@@InvestAnswers hello Sir, i use Luno Exchange n has wallet, now i deposit my dogecoin to Binance Excahnge from my another wallet, should i leave at exchange, or transfer back to my wallet? People say not leave your crypto in Exchange and immediately withdraw to wallet? how i dont understand? if i want to sell when the price goes up How? Thank u
Hi James, I've been watching your videos for the last month. My husband has been watching you for about 6 months. We are in our 50-60s and dedicate time every day/evening to building and repeat learning Crypto. You Are the Best educator in the subject we have found so far-I'm confident this status for you will not change. You teach from the heart. We are teaching our adult daughter as well. Gratitude for your passion and skill to teach us. I resell things on eBay but quickly am seeing the potential to build my wealth with Crypto. I left a 6 figure finance career with a top pharma company almost 2 years ago to seek happiness and freedom.
@@livingart2576 Honestly, it's a genuine question - I know crypto is down overall but that doesn't mean this person hasn't made money overall. I'm just curious about the overall picture.
this seems to be the only channel i find who i don't feel guilty watching because of the clickbait thumbnails and titles. Genuinely refreshing info keep it up!!
By far the most balanced and comprehensive explanation on this subject I can find on the Internet. One thing people don’t talk about with regards to ledger and other cold wallets is a catastrophic event like incapacitation or sudden death which could put the wealth completely out of reach of the family and in essence lost forever.
I’ve been researching this topic for over a month and so far this is the most comprehensive, down to earth coverage I’ve found, on RUclips, internet websites and just conversations with others having similar interests/concerns. We’ll done!
Don’t forget that you don’t have to store all of your Bitcoin (eggs) in one location (basket). Depending on your risk and accessibility profile, maybe you should split up your holdings and have various stashes.
I think this is the most secure method of all. Never put everything in one place. I find that I’m more likely to lose my Ledger than for multiple exchanges to be hacked, so I actually distrust cold wallets, or rather my handling of them. Just like the very rich don’t keep all of their money in the same bank (banks get robbed and hacked, too, so why do people who fear exchanges or online wallets use banks), why would we want to put all of our crypto in the same place? Split up your holdings so that if one location is compromised, you have alternatives.
To the best of my knowledge, no Ledger has ever been hacked. The data that was compromised was personal data from Ledger's client files. That was a horribly unfair comment.
Ledger can be hacked / cracked, but the attack is very elaborate. It has also been considerably mitigated. There are a few more attacks, even one or two on Trezor. They usually require physical access, but destructive attacks to just ensure currency is lost also exist. The biggest risk with these wallets - and I love them! - are supply chain attacks.
Just like the importance of diversification when it comes to investing, IMO, it is important to also diversify where you store your Bitcoin, depending on how much you have.
@@cjjohnson353 If I own on three exchanges it's unlikely I lose everything, but I would be heartbroken to lose a third. As a world nomad, non techy and forgetful guy my temporary solution is to buy proxies like MSTR, miners like CLSK, funds like GBTC and ETHE. This is not ideal, not least of which because they don't trade 24hrs. I suppose it MIGHT help with sleep.
@@seandelaney1700 I would also be heartbroken to lose a third, but imagine losing it all at once; I couldn't even live with myself knowing I could have diversified. At the end of the day everybody has their choice, but for me it's diversification. Merry Christmas and happy holidays!
I rarely comment on social media platforms but I must commend you for publicising an important topic. Sadley social trends do not allow the right media to reach the people needing it most. Good job, keep educating the uninformed and those seeking knowledge!
I like what you say and how you say it. Your words are soft when spoken but your eyes tell me another story. Perhaps another time, for the story. Great advice on the topic of storage!!
I thought i was the only one, who notice his eyes....... his content is great. I could listen to his voice because its soothing without looking into his eyes.
Best explanation of crypto storage anywhere on the internet. It's short, concise and to the point. Your knowledge of Financial Risk Management truly shines!!
1. Cold storage always. No exceptions 2.Certain % on exchanges to swap/trade. 3.Multiple ledgers/trezors with max limit. 4. Coinbase pro and Binance for lower taker and maker fees 5. If you have Strong conviction and DYOS - Holding is easy 6. DCA - Time in the market is better than timing the market. SIMPLE - in my opinon of course
I did mine bitcoin "for fun" back in 2009 or 2010, can't be sure, I was a kid, they were basically worthless, I made a physical backup.. that didn't age well. Can't remember how much I had, but I'm sure it was worth something nowadays (:
well like James said, it depends on the personality of the individual + also on how tech savvy they are. as well, remember he did *not* say people should store their own crypto in one way only. many individuals use a few different kinds of storage solutions, in order to minimize the risks of potential losses, overall.👍 re: your comment: "Thank you. You'd think cold wallets are God from the info out there, appreciate you highlighting there are reasons for alternative storage."
Great Video. Honestly I think if you are on a highly secured exchange storing with the exchange is 99% as safe than people doing cold storage etc. In the US as an example I mean FDIC insured fully, covered and secured exchanges. I'm willing to wager more people have lost their crypto by forgetting keys, passcodes, damage cold wallets etc. Do stockholders put their stocks on a cold storage device? How many of you use password security services that are cloud based? If crypto exchanges are that easily hacked I question the security of the whole crypto exchange world. It is becoming more established.
@@InvestAnswers But you mentioned if you have a million dollars in Crypto consider using a hardware wallet, but if you have five hundred dollars maybe the exchange is ok. Those are two extremes. What about the $10,000 to $100,000 range ? That's a lot more than $500 and a lot less than 1 million. I have a Ledger Nano S but have been afraid to use it for the reason you mentioned. It's small and could easily be lost. I value your opinion more than my own at this stage of the game.
