{"id":37119,"date":"2018-06-14T18:31:08","date_gmt":"2018-06-14T16:31:08","guid":{"rendered":"https:\/\/www.rudebaguette.com\/?p=37119"},"modified":"2018-06-14T18:31:08","modified_gmt":"2018-06-14T16:31:08","slug":"how-to-lose-your-bitcoins","status":"publish","type":"post","link":"https:\/\/www.rudebaguette.com\/en\/2018\/06\/how-to-lose-your-bitcoins\/","title":{"rendered":"How to lose your bitcoins"},"content":{"rendered":"
\n
\n

\"desperate<\/p>\n<\/div>\n<\/div>\n

\n
\u00a0<\/span><\/div>\n<\/div>\n
\n
Cryptocurrencies are the big deal. But there are many ways to lose your hard-earned bitcoins. <\/span>Knowing the most common ways to lose them may help you cling to your hard-earned crypto-treasures<\/span><\/span>.<\/span><\/div>\n<\/div>\n
\n
\u00a0<\/span><\/div>\n<\/div>\n
\n

Not your regular bank account<\/span><\/h2>\n<\/div>\n
\n
\u00a0<\/span><\/div>\n<\/div>\n
\n
To begin with, getting a hold of – and storing – bitcoins or other crypto-currencies is <\/span><\/span>slightly<\/span><\/span> more complicated than opening a bank account<\/span><\/span>. The ledger <\/span>is centralized<\/span><\/span> but not the storage. And this is where problems begin. No one is going to look after your bitcoins in a <\/span>highly<\/span><\/span> secure facility. You are responsible for storage.<\/span><\/div>\n<\/div>\n
\n
\u00a0<\/span><\/div>\n<\/div>\n
\n
There are many sorts of wallets out there and they all hand you a complicated string of digits and letters. This is <\/span>similar to<\/span><\/span> your account number. Here’s mine: 0xa5EA624Aa0dF352928d9dD8955D1a46BFaE77011. Nope, I didn’t lose my mind. It’s not the secret part, you can even send Ethereum there (warning: I won’t send it back). But you won’t be able to access the wallet and steal my coins unless you have the private key.<\/span><\/div>\n<\/div>\n
\n
\u00a0<\/span><\/div>\n<\/div>\n
\n

Losing the private key<\/span><\/h2>\n<\/div>\n
\n
\u00a0<\/span><\/div>\n<\/div>\n
\n
Whichever way you chose to store your coins, you need, at one stage or other, the private key to access the account.<\/span><\/div>\n<\/div>\n
\n
\u00a0<\/span><\/div>\n<\/div>\n
\n
In a bank, the key to open the safe is secure with the employees. Sometimes even out of the facility, for better security.<\/span><\/div>\n<\/div>\n
\n
\u00a0<\/span><\/div>\n<\/div>\n
\n
With crypto-currency, you hold that private key and how you get to lose your bitcoin depends on how uncaring you are with that key<\/span><\/span>.<\/span><\/div>\n<\/div>\n
\n
\u00a0<\/span><\/div>\n<\/div>\n
\n
You may write the key and lose the paper, store it online and <\/span>be hacked<\/span><\/span>, put it on a USB drive and misplace it. The end result is always the same: if you can’t access the account, the coins are safe… from you… forever.<\/span><\/div>\n<\/div>\n
\n
\u00a0<\/span><\/div>\n<\/div>\n
\n

Losing coins due to storage<\/span><\/h2>\n<\/div>\n
\n
\u00a0<\/span><\/div>\n<\/div>\n
\n

The cloud<\/span><\/h3>\n<\/div>\n
\n
\u00a0<\/span><\/div>\n<\/div>\n
\n
If you’re the hyper-connected, cloudy type, you keep your crypto-currency online. This may seem like the most efficient way to <\/span>easily<\/span><\/span> access the funds anywhere. Except that online wallets are prime targets for hackers. <\/span>Marketplaces, such as <\/span><\/span>Coinbase<\/span><\/a>, store your <\/span><\/span>newly<\/span><\/span> bought currencies but encourage you to withdraw them right after delivery<\/span><\/span>. Getting them offline is a lot safer… or is it?<\/span><\/div>\n<\/div>\n
\n
\u00a0<\/span><\/div>\n<\/div>\n
\n

The Hard Drive<\/span><\/h3>\n<\/div>\n
\n
\u00a0<\/span><\/div>\n<\/div>\n
\n
If danger comes from outside, then storing <\/span>locally<\/span><\/span>, on the disk drive, may be a viable answer. You should <\/span>just<\/span><\/span> make sure you don’t discard your hard drive once the computer <\/span>is outdated<\/span><\/span>. <\/span>This happened to <\/span><\/span>James Howells<\/span><\/a> who threw away (by mistake) an old hard drive containing 7500 Bitcoins<\/span><\/span>. Only worth about $130 at the time, the dumped treasure in now worth anywhere between $47,000,000 and $120,000,000.<\/span><\/div>\n<\/div>\n
\n
\u00a0<\/span><\/div>\n<\/div>\n
\n

