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    • How to Safely Store and Protect Your Crypto Casino Wins

    How to Safely Store and Protect Your Crypto Casino Wins

    By Shane Addinall Jan 30, 2023
    How to Safely Store and Protect Your Crypto Casino Wins
    Join us as we discuss how non-custodial blockchain wallets protect your crypto casino big wins regardless of whether you play with Bitcoin, Ethereum or other altcoins.

    When it comes to crypto gambling, there are many resources available to guide players on their journey. Here at GamblersPick, we have handy resources pertaining to the history of the crypto casino, how to gamble online with Bitcoin, and even one dedicated to Ethereum casinos and how they work.

    With the recent industry shakeup caused by the implosion of FTX, one of the most common questions we have been fielding from our community has been how to secure one’s portfolio best and protect it from being lost because of someone else’s bad decisions.

    To help our community begin their journey, we have highlighted some of the most common weaknesses in mass crypto hodling and outlined the steps you can take to secure your cryptocurrency for yourself.

    Facts You Are Your Cryptos Best Security

    One of the challenges many first-time crypto buyers encounter is the false narrative that they need an exchange to secure their coinage. The essence of the crypto movement was that there is no need for intermediaries to secure your wealth for you – you control it so that you know how it is being used and by whom.

    As one crypto expert we interviewed noted:

    Quote

    “If you don’t hold the key to your wallet, it is now your wallet.”

    In this case, he was referring to the 12-word phrase (also known as a mnemonic) that acts as the master key to your crypto holding on the blockchain.

    Here is a quick self-assessment:

    Quote

    “Do you have a 12-word passcode that is the key to your cryptocurrency holdings?”

    If the answer to this simple question is "no", then your crypto is not as safe and secure as it needs to be. During the rest of this post, we will investigate why your holdings are not protected, how to secure them and which steps you can take next for total peace of mind.

    More DetailsWhy Custodial Wallets Are Risky

    locked out by custodial walletWe all understand that "custodial" relates to the "act of protecting or caring for". This is why when we say that a non-custodial wallet is the best option for securing your digital tokens, it sounds counter to what we are trying to achieve.

    What we are missing in this context is perspective. The perspective of the term “non-custodial” means that the duty protection does not sit with the company or platform you are using.

    Using a platform like Luno to store your crypto is not ideal because it is their platform, and you, therefore, abide by their rules. They are the custodians of your crypto. By making them the custodians, you relinquish control of your holding to them and need to abide by their rules. For example, activating the ability to send your Bitcoin to another wallet takes 24 hours with Luno. This means they can block you from managing your assets for one whole day if you need to do an urgent crypto transaction.

    Should a custodial wallet be shut down or go insolvent, there is a good chance you will lose your investment as they hold complete control over your wealth.

    Payments How Do Non-Custodial Wallets Work?

    blockchain 12 word keyphraseEven for non-tech savvy hodlers, the ideal solution is to store their Bitcoin, Ethereum, Litecoin, and any altcoins they have invested in with a non-custodial wallet like Exodus. As the name infers, these platforms offer users an easy interface for buying, selling, and even trading cryptocurrencies without taking control or having any power to restrict them from being accessed.

    The most important aspect of a non-custodial wallet is that it stores your crypto directly on the blockchain (to take advantage of its enhanced security features) and then gives you the encrypted 12-word key to ensure that only you can access them.

    Engaging directly with the blockchain is the best way to ensure your coins are safe and secure. With the master key to your blockchain account safely stored away, there is no chance of being hacked.

    Given that the 12-word phrase is literally the key to your crypto kingdom, there are rules to securing it:

    1. Write it down by hand and store it in a safe place.
    2. Do not take a photo of it and store it on your phone, computer, or cloud storage device.
    3. Do not share it with someone else.

    The most important of all is not to lose it. The blockchain is so secure that it cannot be hacked, even by the non-custodial wallet platform you use. This is the only key to your treasure vault; protect it well but always know where it is.

    More Information BIP39 Is Your Best Friend

    BTC WaiterAs a savvy investor, you have probably wondered, “What happens if the non-custodial wallet closes up shop?” After all, you are still using their platform to access your crypto. If their site is gone, how do you access your coins?

    The answer to this excellent question is a blockchain security protocol known as BIP39.

    The Bitcoin Improvement Proposal number 39, or BIP39 for short, is the process by which your random 12-word key is generated from a list of 2048 unique words that make up the BIP code list.

    If your chosen non-custodial wallet ever shuts down, thanks to the BIP39 process, you can open another account elsewhere and use the BIP39 phrase to access your blockchain-based account via that new platform.

    Remember, a non-custodial wallet is just a digital waiter bringing you what you need. When that waiter isn't available, use the services of a new one. It is still your account on the blockchain, with your funds. The wallet is just an access point.

    Live DealersDouble Down for Peace of Mind

    You know how to balance risk with reward as a crypto casino player. One of the most common advice regarding securing your digital currencies is to have a minimum of two non-custodial wallets. Even though you can always access your blockchain account, having two accounts from the start will make it quicker and easier to access your funds and move them into another active platform should the need arise.

    Some wallets also tend to focus on core lists of coins, meaning you will need more than one wallet to diversify your holdings. The adage of not keeping all your eggs in one basket seems as essential in today’s digital landscape as it did when they spoke of literal eggs.

    With your favourite digital currencies safe and secure, all that is left for you to do is find the best Bitcoin online casinos to join. Each of the sites we recommend has been thoroughly vetted, offers incredible Bitcoin and altcoin bonuses and has a strong reputation for fair play.

    Tags

    crypto casino cryptocurrency bitcoin crypto wallet bip39 bitcoin casino

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