@@moshack Exactly what I thought, "Well duh" but what about for your average viewer who is neither. A little key you say? Are you kidding me, I'm going to risk my ability to exist on that? Oy vay. 20-26% lost and only a handful even own this stuff, crazy risky.
Greatttttttttttttttttttttttt! Video. Finally, someone making sense, Yes, keeping your money on an external key IS akin to storing in a safe or under your mattress (though those may be safer than a key you can lose. Password you can forget, And don't even get me started on trading and storing things on a cellphone) If crypto is going to go mainstream, ordinary folks are going to need some sort of certainty that the crypto they buy is secure on the exchanges where they keep it. Even if (and I think it's coming) some sore of FDIC insurance up to a certain dollar amount is offered by said exchanges. Personally, I have never met a person who hasn't misplaced something of value, keys, wallets, phones etc. Or forgotten a PW. It's human nature. Anyone thanks as always for your outstanding content. This is one of the best crypto channels on RUclips.
The best overview I’ve seen, but no one ever remembers fire risk. Keys should be stored on a steel or titanium plate, using an engraving tool (for steel or titanium), or letter stamp set (for steel only). Titanium has a higher melting point.
@@1974charrua Paper is flimsy stuff. Fire, water, bugs, fungus, and time will destroy it. Fireproof safes cost more than a piece of titanium, or 24 steel washers held together with a nut and bolt. Plus safes are hard to hide.
About once a month, someone posts in the Reddit bitcoin sub a PSA: not your keys, not your coins. It's a matter of dogma for these people. I really appreciate the balanced perspective you share here.
Would love to hear your thoughts on how you see Government regulation/Central bank intervention and how it might affect bitcoin's growth or even demise in the future. That seems to be something that's popping up quite a bit recently.
I am from India and I have never seen anyone giving such information which Is actually depend person to person and Geo situation and 100 other factors, you really break it well and I like the concept of mass. Thanks a lot will keep watching your videos and subscribed already.
Another great video, but the “hacked ledgers” comment is incorrect. I wanted to share this video with someone trying to make the hot vs cold decision, but I can’t because of that statement. The Ledger devices were not hacked. The Ledger company’s data base was. That is a very important distinction. Great video otherwise!
Very sorry for the misunderstanding - it comes from the word Ledger and the company Ledger. On December 23, 2020 the France-based LEDGER that sells Ledgers said the company had “fallen victim to a cyber-attack” and that on December 20, malicious software was installed on their servers. As of December 23, they said that it was “technically impossible” to make an assessment of the severity of the data breach. They warned that it was safe to assume that “your funds could be at risk of theft” - my job is to warn folks that when they think things are safe - they may not be. We will find out the full extent of the hack over time on individuals but it is safe to assume they are being phished and scammed at the moment..... fingers crossed all "LEDGER" Ledger holders are safe. If the French company had called their company something like "SafeKeep" it would have been less confusing. Kind regards
@@InvestAnswers The important thing to clarify is that your KEYS are not at risk, your IDENTITY is at risk. These are different risks. You could certainly lose money to this hack, but ONLY if someone can trick you or threaten you into giving them your keys. As long as you do not reveal your keys, this hack does not effect your funds.
I really liked your presentation , it is quite awsome, you're the first one who do not recommand a specific option, but instead, break down all possible risks that everybody can encounter depending on his profil type.
Great discussion. We have always followed the 'not your keys' method of storage, but just in the past month have decided to put some of our crypto in Blockfi and Celsius. It's a hard step to make to relinquish control of your crypto, but we started to feel like it might be safer to have it in a variety of places - and bonus to earn some passive income on the side.
@@totallyraw1313 this cannot be. Staking is handing over your crypto, you no longer own that crypto and it is not in your wallet. In order to stake on most apps you will go through many pages of terms and conditions that outline this.
I found your channel about a week or two ago, and am a brand new crypto investor. I plan on watching your investing 101 series for a greater understanding, and have about 4-5 Crypto books to read. I can't wait to begin my first spot trade, but have much more to learn. I am blessed to have found you. Thank you, thank you, thank you!!!
I appreciate this video. I'm Canadian and our government has done so much bizarre stuff in the last few years I don't trust them not to do anything imaginable. Your video got me strongly considering factors in my own security profile that I hadn't considered before so thank you.
I am a bit skeptical about your enthusiasm for online services. What about forgetting password to your exchange or them restricting your account? These things are super common!
How many times have we lost our keys? or worse how many times we have lost our FLASH DISK? no, i dont trust myself in holding a physical wallet. Thats just me.
You don't take a crypto wallet everywhere you go. It's not like keys that you need to leave the house. Have you ever lost your birth certificate or a car title? It's more like that.
Had to go back and watch this one because of all the stuff we're seeing happening in Canada!! Other governments are watching and may do the same in the future. Looking to buy a Ledger. Thank you for sharing this information James!! 🙏
This is absolute gold. I very much appreciate the risk management approach and considerations you bring to all your videos. This video is required watching for everyone investing in crypto. Thanks a million (hopefully literally, one day).
12:55 this is a really important point, a lot of people fail to appreciate the oppositional relationship between security, functionality and usability. Ya can't have everything!
Hi. Thanks for the video! I’m holding a few cryptos on the Coinbase exchange. I plan on holding for a long time. Would you leave them there on the exchange? I know Coinbase offers a mobile wallet which I was interested in. I’ve heard that you’re insured up to $250,000. I don’t fully understand how the insurance works. Is it for the exchange and the wallet? I don’t know what to do exactly. I want to feel safe so that I can move forward and not worry about my investment. Thanks
This is exactly what I'm interested in. If I put say 20k into crypto on counbase and hold it for say 5 years, is it safe??? If theres an issue, coinbase are known for terrible customer service. What did you do?
