They Won't Even Know
How It Happened.
— Not A Hacker
Most people whose wallets got drained were robbed, not hacked. Understanding the difference helps you protect yourself from both.
If you own Bitcoin, the most important thing you'll ever do is write your seed words on a piece of paper and make some form of metal backup of the words, in case the paper gets damaged. The words are referred to as a seed phrase.
Your seed phrase is a backup of your Bitcoin wallet. If you lose your wallet... no worries. You can rebuild it by using your seed phrase. Thus, that piece of paper or metal backup is your last line of defense for recovering your Bitcoin in an emergency.
Hooray for backups!
And also, whoa.
What if somebody finds your backup?
By keeping your backup on paper, not on your computer or phone, you prevent hackers from reaching it.
But what about thieves?
Like it or not, when you tell someone you own Bitcoin, you tell them you probably have a paper or metal backup of your seed phrase, which means you've told them you can be robbed.
It's great that you're passionate about Bitcoin, but when you let people know, you could be setting yourself up to be robbed.
People get robbed by people they know.
Maybe you're thinking, "My family would never rob me. My friends wouldn't either."
Don't think about all of them. Think about each of them, individually. Not a single one of 'em would try to swipe your coins if they could?
Are you suuure?
What about the person you're dating, or the person you sit down next to, at a bar, who strikes up a conversation about Bitcoin? If you unintentionally made yourself a mark by wearing a crypto logo, it could happen.
But let's say you're right. Let's say there's no chance anyone you know or met might go looking for your seed words.
What if one of them mentions you to somebody else?
Imagine it's a Sunday afternoon and your mom is hanging out with friends. Maybe Bitcoin gets mentioned on TV or in a news article, and your mom's friend says, "My daughter is into that crypto stuff."
Your mom says, "My son is too."
"Who, Jimmy?"
"Yeah, he's always talking about Bitcoin."
A few days later, your mom's friend mentions you to her daughter, and that girl's clever.
Next thing you know, you've got a new friend. Maybe even a girlfriend. And, golly gee, she thinks you're awesome.
Of course she does.
To her, you're a mark, and it's too late to shut up, Jimmy.
I've seen too many people come to Bitcoin forums online, looking for help after their wallets got hacked, only to realize they didn't get hacked. They got robbed by someone they know.
Again and again, the story is the same. Search online forums for Bitcoin or crypto and you'll see it too.
A guy will scream bloody murder about how an app or a hardware wallet can't be trusted.
"I GOT HACKED!!!!!"
People in the forum start asking obvious questions.
"Who knew you own Bitcoin?"
"Nobody!!!"
But then...
"Well, I told my girlfriend and my family and my friends and my coworkers and random strangers and, yeah, everyone else."
Okay, they don't really say that, but they usually do say some of it, and they swear that none of the people they listed would rob them.
And they're right. None of those people would rob them, except for the one who did.
Then, they say...
"IMPOSSIBLE!!! I USE A HARDWARE WALLET!!!"
...which just shows they don't understand how Bitcoin works or what a hardware wallet does.
A thief doesn't need your hardware wallet to steal your coins. A thief only needs your seed words. The seed words generate the wallet.
Got your words? Got your keys.
So, the next question becomes...
"Where do you keep the paper backup of your seed phrase?"
...and the response?
Crickets.
One guy posted on reddit about his hardware wallet getting hacked right after posting elsewhere on reddit about breaking up with his girlfriend. And he didn't see the connection.
Do I even need to say it?
While clearing her stuff out of his place, she probably searched for his seed words and snapped a pic. Or maybe she snapped a pic earlier because she was playing the long game.
Here's the real question:
Why did she know to search for his seed words in the first place?
She knew because he told her he owned Bitcoin. He said so on reddit. He also listed other people he told. Family, friends, coworkers, etc. Any one of them could have robbed him.
Be careful what you tell people.
I know you want to talk about Bitcoin, because you love Bitcoin. I know it sucks being told you shouldn't talk about Bitcoin.
I know.
But not talking about Bitcoin means not making yourself a mark. A thief can't steal what a thief doesn't know you have.
If you still don't believe me, here's an easy experiment you can try. Invite a bunch of people over to your place one night. Friends, family. People you love.
Before they arrive, leave a $20 bill on the table. Never mention it.
You just cringed, didn't you?
You cringed because you already know what I'm going to say next. That $20 won't be there by the end of the night. Which one of 'em palmed it? What else would they take if they knew they could without getting caught?
I'm betting your Bitcoin is worth more than $20.
Keep it secret.
Keep it safe.