It was first published Unchained.com.
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Properly managing your keys requires taking on additional responsibility, but it is an important part of Bitcoin security. But what if you need to travel? If you keep a large amount of Bitcoin in cold storage, do you need to carry the keys to your Bitcoin wallet with you? What steps should I take to stay safe when traveling?
Consider these 7 tips for traveling in a way that allows you to manage your Bitcoin while minimizing risk.
1. Carry only the wallet you need
Bitcoin allows you to segregate your funds across multiple wallets, so you only need to carry around the keys you need for a small amount of Bitcoin. You can store your Bitcoins stored in your phone’s hot wallet while ensuring your Bitcoin savings with Cold Storage Multisig. blue wallet or Muun.
By carrying only the wallet keys you need, you can spend and receive Bitcoin while leaving the majority of your savings in a secure cold storage setup, such as multisig, which eliminates single points of failure.
2. Consider your destination
When evaluating the risks of traveling with Bitcoin keys, consider your destination and travel plans. What is the relative crime risk in your destination? Is your destination in a high crime country or city? What will your surroundings be like?
If your destination has a high crime rate or petty theft is prevalent, expect your phone to be stolen. Keep your smartphone properly secure and avoid keeping large amounts of Bitcoin keys on the device. One consideration is to minimize the potential loss of Bitcoin by storing only small amounts in mobile wallets, but even storing the keys of a multisig wallet on a smartphone while traveling could lead to a breach. There is a possibility that the sex will increase, difficult key exchange.
If you participate in an event where Bitcoin ownership is assumed, adjust your security model based on the assumption that everyone knows you own Bitcoin. That could mean making sure you have a passphrase on your single-sig wallet, or securing small amounts of Bitcoin with multi-sig and distributing the keys to your belongings while you travel.
3. Avoid traveling with backups of your seed phrases
you should Always have a seed phraseHowever, note that these are unencrypted secrets of specific keys, so they are much easier to compromise than hardware wallets. Hardware wallet private key data is typically secure elementis behind a PIN and requires a PC to access, but a backup of the seed phrase is easy to physically steal, copy, or photograph.
On a typical trip, you should leave a backup of your seed phrase in a secure storage location and travel with one or more hardware wallets.
Need to travel with a backup of your seed phrase?
May be required for travel Seed phrase backup In some cases.Relocation of permanent physical residence (we A guide has been published (A must-read if you’re in this situation) and Traveling to set up securely stored key items in a multisig setup are both traveling with a 12-word or 24-word seed phrase. That’s a good reason.
If you need to travel with a seed phrase, there are several things you can do to minimize the chance of infection and maintain your peace of mind.
- Keep a low profile at airport security: Keep a paper backup of your seed phrases in a book, or write and break up your seed phrases in a physical notebook according to easy-to-remember rules. Avoid using suspicious metal locks or cases. If your bag is suspected and pulled over, your seed phrase is much more likely to be seen.
- Use your singlesig wallet passphrase: A PIN can protect your hardware wallet, while a passphrase protects your seed phrase.The passphrase is Generally higher risk compared to other storage setups such as multisigit makes sense to use a singlesig wallet with a seed phrase while traveling, as long as it is properly backed up (don’t rely on memory!).
- Utilize travel companions: Consider a multisig wallet (see below). For example, he gives one seed phrase to his travel companion, keeps one seed phrase to himself, and stores one seed phrase in his hardware wallet in his checked baggage. If you absolutely need to be sure that one seed phrase already exists at your destination, you can compromise your seed phrase by temporarily storing it in your password manager before you leave (see below). ).
4. Be careful about what you say and do.
Before attacking, attackers need to know who they are targeting. This is where operational security becomes important. Much of this advice applies to saving wealth with Bitcoin in general, but especially while traveling.
When you’re on the go, you’re often at the mercy of the whims of people and environments that you have no control over. In such a situation, it becomes publicly known that you may be holding large amounts of Bitcoin.
- Don’t talk about Bitcoin with people you don’t trust: One of the easiest ways to do this is to talk less about Bitcoin. Be careful when “spreading the word.”
- Do not put Bitcoin stickers on your laptop or device: It’s like a big neon sign that says, “This device contains private key data!”
- Do not wear Bitcoin related items: Especially in places where people know what to look for, wearing products or clothing with the Bitcoin logo on them will make you unnecessarily targeted.
- Don’t talk about how much Bitcoin you own: In general, it is a good idea to share the amount of Bitcoin you hold only when necessary. Knowing that you are a higher-value target may cause attackers to consider more extreme or risky actions.
These actions can pose physical danger while traveling, especially if you do not have private key data about the individual. If someone tries to attack you with his $5 wrench and you don’t have any Bitcoin, your Bitcoin may survive, but your kneecaps may not.
