Encrypting Bitcoin Wallets - Reading Assignment

Bitcoin Attacks
#21

  1. Your private key is stored locally on a wallet.dat file on your computer and can be accessed by a 3rd party in case of a breach. This is why it’s important to encrypt this private key.

  2. In case an attacker gets hold of your wallet.dat file, he will be able to steal all your crypto assets.

1 Like
#22
  1. to add another layer of security so someone cant take or spend all your funds from your wallet
  2. you will be at risk for someone looking at your funds and spending them instantly
#23
  1. To avoid malicious activities and lose of funds in the wallet.
  2. The attacker would be able to do anything like send, withdraw funds since the attacker would get the private keys.
#24
  1. To protect my shekels
  2. My shekels being spent by someone else
#25
  1. so that no one have access to your funds
  2. the attacker can read the private key in plain text. If it is encrypted they need your passphrase
#26
  • Why is it important to encrypt your wallet?
    It protects your private key against theft, if another person gets access to your device.
  • What is the risk of not having a password if an attacker gets access to your file system?
    The attacker can open the file where your private key is stored and transfer your funds.
#27
  1. So other people can’t spend your coins.
  2. They will see your private key and transfer your coins
#28
  1. So only the person with passphrase can access the wallet data file.
  2. Anyone with access to the wallets data file have an access to the private keys as well.
#29

so if someone gains access they cannot move coins if dont have password
loose coins

#30

On a laptop it’s important to encrypt your wallet because by default the client leaves the wallet.dat file just on the filesystem, in this sense vulnerable for any loser to look at and find the private keys. There is now on laptops the option to encrypt the wallet.dat file with a passphrase. This encrypts the wallet.dat file. It also locks the funds, blocking them from being spend. The client is now in “spectator mode” and it if the user wants to see a detailed view of their activities or spend their bitcoin they must unlock using their passphrase they created to encrypt that.
Not bothering to do this could mean if an attacker had access to the filesystem, which could happen in a number of ways, the wall.dat file could be opened, meaning the attacker has the private keys, which means the attacker can spend the bitcoin.

1 Like
#31

  1. Why is it important to encrypt your wallet?
    If the wallet.dat file is not encrypted your sats are not safe, as everybody who gets access can get your private keys from it without needing anything else.

  2. What is the risk of not having a password if an attacker gets access to your file system?
    He can access your private keys and now has ownership of your funds

#32
  1. Why is it important to encrypt your wallet?
    - the goal is to increase the security, so even if the file system is compromised the attacker will still not have access to the private key itself
  2. What is the risk of not having a password if an attacker gets access to your file system?
    - if there is no password the file will contain the private key in plain text, which basically gives full access to all unspent transactions outputs controlled by this private key to the attacker
1 Like
#33

[quote=“ivan, post:1, topic:8856”]
Answer the questions below:

  1. Why is it important to encrypt your wallet?
    Someone can steal your private keys. Wallet.dat is then encrypted.
  2. What is the risk of not having a password if an attacker gets access to your file system?
    Steal your private keys
1 Like
#34

1 It important to secure your wallet funds.
2 He can transfer your funds from the wallet.

#35
  1. It is important to encrypt your wallet, to prevent someone from stealing your bitcoin.
  2. The risk is an attacker can get into your wallet and spend your bitcoin, it will be too easy to access.
1 Like
#36

Hello
1.Why is it important to encrypt your wallet?
Encrypting your wallet with passphrase will keep your Bitcoin in your wallet locked to attackers. It’s all most like your facebook account that you keep locked.

2.What is the risk of not having a password if an attacker gets access to your file system?
When your wallet is not encrypted and your computer is infected with malicious malware then attacker could get access to your wallet.dat file and use your private keys to spend your UTXO.

2 Likes
#37

1)so no entity cannot access the wallet accept me
2)the attacker can access my wallet and spend or retrieve my funds

#38

  1. Encrypting your wallet makes it very difficult for an attacker to access the private key in the wallet.dat file and take control of your wallet.

  2. An attacker could steal your Bitcoin.

#39

1, Encryption prevents attackers from being able to spend your funds.
2, Attacker gains access to your wallet.dat file which holds private key.

#40
  1. that noone can acces your founds on the wallet
  2. if someone gains access to your computer, they can spend your coins instantly.
1 Like