Cold vs hot storage

Discussion in 'Bitcoin and Cryptocurrency' started by Nononsense, Sep 18, 2019.

  1. Nononsense

    Nononsense Member

    Can someone school me on crypto cold storage? I’m getting tired of losses investing and would like to store cold where risks are decreased during market downturns.

    If you have a how to that would be great.
     
  2. murray312

    murray312 Member

    Interesting... New terms to me, time to research.
     
  3. Nononsense

    Nononsense Member

    Cold storage is non web based. You can store crypto on a hardware device that plugs into your pc. They make them now where you can even transfer via Bluetooth.

    Hot storage would be Coinbase or some other wallet web based
     
    MisterSuperGod and murray312 like this.
  4. Millard Baker

    Millard Baker Member

    3. Commercial hardware wallets (ordered chronologically)
    3.1 Trezor One
    3.2 KeepKey: Your Private Bitcoin Vault
    3.3 Opendime: Bitcoin Credit Stick
    3.4 Coldcard: Ultra-secure Bitcoin Hardware Wallet
    3.5 CoolWallet: The Ultimate Bitcoin Safe
    3.6 BlochsTech card: Your user friendly Bitcoin wallet
    3.7 BitLox Bitcoin Hardware Wallet
    3.8 Digital Bitbox
    3.9 Ledger Nano S - USB Smartcard Hardware Wallet
    3.10 Secalot
    3.11 ELLIPAL
    3.12 Trezor Model T
    3.13 D'CENT Biometric Wallet - BLE enabled Hardware Wallet

    Source: Hardware wallet - Bitcoin Wiki
     
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  5. Sdryx

    Sdryx Member

    I don’t think you understand what cold STORAGE actually is. It’s offline “storage”... meaning a physical device which cannot be hacked online. It has to be physically obtained and can even have encryption on it to further protect it.

    It has absolutely nothing to do with preserving market value. It’s simply storage...

    If you store a bitcoin on it, it is still affected by the market. It’s value isn’t preserved, it’s simply stored. Same as hiding a gold bar. If gold suddenly loses value, that gold bar you hid still becomes worthless, despite it holding value at the time you hid it.
     
  6. Savagesteve

    Savagesteve Member

    Why not just use a wallet where you can swap from whatever coin you’re sitting on to say a USD wallet?
     
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  7. Grayscale Compounding

    Grayscale Compounding Member AnabolicLab.com Supporter

    For privacy reasons, primarily. Exchanges that allow you to swap to USD almost always require your government ID. Besides the obvious privacy issues that come with illicit transaction attached to your ID, these exchanges also all cooperate with the IRS. The current cryptocurrency tax laws are ridiculous, and if you have enough crypto activity, the IRS will come after you.
     
  8. Savagesteve

    Savagesteve Member

    I was hearing my answer towards someone needing it for personal amounts of money, not a source per say. I could understand why a source wouldn’t do it but if a person just keeps a few hundred to a couple grand in there i don’t really see the issue, especially when they should be sending to an anonymous wallet before sending it to the source anyways.
     
  9. Grayscale Compounding

    Grayscale Compounding Member AnabolicLab.com Supporter

    Ah. Yeah it would be perfectly fine in that case, but it's wise to keep those points in mind. Also, the belief that sending Bitcoin to an anonymous wallet "stops the trail", so to speak, is actually wrong. Law enforcement can and has convicted people who believed they were safe by doing that (mostly high-profile pedophiles). With that being said, the chances of them giving a fuck about steroid users buying gear is laughably low. It shouldn't worry anyone, but people should be mindful of the possibility.
     
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  10. BigBaldBeardGuy

    BigBaldBeardGuy Member AnabolicLab.com Supporter

    @Savagesteve got it closest. Only deposit funds into your USD Wallet. Then when you make a purchase only buy the bitcoin you need to send.
     
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  11. Savagesteve

    Savagesteve Member

    Great point in that it’s never really anonymous but much better than sticking to one wallet to do everything lol.
     
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  12. JC Grifter

    JC Grifter Member

    I just used bitcoin to make an order for the first time. My concern was it not truly being anonymous either. Are used Cash App to buy the bitcoin and was alarmed to find out I needed to supply my ID. But I did learn is there are other wallets that you can transfer the bitcoin to where you do not need to put in any of your actual information. You can then place your order with that wallet.