Man I have been watching your videos, its mainly no bullshit and just to help people and guide them with your experience. This is what it should be all about unlike other youtubers like voskcoin etc just bloody brag how much am i making and nothing to gain from the videos.
Great video and topic! there is no perfect answer, but someone explained to me the harder it is for YOU to access your crypto the harder it is for a hacker to steal it. The easier it is for you, the easier it is for someone to steal it. Its a terrible feeling if you log in and see your account has been compromised and your balance wiped to $0.00 Just be careful and take steps to protect your crypto and private keys!
Exactly. This whole analysis completely ignores the elephant in the room which is government corruption. Given that the historical record of governments becoming overtly tyrannical and stealing the wealth of the people is 100%, what you actually have when keeping fund on an exchange, is an incredibly robust security system PREVENTING you from accessing your coins.
Thank you for your risk analysis, much appreciated! I feel like having a hardware wallet gives some bellyache. Did I note down my seed correctly, where to store the wallet and the seed paper, does the hardware work in 10 years? On the other hand, leaving the crypto on exchange is just an IOU, gov. can decide this exchange is forbidden etc. the thing with hardware wallets is also the transfer costs on the network. Maybe a mix of both is the solution, makes your funds also more liquid in case you need fast access to some of your funds.
@@jeremystubbs4397 what are you talking about? I am engaging in a conversation. I didn't do anything else. Relax, not everyone in the comment section is a bot.
good points. Just to represent the main concern of storing at a CEX is in many locales the risk from the CEX itself and it being beholden to local government is the biggest risk. the money in the mattress concern in many ways is because of this fear. a fear where your biggest worry is not criminal theft but the authorities themselves.
Crypto User Loses Over $100,000 in Bitcoin While Transferring His Wallet - THIS PROVES THE IMPORTANCE OF WHAT I TRIED TO STRESS IN THIS VIDEO!!!!! 4% of Bitcoin are lost every year. Don't BE IN THAT 4% my friends! news.bitcoin.com/crypto-user-loses-over-100k-in-bitcoin-while-transferring-his-wallet/
For investing larger amounts, build redundancy. Like 2 laptops, use DBAN to wipe the hard drive, install linux OS such as Ubuntu or Tails, encrypt the operating system. Create a bitcoin wallet, & set up the same bitcoin wallet on both machines. Put one machine at your parents or brothers house & keep the other at yours. This way if there is ever a fire, or something you have it accessible. On top of this you could make a VeraCrypt encrypted volume, then put it on google drive with a wallet backup, that way if there is a regional disaster your wallet is still safe & encrypted. Then keep your public key safe, move money to your long term storage wallet ad you go, & check it occasionally to ensure its receiving new transfers. Monero is great cause you can make a read only wallet. Also I believe monero has a lot of long term growth as it's a coin with function, its privacy is unmatched & there will always be a market for privacy minded people. I myself am one, I think everyone should use Monero for day to day transactions. The government has no right monitoring the privacy financial lives of people. I think all blockchains will be encrypted in the future, it doesn't make sense why they wouldn't eventually be. Why would someone making a new coin chose to have inferior privacy at no detriment to the user experience. This war against private coins is a losing battle.
Thank you for your videos. your objectiveness is appreciated. And you are a sepulchre of knowledge. To play devil's advocate, from various sources that I read, the Ledger case from 2020 was either compromized devices, eg bought from an unauthorized person or vendor, or the hackers did get into Ledger's system, but because the wallet was offline/cold storage, all the hackers were able to get was names and email addresses. Their crypto was still secure. Ledger has sinse greatly beefed ip their security.
Totally agree! I'm sick of the "not your keys, not your crypto" evangelists, when I think that disasters, hardware failure, and human error are bigger risks for most people than hackers getting into major exchanges.
Thank you so much for saying that. A good friend bought $200 worth of crypto and spent $120 on a ledger and then lost it. This happens every day - hence I am utterly convinced the Bitcoin supply will never exceed 14M coins.
@@InvestAnswers I thought the point was that even if you lose your hardware wallet your coins are recoverable with the pass phrase? I.e. buy another hardware wallet and reuse the phrase and you regain your crypto. Is this wrong?
The very last point you made you say if you have $1m then get a hard wallet but if you have $500 keep on exchange.. The difference between 500 and 1m is 999500... so at what point do you recommend a wallet? 1,000? 10,000? 100,000? or 1,000,000?
I always like to reiterate the popular phrase : " Not your keys, not your crypto". Crypto users need to know that. I use Atomic Wallet which is a noncustodial wallet and this means I have custody of my keys and crypto.
This is why you inscribe your key into a nickel plate and place it in a secure place. You also put your key onto no less than 3 encrypted USB drives and store those as well, in a password vault encrypted with an unforgettable passphrase. And, you routinely back up your hardware wallets.
Man. I gotta say, your information and the way that it is imparted is next level! Really appreciate the effort and research. I shall refer to you as Professor Crypto as I am always schooled when I come to your channel. Cheers!
Humbled. Thank you. Did you see the press today - Crypto User Loses Over $100,000 in Bitcoin While Transferring His Wallet - THIS PROVES THE IMPORTANCE OF WHAT I TRIED TO STRESS IN THIS VIDEO!!!!! 4% of Bitcoin are lost every year. Don't BE IN THAT 4% my friends! news.bitcoin.com/crypto-user-loses-over-100k-in-bitcoin-while-transferring-his-wallet/
I think you're being entirely disingenuous by implying at 4:43 that Ledger devices were hacked. The devices are all secure, it was Ledger's website that was hacked and only customer order data taken. No seed phrases or keys are stored at the company, they are all generated locally at each device. Please correct this statement, it is totally misleading and confusing for novice crypto investors.
Great video , thankyou for the info. One question : With all the FTX mess going on , i don´t even trust my own exchanges anymore and not because their security isn´t better than my house but what really gives me the heebie-jeebies is the fact that this exchanges don´t have the money to back themselves up , they block any transaction , withdraw at will and finally they are not backed by any government. What storage would you recomend ? i´m thinking of hot wallet since my investment is not that important but i would appreciate your opinion and do you think the big exchanges are still secure from a liquidity point of view of course?
This is all so new I don't even understand all the options you are walking through. Is your conclusion that a Kraken or Coinbase with 2-factor authentication is more secure than using a Trezor if you are not the best at remembering passwords, etc? When are you given a public and private key?
What kind of security do you think best for your laptop or tablet used for crypto generally and connecting to a ledger specifically? I use a Surface tablet for my finances with Bitdefender security.
With ledger website hack they only accessed personal information of customers, bscause it is impossible to hack ledger or trezor without physical access to the devices.
You cracked the code on how to clearly explain these important topics ,well done 👍
Glad you liked it
@@InvestAnswers hello Sir, i use Luno Exchange n has wallet, now i deposit my dogecoin to Binance Excahnge from my another wallet, should i leave at exchange, or transfer back to my wallet? People say not leave your crypto in Exchange and immediately withdraw to wallet? how i dont understand? if i want to sell when the price goes up How? Thank u
Can we store coins in 2 different wallet??? Is that possible?
Yes you can
@@zoisantana661 congrats. 👍🏽
Hi James, I've been watching your videos for the last month. My husband has been watching you for about 6 months. We are in our 50-60s and dedicate time every day/evening to building and repeat learning Crypto. You Are the Best educator in the subject we have found so far-I'm confident this status for you will not change. You teach from the heart. We are teaching our adult daughter as well. Gratitude for your passion and skill to teach us. I resell things on eBay but quickly am seeing the potential to build my wealth with Crypto. I left a 6 figure finance career with a top pharma company almost 2 years ago to seek happiness and freedom.
How is the crypto working out for you? I see you know the hustle if leaving comments on other channels to drive traffic to your own 😉
How is your jealous negatively? 😂
@@livingart2576 Honestly, it's a genuine question - I know crypto is down overall but that doesn't mean this person hasn't made money overall. I'm just curious about the overall picture.
this seems to be the only channel i find who i don't feel guilty watching because of the clickbait thumbnails and titles. Genuinely refreshing info keep it up!!
LOL- thanks for the compliment!
By far the most balanced and comprehensive explanation on this subject I can find on the Internet. One thing people don’t talk about with regards to ledger and other cold wallets is a catastrophic event like incapacitation or sudden death which could put the wealth completely out of reach of the family and in essence lost forever.
Fire safes aren't that expensive. Tell your family it is in a fire safe and where then they can call a locksmith to open the safe
I’ve been researching this topic for over a month and so far this is the most comprehensive, down to earth coverage I’ve found, on RUclips, internet websites and just conversations with others having similar interests/concerns. We’ll done!
Don’t forget that you don’t have to store all of your Bitcoin (eggs) in one location (basket). Depending on your risk and accessibility profile, maybe you should split up your holdings and have various stashes.
excellent point, I use 4 different places.
BTC
ETH
ADA
@@InvestAnswers thank you very much for the video! Could you please disclose your 4 methods to store btc?
I think this is the most secure method of all. Never put everything in one place. I find that I’m more likely to lose my Ledger than for multiple exchanges to be hacked, so I actually distrust cold wallets, or rather my handling of them. Just like the very rich don’t keep all of their money in the same bank (banks get robbed and hacked, too, so why do people who fear exchanges or online wallets use banks), why would we want to put all of our crypto in the same place? Split up your holdings so that if one location is compromised, you have alternatives.
@@KING-hn3ht these are my 3
To the best of my knowledge, no Ledger has ever been hacked. The data that was compromised was personal data from Ledger's client files. That was a horribly unfair comment.
So the hardware company compromised the clients, but their hardware did not? Well yes, I suppose it was unfair to whoever designed the hardware.
@@seandelaney1700 the danger is in personal info being out, but the coins and keys are not out.
Ledger can be hacked / cracked, but the attack is very elaborate. It has also been considerably mitigated. There are a few more attacks, even one or two on Trezor.
They usually require physical access, but destructive attacks to just ensure currency is lost also exist.
The biggest risk with these wallets - and I love them! - are supply chain attacks.
Just like the importance of diversification when it comes to investing, IMO, it is important to also diversify where you store your Bitcoin, depending on how much you have.
Agreed! It's not a either/or scenario.
I don't trust myself or an exchange LOL. Split it up and minimize risk
@@dreadlocks9335 I don't trust either system myself, but diversifying is a pretty weak system to protect your wealth.
@@seandelaney1700 how is it? The chances of you losing it all at once dramatically reduce.
@@cjjohnson353 If I own on three exchanges it's unlikely I lose everything, but I would be heartbroken to lose a third. As a world nomad, non techy and forgetful guy my temporary solution is to buy proxies like MSTR, miners like CLSK, funds like GBTC and ETHE. This is not ideal, not least of which because they don't trade 24hrs. I suppose it MIGHT help with sleep.
