Best Practices When Handling Cryptocurrency
The great thing about Bitcoin and Cryptocurrencies is that YOU are in charge of YOUR money - with great power comes great responsibility. With that in mind, the below are only recommendations; not rules. Figure out what works for you, as you are your own keeper!
Please remember that when you use Bitcoin or other Cryptocurrencies, your Private Keys (and the Seed Words which create them) ARE the money. Whoever has them, controls them just like they could with cash in their physical wallet. Use the below best practices to help keep your Cryptocurrencies safe.
- Do not allow anyone you do not trust to see your Private Keys or Seeds.
- Do not store your unencrypted Private Key or seeds on an internet connected device.
- If you are storing cryptos on your phone (typically called a “Hot Wallet”), only store as much as you will use over the next brief period (a few days max). Hot Wallets should only be used to store small amounts. A good rule of thumb is to never keep more than 1 paycheck worth of value on a Hot Wallet. If you own more than this, we recommend you invest in a hardware wallet like a Ledger Nano S or a Trezor.
- The Socrates Rule: Realize that you are probably the greatest threat to your cryptos, so while we encourage you to be as paranoid as possible, remember Socrates’ advice, “Know Thyself”. Don’t create a system so secure that you lock yourself out of your own money.
- If using your Billfodl to store Seed Words for a Hardware wallet, we recommend, whenever possible (and acknowledging the Socrates Rule above), using a passphrase (sometimes called a “25th word”) so that if someone finds your Billfodl, you still have some protection. This can be done on most hardware wallets. Click on the links below to go to the “how to” for your wallet:
- If using your Billfodl to store a Private key, we recommend that you create your private key using a cold wallet generator like this one. We have used this product before. The ease of use and quality instructions make this our choice for offline paper wallet creation.