Goals – Blog Post Receives $2k in Tips

The other funding plan is to fuel the BCH ecosystem with an overall $500,000 target. “Target for funding is $500k in total by May 2 — It will be both meaningful and hard given the rough state of the user experience,” the Flipstarter devs explained. “Flipstarter will either be helping teams to run their own campaigns or supporting an existing social media platform to run a platform for campaigns. That will be the topic of another article. For now, we will be conservative and commit to supporting a narrow list of six full node teams to run campaigns. This is obviously an invitation with no requirement. The teams are free to participate or not and to set up whatever amount that they want,” the Flipstarter team added. Currently, the list of full node projects mentioned includes:

  • BCHD
  • Bitcoin ABC
  • Bitcoin Cash Node
  • Bitcoin Unlimited
  • Bitcoin Verde
  • Flowee

Flipstarter Reveals Eatbch and BCH Development Funding Goals – Blog Post Receives $2k in Tips

Flipstarter’s Read.cash Post Receives $2k in BCH Tips

Flipstarter’s creators say that the campaigns for the current list and ones going forward will need a decent proposal. The read.cash post got some positive comments from the community and one of the developers of the BCH Node, Freetrader, commented on the Flipstarter funding concept. “I’m sure the Bitcoin Cash Node project would like to use this — Let’s see how far we get,” Freetrader remarked.

Flipstarter Reveals Eatbch and BCH Development Funding Goals – Blog Post Receives $2k in Tips

Flipstarter’s programmers include a slew of BCH volunteers such as Imaginary Username, Emergent Reasons, Sploit, Leandro DiMarco, Jonathan Silverblood, and Dagur. Flipstarter developers are inviting people to join the project’s official Telegram channel if they are interested in learning about this new project. The team has also come up with a list of funding ideas like a full-time maintainer who needs funds, money for operational expenses like websites and servers, and financing ongoing maintenance.

The announcement about BCH infrastructure funding and financing for Eatbch also got $2,000 worth of BCH tips. The Flipstarter app will be a plugin for Electron Cash and the team’s developers have written a descriptive walkthrough on how it will work. “Target for completion is March 7,” the Flipstarter software developers revealed.

What do you think about the Flipstarter project for Bitcoin Cash? Do you think that a concept like this could bolster voluntary financing for the Bitcoin Cash commons? Let us know your opinion in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Image credits: Shutterstock, Flipstarter.cash, read.cash, Fair Use, Eatbch.org, and Pixabay.


Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

The post Flipstarter Reveals Eatbch and BCH Development Funding Goals – Blog Post Receives $2k in Tips appeared first on Bitcoin News.

Justin Sun Bought Steemit. Steem Moved to Limit His Power

The people who run the Steem blockchain executed a reversible soft fork Sunday, over concerns about Steemit’s new owner.

CoolBitX Raises $16.7M to Make Crypto More Bank-Friendly

In 2020, the startup’s focus is on new products and features that comply with new rules from the Financial Action Task Force.

Bitcoin Halving Will Drop Inflation Rate Lower Than Central Banks’ 2% Target Reference

When Satoshi Nakamoto invented Bitcoin, the creator designed the protocol to be an inflationary currency, one that is predictable as bitcoin’s inflation always decreases every four years. Today, 77 days before the reward halving, BTC’s inflation rate is around 3.6% and it’s expected to drop to 1.8% after the halving event. The cryptocurrency’s inflation rate will be lower than the average inflation target central banks reference worldwide at 2%. Unlike central banks, no one person or centralized entity can make adjustments to BTC’s monetary inflation rate.

Also Read: Get Ready for the Bitcoin Halving – Here Are 9 Countdown Clocks You Can Monitor

Bitcoin’s Inflation Rate Slid from 50% in 2011 to 3.8% in Q1 2020

Back in 2009, after the Bitcoin network launched, Satoshi explained in various emails that bitcoins were meant to be scarce. On July 9, 2010, Satoshi wrote: “When someone tries to buy all the world’s supply of a scarce asset, the more they buy the higher the price goes.” Bitcoin’s inventor also created a limited number of bitcoins that will ever be produced and a systematical and mathematical reward reduction every 210,000 blocks. Crypto enthusiasts call the block subsidy reduction a “halving,” as the block rewards are always cut in half. Today the active supply of BTC is around 3.6-3.8% and this is because analysts assume there is far less than the 18.2 million circulating supply of BTC. We know this is true because a great number of users have lost coins, and older wallets created years ago haven’t spent their BTC in over five years. Moreover, studies conclude that close to 11 million BTC has not moved in over a year. BTC’s active supply coupled with demand and the reward rate decreasing every four years developed a predictable economic system with an inflationary rate no one can control.

Bitcoin Halving Will Drop Inflation Rate Lower Than Central Banks' 2% Target Reference
Inflation rate for BTC on February 24, 2020, according to charts.Bitcoin.com.

