Proof of Key: Become the master of your Bitcoin

the 3. January is not only the tenth birthday of Bitcoins, but also at the same time, the Proof-of-Key-to-day. So: the day of each Bitcoin should gain user control over his Private Keys. How is that possible?

By Alex Roos
3. January 2019TeilenFacebookTwitterLinkedInxingemail

A Wallet for digital currencies such as Bitcoin, Litecoin, Ethereum, Ripple & co. shall have custody of the private keys or Private Keys. With the Private Key currencies access to its respective Crypto. Who has no Private Keys, has – technically speaking – no crypto-currencies. Therefore, dealing with Wallets is essential for the use of digital currencies. That is why you should deal with the issue. With this Tutorial you can find out which Wallet should you choose and what you Wallets need to pay attention to. There are different types of Wallets, depending on the application, advantages and disadvantages.

the Following options for the storage of digital currencies, they offer the user:

Desktop wallet, mobile wallet, online wallet, hardware wallet and paper Wallet

Strictly speaking, it does not store any Bitcoin, but the digital keys (keys), with access to a public Bitcoin address, and a transaction can allow. The program that manages his keys, Wallet. In the process, shown in five different categories Bitcoin Wallets as above.

Desktop Wallet

anyone Who has installed the original Bitcoin client (Bitcoin Core Wallet) that has already been used a Wallet – perhaps without knowing it. In addition to the forwarding of transactions in the network, the Software can generate a Bitcoin address to receive Bitcoin, and to send, as well as the associated Keys to be kept.

The Bitcoin Core Wallet is a high-tech Wallet that includes all of the features. However, many users feel the complexity slain. There are a Plethora of alternative Desktop Wallets that offer different Features.

Electrum is a lightweight Wallet that runs under all popular operating systems (Windows, Mac OS X, and Linux). For most application cases, Electrum is enough. The advantage here is that the user need not download the whole Blockchain and so space saving. Electrum can also be used in combination with a Hardware Wallet (more on that later).The functions of the Open Source Desktop Wallet Armory. It is especially recommended for experienced Bitcoin power users. The focus at the Armory is in addition to the many functions on the security. the

advantages:

many of the functions (ability to a Full Node, user-defined transaction fees)supported SegWit addresses

cons:

not entry level security risk darnicht-friendly spot virus-infected computer for the purchase in the Store Mobile Wallet (beginners friendly)

Desktop Wallets are very impractical when it comes to pay in Shops or on the road with Bitcoin. Here are the mobile Wallets will come into play. Mobile Wallets are installed as an App on the Smartphone, and keep the private key directly on the mobile device. Thus, can be received with the mobile phone in a matter of seconds for Bitcoins and shipped.

Some mobile Bitcoin Wallets even support the Near Field Communication (NFC) technology. In this case, the Smartphone must be held to the Terminal and there is no need for scanned QR-Codes or Bitcoin address. Many Mobile Wallets support multiple crypto currencies. Therefore, the talk here is also of Multi-Coin Wallets. The Mobile Wallet should be secured by a strong password.

Our recommendations for iOS and Android are:

bread wallet is a straightforward, open-source Multi-Coin Wallet. It supports Bitcoin Ethereum, Bitcoin, Cash, and a number of ERC20-Token.MyCelium is a classic for Bitcoin users. The Wallet is exclusively for Bitcoin. Within the App you can set up as many accounts (receiving addresses). In addition, MyCelium in combination with Hardware Wallets like the Ledger and Trezor.Jaxx is also a well-established Multi-Coin Wallet. It supports Bitcoin, Bitcoin, Cash, Ethereum, Ethereum Classic, Zcash, Augur, and Dash.

A property of all mobile Wallets, however, have this in common: they are clients, are not full-fledged Bitcoin, because you would have to download the ever-growing and is now several gigabytes large Blockchain. This would probably blow up the data volume of many mobile phone users and the market is therefore not suitable. Therefore, all of the mobile Wallets use almost all of the Simplified Payment Verification (SPV), which loads only a small part of the Blockchain, which will be sufficient for a secure transaction entirely.

The Mobile Wallet can be considered as a wallet. We do not carry the whole of the assets in the Trouser pocket.

advantages:

simple operation-support of many popular crypto-currency mobile use

cons:

some risk with large sums of money (cell phone might be lost/stolen)almost always online (Hot Wallet)

warning:

Mobile Wallets of the "free wallet" should be avoided. Free wallet is, in fact, noticed a number of times for fraud.

