Lost $1000+ worth of BTC - not your key, not your wallet, true as hell \ stacker news ~bitcoin

Lost $1000+ worth of BTC - not your key, not your wallet, true as hell

3819 sats \ 59 comments \ @NeuroNinja 20 Sep 2023 bitcoin

Around 2 years back, I learnt about Bitcoin first in life and decided to slowly save money and purchased over 1000$ of BTC on a platform (exchange) called VAULD. My main aim is to keep BTC on HODL, but soon after the bear market, crypto exchange got bankrupt, stopped its operations, locked our crypto and currently filed moratorium in Singapore court, lost all my money. I learnt a lesson of having self-custodial or non-custodial wallets the hard way. Now they are holding reverse dutch auctions (RDA) and all.

I come from a not-so-rich Asian country and it was a good chunk of my savings. But now after 2 years of distrust on crypto, I am planning to again try Bitcoin, but SAFELY.

Is there anyone here who can help me get started with safe practices, specially on which wallets to use. Although I have heard of hardware wallets, I cannot purchase hardware wallets since it is too expensive to start with. I may think of them in future. I want some of these features:

BTC should be in my hands, not in my government/ exchange hands
I don't have latest and greatest PC/ mobile, so there should be some sort of backup/ recovery so that I don't get locked out/ loose my own wallet
I can save my keys safely with KeePass password manager and even offline

I did not followed all the stuff in last two years out of frustration of loosing funds. Starting on fresh, I want to really know safest way to purchase crypto in smaller amounts (maybe in like 200-300 USD) chunks, with less transaction fee and transfer it safely to my wallet. (MY WALLET, not an exchange).

Plsss help

Here is the link for the news: https://economictimes.indiatimes.com/markets/cryptocurrency/where-did-vauld-go-wrong-and-what-led-it-to-the-verge-of-end-game/articleshow/92728479.cms

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446 sats \ 16 replies \ @orthwyrm 20 Sep 2023

The easiest thing for someone new who is just experimenting is to pick a reputable software wallet. Mobile environments tend to be more secure than desktop, so I'd go with those. There's a vast selection of mobile wallets to choose from, but I recommend something like BlueWallet to get you started.

When you create your first wallet, you'll be prompted to write down a 12 / 24 word seed phrase. That's your backup. Keep it written down on paper and never store it digitally.

Even if you loose your phone, you can restore access to your funds so long as you have the seed phrase. It's very important you keep that seed phrase hidden away, because anyone who has it can steal your funds.

That's step #1. If you end up dealing with larger sums you really cannot afford to lose, you'll need to step up your security. When you get more confident, you can look into hardware wallets / cold storage systems, passphrases, multi-sig, etc. There's an entire industry based around keeping your private keys secure, and it takes time to learn and explore. Don't rush!

For further info I recommend checking out the r/bitcoinbeginners sub-reddit and BTC Sessions on Youtube (@BTCsessions)

22 sats \ 14 replies \ @NeuroNinja OP 20 Sep 2023

Thanks a lot, I will do some research on this stuff before jumping into something again. Post my plan here, see how well it is taken by community and then go on with implementing the plan. Atleast that's my plan for now.

206 sats \ 7 replies \ @orthwyrm 20 Sep 2023

Sounds like a good idea!

I'm sure you know this already, but it's also good to keep these discussions public. Plenty of scammers try to target newcomers via PMs.

1 sat \ 5 replies \ @NeuroNinja OP 20 Sep 2023

True, I got this in my DMs but ignored and not replying to such stuffs. Telegram is just full of this shit. I am watching my steps very carefully now and that's why joined nostr and stackernews. Nostr is not really helpful but it feels like a helpful and small community here. Thanks

0 sats \ 4 replies \ @nemo 20 Sep 2023

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1 sat \ 3 replies \ @ek 20 Sep 2023

When we add DMs, scammers will at least have to pay you and you can set how much you want to be paid for a DM

Or just disable DMs

Which could be the same as just making it very expensive, lol

0 sats \ 2 replies \ @nemo 20 Sep 2023

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1 sat \ 1 reply \ @NeuroNinja OP 20 Sep 2023

I really like the minimal, no bullshit interface for stackernews. I don't know, what it will become and look like when it is full of users and features (maybe like reddit). I might then quit the platform. New features attract new scams. STACKER NEWS == TRANSPARENT (that's what I love about it)

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0 sats \ 0 replies \ @nemo 20 Sep 2023

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0 sats \ 5 replies \ @JustinGoldberg 20 Sep 2023

Hmmm, my thought is have a separate phone with no apps on it other than the Bitcoin wallet (and signal to send addresses to yourself). Do not ever unlock this phone in the presence of another person.