In 2011, BTC’s inflation rate was between 30-50% and between 2011 and 2014 it dropped to 12%. After the halving in 2016, when the block reward was cut from 25 BTC to 12.5 BTC, the inflation rate kicked down to 5-4%. Today, throughout the month of February 2020, the BTC network’s inflation rate is between 3.59% and 3.86%. Interestingly, the inflation rate for Bitcoin Cash (BCH) is roughly the same at 3.71% on Feb. 24. This means that in 77 days BTC’s inflation will drop (BCH is 44 days) lower (1.8%) than the average central banks’ target inflation rate.

Bitcoin Halving Will Drop Inflation Rate Lower Than Central Banks' 2% Target Reference
Inflation rate for Bitcoin Cash (BCH) on February 24, 2020, according to charts.Bitcoin.com.

Most central banks like the Federal Reserve keep the inflation rate target around 2%, but there are a few lenient countries that reference rates as high as 4%. Central banks worldwide are known for manipulating inflation rates with the tendency to increase reference rates and print massive quantities of fiat reserves. Satoshi’s systematically and mathematically designed monetary inflation rate, however, cannot be changed unless the original rules of the system are broken.

Bitcoin Halving Will Drop Inflation Rate Lower Than Central Banks' 2% Target Reference
Central banks worldwide like the Federal Reserve tell the public the average inflation reference rate is around 2%. Although, some estimates indicate it could be as high as 10%.

A Drop Below the Central Banks’ Average Reference Rate Will Highlight a New Experiment

So far, during the last 11 years, the rules have not been broken and consensus remains strong around the 21 million capped supply. People believe that as BTC’s price gains more value, the purchasing power increases over time making it deflationary in that sense. Since BTC gained real-world value nine years ago, it has increased significantly over the last decade but we don’t know how long the trend will last. If BTC’s price continues to increase, the economics of the inflation rate coupled with ceteris paribus (outside conditions remain the same), it would provide a new system, unlike the world’s current monetary status. Those who participate in the economic crypto experiment may experience some different conditions than the ceteris paribus going forward. A number of crypto speculators believe it will be a positive outcome and the biggest wealth transfer the world has seen in decades. A slew of well known bitcoiners and crypto influencers truly believe this will happen.

“Within the next few decades, Millennials will become the wealthiest generation in history and banks should be worried, if they’re not already,” insists the BTC commentator and author Rhythm Trader. His November 2019 blog post added:

Millennials have started making a major shift towards the use of unconventional banking, with Bitcoin posed to be the beneficiary of the ‘Great Wealth Transfer’ of our time.

Bitcoin Halving Will Drop Inflation Rate Lower Than Central Banks' 2% Target Reference
Inflation rate for BTC on February 24, 2020, according to Woobull stats.

Even Though the Inflation Rate Is Predictable and Decreasing, to Skeptics Uncertainty Remains

People who believe in central planning and the current monetary system wholeheartedly disagree with Rhythm Trader’s optimism. For instance, in April 2013, the popular American author Matthew O’Brien wrote that BTC has a “massive deflationary bias” as some economists have always believed bitcoins will fall into a deflationary spiral. “Its money supply is mostly fixed, but the menu of things it can buy is growing. The same amount of money chasing more goods means money will be worth more. Or, put another way, prices will fall in Bitcoin terms. And that’s why it’s not a currency, and won’t be one until it has a central bank.” Although central banks claim 2% is the reference mark globally, shadowstats.com notes that the real rate could be as high as 10%.

Bitcoin Halving Will Drop Inflation Rate Lower Than Central Banks' 2% Target Reference
BTC inflation rate estimates as described by Murch on April 26, 2015.

Crypto proponents don’t know what will happen with the economics and market values after the halvings occur on the three SHA256 networks this spring. The best references that can be used are the rules of the network and the fact that unlike central banks, nobody decides what the inflation target for the upcoming years will be. Instead, the inflation rate and issuance of BTC is fairly predictable and can be easily charted. This spring, the world’s largest cryptocurrency by market valuation will have an inflation rate less than the central planners’ inflation rate and four years after that event, it will be considerably less. In fact, estimates show that BTC’s inflation rate will meander around 1.8% until the next halving and will likely be 1.1%. Estimates also show that through the year 2025 and the halving in 2026 BTC’s inflation rate will be as low as 0.4%.

What do you think about the BTC inflation rate after the halvings? What do you think about the inflation rate dropping below the central banks’ average of 2%? Let us know what you think about this topic in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Image credits: Shutterstock, Charts.Bitcoin.com, Murch on April 26, 2015, Woobull charts, Fair Use, Wiki Commons, Twitter, and Pixabay.


Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry.

The post Bitcoin Halving Will Drop Inflation Rate Lower Than Central Banks’ 2% Target Reference appeared first on Bitcoin News.

Secretive Digital Fiat Project Emerges With New Partner as CBDC Chatter Grows

Fnality, a high-profile digital fiat project backed by 14 big-name financial institutions, is teaming with the ConsenSys-backed Adhara.

Bitcoin’s Coronavirus Selloff Throws Cold Water on Safe-Haven Argument

As U.S. stocks tumbled on Monday by the most in six months amid renewed coronavirus fears, bitcoin barely budged – at least in terms of the notoriously volatile cryptocurrency’s trading history.


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