5. Create a decoy wallet
Whether you’re using a hardware or software wallet, many wallets allow you to create a decoy wallet. Decoy wallets allow you to create a second wallet that is completely separate from your primary wallet and can be activated in duress scenarios. With these, you typically add enough funds that you don’t mind losing, but make the attacker think they got what they wanted.
There are several ways to set up a decoy Bitcoin wallet.
- Single sig + passphrase
- Use one key with multisig quorum
- Forced PIN
Single sig + passphrase
A passphrase allows you to set up a secondary wallet that allows an attacker to access some of your funds. You can also make your primary wallet a bait while using your main wallet’s passphrase.everytime Consider the tradeoffs when using passphrasesHowever, always make sure that your passphrase is properly backed up (it is case sensitive).
multisig
When using multisig, you can protect yourself by using one of the keys in your quorum as a decoy, as long as you can keep it secret that a particular hardware wallet or seed phrase is part of your multisig setup . To do this, simply use one hardware or software wallet, usually part of a multisig setup, as a standalone wallet. An attacker could access funds sent to a single-sig wallet associated with that seed without accessing or even knowing the multisig-built wallet.
Forced PIN
Some wallet manufacturers allow you to set a mandatory PIN. This feature allows you to set up a second her PIN that gives the attacker access to her second decoy wallet. If you are attacked, give the attacker the wrong girlfriend’s PIN and have some of the funds in that wallet.
As an example, the Coldcard hardware wallet offers three types of duress PINs. One to unlock the decoy wallet, one to destroy the seed upon entry, and one to create a customizable countdown to “brick mode.” These tools give you peace of mind that an attacker cannot access your primary Bitcoin key (if it even exists).
6. Consider multisig to eliminate single points of failure
Bitcoin’s native multisig functionality is useful for creating decoy wallets, but it’s also a powerful tool for mitigating travel risk in general. Perhaps you need to carry your private keys with you but want to avoid the single point of failure of a singlesig wallet. Carrying around three hardware wallets, where each key is held as one in a multisig quorum, reduces risk.
There are many unique features available through multisig while traveling. Each of the following has security implications and tradeoffs to consider that are beyond the scope of this article, but the following are possible:
- Distribute the keys you keep while traveling: You can travel on a plane with 2-of-3 multisig. One key is kept personally, the other key is kept in a secret compartment in the carry-on baggage, and the third key and seed phrase backup are geographically distributed in other secure locations. place. This keeps the three keys separate and two of the three must come together to use the funds.
- Digitally save your seed phrase: Storing the seed phrase in a password manager and temporarily compromising it ensures that at least one seed phrase backup to the multisig quorum is already present at the destination. Once you arrive at your destination, you can: Exchange keys For seed phrases that are temporarily stored on an internet-connected device.
- Email yourself a hardware wallet or seed phrase: If you’re traveling with a large amount of Bitcoin funds and don’t want them stolen during your trip through a 2/3 multisig physical attack, you can mail one hardware wallet or seed phrase to your destination, for example. can do. Just carry one key with you so you can use your funds when you arrive.
- Partner’s countersignature: Your custodial partner, whether it’s a financial institution like Unchained or a trusted third party, can arrange for you to sign transactions while you travel if you want to multisig a small number of keys.
You can use tools like sparrow, electrumor our very own caravan If you want to build a multisig wallet yourself and need help understanding travel best practices in the context of multisig setup and co-custody, we have a team it can help it.
7. Create an inheritance plan
It’s a good idea for anyone with significant Bitcoin assets to have an estate plan in place, but this is especially true when traveling. If something were to happen during your trip, you need the peace of mind that your Bitcoins will be rightfully passed on to your next of kin without any issues.
This is very difficult when traveling with self-custodial Bitcoin in a single sig wallet, but multisig is even better for inheritance purposes by including a co-custody partner in the multisig setup, but all can provide benefits. You can rest assured that you can store your Bitcoins yourself and have them processed even when you are not there.
I previously wrote an article explaining its intricacies. How to create a Bitcoin inheritance plan If that’s something you want to consider before your trip.
Additional Bitcoin security considerations
Travel formalities are important, but there’s more to the security of your Bitcoin keys. Please be sure to check the guide. Best practices for seed phrase storageand the associated trade-offs paper and metal seed phrase backup, Proper security is required when using multisig. Wallet configuration information and principles Store the seed phrase in a safe deposit box.
It was first published Unchained.com.
unchained is Bitcoin Magazine’s official U.S. co-custodial partner and an integral sponsor of related content published through Bitcoin Magazine. Please visit our website to learn more about the services we offer, our custody products, and the relationship between Unchained and Bitcoin Magazine. Website.
