A Bitcoin wallet provides a place for storing your cryptocurrency. This platform comes with some security measures. However, your Bitcoin wallet might not help if somebody intercepts and steals your Bitcoin. Ideally, you may never access the coins in the wallet again. To avoid this insecurity, most people opt for Bitcoin cold storage.
Cold storage entails keeping Bitcoins offline. Thus, you separate your Bitcoin from internet access. When you keep Bitcoins offline, you substantially minimize hacker’s threats. Therefore, you don’t have to worry about somebody accessing your digital wallet and stealing your money Bitcoin because it will always be offline.
But if you use a platform like bitcoin system to trade this cryptocurrency more often, cold storage might not be convenient for you. That’s because it doesn’t allow you to access your Bitcoins from any location and at any time. Thus, most people use cold storage to keep Bitcoins they do not intend to use soon.
Getting Started with Bitcoin Cold Storage
To get started with Bitcoin cold storage, create an offline Bitcoin address. Your address should feature private and public key-pair. And this address should never be online until you decide to spend your Bitcoins. An ideal approach is to use a paper wallet.
Set up Your Paper Wallet
You need minimal technical knowledge to create a paper wallet. Start by visiting a paper wallet platform. Once there, save the page to your desktop computer locally. And you can do this by pressing Ctrl-S to save the complete webpage to your computer. Once you’ve done that, close it and then open a paper wallet page. Disconnect your computer’s internet connection and then open your saved file.
Hover the mouse around the page and then type random characters close to a text box. Create an entropy while there. That way, you will have created a random address with a private and public key-pair. Because you saved your file locally without an internet connection, your Bitcoin address will be offline.
Print that Page
After creating your Bitcoin address, you should make a copy of it. And you can load the Bitcoin address copy later with your cold storage. With your computer disconnected, select the Print option. But before doing that, make sure that the printer is also offline. After that, you will have worked on the most challenging part.
The printed page comes with a QR code and public address. Store this paper wallet securely. For instance, make sure that your paper wallet’s storage is fireproof. Once you’ve done that, connect your computer to the internet.
Add Funds to Your Bitcoin Cold Storage
Once you have a Bitcoin cold storage, you can now add funds to it. And you do this the same way you complete other crypto transactions. All you have to do is copy your address or scan the QR cold of your public Bitcoin cold storage and then opt to transfer funds. You can use the Bitcoin block explorer to check your funds status at any time.
Redeeming Cold Storage Bitcoin
When ready to spend your Bitcoin cold storage funds, import your private key to an online Bitcoin wallet. That means you need a crypto wallet with private keys import option.
Follow these steps to do that:
- Select “create a new wallet” or click the “+” symbol
Click “Import wallet.”
- Select the Text or File tab
- Paste your backup into a text field
- Enter the wallet’s password
- Click “Import Wallet.”
After moving the funds in your cold storage online, you can spend them at any time. However, don’t reuse your cold storage after redeeming Bitcoin from it. Instead, create new Bitcoin cold storage.
The article does not contain investment recommendations, or recommendations to use the service described in this article. All the opinions expressed express exclusively the personal opinions of the author and the respondents. Any activity related to investing and trading in the markets carries risks. Make your own decisions responsibly and independently. Neironix is not responsible for the safety of your investment and does not make any recommendations