Everyone has a different risk profile. Some people like to see all of the BTC in one wallet in one place. I prefer not to do that. Because I like to sleep at night.
Some people like to spread their bitcoin around in multiple places in order to lower the risk of something going wrong.
Holding your private keys is a great responsibility. You need to keep your private keys secure. Your private keys give you the ability to spend your bitcoin.
This is super important to understand and it’s where the meme “not your keys, not your bitcoin” came from.
How I lower my risk and protect my Bitcoin.
- I set a threshold value for my BTC amount in my hot wallet.
- If it hits that threshold (Value in GBP) I move it to other wallets.
- I do this as part of my security audit 1 per year.
What is the difference between a hot wallet and a cold wallet?
There are multiple ways to HODL your bitcoin. The 2 most popular are hot and cold wallets.
a. Hot Wallet (app on your phone or other internet connected device)
b. Cold Wallet (hardware such as USB or device)
c. Paper Wallet (A piece of paper printed from an air gapped printer)
d. Seed Plate (Such as piece of metal that has your words stamped onto)
All of these things have different strengths.
The Only hardware wallet with option to never be connected to a computer, for full operation: from seed generation, to transaction signing. Is the https://coldcardwallet.com/ by coldkite. Minimise your risk to bad actors.
Coldkite as a company provide multiple solutions for Bitcoin storage with piece of mind. OPENDIME, SEED PLATE & COLD CARD are all secure options.
Check them out and tell them Bitcoin Essex sent you.