{"id":238560,"date":"2017-11-30T10:59:49","date_gmt":"2017-11-30T08:59:49","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=238560"},"modified":"2017-11-30T11:01:54","modified_gmt":"2017-11-30T09:01:54","slug":"how-to-keep-700-bitcoin-a-day-safe","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/security\/238560-how-to-keep-700-bitcoin-a-day-safe.html","title":{"rendered":"How to keep 700 Bitcoin a day safe"},"content":{"rendered":"

Luno recently told MyBroadband it was trading over 700 Bitcoin per day<\/strong><\/a> during November.<\/p>\n

During the period, the exchange also launched support for Ethereum – allowing\u00a0customers to purchase and sell Ethereum for rand.<\/p>\n

As Bitcoin and Ethereum run on separate Blockchains, and trading volumes are growing as the currencies gain in popularity, Luno has to ensure it keeps its systems secure and user-friendly.<\/p>\n

The exchange offers users\u00a0a wallet service to store their Bitcoin and Ethereum, but\u00a0does not provide customers with their own private keys.<\/p>\n

In this way, it works more like a traditional bank than a personal decentralised wallet.<\/p>\n

Luno’s Werner van Rooyen said the same security principles<\/strong><\/a>\u00a0apply to its Ethereum and Bitcoin wallets, which includes\u00a0cold-storage wallets and multi-signature keys.<\/p>\n

Blockchain basics<\/h3>\n

Both the Bitcoin and Ethereum blockchains are built on the basis of public-key cryptography, in which each node or user on the network is given their own public and private key.<\/p>\n

These keys are usually long alphanumeric strings and are used to verify your identity on the blockchain’s public ledger.<\/p>\n

Your public key is your address, which users can send cryptocurrency to.<\/p>\n

Your private key gives you access to your wallet and verifies your actions on the blockchain. Your private key is also used as a digital signature to sign transactions, send data, and interact with the ledger.<\/p>\n

If your private key is compromised, your wallet and funds are in danger. If you lose your private key, you cannot access your funds.<\/p>\n

Luno does not provide customers with the private key to their wallets, and instead it stores them securely in “deep freeze” vaults.<\/p>\n

The keys also require multiple signatures to be used, and only certain individuals have access to the vaults.<\/p>\n

Cold and hot<\/h3>\n

As Luno functions as an exchange and wallet provider, customers require quick access to their funds to trade.<\/p>\n

For this reason, Luno uses a combination of cold-storage wallets and a hot wallet.<\/p>\n

Cold storage means the private keys are disconnected from the Internet and require physical intervention to interact with, while a hot wallet is constantly connected to the blockchain.<\/p>\n

A balance of funds is maintained in Luno’s hot wallet to provide liquidity – giving customers access to their funds while maintaining security.<\/p>\n

The only way to spend Bitcoin or Ethereum from Luno’s hot wallet is if Luno and its co-singing partner service authorise the transaction using multi-signature keys.<\/p>\n

The co-signing partner used by Luno also offers additional security measures like daily and lifetime key spend limits.<\/p>\n

Luno further recommends that customers implement two-factor authentication on their accounts as a user-side safety measure.<\/p>\n

Now read:\u00a0Sending Bitcoin to the wrong address isn\u2019t always the end of the world<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"

Luno explains how it uses multiple security features to keep customers’ Bitcoin and Ethereum safe.<\/p>\n","protected":false},"author":341028,"featured_media":224650,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[44696,27],"tags":[187,47434,42124,35,42992,463,43826],"class_list":["post-238560","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","category-security","tag-bitcoin","tag-cold-storage","tag-ethereum","tag-headline","tag-luno","tag-security-2","tag-wallets"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/238560"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341028"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=238560"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/238560\/revisions"}],"predecessor-version":[{"id":239922,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/238560\/revisions\/239922"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/224650"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=238560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=238560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=238560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}