What is it all about?
Cryptocurrencies are usually bought on crypto exchanges. There they are not stored in your own digital wallet, but in the digital wallet of the Crypto Exchange (at least, the digital key for the „wallet“ is deposited there). The user of the platform will be assigned a digital currency at the time of purchase, but in reality nothing happens on the Blockchain or on the Distributed Ledger Technology (DLT) that this cryptocurrency is based on.
The coins are still on the wallet of the crypto exchange and virtually they did not move. So if Alice buys Bitcoin from Bob on the exchange Bitcoin (trading), then only the internal database of the exchange is rewritten. The decentralized (stored on many computers) ledger however, remains unchanged.
The way in which the exchange does exactly that and how it assigns the credit to the respective users varies from one exchange to another and is often a big secret. One can imagine that such systems are particularly interesting for hackers and cheaters, because changing them is much easier for them than rewriting the Blockchain / DLT. Crypto exchanges and their databases are therefore very attractive to hackers and have to fend off hundreds of cyber attacks every day.
Another danger is that fraudsters who have access to the appropriate keys can also transfer the real digital assets out of the wallets and thus steal it from the exchange and thus also from the users.
Cryptocurrencies are usually bought on crypto exchanges. There they are not stored in your own digital wallet, but in the digital wallet of the Crypto Exchange (at least, the digital key for the „wallet“ is deposited there). The user of the platform will be assigned a digital currency at the time of purchase, but in reality nothing happens on the Blockchain or on the Distributed Ledger Technology (DLT) that this cryptocurrency is based on.
The coins are still on the wallet of the crypto exchange and virtually they did not move. So if Alice buys Bitcoin from Bob on the exchange Bitcoin (trading), then only the internal database of the exchange is rewritten. The decentralized (stored on many computers) ledger however, remains unchanged.
The way in which the exchange does exactly that and how it assigns the credit to the respective users varies from one exchange to another and is often a big secret. One can imagine that such systems are particularly interesting for hackers and cheaters, because changing them is much easier for them than rewriting the Blockchain / DLT. Crypto exchanges and their databases are therefore very attractive to hackers and have to fend off hundreds of cyber attacks every day.
Another danger is that fraudsters who have access to the appropriate keys can also transfer the real digital assets out of the wallets and thus steal it from the exchange and thus also from the users.
In short…
In short…
The long-term storage of cryptocurrencies on wallets is risky and, in the worst case, can lead to the total loss of tokens. In the past, many crypto exchanges have been robbed and even Binance, the exchange with the best reputation for security, had to admit a theft by hackers.
It therefore makes sense to transfer the acquired cryptocurrencies (as fast as possible) to your own wallet. In order to create your own wallet, especially so-called hardware wallets are suitable, which generate the private keys through their unique design and thus never reveals the private keys to a connected computer or a potential hacker. Ledger and Trezor are the market leaders in this sector with their products (Ledger Nano S, Ledger Nano X, Trezor One, Trezor T, etc.)
When installing these hardware wallets, a passphrase is generated from 24 english words that can be used to calculate the private keys for each cryptocurrency. The system is called bip39 and contains a total amount of 2048 words. It is structured so that 2 words never have more than 3 equal initial letters. So that each of the 2048 words can be represented by max. 4 initial letters and thus be clearly identified. In practice if you enter the words for example into the Ledger Nano S you only have to enter a maximum of 4 initial letters to get the correct word displayed (similar to street names in navigation devices).
It is therefore perfectly sufficient to remember only the first 4 letters per word. That is very important! Because if these words are lost, it can lead to a total loss of these cryptocurrencies as soon as also the hardware wallet is no longer accessible (password forgotten / hardware wallet broken or lost). On the other hand, knowing the passphrase makes it easy to recover your balance at any time by buying a new hardware wallet and typing in these 24 words.
To save these 24 words as safely as possible and for “eternity”, we developed the Easy-Passphrase-Saver.
Many people simply write down their 24 words on a piece of paper. Because as crazy as it may sound, in the digital age we are living in, the safest solution is still to store it analog! Most manufacturers of hardware wallets therefore already deliver pre printed notes on which the customers can write down their words. But what they do not consider is that such a piece of paper does not last forever and can sometimes be destroyed in the case of some environmental influences (such as a fire). It’s also easier to lose or misplace a piece of paper, and in the worst case, it could even be accidentally thrown away by someone.
The analog storage is only safe, if you use a relatively indestructible material for it. For this reason, the EPS is made of stainless steel and secures your words almost „forever“ against almost any kind of environmental influences. Whether you use the EPS as the sole repository for your passphrase, or just view it as an extra safeguard to your current system, is up to you.
