How to secure a Bitcoin

[sandybay 15]

A Swiss bank account in your pocket. Bitcoin multiple signature (multisig) addresses maximise security against loss, theft, hack and seizure due to the nature of the split responsibility and / or redundancy required for spending. By way of explanation, let's say I want to start a family fund, in Bitcoin. I make a 2 of 5 multisig wallet; 2 signatures required of 5 possible to spend from this address. Of the 5 generated keys, I send one key to my father. One to my mother (they live separately). One to my brother. I keep one and I send a backup paper key to a trusted family friend. Requiring at least 2 signatures immediately cuts almost any unintentional loss. Let that sink in. It is almost impossible for anyone to seize, steal, hack the funds away. It is almost impossible for you to lose access to the funds. Instant spending is easy enough with any 2 members present. Businesses, Trusts or Governments might require more signatures to avoid collusion. Herein I provide a detailed explanation and code of how to create and use your own multisig address. Full code can be found at our Github page

Keys

Multiple signatures require multiple keys. To generate fresh keys we use the random key generator provided by bitcoin.

from bitcoin import *

# private keys
k1 = random_key()
k2 = random_key()
k3 = random_key()
k4 = random_key()
k5 = random_key()

print("Private keys: these are the keys you need to disperse. Do not save copies. It would defeat the point.")
print(k1)
print(k2)
print(k3)
print(k4)
print(k5)

# public keys
p1 =  privtopub (k1) 
p2 =  privtopub (k2)
p3 =  privtopub (k3)
p4 =  privtopub (k4)
p5 =  privtopub (k5)
        

 

Redeem script

We can use the above keys to generate a redeem script and multisig address.

k = 2 # signitures required
n = 5 # keys generated

script =  mk_multisig_script ([p1 ,p2 ,p3 ,p4 ,p5], k, n)
address = scriptaddr(script)

print(script)
print(address)
        

 

Spending

Now you have a multisig address with the redeem script and keys to distribute. To test the spending, you will need to send some bitcoin to your new multisig address. Once sent, you can test the funds were received with:

unspentData = unspent(address)
print(unspentData)

unspentOutput = unspentData["output"]
          

To spend funds you will need any 2 of the 5 generated to sign the new transaction.

spendSats = 10000 # satoshis to spend
addSpend = '112eMCQJUkUz7kvxDSFCGf1nnFJZ61CE4W' # address to receive new transaction
tx =  mktx (unspentOutput, addSpend+':'+str(spendSats))
print(tx)

# Now, let’s sign it with keys 1 and 3:
sig1 =  multisign (tx, 0, script, k1)
sig2 =  multisign (tx, 0, script, k3)

tx2 =  apply_multisignatures (tx, 0, script, [sig1, sig2])
print(tx2)

# And now we push:
eligius_pushtx (tx2 )
            
                      

Financial sovereignty. It's that easy, thanks to Bitcoin.

[Tarkin4ik 3160]

Securing bitcoin is quite simple, the most important rule that I constantly use is that you do not need to go to all sorts of unknown sites and then everything will be fine

[CryptoLover21 0]

Always remember that it is your responsibility to adopt good practices in order to protect your money. Be careful with online services. Small amounts for everyday uses. Backup your wallet. Encrypt your wallet. Offline wallet for savings. Keep your software up to date. Multi-signature to protect against theft.

[mskhatri24 299]

To secure your bitcoin, first you should use a trusted wallet having good reputation, which use more than one layer of security for you bitcoin or any other cryptocurrency. These layer may be 2FA  or sending confirmation code by sms or email and also regularly change you cryptocurrency address for deposit or payout from other sites. Don't save your password or other crypto related information on system, write it on notebook or any other place where you feel secure.

[Dolpharius 675]

Bitcoin is very much divided into mono parts and you can distribute it into three parts and store it on different platforms that you like and you trust them, it will be safer than keeping everything in one place.

[tienda 8776]

Thank you for introduced this point about how we secure our Bitcoins is very important what you say here, because the security of our cryptocurrency is depend about us if we need to invest on our protection we invest.

[aymandr 206]

Be careful with online services.Small amounts for everyday uses.Backup your wallet. Encrypt your wallet. Offline wallet for savings.Keep your software up to date.Multi-signature to protect against theft.