The hardware wallets<\/span><\/h3>\n<\/div>\n
\n
\u00a0<\/span><\/div>\n<\/div>\n
\n
If going on a shopping spree with your hard drive feels cumbersome, get your hands on a hardware wallet like <\/span><\/span>Ledger<\/span><\/a>. It has the look and feel of a little USB drive and can host all sorts of coins and private keys. Once again, it is not human-error-proof. This Swiss citizen, walking around with his Ledger, <\/span>had his bag stolen<\/span><\/a>. You can’t say the funds are “stolen” (the thief can’t get them out of the account and they are still <\/span>safely<\/span><\/span> there). <\/span>However<\/span><\/span>, the owner can’t get to them either so they <\/span>are indeed<\/span><\/span> missing.<\/span><\/div>\n<\/div>\n
\n
\u00a0<\/span><\/div>\n<\/div>\n
\n
Another scam involving hardware wallet involves <\/span>buying them from unofficial outlets<\/span><\/a> (like eBay). <\/span>The packaging can <\/span><\/span>be tampered<\/span><\/span> with and the retrieval seed (meaningless succession of words that gives you access without the private key) compromised<\/span><\/span>. The coins are then available for transfer to the thief’s account.<\/span><\/div>\n<\/div>\n
\n
\u00a0<\/span><\/div>\n<\/div>\n
\n

Lightheadedness<\/span><\/h2>\n<\/div>\n
\n
\u00a0<\/span><\/div>\n<\/div>\n
\n
Blockchain and crypto-currencies are very secure and reliable technologies. Human error (or human mischief) is almost always the source of the loss. <\/span>The easiest way to lose your coins is to transfer them to another account and make a slight mistake when copying the account address<\/span><\/span>. <\/span>Technically<\/span><\/span>, the coins are never lost: the blockchain makes sure every transfer <\/span><\/span>is documented<\/span><\/span>. But they’re not within your reach anymore… which is pretty much the same.<\/span><\/div>\n<\/div>\n
\n
\u00a0<\/span><\/div>\n<\/div>\n
\n

Is there a fool-proof process?<\/span><\/h2>\n<\/div>\n
\n
\u00a0<\/span><\/div>\n<\/div>\n
\n
Hopefully<\/span><\/span>, these examples have shown how careful and mindful one should be when dealing with crypto-currency<\/span><\/span>. Safe storage of the private key and hardware are crucial.<\/span><\/div>\n<\/div>\n
\n
Double-check of the address before transfer should be on the checklist too. <\/span>Yes, it’s boring but it will save you hitting your head with something hard once you’ve discovered you have sent a lot of money to an unknown crypto-currency owner<\/span><\/span>. <\/span>If carrying coins around, it should only be small amounts and the bulk of the crypto-fortune should remain locked up<\/span><\/span>.<\/span><\/div>\n<\/div>\n
\n
\u00a0<\/span><\/div>\n<\/div>\n
\n
If all else fails and your private key or password have disappeared in a deep dark corner of your brain, fear not. There is now a new type of professionals to lift your spirits. Not IT experts, not hackers but\u00a0<\/span><\/span>crypto-hypnotists<\/span><\/a>\u00a0to probe your mind in search of the precious private key. If all else fails.<\/span><\/div>\n<\/div>\n
<\/div>\n","protected":false},"excerpt":{"rendered":"

\u00a0 Cryptocurrencies are the big deal. But there are many ways to lose your hard-earned bitcoins. Knowing the most common ways to lose them may help you cling to your hard-earned crypto-treasures. \u00a0 Not your regular bank account \u00a0 To begin with, getting a hold of – and storing – bitcoins or other crypto-currencies is<\/p>\n","protected":false},"author":77,"featured_media":37123,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"subtitle":"","footnotes":""},"categories":[113],"tags":[],"class_list":["post-37119","post","type-post","status-publish","format-standard","has-post-thumbnail","category-finance"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.rudebaguette.com\/en\/wp-json\/wp\/v2\/posts\/37119","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.rudebaguette.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.rudebaguette.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.rudebaguette.com\/en\/wp-json\/wp\/v2\/users\/77"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rudebaguette.com\/en\/wp-json\/wp\/v2\/comments?post=37119"}],"version-history":[{"count":0,"href":"https:\/\/www.rudebaguette.com\/en\/wp-json\/wp\/v2\/posts\/37119\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.rudebaguette.com\/en\/wp-json\/wp\/v2\/media\/37123"}],"wp:attachment":[{"href":"https:\/\/www.rudebaguette.com\/en\/wp-json\/wp\/v2\/media?parent=37119"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rudebaguette.com\/en\/wp-json\/wp\/v2\/categories?post=37119"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rudebaguette.com\/en\/wp-json\/wp\/v2\/tags?post=37119"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}