HARDWALLET SECURITY, 5DOLLAR WRENCH ATTACK PREVENTION, DISTRESS PINS.

For those of us that have done our own research and due diligence on cryptocurrency security and heard of incidents like MTGOX, a hardware wallet such as the popular Ledger, Trezor probably has been purchased. Setting up a pin and recovery phrase probably has eased our minds of having our assets hacked but there is something called the $5 dollar attack.

The above comic pretty much explains it better than I probably could but I figured since most of my friends in the space hadn't heard of distress passwords, that I'd share it for everyone to hear.

So what is a distress pin?
A distress pin/plausible deniability allows you to put in a secondary pin when under imminent threat that opens up a secondary wallet where you can have a smaller amount of whichever cryptocurrency you're holding. Then when you're ok, buy another hardware wallet, restore and boom you still have most of your holdings minus whatever you had in the distress account.

Personally I have a Ledger NANO S and when I created a wallet I chose a pin with more than 4 digits for my "savings/hodl acct". Then I created a distress pin with 4 digits (attached passphrase, backed up by an additional word) which I use for my daily transactions and moving funds in short/med term positions. That way if anything happens where I need to punch in my distress pin, it's natural and shows transactions, not just an empty account.

How do you set your distress password up?
Links below:

LEDGER:
https://ledger.zendesk.com/hc/en-us/articles/115005214529-Advanced-Passphrase-options

TREZOR:
https://blog.trezor.io/hide-your-trezor-wallets-with-multiple-passphrases-f2e0834026eb