@@seandelaney1700 I would also be heartbroken to lose a third, but imagine losing it all at once; I couldn't even live with myself knowing I could have diversified. At the end of the day everybody has their choice, but for me it's diversification. Merry Christmas and happy holidays!
I rarely comment on social media platforms but I must commend you for publicising an important topic. Sadley social trends do not allow the right media to reach the people needing it most. Good job, keep educating the uninformed and those seeking knowledge!
finally a sane approach - balance. "not your keys, not your crypto approach" sounded extremist to me in the first place.
Until coinbase freezes your account for any reason and good luck with customer service on any exchange 😂
I like what you say and how you say it. Your words are soft when spoken but your eyes tell me another story. Perhaps another time, for the story. Great advice on the topic of storage!!
I thought i was the only one, who notice his eyes....... his content is great. I could listen to his voice because its soothing without looking into his eyes.
Best explanation of crypto storage anywhere on the internet. It's short, concise and to the point. Your knowledge of Financial Risk Management truly shines!!
Glad it was helpful!
1. Cold storage always. No exceptions
2.Certain % on exchanges to swap/trade.
3.Multiple ledgers/trezors with max limit.
4. Coinbase pro and Binance for lower taker and maker fees
5. If you have Strong conviction and DYOS - Holding is easy
6. DCA - Time in the market is better than timing the market. SIMPLE - in my opinon of course
Ayy you just gave it all away, DCA!
@@rc6115 yes. Ledger and trezor are 2 examples of cold storage.
@@rc6115 but he is saying they are not safe too so what would people use that is safe? Seems like nothing is safe
As a newcomer just getting into crypto, your channel has been a great information bank for me! Really appreciate your work, keep them coming!
Welcome aboard!
@@Glen67z thanks for identifying the real scammer. Cheers
@@Glen67z You're talking to the real guy...
@@nvmffs scammer deleted his comments
Yes I second that comment.
In short everything is risky. May God help us
Lol:)
May god help us all
But still better then to spend money on material liabilitys haha
@@KING-hn3ht not if its real estate
Eventually everything will be destroyed. That's entropy.
Just another way of saying that there is nothing that is not at risk in the universe.
7:33 doesn't make financial sense, said the guy who bought £500 of crypto, then a £200 ledger to keep it, in 2010😂😂😂😂😂
I did mine bitcoin "for fun" back in 2009 or 2010, can't be sure, I was a kid, they were basically worthless, I made a physical backup.. that didn't age well. Can't remember how much I had, but I'm sure it was worth something nowadays (:
What happened exactly? You wake up in a cold sweat every night thinking about your lost money?
@@ManicMindTrick My money was worth a few cents, whatever it is worth now I don't know and choose not to care.
@@JoaoPaletas I have lost a lot of btc over the year too and for your sanity you can't let that bother you I agree. Any guess how many btc you had?
Same here, let it go man, I had so much anxiety and regret for that.
I can watch the videos twice, it’s a blessing to have these pleasant education.
Thank you. You'd think cold wallets are God from the info out there, appreciate you highlighting there are reasons for alternative storage.
Glad to help!
well like James said, it depends on the personality of the individual + also on how tech savvy they are. as well, remember he did *not* say people should store their own crypto in one way only. many individuals use a few different kinds of storage solutions, in order to minimize the risks of potential losses, overall.👍
re: your comment:
"Thank you. You'd think cold wallets are God from the info out there, appreciate you highlighting there are reasons for alternative storage."
This is the best video on RUclips regarding crypto storage
Great Video. Honestly I think if you are on a highly secured exchange storing with the exchange is 99% as safe than people doing cold storage etc. In the US as an example I mean FDIC insured fully, covered and secured exchanges. I'm willing to wager more people have lost their crypto by forgetting keys, passcodes, damage cold wallets etc. Do stockholders put their stocks on a cold storage device? How many of you use password security services that are cloud based? If crypto exchanges are that easily hacked I question the security of the whole crypto exchange world. It is becoming more established.
Stock holders are secured by insurance, crypto holders are not.
I have been searching YT for some good, clear advice about the different wallets and your information is the best by far. Thank you.
Conclusion = Take these factors and come to your own conclusion
precisely.... thank you
@@InvestAnswers But you mentioned if you have a million dollars in Crypto consider using a hardware wallet, but if you have five hundred dollars maybe the exchange is ok. Those are two extremes. What about the $10,000 to $100,000 range ? That's a lot more than $500 and a lot less than 1 million. I have a Ledger Nano S but have been afraid to use it for the reason you mentioned. It's small and could easily be lost. I value your opinion more than my own at this stage of the game.
@@moshack What conclusions did you come to?
@@moshack Exactly what I thought, "Well duh" but what about for your average viewer who is neither. A little key you say? Are you kidding me, I'm going to risk my ability to exist on that? Oy vay. 20-26% lost and only a handful even own this stuff, crazy risky.
@@seandelaney1700 Not an expert but if you have over 10k I would go with a hardware wallet.
Greatttttttttttttttttttttttt! Video. Finally, someone making sense, Yes, keeping your money on an external key IS akin to storing in a safe or under your mattress (though those may be safer than a key you can lose. Password you can forget, And don't even get me started on trading and storing things on a cellphone)
If crypto is going to go mainstream, ordinary folks are going to need some sort of certainty that the crypto they buy is secure on the exchanges where they keep it. Even if (and I think it's coming) some sore of FDIC insurance up to a certain dollar amount is offered by said exchanges.
Personally, I have never met a person who hasn't misplaced something of value, keys, wallets, phones etc. Or forgotten a PW. It's human nature.
