Encrypting Bitcoin Wallets - Reading Assignment

  1. to protect your private key
  2. they can easily spend your funds
  1. Why is it important to encrypt your wallet?
    so no one can spend your crypto

  2. What is the risk of not having a password if an attacker gets access to your file system?
    he can see the amount I have and send it…

To make it harder for a hacker to get your private keys.
Because if anyone got your password. They own your crypto and can spend it.

  1. Why is it important to encrypt your wallet?
    Your wallet.dat file is unencrypted by default so it is important to encrypt this file so that your BTC is not vulnerable if your computer is compromised.

  2. What is the risk of not having a password if an attacker gets access to your file system?
    An attacker can instantly access your BTC if they gain access to your system and it is not password protected.

  1. To protect your assets from being stolen.

  2. The attacker might be able to steal all the crypto from your wallet.

  1. To protect your keys!
  2. They can steal you keys!

#1encrypted wallet has add security making it more reliable

#2the biggest risk would be loss of cryptocoins all in short amount of time .

1: So hacker cannot steal your private keys and steal your money

2:THe attacker can find your keys and steal your money

  1. Why is it important to encrypt your wallet?
  2. What is the risk of not having a password if an attacker gets access to your file system?

The wallet.dat file itself needs to be encrypted in case the computer where it is stored is somehow compromised. Otherwise, anyone who can access the file system will be able to steal the file and spend the available funds.

  1. It is incredibly important to encrypt your wallet to protect your funds and potential hacks.

  2. The risk of not having a password, and your wallet gets attacked if the attacker can access your wallet.dat file and its not encrypted - your funds can be accessed immediately (removed, spent, etc)

  1. Why is it important to encrypt your wallet?

When wallet is encrypted and protected by passphrase, your coins are locked from being spent. Which means that even if an attacker gains access to the device on which your bitcoin wallet is running, he would not be able to do anything with the funds unless he has your passphrase.

  1. What is the risk of not having a password if an attacker gets access to your file system?

As soon as an attacker gains access to your file system, he would be able to spend coins from your bitcoin wallet instantly.

1-2. If someone get access to the wallet file they can see the private key and spend the funds within it instantly.

  1. Encrypting your wallet prevents hackers that have access to your file system from being able to access your coins
  2. The risk of not having a password is that your wallet is open and accessible by anyone who can access the file system of the computer that your wallet is installed on
  1. Because private keys to your wallet are stored in a data file that is, by default, not encrypted.
  2. High, If your system has been compromised and your private keys are not encrypted, your assets are there for the taking.
  1. It is important to encrypt your wallet in order to prevent anyone other than yourself from accessing your crypto (even if the file system is compromised the intruder can not access your private keys).

  2. The risk of not having a password is that then your crypto can be transferred without your knowledge because someone can access your private keys.

  1. So private keys are not kept unencrypted on your computer
  2. If they obtain your unencrypted private key they can spend your funds. Even if you have changed the password protecting your private key if the same key is protected by the original password history recovery functionality built into your computer could be used to compromise your key. Changing only your password is not sufficient to protect your funds, you must change the private key as well. Since the public key is derived from the private key, selecting a new public key for every transaction updates your private key as well. …(I think…)
  1. So the bad guys don’t get you crypto!
    2.If you Private key is unencrypted ( default condition) an attacker can potentially access your private key directly, in some cases, even if you have changed the password to an encrypted private key.

So that your money is safe and no one has access to your funds for transfering and or spending!

They have full access to your money

1.Why is it important to encrypt your wallet
Ans: prevent your data balance and TXs becoming vulnerable and available.
2.What is the risk of not having a password if an attacker gets access to your file system
Ans: your digital ownership of your Bitcoin if not encrypted is risk to no security or privacy, all data vulnerable and open to being accessed by attacker your balance and transactions

  1. Why is it important to encrypt your wallet?
    So that your BTC funds are protected in the wallet and safe from attack. (Like a Bank Vault)

  2. What is the risk of not having a password if an attacker gets access to your file system?
    If the attacker gains access to your file system they have the access to your private keys and then have the ability to steal your funds. (Like a bank Robber)