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Beyond hardware and software wallets: Where’s the safest place to store your cryptocurrency?

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Beyond hardware and software wallets: Where’s the safest place to store your cryptocurrency?
Source: Pixabay

We investigate the existing ways of banking your cryptocurrency and try to find out if newer second-generation solutions, or new technologies, deserve your trust.

Reportedly over $1 billion worth of currency was taken directly out of the digital pockets of users, exchanges and businesses by hackers and other malicious attackers worldwide between 2017 and 2018.

The importance of security to blockchain is arguably reflected in both the severity and regularity of cryptocurrency related thefts. Theft poses a threat to blockchain companies of all types, as well as to token-holders.

Exchanges use software wallets

Significant examples are attacks against cryptocurrency exchanges: making victims of both the business and its customers.

It is unknown which individual citizen has lost the greatest volume of cryptocurrency at this point [and it’s not something many would admit to], but in the worst recorded cases of attacks, victims have lost millions of dollars worth of tokens.

In some cases where this happens, the exchange [if financially, commercially and ethically grounded] refunds all customers affected for their losses. Others, however, are not so fortunate.

Exchanges are continually targeted by hackers for a myriad of reasons, but generally speaking, it can be summed up by the following conclusion: all funds and wallets are held in a networked resource, and provide an “always online” token-storage solution for customers.

If the network is compromised, then all user data and currency is made vulnerable as well. This has led to the creation of solutions which seek to overcome these security flaws, such as the first generation of “hardware wallets”.

When Wallets went hardware

The fundamental difference between hardware and software wallets is indicated by their names.

With software wallets [like accounts on crypto exchanges]: user funds, identity, and private keys are stored and managed by the service provider in an online server. Hardware wallets, on the other hand, attempt to protect funds and other data by storing them fully offline.

A typical hardware wallet keeps private keys in memory on a device and signs transactions outside of the computer environment so that the keys cannot be exposed to an online attack.

Whilst the key is secure for the most part due to being stored on an offline device, this does not make these wallets completely oblivious to security threats. After all, the key is still secured on this device which-if compromised-would allow the attacker full access to the victim’s account.

The hardware wallets today are far different from their forebears. Many of these progenitors have released subsequent products along with a new generation of competitors, with new features and technologies that go beyond cold storage methods.

Hardware wallets have been praised by many as one of the most reliable ways to keep your cryptocurrency safe, however, this does not guarantee 100% safety. Cold storage devices protect users from online attacks [since the private keys are never online], but they do not offer protection from physical attacks such as when the device is seized, lost, or stolen.

Hardware 2.0

Threats to security don’t always come from external sources, with reports of user errors costing individuals dearly.

Hardware wallet manufacturer Bitfi claims to have eradicated problems surrounding storage and subsequent theft of private keys by creating a device in which the private key is created anytime a user performs a transaction. No private keys exist on the device once a transaction is complete.

Because no vulnerable data is stored on board in the device, it means that even if a hacker were to successfully intrude, they would not have access to any usable data.

This could prove to be an elegant solution to an ongoing security challenge. Rather than building ever more sophisticated encryption to store private keys, Bitfi doesn’t store them at all. This eliminates the possibility that they can be stolen.

According to BitFi representatives, the reason for this is:

“something that is stored can be stolen either through an online or physical offline attack. On the other hand, something that is not there at all cannot be stolen.”

A blank slate

The latest product from Bitfi is called the DMA-2 and it’s the company’s second-generation entry into the market, and the project receives continual updates online. Whilst a progression in firmware and an upgrade in hardware, DMA2 still possesses all of the key features that make BitFi’s technology different from other wallets on the market.

Instead of using a mnemonic seed as the means of recovering an otherwise inaccessible account, BitFi replaces this long [up to 24 words] access code with a much shorter ‘secret phrase’. One that is easier to remember than its counterpart, and thus offering the possibility to be memorized.

The secret phrase feature is amongst a number of key features incorporated into BitFi’s technology that is focused towards providing the best security solution for cryptocurrency storage, that anybody can use with relative ease.

Along with an accessible and UX optimized interface, BitFi doesn’t require the user to install any additional applications or software on their computer: reducing the number of steps between becoming a customer and being a secured token-holder.

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The FunFair Blockchain Platform Now Hosts

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The FunFair Blockchain Platform Now Hosts
Source: FunFair Blockchain

RakeTheRake Goes Live as First White Label Partner of Leading Blockchain Provider

RakeTheRake’s has been launched on FunFair Technologies’ leading blockchain casino platform as a licensed white label. is the first external white label of FunFair, and the casino is ready to dive into the rapidly growing blockchain gambling scene. In 2019 alone, this industry sector recorded over 1 billion dollars’ worth of wagers.

Through this launch, the brand is able to reach the FunFair’s base of 65,000 FUN holders, adding more to its own sizable player base which has been developed over the years of hosting its internationally popular poker affiliate program.

As RakeTheRake’s first endeavor in both the online casino and blockchain space, CryptoCasino will showcase how easy and low-cost it is to launch a successful casino domain on the FunFair platform.

CryptoCasino will raise the standard of the blockchain gambling game by incorporating FunFair’s Guaranteed Fair technology and its ever-growing library of casino and instant win titles.

RakeTheRake’s Founder and CEO, Karim Wilkins, said:

“Becoming FunFair’s first white label with CryptoCasino gives us great satisfaction. We’re extremely confident in our brand, the platform, and the innovative affiliate technology, and we can’t wait to take CryptoCasino and its players to the moon.”

FunFair’s Co-Founder, Jez San, stated:

“CryptoCasino’s launch is a major landmark on the FunFair roadmap and we’re excited to partner with expert marketers in RakeTheRake who will drive further adoption to our gaming ecosystem.”

“We continue to update our platform to ensure it’s user-friendly for those with and without crypto knowledge and we are working on the next steps with RakeTheRake, with the CryptoCasino players being able to confirm our position as the leading blockchain gaming provider.”

The domain is live and accessible to all players within supported countries. As an opening giveaway, new players will be able to benefit from a limited time sign-up bonus of $60 worth of FUN tokens.

FunFair Technologies Description

FunFair is among the most recognized B2B blockchain-based casino platform providers in the industry. By using the advantages of blockchain, FunFair strives to change the casino industry for the better. The casinos based on their platform have lower costs, the games are accessible to a larger customer base, and players are able to engage in guaranteed fair gambling.

The 40-member team behind FunFair has over a century of combined experience in the gaming and casino sector, and two decades of knowledge in the blockchain. This enables them to provide a platform which features quality slots, tables, and unique instant win games which operate on transparency and fairness.

FunFair was established by Jez San OBE, Jeremy Longley and Oliver Hopton in 2017, with their headquarters being based in both Dublin and London.

For additional information, access Follow them on Twitter and Telegram

CryptoCasino Description

CryptoCasino is a new breed of casino which merges the benefits of blockchain with cutting edge technology to provide players with a guaranteed fair gambling environment. As CryptoCasino uses FunFair Technologies’ blockchain casino platform, its players will experience the most qualitative games in the industry with the utmost transparency.

Armchair Partners Ltd, an online gaming affiliate, manages CryptoCasino as a white label and also runs, a poker rakeback brand. The company is based in the UK and Sweden; it was first established in 2004.

For additional information, access and Follow Crypto Casino’s Twitter account here and Facebook account here.

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