Anyone thanks as always for your outstanding content. This is one of the best crypto channels on RUclips.
The best overview I’ve seen, but no one ever remembers fire risk. Keys should be stored on a steel or titanium plate, using an engraving tool (for steel or titanium), or letter stamp set (for steel only). Titanium has a higher melting point.
Or a fire proof safe
@@1974charrua Paper is flimsy stuff. Fire, water, bugs, fungus, and time will destroy it. Fireproof safes cost more than a piece of titanium, or 24 steel washers held together with a nut and bolt. Plus safes are hard to hide.
Where are the keys found?
About once a month, someone posts in the Reddit bitcoin sub a PSA: not your keys, not your coins. It's a matter of dogma for these people. I really appreciate the balanced perspective you share here.
Would love to hear your thoughts on how you see Government regulation/Central bank intervention and how it might affect bitcoin's growth or even demise in the future. That seems to be something that's popping up quite a bit recently.
I am prepping a session on that right now as we speak. Will launch in 2 days
@@InvestAnswers Cool, thanks!
I am from India and I have never seen anyone giving such information which Is actually depend person to person and Geo situation and 100 other factors, you really break it well and I like the concept of mass. Thanks a lot will keep watching your videos and subscribed already.
Another great video, but the “hacked ledgers” comment is incorrect. I wanted to share this video with someone trying to make the hot vs cold decision, but I can’t because of that statement. The Ledger devices were not hacked. The Ledger company’s data base was. That is a very important distinction. Great video otherwise!
Very sorry for the misunderstanding - it comes from the word Ledger and the company Ledger. On December 23, 2020 the France-based LEDGER that sells Ledgers said the company had “fallen victim to a cyber-attack” and that on December 20, malicious software was installed on their servers. As of December 23, they said that it was “technically impossible” to make an assessment of the severity of the data breach. They warned that it was safe to assume that “your funds could be at risk of theft” - my job is to warn folks that when they think things are safe - they may not be. We will find out the full extent of the hack over time on individuals but it is safe to assume they are being phished and scammed at the moment..... fingers crossed all "LEDGER" Ledger holders are safe. If the French company had called their company something like "SafeKeep" it would have been less confusing. Kind regards
@@InvestAnswers The important thing to clarify is that your KEYS are not at risk, your IDENTITY is at risk. These are different risks. You could certainly lose money to this hack, but ONLY if someone can trick you or threaten you into giving them your keys. As long as you do not reveal your keys, this hack does not effect your funds.
@investanswer pin this 📌 great vid btw
I really liked your presentation , it is quite awsome, you're the first one who do not recommand a specific option, but instead, break down all possible risks that everybody can encounter depending on his profil type.
Great discussion. We have always followed the 'not your keys' method of storage, but just in the past month have decided to put some of our crypto in Blockfi and Celsius. It's a hard step to make to relinquish control of your crypto, but we started to feel like it might be safer to have it in a variety of places - and bonus to earn some passive income on the side.
Thanks for sharing!
I just put some on Celsius last week. Diversify my holdings and love the interest.
@@totallyraw1313 this cannot be. Staking is handing over your crypto, you no longer own that crypto and it is not in your wallet. In order to stake on most apps you will go through many pages of terms and conditions that outline this.
Hopefully you got out of Celsius! Smh
This didnt age well.
I found your channel about a week or two ago, and am a brand new crypto investor. I plan on watching your investing 101 series for a greater understanding, and have about 4-5 Crypto books to read. I can't wait to begin my first spot trade, but have much more to learn. I am blessed to have found you. Thank you, thank you, thank you!!!
Thanks man, that explained everything I needed to know and I feel a lot wiser about my choices now. Great video.
I appreciate this video. I'm Canadian and our government has done so much bizarre stuff in the last few years I don't trust them not to do anything imaginable.
Your video got me strongly considering factors in my own security profile that I hadn't considered before so thank you.
I am a bit skeptical about your enthusiasm for online services. What about forgetting password to your exchange or them restricting your account? These things are super common!
We found that some of the bitcoin you received was tainted. Oops, account closed!
By far the easiest most truthful explanation on crypto storage I’ve seen mate. Thank you
Thanks muchly, am new to crypto and this was the most crisp and well laid breakdown I've found 👍👍
You’re my favorite RUclipsr by far. I learn so much because of you.
with freedom, comes responsibility
Hello, thankyou for the info. Just wondering how do you store yours?
What about the risk of centralized exchanges being banned or blocked by the big brother?
Crypto trading is certainly akin to Fight Club love the analogy
I keep most of my crypto on BlockFi. The risk is acceptable and I get great rates.
Do you get paid in cryptocurrency?
@@danraine9009 Yes, you only get paid in crypto, usually the same one you are lending.
@@sprinkle61 Thanks for the response
that's pretty brave... now way I'm doing that.
Could be a Ponzi scheme
THANK YOU!!! I just broke 1k in my coinbase feel that it is much safer then my memory or my home security.
Hold is the biggest point in crypto! Great job
Confused about how to store my crypto. Well now just confused an anxious ;-) Kidding great video and my mind has been running the same scenarios
Happy to help!
How many times have we lost our keys? or worse how many times we have lost our FLASH DISK? no, i dont trust myself in holding a physical wallet. Thats just me.
You don't take a crypto wallet everywhere you go. It's not like keys that you need to leave the house. Have you ever lost your birth certificate or a car title? It's more like that.
Safe deposit box
Had to go back and watch this one because of all the stuff we're seeing happening in Canada!! Other governments are watching and may do the same in the future. Looking to buy a Ledger. Thank you for sharing this information James!! 🙏
Poor Elon. Now he’s going broke not recovering his btc 😂. Just joking folks. Have a great day and life!
