What is Bitcoin Cold Storage?
Bitcoin Cold Storage is a way to save your private key off an electronic device.
A paper wallet simply stores the address and the private key for withdrawing bitcoin. This means that there are two QR codes, one for depositing and viewing the balance, the other, should be hidden, and is for withdrawing the balance. This means that anything with enough room for two QR codes could be a “paper wallet”. People looking for more durable paper wallets, must think outside of paper. There are ways to make paper more durable such as with coatings, but a more durable material is better.
Storing bitcoin on paper wallets is a great way to secure one’s bitcoin in a cheap way without any dependence on a third party, such as an exchange or hosted wallet (blockchain). Paper wallets are great for these purposes, but a more durable type of “paper wallet” is required for extra protection against acts of god such as fire, flood, etc. which could damage the paper wallet past the point of recovery. There are many products out there that offer superior durability in contrast to the flimsy nature of a paper wallet.
Cold storage is the safest way to secure your cryptocurrency holdings, period.
A private key allows one to spend from a Bitcoin wallet, so it must be guarded with dilligence. People have commonly been known to print Bitcoin private keys onto secure mediums such as metal or paper in an effort to diminish the only presence of such private keys. There are ways to create cold storage at home, such as making a paper Bitcoin wallet. One of the most famous of these was shut down by the government since it was classified as a money laundering business. We’ll inform you of the various types of Bitcoin cold storage.
Types of Bitcoin Cold Storage
Creating a Bitcoin paper wallet is the simplest and lowest cost to securely store Bitcoin. Paper wallets are low cost and can be created at home. A paper wallet can keep your private keys offline, away from snooping citizens. Our tutorial shows you the most secure way to create one.
One strange website claims to be a “PURVEYOR OF FINE ART PAPER WALLETS”, strangely enough. The art is finely detailed and richly composed, albeit kitsch. The prints come in a variety of sizes and contain a QR code to load bitcoins onto it, as well as the private codes to withdraw the coins. A unique paper wallet indeed, although at prices ranging from $34.95 to $499.95 could scare away many people. But the simple idea of prints with QR codes on it isn’t new, the idea itself is art for the idea that drawings could “store” bitcoin demonstrates a new direction of culture.
Ravenbit creates a kit with most of what you need to make a physical coin. It’s interesting enough for those who want to make their own. Many companies in USA cannot sell physical Bitcoins with Bitcoin on them because it violates anti-money laundering laws.
Hardware Wallet – Maximum Durability
We have spoken about BitLox before, as it is one of the most durable hardware wallets available. Bitlox provides triple security with PIN access and a fire-proof enclosure.
Ebay Bitcoin Wallets
Buying Bitcoin paper wallets is simple with Ebay, although we wouldn’t recommend it. It’s simple enough for them to keep the private key. We haven’t tested any sellers on Ebay. But if you can’t make them at home and wanted to inform us how Ebay paper wallets have affected you let us know.
Use a Paper Wallet if Nothing Else
Cryptocrooks recommends storing a majority of bitcoin on paper wallets or other cold storages depending on your budget. We believe that it’s the only way to truly be in control of our bitcoin, it wouldn’t make sense. Trusting an exchange to hold your Bitcoin is tough with all the hacks going on. Be smart, use a paper wallet to start, then move to a hardware wallet when you’pre comfortable.