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. Keeping all your eggs in one basket is probably not wise when it comes to bitcoin.
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 important to understand the meme “not your keys, not your bitcoin” Is all about storing your seed words so you can have access to your bitcoin if any of your devices/passwords fail.
Do not listen to people that say holding your own keys is complicated. It is not. It can be as simple as writing 12/24 words on a piece of paper and keeping these words off the internet and in a safe place.
Then you have multiple options like a special USB device that plugs into a laptop which has a couple of extra steps.
Everything is a trade off and this is why I you should keep your seed safe by having this risk spread through different storage options.
How I lower my risk and protect my Bitcoin.
- I set a threshold value for the BTC amount in my 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 or use a pencil to write the words on a piece of paper)
d. Seed Plate (Such as a piece of metal that has your words stamped onto)
All of these things have different strengths.
The Only hardware wallet with the 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 of bad actors.
Coldkite as a company provides multiple solutions for Bitcoin storage with peace of mind. OPENDIME, SEED PLATE & COLD CARD are all security options.
Check them out and tell them Bitcoin Essex sent you.
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