Iota: Worries and Solutions in Conversation.

Here I am reading your thoughts and ask your Questions to myself on how to get into Iota.

You:

Hi, may I briefly explain my dilemma? I want to buy iota and keep it longer. But there are many things that make me unsure.

CryptoViking:

Yes, sure. Go for it.

You:

I face the problem that I have no sense of how to keep Iota in the long term. Should I leave the iota on bitfinex or is this PC wallet safe? Can Iotas be lost on these “old seed-new seed” issues,updates or new releases?

CryptoViking:

Okay, so in the first place it’s your decision what you do. I can not give a 100% recommendation. In general, the wallet on the PC is as secure as your PC. Bitfinex is as secure as a company that is based on the British Virgin Island has your money.

You:

Ok fine, let’s assume that my PC is safe. I’m concerned with these constant updates and transferring funds to new wallet versions and stuff.

CryptoViking:

You do not have any problems on the exchanges. The exchange does everything for you. That’s the advantage of exchanges keeping your money. New wallet versions and snapshots are nothing you have to worry about. Things that are important, for example, are changes in the implementation of the hashing function. Since it is important that you participate in the transition phase, otherwise you have to claim your IOTA back and claiming isn’t fun. Because I don’t know how long you are able to claim. So keep up to date or you might lose your Iota.

You:

What happens if I transfer funds on a PC wallet tomorrow and leave the Iota there for 2 years? Are the iotas gone? What does claiming mean?

CryptoViking:

Okay, if you miss the transition phase, your balance is still on a safe seed. You just don’t have access to your addresses, because the algorithm has changed. The Foundation then says, “We’ll help you getting back your Iota.” The Foundation collects it for you and secures it in its own wallet. Then with your old seed, you can prove, that it’s yours and the Foundation sends you your iota back to a new seed. The problem is that it takes time to do it manually. So you probably have to wait to get them back.

You:

Transition means what exactly? How many times a year does it happen?

CryptoViking:

I can‘t say if and how often it will happen again. Transition means you create a new seed and push your iota there.

You:

Will that be announced in Slack or on the official sites?

CryptoViking:

Yes, everything will be announced.

You:

Ok, so in summary: The PC wallet is safe. You just have to keep up to date and watch out when you have to transfer your iotas on a new seed, right? And if the exchange has my money, I don’t need to worry about anything?

CryptoViking:

Yes exactly. All right. Do you know how to generate a safe seed? That is the most important thing.

You:

No, how? I just wanted to do use this one:

httpy: //onlineSeedgeneratorXXX.com/iota-seed-generator/

Might that be a problem?

CryptoViking:

Never online. No way! It is best not to use a special seed generator. Here you can find more information. If it really needs to be a generator, then one of Limo’s side. I can highly recommend the site in general.

Another option is to look at this Thread within the IOTA Board:

https://kb.helloiota.com/KnowledgebaseArticle50005.aspx

You:

OK thanks. Good that you mention that.

CryptoViking:

I generate my seeds via Keepass, which is a password manager. If you generate your seed online, your stuff will most likely be stolen.

You:

So, for example, can I use Stegano’s password manager, specifying the length and go?

CryptoViking:

Yes, exactly and then stop changing. Never rely solely on the algorithm. This increases your safety.

You:

And then I store it in an encrypted Stegano’s container?

CryptoViking:

Yes, for example. But I do not know if Stegano also offers Autotype and 2 Channel Obfuscation. I use both features to protect myself against keyloggers.

You:

If not, which offer that?

CryptoViking:

Keepass, I use it myself. It’s free and I like it a lot. https://keepass.info/

You:

What is autotype and 2-channel obfuscation?

CryptoViking:

You do not have to copy and paste, but it is entered in modified order directly into the wallet and enter is pressed automatically when you press a certain key combination. Of course, it has to be decoded for that.

You:

Oh damn, that’s really a science in itself.

CryptoViking:

Yes, in any case.

You:

And there I can activate that “autotype” and “2channel obfuscation” within the software?

CryptoViking:

Yes, but you need to do this for each password individually and you also have to enter in which window it should be entered. The “how” is also important. So, for example: {PASSWORD} {TAB} {ENTER} would be the function for the seed and your wallet.

You:

Ok, I’m going to practice creating seeds, because that seems to be the most important thing currently at Iota. Thank you.

Ok, now I’ve generated a seed for testing. But somehow the wallet tells me: “Connection denied / no connection”. What can I do?

CryptoViking:

First, you should check if you have the latest version of the wallet. You can find it right here: https://github.com/iotaledger/wallet/releases If you have the latest version and still cannot do it, look at the top bar under Tools> Edit Node Configuration. There you can choose the nodes to connect to. It’s best to look at http://iota.dance/nodes and choose the first node to connect to. Then everything should work.

You:

Ah, very cool. Yes, setting the node helped. Oh, and what about the addresses? Can I only use addresses once to receive iota?

CryptoViking:

You can use it more often to receive. There is a nice graphic with piggy banks. Each of your addresses is its own piggy bank. You can pocket as much money as you want, but if you want to take your money out and send it elsewhere, your piggy bank needs to be broken and you’ll have to put the rest of your money into a new piggy bank. Look at this picture:

https://i.imgur.com/3oejD6v.jpg

That’s a very good explanation.

You:

Ah, all right. Then I will create a second seed and push Iota back and forth to get a feel for these transactions. Is there any option to optimize a transaction? So it gets confirmed faster?

CryptoViking:

Yes, there actually is. Transactions depend on your computing power. With a smartphone it will take longer than with a gaming PC. You should also choose a good node at http://iota.dance/nodes. It is always changing. The top one is best. But I already told you that above.

You:

Wow, thanks for your time and all the afford. It was really a huge help. I think I have enough to learn and to try out.

CryptoViking:

Sure, just let me know. But I also need to get back to my work for university. So, don’t be surprised, if it takes a little longer for me to answer.

You:

My questions are answered for today. Thanks for everything. If I can think of something else, may I contact you again? May I possibly support you somehow? It’s so great, that you were so patient with me. You really did save me a lot of time and risk.

CryptoViking:

Yes, of course. Just ask further questions in the comment section. I wish you lots of fun and success with IOTA.

For further readings: