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Topic: What is better? Using one storage option or using several methods? - Bitcoin. (Read 356 times)

legendary
Activity: 2576
Merit: 1860
Not relying on one source of storage is okay but it still depend on individuals, individuals in the sense that some might be creating more disaster than they think they are protecting their coin when they have it in too many storage, like I have a friend who is a very careless person and a forgetful person, managing one access to a storage has been hell for him because he keep forgetting his passwords both to his wallet and to his email most time.

Every time he wants to log in after a while, it is either he does password recovery to log in, so people like that will find it quite difficult to manage several storage, but there is still nothing bad actually in storing in a storage, it helps you to be more organized and to be able to keep an eye on your coins at once.


In this case, the joke is on your friend. This does not have anything to do with the safer or more secure manner of storing coins, whether single storage or multiple storage. This is all about an individual's responsibility or his failure to store or keep his passwords, seeds, keys, pins, and whatever important information in a safe place where he could easily access them.

As for me, it is always better to store your coins in multiple storage rather than on a single one. This does not need much explanation. With a single storage, it only takes a single attack for you to lose your entire portfolio. It will not happen with multiple storage.
legendary
Activity: 2338
Merit: 1124
Not relying on one source of storage is okay but it still depend on individuals, individuals in the sense that some might be creating more disaster than they think they are protecting their coin when they have it in too many storage, like I have a friend who is a very careless person and a forgetful person, managing one access to a storage has been hell for him because he keep forgetting his passwords both to his wallet and to his email most time.

Every time he wants to log in after a while, it is either he does password recovery to log in, so people like that will find it quite difficult to manage several storage, but there is still nothing bad actually in storing in a storage, it helps you to be more organized and to be able to keep an eye on your coins at once.
legendary
Activity: 3808
Merit: 1723
If you are storing your coins properly and have backups of your private keys, wallet.dat files, word nmonimcs and you've tested this method a few times and could regenerate your wallet from a hard drive crash then you shouldn't have to keep your bitcoins split up.

Like you said, don't keep it on an online wallet but if you got a safe electrum running offline in cold storage or if you print a paper wallet then splitting it up doesn't make sense.

Only reason to split them up would be if you wanted to sell it in smaller fractions instead of having to keep creating new paper wallets after every transaction. Say you wanted to sell 10% of your bitcoins every quarter, then just make 10 paper wallets and this way when you send 10% of your wallet you don't need to create a new paper wallet right after since the coins were moved and rendered that paper wallet useless.
legendary
Activity: 3164
Merit: 1127
Leading Crypto Sports Betting & Casino Platform
Yeah, since I dont have so much bitcoin then I don't have different wallets to stored  them.

I think that even if people have few bitcoins, they should keep in many different places. If any thief steals from you, then that thief will only steal a small part of your coins. and even if you get a lower bitcoin, it's better to have little than nothing

I only have one digital wallet for bitcoin and for other coins, too.

 Shocked

if someone has access to your wallet then you will lose everything
legendary
Activity: 2912
Merit: 1068
WOLF.BET - Provably Fair Crypto Casino
Security is one of the big issues in crypto world and people very often lose their coins but still don't pay enough attention.
It's not safe to store your coins on exchanges, they are not meant to be wallets, or in online wallets. Also, it's well known that is not very wise to keep all eggs in one basket so that applies for cryptocurrency too. No one will care about the safety of your Bitcoin unless you do, remember that.
legendary
Activity: 1666
Merit: 1196
STOP SNITCHIN'
I see a lot of responses where people seem to think it is safe to use one method but to have more than one device or account with that method. That for me is the same as using one method and you are still at risk when a exploit is found in that method.  Roll Eyes

Let's say some hacker found some way to hack a Trezor wallet and you have 3 Trezor wallets, then all your coins on those wallets will be lost, if the hacker was able to access the wallet remotely.  Sad

It's not quite the same. Separating funds will protect you in certain situations. If you have 3 Trezor wallets in 3 different locations, 2 out of 3 may be saved in a $5 wrench attack scenario or a physical disaster like a fire.