Have the hot wallet on the other phone (the one that doesn't have a large amount of Bitcoin) with a lightning wallet such as blixt.

0 sats \ 4 replies \ @orthwyrm 20 Sep 2023

That would be better if possible. I was assuming OP only had the one phone.

0 sats \ 3 replies \ @NeuroNinja OP 20 Sep 2023

This is a great idea. I can have another phone but still I would not trust a device as a single point of failure. Can my seed (passphrase) help me recover my funds to new device/ new app if that device is bricked ??

10 sats \ 2 replies \ @orthwyrm 20 Sep 2023

Yes. For example, suppose you generate a seedphrase in BlueWallet, then lose your phone.

So long as you have the seed, you are good. The seed allows you to restore funds in most other wallets, so even if BlueWallet somehow ceased to exist you'd still be OK.

0 sats \ 1 reply \ @NeuroNinja OP 20 Sep 2023

Lovely, is it that simple as it sounds ! Thanks buddy :)

0 sats \ 0 replies \ @orthwyrm 20 Sep 2023

Pretty much. Sorry you lost those funds a few years back. I'm glad it didn't scare you away from Bitcoin for good. : )

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50 sats \ 0 replies \ @FS 20 Sep 2023 freebie

I want to add to this the 12/24 words are not just your backup. They ARE your wallet. Anyone who has access to them, has access to your BTC.

Also, you may not have access to a Hardware wallet. But you can technically turn an old phone to a cold wallet, by ensuring it remains offline and you never connect it to anything. But of course these are as secure, but slightly more secure than a hot wallet.

https://unislet.com/post/13824/

222 sats \ 21 replies \ @DarthCoin 20 Sep 2023

I love these horror stories of people that do not do DYOR and are just jumping straight into the crocodiles pit.

32 sats \ 20 replies \ @NeuroNinja OP 20 Sep 2023

Wow, i know i was naive and it my mistake on my side., but that's not very welcoming

215 sats \ 19 replies \ @nemo 20 Sep 2023

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277 sats \ 18 replies \ @NeuroNinja OP 20 Sep 2023

i'm newcomer to this land, thanks for this buddy :) I appreciate

27 sats \ 15 replies \ @ek 20 Sep 2023

Yep, I work on SN (now, this wasn't always the case since I've been here) and even I have been called a shitcoiner by him, haha

Feels like a badge now.

Like skateboarding: you're not a real skateboarder unless you broke your arm multiple times!

Don't take anything personal here, it's the internet (as it used to be). We're all just a bunch of random plebs circle-jerking each other while @fwynn is jerking all alone

22 sats \ 11 replies \ @Natalia 20 Sep 2023

Like skateboarding: you're not a real skateboarder unless you broke your arm multiple times!

Am I one of the few lucky ones who did not being called shitcoiner here 😂 @darthcoin

205 sats \ 5 replies \ @nemo 20 Sep 2023

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21 sats \ 4 replies \ @Natalia 20 Sep 2023

Yes, and I made a really beautiful NFT collection to test the water 😂 Luckily I only gifted it to others, otherwise, I would have stuck there.!

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1001 sats \ 4 replies \ @DarthCoin 20 Sep 2023

OMG this is true! A real true padawan! I remember you started very shy, with a post about content creators and I really like it.

This is where most of new SN stackers start wityh wrong foot: they start revealing themselves as shitcoiners (remember my bs-meter) and do not read previous important posts.

You, in other ways, show me that you did DYOR and prove yourself as a good "proof of work" follower. Preps to you. You are an example of stacker.

0 sats \ 3 replies \ @Natalia 20 Sep 2023

I like to stay quiet when in a room full of people who are smarter than me, it is so nice to even find the room.!

And then I would keep learning and slowly getting closer to them 🤓

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0 sats \ 2 replies \ @nemo 20 Sep 2023

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1 sat \ 1 reply \ @ek 20 Sep 2023

Yeah, that was a legendary comment

I just zapped him again, maybe he'll come back some time and be pleasantly surprised.

0 sats \ 0 replies \ @nemo 20 Sep 2023

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31 sats \ 1 reply \ @nemo 20 Sep 2023

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1 sat \ 0 replies \ @DarthCoin 20 Sep 2023

Also I have a very accurate bullshit-o-meter. All these 10+ years in Bitcoinlandia made it very sharp.

64 sats \ 10 replies \ @Natalia 20 Sep 2023

I cannot purchase hardware wallets since it is too expensive to start with

No need to buy them at all, they are only a waste of money. I bought two ledgers before and felt like an idiot even buying them.

I recommend starting with a small amount of Bitcoin with Blue wallet and keeping it simple - learn what is the best practice to store the seed words and how to restore wallets. At the same time, read @darthcoin's guide.