Online Wallet

Web-based Wallets store the private keys online on a Server managed by an external party. A great advantage of Online Wallets is its availability. It just requires an Internet access on a mobile device. A disadvantage of Online Wallets, however, is that the Keys of the external companies are managed. Accordingly, the user can check whether the Server of the provider are adequately secured. In addition, the external provider has in theory full control of the Bitcoin holdings of the user. The availability costs security, large amounts should not be on an Online Wallet is stored.

Coinbase is a global Bitcoin exchange and a Bitcoin Wallet at the same time. Users from the USA and Europe can buy Bitcoin and store it. Circle offers its users the opportunity to buy the world of Bitcoin and to keep. In the US, users can connect their Bank account to purchase Bitcoin directly with the platform. Users from Europe can buy Bitcoin with credit card. In other words, each Exchange is already an Online Wallet.

advantages:

from anywhere with Internet access, accessible, intuitive to use with the Login process and password < / h3> disadvantage: Lack of security, as a third party, the Private key controlled Hardware Wallet

Hardware Wallets offer the possibility to store the private keys electronically and to make payments. They are considered to be one of the first variants to digital currencies to be kept.

The special feature of Hardware Wallets is that the Private Keys never touch the Computer or the phone. That means that even if the Computer is infected by a Virus, has currencies of the attacker not have access to the Crypto to the Hardware Wallet.

Ledger

The Ledger Nano-S

The Ledger Nano-S is one of the most popular Hardware Wallets. He supports a variety of digital currencies, including Bitcoin, Litecoin, Ether, Ripple, Dash, NEO, etc.

the Ledger is taking good care of the customers and also provides its own Wallet Software. As mentioned above, the Ledger can be used, however, other Wallets, such as MyCelium and Electrum.

Trezor

The Trezor One

The Trezor One is the common Alternative to Ledger. The development team puts a lot of value on transparency and security. The Wallet is supported in General on the Website of the Trezor.

ARCHOS Safe-T Mini

The ARCHOS Safe-T Mini is a cheaper Hardware Wallet, the Bitcoin, Bitcoin, Cash, Litecoin, Ethereum, Dash and many ERC20-Token support. Is operated, the Safe-T mini via Electrum.

The ARCHOS Safe-T mini

Opendime

Who would like to spend even less money, you can purchase a Opendime USB-Stick. Opendime places value on security and simplicity. The Stick can save only Bitcoin.

advantage:

high level of security, since Private Keys of the Hardware Wallet are never

disadvantage:

cost Paper Wallet

The best methods for the safe storage of Bitcoin Paper Wallets. A Paper Wallet is a piece of paper is recorded on, for example, a Seed Phrase. With this Seed Phrase Bitcoin addresses can also be restored.

All the aforementioned Wallet options have the ultimate in a Paper Wallet as a safety Backup. One should lose his cell phone or his Hardware Wallet, the Paper Wallet to recover everything. The Paper Wallet is therefore regarded as the final key for each Wallet and must be kept in a safe place.

anyone Who wants to create a Paper Wallet, you can either use Electrum or the application of BitAddress.org on his Computer running. Paper Wallets and Seed Phrases should never be created online. Therefore, it is recommended download the ZIP, and locally in the Browser.

Just for the HODLn Paper Wallets. Who makes more a transaction-oriented to the Desktop, and Mobile Wallets.

if you Want to be on the safe side, you should generate the Seed Phrase completely offline. For the following process (two USB-Sticks are required):

save the ZIP from BitAddress.org on a USB-Stick.A Live Distribution of Linux (Ubuntu/Debian) to install on another USB Stick.Start Linux from the USB Stick.Do not connect the Computer to the Internet, but run the ZIP from the first USB-Stick.Generating the Secret Key by using the Tools and write it on a sheet of paper.Send Bitcoin to the QR Code (Share) and keep the Paper Wallet safe. the

advantages:

high security through Offline and creating a simple storage ultimate recovery keys for a Wallet

cons:

transactions do not require very beginner-friendly, an additional Wallet application Bitcoin Wallets Are safe?

How to secure a Bitcoin Wallet is, depends on your type. Online Wallets are the most insecure, since a third party holds the Private Keys. The security of Desktop Wallets depends greatly on the security of the respective Desktops. The Computer is infected by a Virus, there is the risk that the Desktop Wallet is unsafe. Mobile Wallets are normally considered safer, because the operating systems are less prone to viruses.

Lord of the Private key

For which Alternative you decide, in your discretion and depends on your needs. There is no One-Size-Fits-All answer. The 3. January is the day of the Proof-of-Key. You can do this as the occasion of use, to familiarize you with the Wallet subject. If you got to this article any further questions about Wallets and their use, come in the BTC-ECHO Discord, Chat and post your question there.