Bitcoin Exchange BTC-e is Still Offline Making Reddit Users Talk About Laundering

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Follow us on Twitter or join our Telegram. First decide whether you need an online wallet, an offline wallet, or both. Then you can consider specific wallets. Wallet types are mainly about security and convenience: You can, however, use both types of wallets: That offers greater security than an HTTP wallet. Does it offer two-factor authentication username and password plus some piece of information only you have? Do you know who they are? Check forums like Bitcoin Reddit or Bitcoin Forum.

Note that this information is only bitcoin offline wallet reddit general educational purposes. You should always carefully consider the latest available information when choosing a wallet. You bitcoin offline wallet reddit also find the official website of the Bitcoin Foundation Bitcoin. It provides a list of wallets to choose from. Previous - How to store bitcoins Next - How to sell bitcoins. Have any suggestions about this entry?

Bitcoin is the oldest and best-known cryptocurrency. It was born on 3 January As with any other type of money, there are specific issues Bitcoin users need to know about in order to keep their funds bitcoin offline wallet reddit safe as possible.

They include Bitcoin price changes Many are attracted to Bitcoin by its independence and pseudo-anonymity. But its convenience of use, speed and costs are not always as attractive as one would like.

The main advantage of using Bitcoin for payment is you do not need a middleman Bitcoins can be bought for US dollars, euros or another fiat or cryptocurrency on a crypto exchange, directly from other individuals, or using a special ATM.

Bitcoins are stored on the Bitcoin blockchain network. The wallet safeguards the secret code you need to use bitcoin offline wallet reddit bitcoins and helps manage transactions You can sell bitcoins online via exchanges and peer-to-peer platforms, and offline by meeting a buyer in person. You might also be able to do so using a Bitcoin ATM. The fees and price will differ, as will levels bitcoin offline wallet reddit security, privacy, and What kind of wallet do I need? How to evaluate a specific wallet Ask these questions: Previous - How to store bitcoins Next - How to sell bitcoins Have any suggestions about this entry?

Is it safe to use Bitcoin? Bitcoin pros and cons Many are attracted to Bitcoin by its independence and pseudo-anonymity. How to buy bitcoins Bitcoins can be bought for US dollars, euros or another fiat or cryptocurrency on a crypto exchange, directly from other individuals, or using a special ATM.

How to store bitcoins Bitcoins are stored on the Bitcoin blockchain network. How to sell bitcoins You can sell bitcoins online via exchanges and peer-to-peer platforms, and offline by meeting a buyer in person.

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By day, a simple software engineer. By night, also a software engineer. The night was June 9th, It was a typical Friday night for me. I was watching Netflix and checking reddit partying with cool kids.

This reddit user had just done something very dangerous. They posted their Sia wallet seed online. I was pretty sure they did make a mistake writing it down. But I was hoping that they only made one mistake. I needed to do this quickly. Indeed it was not. That led me to the entropy-mnemonics Github project, which contained this dictionary of possible seed words:. That way, if I found that one of 29 seed words they posted was missing from the dictionary, that would obviously be the incorrect word.

Then I could quickly figure out the seed just by looking for words in the dictionary similar to the absent word. I needed a way of finding all the words in that dictionary that were one copying error off from the seed that got posted to reddit. I realized that Levenshtein distance could help me here. The Levenshtein distance is the number of letters you need to add, delete, or replace to get from one word to another.

To discover possible seeds, I could write a script that finds words in the entropy dictionary that had a Levenshtein distance of 1 from the words in the incorrect seed. I first downloaded the dictionary locally and stripped out all characters except a - z:. Then I installed the python-Levenshtein library and wrote a hacky little Python script to dump out the possible seeds:. This code is better for demonstration. Fortunately, my script reported that there were only 12 seeds that had a Levenshtein distance of 1 from the incorrect seed:.

There were few enough possibilities that I could just type them into Sia manually. I tried the first possible seed, created by replacing wise in the incorrect seed with wife:. That was to be expected. I kept trying each potential seed until I got to the seed that replaced tonic with ionic:. Was I the one being fleeced somehow?

While I would have loved to sit and ponder the strange balance I was seeing, time was of the essence. It was time to steal the Siacoin. Someone else is after the treasure. Of course someone else is after it. I quickly sent the full balance to my own Sia wallet. Now that the coins were secured, it was time to figure out just what was going on here. The last transaction in the list is the withdrawal.

The transaction of 0. I was interested in the first transaction in the list. That line showed that this wallet had only ever received one deposit of This was a new, interesting problem.

I decided to just write a batch script to keep transferring money from the exposed wallet to my own wallet. Eventually, I churned out this fine piece of batch scripting:. It goes from 1 to in increments of 0, so it loops forever. While the wallet continues to have zero balance, this command will just fail to no effect. I chose 2, SC because a relatively low transfer was safer. I was effectively playing by The Price is Right rules.

But in the end, I decided I had to do the right thing and return the Siacoin to the user who posted their seed. Still, the discrepancy between the amount I found and the amount they lost could potentially make things awkward. I explained how I had recovered their seed and taken the money to keep it safe from less scrupulous users who could have recovered it as well.

I requested they give me a Siacoin address not associated with the leaked seed so that I could return the Siacoin balance to them. Hours passed, then days, and I heard nothing back. I noticed they had deleted the post to reddit exposing their seed.

Finally, on Monday morning, the victim of my heinous crime got back to me. They explained that shortly after making their post, they realized that their money was still on the exchange and had never reached their wallet I knew it! They were able to move the money to a separate wallet whose seed was secure. They were delighted that I had recovered the seed because I had solved their mystery of what went wrong with the passphrase.

They had correctly written down ionic but they kept mistakenly reading it back as tonic because that was the more familiar word to them. The user even offered to let me keep the full amount, but I felt I would come off better in this blog post the coins rightfully belonged to the user who lost them.

I insisted, and they finally relented and sent me an address so I could return the Never post your Sia wallet seed online. As we see from this tale, even an incorrect or partial version of the seed can completely compromise your wallet. This applies not only to Siacoin but to cryptocurrencies in general. On February 1st, I quit. It was because they refused to buy me a Christmas present. With no idea what I was doing, I hired a cartoonist to illustrate my blog.

The results were surprisingly positive. Silly Bits Blog About Projects. Michael Lynch By day, a simple software engineer. A seedy reddit post The night was June 9th, Hacking by hand I began by examining the words in the incorrect seed: That led me to the entropy-mnemonics Github project, which contained this dictionary of possible seed words: Could not initialize wallet from seed: Wallet initialized and encrypted with seed.

Encrypted, Unlocked Confirmed Balance: Be the first to know when I post cool stuff Subscribe to get my latest articles by email.