[Jeet Narayan 1940]

There are lots of way to secure our bitcoin such as hold bitcoin in different wallet account, use 2fa and others security in every exchange or wallet, use offline wallet. I think if we do this then our Bitcoin will be secure.

[Fahadrajpoot7735 20]

This Information proved to be very favorable for me. I am very happy that you have shared the information and it has given me a lot of points on how I can save my bitcoin. And i'm so thankful to you.

[KURTAULI 1297]

Thanks for sharing interesting information about bitcoin protection. Many users will help your post. It would be great to share information on how we can protect the crypto wallet

[scorpiali 5626]

It's little bit to hard or just to hard to  made this script and those programmation for your wallet no one can do that because the majority want just normal wallet without doing any thing 

[Ayush Singh 1175]

The very easy way to secure your Bitcoin is to choose the best wallet and exchange which you prefer while trading or investing with Bitcoin because any unusual sites of wallets and exchanges can cause you negatively so every user should focus on the best exchange and wallet.

[bliznec 22267]

Most likely, this is a very difficult task in order to protect your bitcoins. Downloading programs from Github has security and it really is. I use different keys.

[scorpiali 5626]

8 hours ago, DoboniAyuuii said:

It's worth it, I can go any length to how I can secure my wallet. Hackers are very dangerous, but my methods are quite more easy than this though. 

If it's worth it you have to do it in your responsibility as you can secure your wallet no worry for that, but any way you need to be careful scammer have all the time new skills   

[scorpiali 5626]

4 hours ago, GanDuba said:

Scammers do have new ways to scam. This is right and we should be very careful and for example free our wallet devices fromalware. 

yes right we all the time need to be careful because they have all the time create new thing to scam others so we need to be up to date for his technique 

[BitcryptoHan 2557]

There are still many other alternatives, the best is to just get an open source wallets like electrum or a very secure wallet and protect them from malware. I think it is as easy as that. 

[iloveyobit 6599]

This is a really complicated process to protect bitcoin. You can simply take all of these steps and buy an external wallet offline. You can store bitcoin in it.

[iloveyobit 6599]

6 hours ago, DoboniAyuuii said:

That is what I am saying, it is very complicated, I will prefer to use normal wallets and just be wise and safe myself from scam. 

Yes, I also agree with you. It is better to use regular wallets, especially in storing bitcoins and other currencies because complex wallets have more ability to lose the entry key.

[iloveyobit 6599]

12 hours ago, CrimBit2020 said:

Which type of regular wallets are you talking about? Are there irregular wallets? I have not heard such before. 

I am sorry, if my explanation was not simplified enough, I mean to use regular wallets away from any other complicated wallets in order to facilitate the process of storing your money for you..

[Mushahid Bajwa 186]

Bitcoin can be secured by holding it on different platforms or wallets by splitting it into smaller units.Bitcoin made up of small amount that you can receive or transfer to their different wallets.

[Crypto123 0]

Yes, multiple signatures for the wallets is a good technique, with a very high security rate, but it is dangerous at the same time and has some problems. What if someone lost his signature or someone died How can the money be retrieved in this case.

[Crypto123 0]

Of course, multiple signatures are a very strong security tool to protect any Bitcoin wallet, but you should also mention the negative aspects of multiple signatures because there are about two or three signatures and they must all sign to open the wallet or transfer and in the event of any accident for one of them there will be a problem of wallet loss.

[Calvinpriva 17296]

I like your method because it will help you to protect your private keys from anyone to access your wallets. Am using a wallet that doesn't use a private key but it has google authenticator and my funds are safe.

[Whited35 15285]

On 4/10/2020 at 8:07 PM, Kapil Koirala said:

some offline wallets because that much security can also become harmful sometimes.

@Kapil KoiralaOffline wallets like Ledger Nano and Trezor are safest wallets if you want to store the huge amounts of valuable cryptocurrencies like BTC, ETH etc. Generally they are not harmful to use but are also most of the scured wallets. 

[DokAgsikap 145]

On 5/3/2020 at 2:18 AM, Crypto123 said:

Of course, multiple signatures are a very strong security tool to protect any Bitcoin wallet, but you should also mention the negative aspects of multiple signatures because there are about two or three signatures and they must all sign to open the wallet or transfer and in the event of any accident for one of them there will be a problem of wallet loss.

If you are using web wallet, your private key must be secure and do not give it to others, when using hardware wallet better to maintain anti-malware in your device.