Security

When you enter the digital currency arena to it can be a very steep learning curve, but the most vital lesson to grasp is the security around storage. It is now folk legend about the MT Gox disaster back in 2104 were many thousands of individuals Bitcoins were stolen from this exchange.

Mt.Gox

Mt. Gox was a bitcoin exchange based in, Tokyo, Japan. Launched in July 2010, by 2013 it was handling over 70% of all bitcoin transactions worldwide, as the largest bitcoin intermediary and the world’s leading bitcoin exchange. In 2014 Mt Gox exchange was hacked and million of dollars of customers Bitcoin was transferred out of the exchange. It is believed this happened as a result of a compromised computer belonging to an auditor of the company and these risks have only increased as values of digital currency rise.

The answer to this vulnerability is Cold Storage devices that don’t rely on a single server to hold client funds; instead they hold your fund on the device itself and once the device is disconnected from your computer it is impossible to hack. Here at Financial Revolution we take this very serious and therefore, offer all our clients the option to store their currencies on our Cold Storage devices for a nominal fee of £1.99 pcm. There are two main options on the market today and I have listed them below:  

Trezor

The Trezor was created as the first hardware wallet in the world and it is fairly obvious that the main purpose of TREZOR is to hold the private keys to cryptocurrencies. By isolating the workspace with private keys, confidential data is never transmitted to any computer, thus minimizing the possible leakage of private keys. Without any exception, all operations with private keys are done exclusively inside the TREZOR. This applies to Bitcoin, Litecoin, Ethereum,DASH and Zcash.

TREZOR can not only save passwords and secure your cryptocurrencies, but you can also use be varied using your TREZOR as a second factor authenticator, using the emerging U2F standard (more secure than one-time passwords.) this uses the Google Authenticator 2FA which is a time based shared secret between you and your TREZOR provider have set.

 

Ledger Nano S

The Ledger Nano S is one of the latest cold storage devices available on the market today and can store upto 40 Cryptocurrencies  of your choosing. A full list of the currencies that can be stored on the Nano S are available from Ledger website at https://www.ledgerwallet.com/cryptocurrencies

Ledger is a comparable security device with the above mentioned Trezor, but like any Cold Storage device currently, there is a lead time on these secure devices of around 3 months due to demand.

Ledger offer Free Apps to work in conjunction with their product range and the official application interfaces between your Ledger devices and the Bitcoin & Ethereum decentralized networks. They are designed to be lightweight and easy to use so should be a simple for novices to get to grips with.

 

 

 

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