Hi James. I bought bitcoin on Coinbase.Then I put some of it in their Vault. Does this Bitcoin still go up and down in value with the market? Thanks!
If you can, you can exchange and study together when you have time.
You have my vote (Liked and Subbed) very well done Sir (Coming from a 45 year software engineer who has seen more than his fair share of hacking).
so honored!
This is absolute gold. I very much appreciate the risk management approach and considerations you bring to all your videos. This video is required watching for everyone investing in crypto. Thanks a million (hopefully literally, one day).
12:55 this is a really important point, a lot of people fail to appreciate the oppositional relationship between security, functionality and usability. Ya can't have everything!
very well said sir!
Hi. Thanks for the video! I’m holding a few cryptos on the Coinbase exchange. I plan on holding for a long time. Would you leave them there on the exchange? I know Coinbase offers a mobile wallet which I was interested in. I’ve heard that you’re insured up to $250,000. I don’t fully understand how the insurance works. Is it for the exchange and the wallet? I don’t know what to do exactly. I want to feel safe so that I can move forward and not worry about my investment. Thanks
Did you find out?
This is exactly what I'm interested in. If I put say 20k into crypto on counbase and hold it for say 5 years, is it safe??? If theres an issue, coinbase are known for terrible customer service. What did you do?
Top marks for this answer to very crucial questions on storage of cryptos. Nice one bro!
My God... this channel is so freaking good! Please don't stop Vloggin! Amazing content!
Man I have been watching your videos, its mainly no bullshit and just to help people and guide them with your experience. This is what it should be all about unlike other youtubers like voskcoin etc just bloody brag how much am i making and nothing to gain from the videos.
If you can, you can exchange and study together when you have time.
great vid. would have appreciated knowing how you have stored yours
He already told us he likes paper
Great video and topic! there is no perfect answer, but someone explained to me the harder it is for YOU to access your crypto the harder it is for a hacker to steal it. The easier it is for you, the easier it is for someone to steal it. Its a terrible feeling if you log in and see your account has been compromised and your balance wiped to $0.00 Just be careful and take steps to protect your crypto and private keys!
At a exchange the real owner of your keys is the government.
Great point. The Gov't can force sale(e.g. outlaw) or confiscate crypto on the exchange.
Exactly. This whole analysis completely ignores the elephant in the room which is government corruption. Given that the historical record of governments becoming overtly tyrannical and stealing the wealth of the people is 100%, what you actually have when keeping fund on an exchange, is an incredibly robust security system PREVENTING you from accessing your coins.
This is why I convert 50% of my gains to cash every week, and then to hard assets, such as silver, gold, rhodium, platinum.
Best and well thought out information in RUclips for Crypto. Thank you!
Thank you for your risk analysis, much appreciated! I feel like having a hardware wallet gives some bellyache. Did I note down my seed correctly, where to store the wallet and the seed paper, does the hardware work in 10 years? On the other hand, leaving the crypto on exchange is just an IOU, gov. can decide this exchange is forbidden etc. the thing with hardware wallets is also the transfer costs on the network. Maybe a mix of both is the solution, makes your funds also more liquid in case you need fast access to some of your funds.
@@jeremystubbs4397 what are you talking about? I am engaging in a conversation. I didn't do anything else. Relax, not everyone in the comment section is a bot.
@@HarveyMushman I deleted the scammer comments that Jeremy was referring to.
@@InvestAnswers thanks for the clarification.
A highly underrated topic explained in a highly efficient way!
These videos are perfectly produced and executed!! Appreciate your insights as always
I appreciate that!
good points. Just to represent the main concern of storing at a CEX is in many locales the risk from the CEX itself and it being beholden to local government is the biggest risk. the money in the mattress concern in many ways is because of this fear. a fear where your biggest worry is not criminal theft but the authorities themselves.
Coinbase and several exchanges have notoriously awful customer support. So that can be a risk also if you ever lose your password or 2fa keys.
Crypto User Loses Over $100,000 in Bitcoin While Transferring His Wallet - THIS PROVES THE IMPORTANCE OF WHAT I TRIED TO STRESS IN THIS VIDEO!!!!! 4% of Bitcoin are lost every year. Don't BE IN THAT 4% my friends! news.bitcoin.com/crypto-user-loses-over-100k-in-bitcoin-while-transferring-his-wallet/
EXTREME GRATITUDE,HUMILITY,UNDERSTANDING
For investing larger amounts, build redundancy.
Like 2 laptops, use DBAN to wipe the hard drive, install linux OS such as Ubuntu or Tails, encrypt the operating system. Create a bitcoin wallet, & set up the same bitcoin wallet on both machines. Put one machine at your parents or brothers house & keep the other at yours.
This way if there is ever a fire, or something you have it accessible. On top of this you could make a VeraCrypt encrypted volume, then put it on google drive with a wallet backup, that way if there is a regional disaster your wallet is still safe & encrypted.
Then keep your public key safe, move money to your long term storage wallet ad you go, & check it occasionally to ensure its receiving new transfers.
Monero is great cause you can make a read only wallet. Also I believe monero has a lot of long term growth as it's a coin with function, its privacy is unmatched & there will always be a market for privacy minded people. I myself am one, I think everyone should use Monero for day to day transactions. The government has no right monitoring the privacy financial lives of people.
I think all blockchains will be encrypted in the future, it doesn't make sense why they wouldn't eventually be. Why would someone making a new coin chose to have inferior privacy at no detriment to the user experience. This war against private coins is a losing battle.
