How does Bitcoin Cold Storage works
Our Expert elutriated the Topic How does Bitcoin Cold Storage works for new and also experts of the field. Enjoy the reading of experts explanation!
What are the Types of Cold Storage Wallets
Cold storage is not just about Paper Wallets or Deep Cold Storage. The main types of Cold Storage are Hardware Wallets, Paper Wallets, Deep Cold Storage Wallets, and Sound Wallets (Not very familiar now.) These four are the major cold storage wallets and subcategories of them are explained here below. go through each and every cold storage wallet's cons and pros and chose the best suiting wallet to secure your bitcoins offline.
BTC Paper Wallets
The idea of a bitcoin paper wallet is based on the principle of printing BTC Private keys on a sheet of paper and store them in a safe place. According to Bitcoin.org the paper wallet for BTC was very famous between 2011 to 2016. After that people faced different issues of handling paper printed wallet keys, and again in 2020 crypto folks start using it again with different techniques to handle paper sheets.
How to keep Paper Wallets Secure
The security and handling of Printed bitcoin wallets are easy now. The best way to save paper wallets from water damage is by using plastic sheets with a laser printer. Generate Bitcoin cold storage key and print it on a plastic sheet. Plastic sheets are a bad conductor of water and excellent water-resistant. When you print your BTC wallet keys with a laser printer it prints characters through laser. The ink on a plastic sheet may be erased but the laser-printed documents on a plastic sheet will never get erased easily. Keep that printed document in any locker or fold it and place it with your original documents.
Hardware Wallets To Store BTC
The method of hardware bitcoin storage wallets is not new. From the very beginning, people use hardware wallets, and still, it is considered one of the top ways to secure cryptocurrency. The pros of a Hardware wallet are: safe from the hacker, fewer chances of physical damage, You can use that whenever you want. You can carry it as it has a small mass and weight. The cons of hardware wallet include Issues in firmware file can cause loss of BTC. It can be stolen and if someone noticed that you are carrying a hardware wallet with you. The person can create problems for you and can steal your wallet.
Deep Cold Storage
Deep Cold Storage is famous among those people who are continuously investing in it. I have seen people who are putting some amount of BTC into their Deep Cold Storage and till now they never withdraw any penny. If you are thinking the same then you should use this method to secure cryptocurrency. Deep cold is the next level of cold storage. No doubt deep storage is very secure but Deep cold is never accessible. Try it and enjoy your tension-free crypto investments.