Safer Bitcoin Password Management

2 minute read Published:

Store Bitcoin using decentralized password management. Avoid getting hacked.

There’s a certain novelty to watching your first bitcoin wallet increase eight-hundred percent in 10 months. That was cool, you think. Maybe I’ll put a little more in and see what happens you say to yourself.

So you put in a little more, cautious not to go overboard. Then, all of a sudden… BAM! Your second investment doubles in a month. Things just got real.

Paranoia sets in. You start educating youself. You read The Crypto-Traders Guide to Online Security. You’re feeling a little more confident. But that’s not good enough. So you encrypt your entire life and go beyond incognito. Yet something still doesn’t feel quite right.

Then it hits you like a ton of bricks. You might be using a centralized password manager in a world of decentralization. And you suddenly realize you’ve given away the keys to the castle. And the lambos.

Do you remember when LastPass got hacked in the summer of 2015? I remember thinking to myself at the time, “Damn, sure glad I never used it.”

Afterwards my mind kept turning back to a discussion I’d had with a former colleague – a very bright kid – named Jason. About a year prior to the leak I’d tried to convince Jason to use decentralized password management instead of LastPass.

The rationalle I gave him:

  • So many passwords in one place were like a bat signal for wouldbe hackers.
  • Managing passwords outside a service afforded freedom and independence.

I supported my stance with a story of how I once lost a pysical copy of my encrypted password database and did so without incident.

Despite my argument Jason decided to use LastPass. Sigh.

And though I’m not sure if Jason lost cryptos during the LastPass leak, I often wonder if seeing cryptocurrencies skyrocketing as they have been would have made my argument for decentralized password management a little more compelling.