What is it all about? | Bitcointalksearch.org

decodx

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Quote from: WellRozey on May 10, 2022, 06:28:32 AM

I have been trying to figure this out, how does one create cold storage? Or do any crypto wallets have this cold storage? Why are most people advising others to go cold storage?

Cold storage wallets are the opposite of hot wallets. A hot wallet is connected to the internet and is therefore vulnerable to hacks. With a cold storage wallet, all your private keys are stored offline so it is secure from hacks.

There are multiple ways to build a cold storage wallet, but one of the easiest is to have the private keys generated on paper, which is then stored in an offline locker or a safe. In that way , your keys are completely separated from the internet and are safe from all types of hacks and the only way to access them is if you can physically go to the locker or safe where the keys are stored.

crwth

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There are a lot of wallets that offer this feature but one thing that reminded me is Coldkey^[1] by yogg. It looks like it's one of the coolest ones out there for cold keys. But there are other wallets too that you can try though. As long as you have set it up the right way, you would be fine.

References:

[1] - https://bitcointalksearch.org/topic/ann-coldkey-secure-cold-storage-wallet-cards-5130905

witcher_sense

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Quote from: WellRozey on May 10, 2022, 06:28:32 AM

I have been trying to figure this out, how does one create cold storage? Or do any crypto wallets have this cold storage? Why are most people advising others to go cold storage?

To better understand the concept of cold storage, you first need to get familiar with the basic principles of how cryptocurrency works. The first thing to realize is that coins that you possess are always sitting inside a global ledger called "blockchain". Your wallet never holds any coins, it is merely a means to get access to coins that, as we have already learned, are nothing else but entries in a ledger. A wallet performs three key functions: it manages keys, constructs and signs transactions, and broadcasts them to the network. Cold storage is basically a wallet that can do all these things except that it cannot broadcast transactions. They simply cannot do that because it always remains isolated from the Internet. The reason why you want it to be isolated from the online environment is that you want to protect your keys from hackers and other undesirable persons. It is easier to retain control over the private keys when you are the only person who knows keys actually exist.

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Quote from: WellRozey on May 10, 2022, 06:28:32 AM

I have been trying to figure this out, how does one create cold storage? Or do any crypto wallets have this cold storage? Why are most people advising others to go cold storage?

Easy way would to do this would be to buy some hardware wallet, but you can also use your old laptop with freshly installed linux operating system and disconnected from internet, best with removed wi-fi card.
Best hardware wallets for this would be Passport or Keystone, because both of them are not even connecting to other device in any other way except with QR code communication.
Cold wallets should be used for storing larger amount of coins and they are not meant to be used for smaller daily transactions, and even old paper wallets are considered cold.
They are better compared to hot wallets because they are harder to hack, that is why all centralized exchanges have both cold and hot wallets, but anyone should have something similar.

Despairo

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Quote from: Natalim on May 10, 2022, 09:20:58 AM

But of course, that was a little bit expensive. However, if you want security assurance and if you have a lot of Bitcoin, you'd better acquire this stuff in order for you to sleep well and not think that one day all of your money is gone.

I have to disagree, paper wallet is also considered as cold storage wallet and you don't even need any cost to generate paper wallet. Acquiring those stuffs doesn't automatically it will become a cold storage, except you understand it pretty well about each wallet you wanted to use.

Some few things that making those wallet isn't a cold storage anymore and are:
1. Connecting your wallet online
2. Generating the wallet via online
3. Clicking random url and downloading unknown files
4. Bought a hardware wallet from non official retails
etc.

Natalim

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Quote from: WellRozey on May 10, 2022, 06:28:32 AM

I have been trying to figure this out, how does one create cold storage? Or do any crypto wallets have this cold storage? Why are most people advising others to go cold storage?

Because you can't underestimate how these hackers work over the internet these days and that is why they advise people to keep their wallets safe as Cold wallet is an offline wallet where it was far from getting hacked.
You can check the definition itself.
https://cryptoadventure.com/a-beginners-guide-on-cold-storage-wallet/

But of course, that was a little bit expensive. However, if you want security assurance and if you have a lot of Bitcoin, you'd better acquire this stuff in order for you to sleep well and not think that one day all of your money is gone.

TheBeardedBaby

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Just search the forum for "cold storage" or "cold wallet" and you will find many threads about it, you will get the main idea.
No matter hot or cold storage, you need to get familiar with the best digital security practices, there is no better protection than the common sense. Gain more knowledge on the security side follow the best practices and you will be fine.
Remember, the search button is your friend, and since you are new to this place, use the Google option, to avoid the main search engine newbie restrictions.

Of course, if you have questions, many will be happy to answer you

NeuroticFish

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Quote from: WellRozey on May 10, 2022, 06:28:32 AM

I have been trying to figure this out, how does one create cold storage? Or do any crypto wallets have this cold storage? Why are most people advising others to go cold storage?

Cold storage is just a special way to work with your wallet.
It means that you have one wallet that never (and never ever) goes online, used only to sign transactions (transferred preferably via QR) and one watch-only wallet that can see live funds, can build transactions, can broadcast transactions (but cannot sign).

And yes, any coin's proper wallet can/should have that possibility.

Why it's advised? Since the only wallet holding keys is offline, if handles correctly it's impossible to hack. And for those knowledgeable it's not difficult to set up.

WellRozey

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I have been trying to figure this out, how does one create cold storage? Or do any crypto wallets have this cold storage? Why are most people advising others to go cold storage?

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