A Simple Bitcoin Cold Storage Guide

The best way to keep your bitcoins safe is storing them yourself offline in what’s called cold storage. As the price of bitcoin continues to climb, exchanges and wallet providers become more susceptible to theft.

Creating Cold Storage Using a Paper Wallet:

In the bitcoin space, cold storage refers to various practices of storing cryptocurrency offline. Bitcoin users can opt to store their digital currency using encrypted media, a bearer instrument (physical bitcoin), a hard drive or USB drive, a hardware wallet, and a paper wallet. Storing your bitcoins using a paper wallet can still have various vulnerabilities so always double check your steps while creating one. There are a few methods to follow to mitigate certain risks. First and foremost is keeping your paper wallet hidden and out of sight. Second is using a quality printer that doesn’t let the ink bleed and is not connected to the internet. Lastly, paper can be damaged so laminating may help quite a bit and storing in a dry fireproof atmosphere is a very good idea.

Getting Started:

The first things you will need to begin is some bitcoins, a printer, and a bitcoin wallet with QR reading capabilities. There are many paper wallet providers that offer a similar experience for creating paper wallets. When you access a paper wallet creator tool, you start by generating an address. To do this all one has to do is move the mouse around the screen and the application generates a random set of keys.

As soon as the key generator reaches 100 percent, a public and private key will be displayed on the screen. The paper wallet creation can now be printed on paper, loaded with bitcoins, and a BIP38 passphrase can also be added. A BIP38 passphrase encrypts your paper wallet ensuring your funds will be safe if the wallet was stolen or somehow exposed. Keeping the private key hidden is critical because if someone has access to the private key the coins can be easily spent. Backing up the private key is a good idea because you will need this information yourself to spend the funds.

The public key is used to load bitcoins into the storage address and to verify the funds using a block explorer. You can share your public key with anyone if you want bitcoin sent to you from someone else.

Practice Makes Perfect:  

Creating a paper wallet is very simple. The hardest part is the responsibility of taking care of the paper responsibly by using safe storage locations, backing up your keys and remembering your BIP38 passphrase. If the paper wallet creation is perfected utilizing it for cold storage is one of the safest methods possible. Paper wallets can be a pretty cool bearer bond instrument and its one of the closest ways a person can emulate the aspects of cash with cryptocurrency. The more you practice, the more comfortable you will be with cold storage practices. The best way to practice perfecting cold storage is to always start with small amounts of bitcoins.

Let’s Review:

  • Visit a paper wallet bitcoin address generator
  • Generate random keys by moving the mouse or typing on your keyboard
  • After the bitcoin public / private keys are created you can then print  
  • Add BIP38 passphrase (optional), load public address with bitcoins, store private key in a secure location
  • Store your savings offline or give some bitcoin cash to friends!

Reference: news.bitcoin.com 

Disclaimer: This press release is for informational purposes only. Information does not constitute an investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent infocoin views and should not be attributed to Infocoin.

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