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This kind of news is the reason why people should seriously consider buying a hardware crypto wallet if they plan to put significant sums at risk. I've started

This kind of news is the reason why people should seriously consider buying a hardware crypto wallet if they plan to put significant sums at risk. I've started trading in this space with a modest amount, but as I plan to increase some of my investments I am definitely considering purchasing a wallet. I would sleep better if I knew my coins were not held within the exchange.

anigbrowl 9y ago
Why not just carry gold coins back and forth to a casino in a strongbox? At least you know what the odds are when you gamble.
Leader2light 9y ago
What happens when your hardware fails or is destroyed? Or someone just forces you to give up the info?
- makemoniesonlin 9y ago
  You store the seed phrase securely as well somewhere, and if the hardware wallet fails, you can still access your coins.
  - fermienrico 9y ago
    So then the chain continues: You need another hardware wallet to secure the seed phrase? As someone said earlier in this thread - Hardware wallets are simply another computer that stores your private key. There is nothing inherently different about its "Hardware".
    - glitch003 9y ago
      The seed phrase is 24 words. You write it on paper, you don't need another hardware wallet to secure it. You can import that seed phrase into any number of wallet programs if you lose your hardware wallet.
CyberDildonics 9y ago
You don't need a hardware wallet, you just need to CONTROL YOUR PRIVATE KEYS AND NOT KEEP YOUR MONEY IN AN EXCHANGE. This gets repeated over and over, but people just don't listen until it is too late. Keeping money on an exchange is the antithesis of why crypto-currencies were invented in the first place.
- AlexCoventry 9y ago
  A hardware wallet is probably a good way for most people to do that, though. Most people getting into cryptocurrency at this point aren't going to be able to spin up a secure debian box, download and run zcashd, run it until it syncs with the network, construct a transparent address, round-trip a test portion of their exchange funds through the address, park their on-exchange zcash there, and put the wallet.dat file somewhere secure from hacking or destruction. But my understanding is that Ledger can handle transparent zcash transactions, which potentially massively simplifies matters.
welder 9y ago
There is no such thing as a hardware wallet, it's just another computer with your private keys that you are calling a "hardware wallet". Instead of a hardware wallet, backup and encrypt your private keys to multiple places.
- glitch003 9y ago
  >There is no such thing as a hardware wallet Their absolutely is. A hardware wallet can take unsigned transactions and sign them internally, and output a signed transaction. Your private key never leaves the hardware wallet. Compare this to signing a transaction with a private key on a computer. Your computer can have spyware that can snoop on the key and steal your coins. The hardware wallet has a burned ROM with a firmware that is signed and verified every time you use it.
  - dragonwriter 9y ago
    > Your computer can have spyware that can snoop on the key and steal your coins. So could a hardware wallet. [0] [0] https://en.bitcoin.it/wiki/Hardware_wallet https://en.bitcoin.it/wiki/Hardware_wallet - see under "Security Risks", both the "compromised production process" and "compromised shipping process" items are places where this could occur.
    - computerex 9y ago
      Yes but the attack surface is much smaller.

anigbrowl 9y ago

Why not just carry gold coins back and forth to a casino in a strongbox? At least you know what the odds are when you gamble.

Leader2light 9y ago

What happens when your hardware fails or is destroyed? Or someone just forces you to give up the info?

makemoniesonlin 9y ago
You store the seed phrase securely as well somewhere, and if the hardware wallet fails, you can still access your coins.
- fermienrico 9y ago
  So then the chain continues: You need another hardware wallet to secure the seed phrase? As someone said earlier in this thread - Hardware wallets are simply another computer that stores your private key. There is nothing inherently different about its "Hardware".
  - glitch003 9y ago
    The seed phrase is 24 words. You write it on paper, you don't need another hardware wallet to secure it. You can import that seed phrase into any number of wallet programs if you lose your hardware wallet.

CyberDildonics 9y ago

You don't need a hardware wallet, you just need to CONTROL YOUR PRIVATE KEYS AND NOT KEEP YOUR MONEY IN AN EXCHANGE. This gets repeated over and over, but people just don't listen until it is too late. Keeping money on an exchange is the antithesis of why crypto-currencies were invented in the first place.

AlexCoventry 9y ago
A hardware wallet is probably a good way for most people to do that, though. Most people getting into cryptocurrency at this point aren't going to be able to spin up a secure debian box, download and run zcashd, run it until it syncs with the network, construct a transparent address, round-trip a test portion of their exchange funds through the address, park their on-exchange zcash there, and put the wallet.dat file somewhere secure from hacking or destruction. But my understanding is that Ledger can handle transparent zcash transactions, which potentially massively simplifies matters.

welder 9y ago

There is no such thing as a hardware wallet, it's just another computer with your private keys that you are calling a "hardware wallet". Instead of a hardware wallet, backup and encrypt your private keys to multiple places.

glitch003 9y ago
>There is no such thing as a hardware wallet Their absolutely is. A hardware wallet can take unsigned transactions and sign them internally, and output a signed transaction. Your private key never leaves the hardware wallet. Compare this to signing a transaction with a private key on a computer. Your computer can have spyware that can snoop on the key and steal your coins. The hardware wallet has a burned ROM with a firmware that is signed and verified every time you use it.
- dragonwriter 9y ago
  > Your computer can have spyware that can snoop on the key and steal your coins. So could a hardware wallet. [0] [0] https://en.bitcoin.it/wiki/Hardware_wallet https://en.bitcoin.it/wiki/Hardware_wallet - see under "Security Risks", both the "compromised production process" and "compromised shipping process" items are places where this could occur.
  - computerex 9y ago
    Yes but the attack surface is much smaller.