In terms of software/hardware exploits, you are correct though. That's why I use more than one type of wallet for my cold storage.
legendary
Activity: 3542
Merit: 1965
Leading Crypto Sports Betting & Casino Platform
I see a lot of responses where people seem to think it is safe to use one method but to have more than one device or account with that method. That for me is the same as using one method and you are still at risk when a exploit is found in that method.  Roll Eyes

Let's say some hacker found some way to hack a Trezor wallet and you have 3 Trezor wallets, then all your coins on those wallets will be lost, if the hacker was able to access the wallet remotely.  Sad

The same goes for all the other methods of storing coins, eg. desktop/online/paper or hardware wallets.  Tongue
jr. member
Activity: 89
Merit: 2
I think we should store the majority of our funds offline and just a little amount online for daily use or trading. It would be great to have different wallets, encrypted with different methods, and cold stored in multiple physical locations.
newbie
Activity: 88
Merit: 0
Several methods are always better. If you loose one storage option, you still have another.

Have in mind to keep your bitcoins in several wallets too. If one wallet i.e. get hacked you still have another.

I always wonder if I hear that people have 50 or more BTC in only one wallet... and get hacked.
legendary
Activity: 3472
Merit: 10611
if there is a single purpose (like storage) then only one method should be used in my opinion. using more will only create more complications and won't give that much more security than you might think. for example as a long term storage you could just use 1 paper wallet and then make multiple backups of that wallet (encrypting all of them is encouraged).
having for example 5 different paper wallets means having to also backup or remember 5 different encryption keys, going through the process of creating a paper wallet which is time consuming and requires extra attention and spending is also hard as you have to send the change to new wallet.

but if the purpose is not just one, like both storage and spending. then multiple options should be used for obvious reasons. the same way you have a savings account and some cash in your back pocket, you could use a paper wallet for long term storage and a hot desktop or mobile wallet as that carry around money.
full member
Activity: 630
Merit: 103
It is actually effective to use several storage for our digital asset or for our own Cryptocurrency. I think the best way to keep it personally is by owning a Ledger where you can carry at all times. Some users cannot fully trust the website that they are using because they might have been scammed in the past.
newbie
Activity: 174
Merit: 0
You know that they say "never put all your eggs in one basket".
I know a lot of different wallets from Atomic and blockchain com to Leger Nano S, they all ok for small amount of cryptocurrencies, but if you have millions in crypto you better have official wallets to keep your funds safe
sr. member
Activity: 840
Merit: 375
The question is :

Are you less likely to lose coins, if you use one storage method or are you more prone to losses if you use multiple methods.  Huh  We frequently hear about some service finding some kind of exploit in their code or some human error, causing people to lose coins.
A friend of mine who is really paranoid for it's own good, uses 3 different hardware wallets to store his coins.He told me at first he had only 1 but when he reached a sum of money he decided to stop garnishing that wallet and buy another one for future storage, same happened for the third one.Tbh, 3 HD wallets even if you somehow screwed up with one of them and lost the coins (even if it's unlikely when using an HD wallet) you still have 2 others source of coins to comfort yourself.
legendary
Activity: 3374
Merit: 1922
Shuffle.com
I'd rather risk losing less coins on different wallets because if one of your wallet gets hacked it also gives you some time to act during the situation and move your coins on a new wallet to prevent the hacker from getting in all of your wallets.

In our last Bitcoin meetup we discussed this as one of the proposed topics. Would you risk losing all your coins by storing it in one storage method or would you risk losing less coins more frequently by storing it in multiple methods.
That's not a good question/pitch IMO, as who in the world would want to lose their coins in a regular basis/frequently anyway? Perhaps it would be better if no coins would be lost at all.
I agree, the question sounds a bit one sided because of how the question is focused between losing it all or losing less. Still an okay question, because  losing coins could happen to anyone and think of it as preparing for the worse.
newbie
Activity: 29
Merit: 1
In our last Bitcoin meetup we discussed this as one of the proposed topics. Would you risk losing all your coins by storing it in one storage method or would you risk losing less coins more frequently by storing it in multiple methods.

I think it is not wise storing coins with 3rd party services, so I avoid them at all cost. Some scenarios like buying and selling coins on an exchange, would necessitate a scenario where you have to leave coins on their platform to execute a buy or sell order, so it is unavoidable.