Saver under Fire!
Cryptocurrencies are usually bought on crypto exchanges. There they are not stored in your own digital wallet, but in the digital wallet of the Crypto Exchange (at least, the digital key for the „wallet“ is deposited there). The user of the platform will be assigned a digital currency at the time of purchase, but in reality nothing happens on the Blockchain or on the Distributed Ledger Technology (DLT) that this cryptocurrency is based on.
The coins are still on the wallet of the crypto exchange and virtually they did not move. So if Alice buys Bitcoin from Bob on the exchange Bitcoin (trading), then only the internal database of the exchange is rewritten. The decentralized (stored on many computers) ledger however, remains unchanged.
The way in which the exchange does exactly that and how it assigns the credit to the respective users varies from one exchange to another and is often a big secret. One can imagine that such systems are particularly interesting for hackers and cheaters, because changing them is much easier for them than rewriting the Blockchain / DLT. Crypto exchanges and their databases are therefore very attractive to hackers and have to fend off hundreds of cyber attacks every day.
Another danger is that fraudsters who have access to the appropriate keys can also transfer the real digital assets out of the wallets and thus steal it from the exchange and thus also from the users.
Cryptocurrencies are usually bought on crypto exchanges. There they are not stored in your own digital wallet, but in the digital wallet of the Crypto Exchange (at least, the digital key for the „wallet“ is deposited there). The user of the platform will be assigned a digital currency at the time of purchase, but in reality nothing happens on the Blockchain or on the Distributed Ledger Technology (DLT) that this cryptocurrency is based on.
The coins are still on the wallet of the crypto exchange and virtually they did not move. So if Alice buys Bitcoin from Bob on the exchange Bitcoin (trading), then only the internal database of the exchange is rewritten. The decentralized (stored on many computers) ledger however, remains unchanged.
The way in which the exchange does exactly that and how it assigns the credit to the respective users varies from one exchange to another and is often a big secret. One can imagine that such systems are particularly interesting for hackers and cheaters, because changing them is much easier for them than rewriting the Blockchain / DLT. Crypto exchanges and their databases are therefore very attractive to hackers and have to fend off hundreds of cyber attacks every day.
Another danger is that fraudsters who have access to the appropriate keys can also transfer the real digital assets out of the wallets and thus steal it from the exchange and thus also from the users.
In short…
In short…
The long-term storage of cryptocurrencies on wallets is risky and, in the worst case, can lead to the total loss of tokens. In the past, many crypto exchanges have been robbed and even Binance, the exchange with the best reputation for security, had to admit a theft by hackers.
It therefore makes sense to transfer the acquired cryptocurrencies (as fast as possible) to your own wallet. In order to create your own wallet, especially so-called hardware wallets are suitable, which generate the private keys through their unique design and thus never reveals the private keys to a connected computer or a potential hacker. Ledger and Trezor are the market leaders in this sector with their products (Ledger Nano S, Ledger Nano X, Trezor One, Trezor T, etc.)
When installing these hardware wallets, a passphrase is generated from 24 english words that can be used to calculate the private keys for each cryptocurrency. The system is called bip39 and contains a total amount of 2048 words. It is structured so that 2 words never have more than 3 equal initial letters. So that each of the 2048 words can be represented by max. 4 initial letters and thus be clearly identified. In practice if you enter the words for example into the Ledger Nano S you only have to enter a maximum of 4 initial letters to get the correct word displayed (similar to street names in navigation devices).
It is therefore perfectly sufficient to remember only the first 4 letters per word. That is very important! Because if these words are lost, it can lead to a total loss of these cryptocurrencies as soon as also the hardware wallet is no longer accessible (password forgotten / hardware wallet broken or lost). On the other hand, knowing the passphrase makes it easy to recover your balance at any time by buying a new hardware wallet and typing in these 24 words.
To save these 24 words as safely as possible and for “eternity”, we developed the Easy-Passphrase-Saver.
Many people simply write down their 24 words on a piece of paper. Because as crazy as it may sound, in the digital age we are living in, the safest solution is still to store it analog! Most manufacturers of hardware wallets therefore already deliver pre printed notes on which the customers can write down their words. But what they do not consider is that such a piece of paper does not last forever and can sometimes be destroyed in the case of some environmental influences (such as a fire). It’s also easier to lose or misplace a piece of paper, and in the worst case, it could even be accidentally thrown away by someone.
The analog storage is only safe, if you use a relatively indestructible material for it. For this reason, the EPS is made of stainless steel and secures your words almost „forever“ against almost any kind of environmental influences. Whether you use the EPS as the sole repository for your passphrase, or just view it as an extra safeguard to your current system, is up to you.