BTC, BCH, LTC, DASH, SAFE, DOGE, BTG and other cryptocurrencies related to Bitcoin have a very important file in their PC wallets called wallet.dat.

wallet.dat is a BerkeleyDB database that stores key/value pairs.

wallet.dat holds the private keys for all addresses; we need these private keys to sign when transferring cryptocurrencies.

These private keys must not be lost; once lost, the coins become unusable and will disappear forever;

If you haven't set a password in the aforementioned cryptocurrency PC wallets, the private keys in wallet.dat are stored in plain text, and anyone who obtains that file can transfer the cryptocurrencies within. You can transfer coins, and a thief can also transfer coins; if 100 people obtain it, all 100 can transfer coins, depending on who is faster;

If you have set a password in the aforementioned cryptocurrency PC wallets, the wallet will encrypt all private keys in wallet.dat and store them in wallet.dat, while other data remains in plain text. So setting a password does not encrypt the entire wallet.dat, it only encrypts the private keys for each address.

If you had backed up before setting a password, and that backup is stolen, even if you have now set a password, the thief can access the wallet.dat without needing a password and can directly transfer the coins;

Anyone who obtains your encrypted wallet.dat can use the corresponding cryptocurrency PC wallet to open wallet.dat, update blockchain data, and see all addresses and balances. However, without a password, they cannot transfer coins.

If the password is too simple, it can be guessed or cracked with high computing power, allowing coins to be transferred just the same.

If your password is sufficiently long and complex, such as including numbers, uppercase and lowercase letters, special characters, and a length of over 20 characters, the chances of it being cracked should be very low.

In short, never give your wallet.dat to others; otherwise, your coins will be at risk. Unless it's a reliable person like me to recover the password ^-^

For beginners, keeping them in a large exchange might be a better option, but it also faces the risk of the exchange running away or being liquidated.

Mastering the private keys is the only way to truly master your coins.

No your keys, No your coins.

Keep SAFE, keep safe !!!

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