Topic: Could someone please explain "paper wallet" & "cold storage" please (Read 1207 times)

Electrum has a pretty straightforward and helpful site with info on using them for cold storage. Just spend a little time learning about how to use it and you should get a good idea.

Why doesn't anyone write it down now?
Someone asked as part of a question on Reddit, but the answerer wrote "here's an easier way!"
and explained steps which appeared 20 times more complex than just writing it down.

i wish i had a way of understanding cold storage

I recommend you go to https://www.bitaddress.org/ and create a BIP38-encrypted wallet - then you don't have to worry so much about hiding the wallet. Just don't forget your password!

This is what I am doing:

Creating and loading the wallet -

1) Save to my HD the bitaddress.org URL for generating BIP-38 encrypted paper wallets.
2) Create a LINUX LiveCD for booting from a flash drive for a fresh, offline OS.
3) Disconnect computer from the internet, boot into LiveCD, and generate my encrypted paper wallet via the bitaddress.ord URL (running standalone).
4) Save the wallet off as a PDF and also print multiple copies. Since it's encrypted, I can have a few copies and keep them multiple places and the PDF will also be available if the paper fades or is destroyed.
5) Reboot regular OS and head out to the exchange.
7) Send my bitcoin to the public key of my paper wallet, starting with a small amount and confirming it got there via blockchain.info.

Getting bitcoin back out of the wallet -

1) Using the block chain app on my android tablet, scan the encrypted private key of the paper wallet (I could also use the bitaddress.org code offline to decrypt it manually also).
2) The app will ask for the key I used to BIP-38 encrypt the private key - type in the password used to encrypt it and the wallet's bitcoin will be accessable.
3) Sweep the wallet into my blockchain online wallet.
4) Send any bitcoin that I don't want to keep online into a new paper wallet, created in the same way I created the first one (might not be necessary - see 3).

+1

If you only get the addresses, the bitcoin will be lost forever lol.



DannyHamilton's reply is always informative and helpful.

It is the safe way to store coins, i prefer paper wallets.

Many paper wallets are also supposed to never be connected to the internet. This means create an address with something thats offline, print the private key and addresses and sent your coins to the public address.

Thank you for explaining in more detail.  It was very helpful.

No.  I really am new to all this

"Cold Wallet" and "Cold Storage" are generic terms that encompass any and all methods of storing bitcoins that keeps the information necessary to access the bitcoins physically separated from the internet.

This can include such concepts as:

• Paper Wallet
• Armory offline
• Electrum offline
• Offline storage of your Bitcoin-Qt wallet.dat file
• Brain wallet

A "Paper wallet" involves generating a private key and bitcoin address pair, and then printing out that information on a piece of paper.  The private key is then deleted from the computer where it was generated.  For additional security this is typically done on a computer that has not been connected to the internet.  Frequently the private key and bitcoin address are printed out in both human readable ascii format as well as in QR-Code format for easier use in the future.

It is not enough to just have the bitcoin address, you must also have the private key.  With the bitcoin address you can receive bitcoins, but if you don't have the private key, then you'll never be able to spend them.

Troll?

Paper wallet - the private key is on a bit of paper and kept in a safe place (like a safe). No one writes anything down now, its all done with a printer.

Cold storage, is to store your wallet 'off line' - on a machine not connected to the internet, not a refrigerator.

Here are a couple tutorials explaining everything. Basically, a paper wallet is the safest way to store you coins (as far as risk of being hacked), however, you could lose the physical wallet (some people make actual coins, other make bills) or they could be physically stolen.

https://blockchain.info/wallet/paper-tutorial

https://en.bitcoin.it/wiki/How_to_set_up_a_secure_offline_savings_wallet

Thanks.  I am sorry I do not quite fully understand.  You write the wallet address on paper but how do you hide that address that is in the wallet and where is the wallet kept.  When you have a paper wallet do you keep the actual wallet in "cold storage". 

A paper wallet is a way to store Bitcoins that involves printing the Bitcoin addresses

A paper wallet is a mechanism for storing bitcoins offline as a physical document that can be secured like cash or anything else of real-world value. Paper wallets are generally created by printing a brand new public address and private key onto paper, and then sending bitcoins from a "live" wallet to the printed wallet's public address for safekeeping. If good security practices are followed, paper wallets are one of the safest ways to to store Bitcoins.

While cold storage is, basically sending coins to a cold wallet (wallet that is stored in an offline pc) or rarely goes online. That way a hacker could not break in because it's obviously not connected to the net.

Hi

I have been reading a lot about security and also seeing many posts by people who got hacked and all their coins were stolen.  People talk about and recommend using "paper wallets" and "cold storage" but do not really explain what this means or how to do it.  I have figured out what offline storage is and how to do that.  Could anyone experienced in these matters please explain or possibly direct us newbies to some reputable newbie friendly guides.

I would really appreciate it if someone could please explain or guide me in the right direction.

Many thanks