Okay, class, let’s put our white hoods on for the discussion that will take place as we speak. Our topic for this week’s lesson is how to survive the legendary $5 wrench attack while maintaining our health and bitcoin stack. First, some basic information: what exactly is a $5 wrench assault? I am grateful for your request. It is, in fact, a pretty simple process but before we go that, we would want you to register yourself on this crypto trading software of profit builders to learn more about bitcoin currency trading among others.
The fact is that it doesn’t matter if it was caused by poor operational safety on your part, a data breach involving your customers, or any other method whatsoever. They are aware (or think) that you are only in possession of and in charge of the personal keys to a bitcoin hoard. And they now know where you live, which is unfortunate. Please consider one of Bitcoin’s pre-programmed bull cycles, and it is now that our hypothetical thieves have determined that it is worthwhile to visit you. When they come to see you, they physically force you into handing up your stack.
Perhaps they are pressuring you to take out your hardware pockets and swap your cache of weapons. According to bitcoin who has been in the house for several months, there are no take-backs in the cryptocurrency community. Nobody is coming to rescue a bunch of your asses for those of you who have already moved your bitcoin.
“But that’s not fair,” you say, and I understand. “I’ve completed all of Uncle Jim’s instructions, including getting a hardware wallet, writing down my seed phrase, and assuming custody of my bitcoin.” Is it possible that you’ve heard them say that extreme freedom entails radical responsibility as well?
This reminds me of a statement I’ve heard Matt Odell use: “Treat your bitcoin as though it’s worth is ten times higher than its current price,” which is exactly what it will be since it will be ten times greater. I was hoping you wouldn’t make the same mistake and get acquainted with instructional sites like Matt and Bitcoin Q&A. In a series of practical and direct directions, they’ve managed to make apparently impossible technological processes simple and easy. Their stuff may transport you from one place to another “YOLO (You Only Live Once)! All of my bitcoin is held on a cryptocurrency exchange! “Over the course of a single bitcoin market cycle, we’ll have reached the degree of custody security we’re going to describe (yours truly serves as proof).
Solution to This Confusing Situation
There are various alternatives available to you if you find yourself in the midst of an invasion. Even though they all involve trade-offs, they are not always mutually incompatible. After careful consideration, I think that a geographically dispersed multi-sig wallet is the most secure option for self-sovereign bitcoin custody at present. Signing devices from various manufacturers may add an extra layer of strategy resistance to the cake.
Have A Decoy Wallet
The most important elements, in this case, are that it includes just enough to put them off the trail but not enough to bankrupt you and that the thief does not have any more particular information about you or your collection.
Improving the Security
This is a wise choice, whether or not bitcoin is involved in the transaction. It would help if you got rid of the key that you’ve been keeping concealed beneath a rock near your front door. Almost every would-be intruder will examine your hiding place, and no, yours isn’t any better than everyone else’s. Take, for example, surveillance systems. They are well worth the investment. Close all of your windows. Although these are all reasonable and practical security precautions, they do not provide a guarantee that criminals will not be able to get into your house. They increase the difficulty of your goal, but having a more tough target is usually a positive development.
Option 3: Have A Geographical Separation
This one is a critical component of the optimum solution toward which we are striving, but it leaves a lot to chance if you value your bitcoin at ten times its current market value, as we do. To do this, you must first configure your hardware wallet and backup the BIP 39 seed phrase. If none of these items is present in your house, you will not be able to be forced into signing a transaction that transfers your bitcoin to an attacker, and they will not be able to get your seed phrase to transmit your Satoshi’s to their wallet if you are the victim of a home invasion. This adds considerable difficulty to the process of spending bitcoin but does not interfere with storing Satoshi’s in cold storage.