Eventually, you would learn how to make a hard wallet with a simple USB, but that would be quite a process. Patience you must have.

1 sat \ 9 replies \ @DarthCoin 20 Sep 2023

OMG... Natalia is going to reach the next level of ultimate Force Power... I have to be careful what am I teaching...

20 sats \ 7 replies \ @nemo 20 Sep 2023

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1 sat \ 6 replies \ @DarthCoin 20 Sep 2023

maaan, are you always forgetting WHO was Darth? Anakin (Darth) loved so much Amidala (Natalie Portman) that he slipped away into the dark force only to save her!

Please watch again the WHOLE Star Wars saga to understand the whole point of the story.

0 sats \ 5 replies \ @nemo 20 Sep 2023

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1 sat \ 4 replies \ @DarthCoin 20 Sep 2023

another advice: don't make Darth your enemy. https://darthcoin.substack.com/p/darthcoin-enemies

0 sats \ 3 replies \ @nemo 20 Sep 2023

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1 sat \ 2 replies \ @DarthCoin 20 Sep 2023

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0 sats \ 0 replies \ @Natalia 20 Sep 2023

you have planted the seed of pay it forward and citadel building inside me.

100 sats \ 2 replies \ @TheBTCManual 20 Sep 2023

I went through the same issue with a shitty South African exchange back in 2015 and that got me to self custody too, its an awful feeling I know, but we have to focus on what we can control.

You can start by getting a software wallet where you generate a seed phrase and you sign the transactions, not a 3rd part. There are a bunch of software wallets you can download depending on the device you're using, I am personally using Green wallet for my day to day stuff, but thats a personal preference, please don't let that sway you

This will at least allow you to generate a set of keys and hold the funds yourself and you can move to a hardware wallet when you feel ready or can acquire one. You don't need to purchase one, you could build one yourself with a seed signer, check out the project if that interests you

0 sats \ 1 reply \ @NeuroNinja OP 20 Sep 2023

What is Hot Wallet ?

What if the software I'm trusting go out of service. How will I recover my funds then. I will read about it on internet too tho.

1 sat \ 0 replies \ @TheBTCManual 20 Sep 2023

Its just a term for the type of software wallet where the keys are held on the device like your phone or laptop, if the developers stop providing support for it you should still be able to use the last version, but you are free to move to any other software wallet as long as you have your 12 or 24 seed phrase, you are not tied to any single service/software

1 sat \ 0 replies \ @grayruby 20 Sep 2023

I would suggest buying a blockstream Jade wallet. It is affordable and easy to use. You probably don't want to spend 200 on a hardware wallet if you are only holding 1k worth of bitcoin so get something more affordable. Stack sats daily or weekly. Move sats off exchange weekly.

Take the time to learn from your mistake and learn about what you own. Ignore all the shitcoin promoters that will come out of the woodwork during the next bull market.

All the best.

1 sat \ 0 replies \ @criptopanas 20 Sep 2023

There many software for free that you could use to store in a safe way your SATS. IMO, one of the decisions that you have to make at the beginning of your journey is about your time preference. If you're planning to use this sats in a short period of time, I'd use a non custodial Lightning wallet, like Phoenix or Breez. Using Lightning you'll be able to buy small amount of SATS from P2P markets as Robosats, Bisq, HodlHodl or LNP2PBOT.

If your plan is to hold for a year or many years, I'd use an On Chain wallet, Sparrow (desktop) or Samourai (mobile) and keep in a very safe place your seed phrase. Anyone with access to the seed could access your funds, so adding a passphrase could be very useful.

But before sending any funds to your wallet, please learn and practice about how to restore your wallet.

Good luck!

1 sat \ 0 replies \ @Believe 20 Sep 2023

Buy a cold wallet!

0 sats \ 0 replies \ @fm 21 Sep 2023

"I cannot purchase hardware wallets since it is too expensive to start with."

" purchase crypto in smaller amounts (maybe in like 200-300 USD)"

Buddy, start with a Ledger.. Why risk again your money on hot wallets?? Save some, buy a ledger or similar... Then buy your 200-300USD of btc.. As easy as that..

0 sats \ 0 replies \ @fedelang 21 Sep 2023

Sorry to hear that. A friend of mine lost a whole BTC on yielding promised land. You are the yield.

Setup a seedsigner. All cold wallets are overrated. If you hodl you will need access to your signing device just once to get the xpub, set that up In blue wallet and be very careful how you store ur seed.

I would strongly suggest you use testnet. Also think about a Passphrase and leave the bare seed with some decoy and watch tower

0 sats \ 0 replies \ @0206419452 20 Sep 2023

Here friend https://armantheparman.com/zerotrust/