Ledger: Keys were not affected, no cryptos were lost. Personal data was leaked, though.
Correct ! 👍
I’m new to this and I find your advice vital. Best crypto RUclipsr by far. Thank you 🙏
Thank you for your structured analysis.
Thank you for your videos. your objectiveness is appreciated. And you are a sepulchre of knowledge.
To play devil's advocate, from various sources that I read, the Ledger case from 2020 was either compromized devices, eg bought from an unauthorized person or vendor, or the hackers did get into Ledger's system, but because the wallet was offline/cold storage, all the hackers were able to get was names and email addresses. Their crypto was still secure. Ledger has sinse greatly beefed ip their security.
Totally agree! I'm sick of the "not your keys, not your crypto" evangelists, when I think that disasters, hardware failure, and human error are bigger risks for most people than hackers getting into major exchanges.
Thank you so much for saying that. A good friend bought $200 worth of crypto and spent $120 on a ledger and then lost it. This happens every day - hence I am utterly convinced the Bitcoin supply will never exceed 14M coins.
@@InvestAnswers I thought the point was that even if you lose your hardware wallet your coins are recoverable with the pass phrase? I.e. buy another hardware wallet and reuse the phrase and you regain your crypto. Is this wrong?
You can lose the wallet. Its the seed that is critical for recovery
Only recently got into Crypto, and wanted to say, your videos are really well put together and educative. Thank you so much for all the advice !
Glad you like them!
Best explanation I found on the subject and the most unbiased too. Congrats!
Wow, thanks!
I have to agree, he looked at it from several perspectives.
The very last point you made you say if you have $1m then get a hard wallet but if you have $500 keep on exchange.. The difference between 500 and 1m is 999500... so at what point do you recommend a wallet? 1,000? 10,000? 100,000? or 1,000,000?
If you can, you can exchange and study together when you have time.
As always... appreciate the eduction. Thank you. Happy to be following along.
Thanks for watching!
@@InvestAnswers Pleasure. Informative, to say the absolute least.
But which one do you prefer and recommend?
I always like to reiterate the popular phrase : " Not your keys, not your crypto". Crypto users need to know that. I use Atomic Wallet which is a noncustodial wallet and this means I have custody of my keys and crypto.
This is why you inscribe your key into a nickel plate and place it in a secure place. You also put your key onto no less than 3 encrypted USB drives and store those as well, in a password vault encrypted with an unforgettable passphrase.
And, you routinely back up your hardware wallets.
Make sure if you have kids or people you want to leave those keys to if you suddenly parish, that they too can get to it....
Man. I gotta say, your information and the way that it is imparted is next level! Really appreciate the effort and research. I shall refer to you as Professor Crypto as I am always schooled when I come to your channel. Cheers!
Humbled. Thank you. Did you see the press today - Crypto User Loses Over $100,000 in Bitcoin While Transferring His Wallet - THIS PROVES THE IMPORTANCE OF WHAT I TRIED TO STRESS IN THIS VIDEO!!!!! 4% of Bitcoin are lost every year. Don't BE IN THAT 4% my friends! news.bitcoin.com/crypto-user-loses-over-100k-in-bitcoin-while-transferring-his-wallet/
I appreciate that!
This is one of the best RUclips channels out there, thanks for the great info.
Appreciate that
I think you're being entirely disingenuous by implying at 4:43 that Ledger devices were hacked. The devices are all secure, it was Ledger's website that was hacked and only customer order data taken. No seed phrases or keys are stored at the company, they are all generated locally at each device. Please correct this statement, it is totally misleading and confusing for novice crypto investors.
If you can, you can exchange and study together when you have time.
Thanks from Vancouver Canada now I no what to do
So far I’m doing BlockFi and Gemini so I can earn interest on my tiny percentage of coins and let it grow.
Thanks James for the no BS alpha! Just subscribed to your Patreon membership as well!
Food for thought. Appreciate your time in covering this topic. 👍
Thanks for your help! It has saved this noob A LOT of wasted time and helped me navigate the crypto minefield... Subscribed!
This was an amazing and thoroughly done video.. I kindly thankyou Sir.
Great video , thankyou for the info. One question : With all the FTX mess going on , i don´t even trust my own exchanges anymore and not because their security isn´t better than my house but what really gives me the heebie-jeebies is the fact that this exchanges don´t have the money to back themselves up , they block any transaction , withdraw at will and finally they are not backed by any government. What storage would you recomend ? i´m thinking of hot wallet since my investment is not that important but i would appreciate your opinion and do you think the big exchanges are still secure from a liquidity point of view of course?
Love the Fight Club reference.
Me too!
Best video I've seen so far about this topic. Thank you sir!!
Very detailed explanation of topics that I had a lot of questions on. Thank you sir.
This is all so new I don't even understand all the options you are walking through. Is your conclusion that a Kraken or Coinbase with 2-factor authentication is more secure than using a Trezor if you are not the best at remembering passwords, etc? When are you given a public and private key?
Thank you, sir! Your content is appreciated.
You are very welcome
What kind of security do you think best for your laptop or tablet used for crypto generally and connecting to a ledger specifically? I use a Surface tablet for my finances with Bitdefender security.
Good advice on risks, however if I loose my keys I still prefer it to be my fault.
Yes - we should all have the choice to control our own destiny.
thanks!
literally the best video ive watched all year!
With ledger website hack they only accessed personal information of customers, bscause it is impossible to hack ledger or trezor without physical access to the devices.
That''s comforting in a way and the hack should make it less likely it's repeated as they surely got a wake-up call from that blunder.
Great video. To add, no private keys were obtained in Ledger hack, only emails and contact info.