I would rather split my storage into long-term and short-term storage and store large amount of coins in hardware wallets and paper wallets for the long-term and then having small amounts of coins stored on online wallets or exchanges for daily use.  Wink

How are you spreading your coins to reduce the risk of losing coins and still being able to use it daily?

I use 3 wallets to store my crypto. The point is that, the majority I just hodl for the long-term. I have a bit for trading and I just store them in one place.
legendary
Activity: 1666
Merit: 1196
STOP SNITCHIN'
In our last Bitcoin meetup we discussed this as one of the proposed topics. Would you risk losing all your coins by storing it in one storage method or would you risk losing less coins more frequently by storing it in multiple methods.

Never put all your eggs in one basket. As a bitcoin holder, you may be targeted for theft or subjected to highly effective malicious software or social engineering attacks. If/when that occurs, you don't want all your bitcoins stored in one place. Better to lose a fraction than everything at once.

I have several different wallets, encrypted with different methods and keys, and cold stored in multiple physical locations. The last bit about multiple locations is also important in case of physical disaster like fire or flood. If all your keys are stored in your house, they could all be lost in one fell swoop.
hero member
Activity: 1442
Merit: 629
Vires in Numeris
...

Storing on a third-party service/platform already negates the fact that you own those coins. Not your private key? Not your bitcoin. They can literally screw you in any way possible and they'll just take jail time, serve their sentence and enjoy the rewards they have reaped after they got out. Perhaps a little bit of trading money would be okay, but large amounts? No, just no.


That's the key, own the private key and that's all.
If you use different kind of wallets (hardware wallet, paper wallet, brain wallet (when you memorize the seed Cheesy )) or any other kind of wallet when you have your private key, that would be fine for risk management.
If you use only one wallet, you risk your coins more. If you use different hardware wallets for example and put only part of your coins into them, you run less risk.
Just don't think about your coins on 3rd party exchanges like truly yours unless you have already withdrawn them successfully into your own offline wallet...
member
Activity: 574
Merit: 14
At all costs, leaving coins should be avoided (unless those for trade execution), then a reason amount in hot wallets which you hold the private keys- not some third party wallet provider. Then you have a hardware or cold wallet which stores your coins for long term and you do not use this often.
legendary
Activity: 3542
Merit: 1352
Cashback 15%
In our last Bitcoin meetup we discussed this as one of the proposed topics. Would you risk losing all your coins by storing it in one storage method or would you risk losing less coins more frequently by storing it in multiple methods.

That's not a good question/pitch IMO, as who in the world would want to lose their coins in a regular basis/frequently anyway? Perhaps it would be better if no coins would be lost at all.

I think it is not wise storing coins with 3rd party services, so I avoid them at all cost. Some scenarios like buying and selling coins on an exchange, would necessitate a scenario where you have to leave coins on their platform to execute a buy or sell order, so it is unavoidable.

Storing on a third-party service/platform already negates the fact that you own those coins. Not your private key? Not your bitcoin. They can literally screw you in any way possible and they'll just take jail time, serve their sentence and enjoy the rewards they have reaped after they got out. Perhaps a little bit of trading money would be okay, but large amounts? No, just no.

I would rather split my storage into long-term and short-term storage and store large amount of coins in hardware wallets and paper wallets for the long-term and then having small amounts of coins stored on online wallets or exchanges for daily use.  Wink

How are you spreading your coins to reduce the risk of losing coins and still being able to use it daily?

I only have my old laptop and an old phone to use as my backups/storage for spending money and long-term investment money. It has been doing so well for me, though the security risks on an old phone is, of course, somewhat high, considering that support against malware, viruses and whatnot have since stopped--not unless you're a conservative user that religiously avoids things that may have some malware on them, that is.


legendary
Activity: 3234
Merit: 1214
Vave.com - Crypto Casino
  • It is always good to store on different methods for increased security on the holdings.
  • The holdings were segregated as long term and short term holding.
  • Long term holdings were kept secure on a offline wallet and the private key is stored
    on a mobile that is disconnected from network connection.
  • Short term holdings were split and placed on few online wallets for faster accessing
  • Third party services were not at all preferred because lost a huge fund using bit.ac
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