FREE Guide to Being Your Own Bank

If you hold any bitcoin — or are considering buying some — the guide you’ll read in a moment is the most important thing you could do to keep your bits safe.

The irony of bitcoin, a form of decentralized money, is that most people choose to keep their bitcoins in centralized exchanges.

Not only are these exchanges vulnerable of being brought down by hackers, they’re also inching closer and closer to being spied on and potentially even controlled by outside authorities.

Coinbase, for example, the most popular exchange, is now being told they have to report the identities of their customers to the IRS.

Which is why, if you’re holding, it’s time to take control.

The biggest benefit of digital money like bitcoin is that it’s not controlled by any central authority. Meaning, you have the option to be your own bank.

In the past, astute LFT readers will recall, I’ve recommended the Trezor device — a so-called “cold wallet” (meaning offline) — to hold your bitcoins.

Some LFT readers requested I give more information on how the Trezor works and how to use it.

Don’t worry. You don’t have to be a tech genius.

Today, courtesy of the CryptoPotato blog, we present to you the complete guide to using Trezor.

Read on.

Courtesy of CryptoPotato

When you assess Bitcoin security options, you will discover that greater security limits spending flexibility. For instance, keeping your coins in a secure paper wallet, which is regarded as quite secure, lets you merely deposit coins. When you wish to withdraw the coins, you’ll need to locate a Bitcoin client and have your private keys exported.

AND HERE COMES THE TREZOR

An offline Bitcoin wallet is the best way to describe Trezor. It contains and stores safely your personal keys and allows you to conduct a transaction without an Internet connection. Trezor provides you with several advantages, as it can be used as a secure offline storage unit, and lets you send your coins easily. The unit is small enough that it can be kept in your pocket or attached to your keychain. As such, you can keep your Bitcoins stored offline on Trezor and send them at your discretion after connecting any computer to your Trezor device. Like your keyboard or mouse, Trezor makes use of a limited USB connection. A mouse can indicate to the computer where it is located, but the computer doesn’t have the ability to move the mouse. Likewise, Bitcoin transactions can only travel from the computer to Trezor and vice versa. As such, Trezor can safely be used even on infected and compromised computers. If it gets stolen, there are security measures in place that will stop people from stealing your Bitcoins (like PIN).

Using the Trezor is very simple, as mentioned above. Sending Bitcoins couldn’t been easier, just create a new transaction and it will automatically appear on the device. Using its only two physical buttons, just press on the approval button and that would sign it safely. More than that, Trezor can communicate with Mycelium Android’s wallet, instead of using a PC. A video guide about the integration with Mycelium can be found here.

HOW TO INSTALL YOUR TREZOR

Installing the Trezor is quite easy. You connect the unit to the computer, have a bridge installed (which permits the Trezor to engage with the computer, most recommended is Google Chrome’s extension), then continue with the guided instructions.

Selecting a PIN Code: A PIN code is used to confirm that you are the legitimate owner of the Trezor every time you connect it to computer.  The setup involves both the computer and Trezor unit to ensure optimal security of your PIN. You will be asked to click the relevant numbers on your computer, like so:

In the meantime, the display of the numbers can only be seen on your Trezor. As a result, if someone is spying on your keystrokes, they still won’t have a clue as to what your PIN is. When you initially establish your Trezor, you’ll need to input your new PIN a couple of times. Be mindful that the numbers displayed on Trezor are modified between inputs.

Your Master Private Key: Afterward, you’ll be asked to write down your recovery seed. Your seed consists of a set of 24 words that will allow you to obtain your coins if your Trezor gets lost or stolen. Write down those words on a list and store it in a secure place, as you will need it to get your private key back. For maximum security – separate the list to two parts, and hide each part in different locations.

After you complete the setup, you’ll be required to connect a computer to the Trezor to access MyTrezor.com, which is the client for the Bitcoin Trezor wallet. You can send Bitcoins to whomever you choose from here.

IS TREZOR HACKABLE?

One of the wonderful aspects of Trezor is that it doesn’t require a password to access your account. Your Trezor device acts as your credentials. If someone can’t tangibly access your device, there’s no way they can access your coins.

Nothing is ever completely secure, but the Trezor is the closest thing to it. The newest security holes located in USB drives don’t even apply to Trezor. Phishing attacks are the only thing Trezor can’t be safeguarded against. An individual may attempt to trick you into sending them Bitcoins from your Trezor. That, however, is a human error, rather than a device malfunction. Ensure that the individual you’re talking to is legitimate to prevent such fiascos. For more details about potential Trezor dangers and how they are being handled, see Trezor’s FAQ page, specifically their security threats section.

IN CONCLUSION

I’ve ordered three Trezors two month ago. So far, I’ve had a positive experience with them. It was very simple to set up, the unit was instinctive, and the security protocols were quite vigorous. I was especially taken with the staff – they came across as experienced professionals in the Bitcoin security industry. Trezor is necessary if Bitcoin security is at importance place to you.

Follow this link to get your own Trezor.

[Ed. note: This article originally appeared on the CryptoPotato blog right here at this link.]

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