Title: Managing Hot n Cold Wallet Post by: 1bithot on May 15, 2014, 03:21:48 PM Hi Guys,
I am developing an transaction system for one client where there is a need for managing cryptocurrencies online mainly in hot wallets. However to safeguard i understand we can create cold wallets. My query is What is the best strategy to manage Hot n Cold Wallets for different crypto currencies safely?? Any professional help would also be helpful, if needed please PM me. Thanks! Title: Re: Managing Hot n Cold Wallet Post by: grtthegreat on May 15, 2014, 05:54:18 PM I would like to know @ Hot and Cold Wallet Please . i am newbie here Hot wallet is the wallet from where all the payments are sent and received. Cold wallet is the wallet that is like your savings account. It is a watch only kinda wallet and is used as a savings account. Title: Re: Managing Hot n Cold Wallet Post by: 1bithot on May 15, 2014, 08:03:59 PM I would like to know @ Hot and Cold Wallet Please . i am newbie here Hot wallet is the wallet from where all the payments are sent and received. Cold wallet is the wallet that is like your savings account. It is a watch only kinda wallet and is used as a savings account. I know that...need technical strategy for managing both... Maybe community mod can help me or some senior member Title: Re: Managing Hot n Cold Wallet Post by: newIndia on May 15, 2014, 10:07:28 PM I would like to know @ Hot and Cold Wallet Please . i am newbie here Hot wallet is the wallet from where all the payments are sent and received. Cold wallet is the wallet that is like your savings account. It is a watch only kinda wallet and is used as a savings account. I know that...need technical strategy for managing both... Maybe community mod can help me or some senior member I think u may have pre-defined limit in your system that is required to suffice for the system's day to day activity. Beyond this limit funds will be transferred from Hot wallet to Cold wallet. Title: Re: Managing Hot n Cold Wallet Post by: Benson Samuel on May 16, 2014, 10:42:47 AM Hi Guys, I am developing an transaction system for one client where there is a need for managing cryptocurrencies online mainly in hot wallets. However to safeguard i understand we can create cold wallets. My query is What is the best strategy to manage Hot n Cold Wallets for different crypto currencies safely?? Any professional help would also be helpful, if needed please PM me. Thanks! No matter what you do, hot wallets will always have a security risk attached to them. The safest option to offer is timed withdrawals, where the payouts are processed from the cold wallet system at certain intervals. Another option for a lazy hot wallet solution would be to securely build up on Coinbase or blockchain.info's API. These are relatively secure if all necessary precautions are taken. Title: Re: Managing Hot n Cold Wallet Post by: dashingriddler on May 16, 2014, 11:54:28 AM Hi Guys, I am developing an transaction system for one client where there is a need for managing cryptocurrencies online mainly in hot wallets. However to safeguard i understand we can create cold wallets. My query is What is the best strategy to manage Hot n Cold Wallets for different crypto currencies safely?? Any professional help would also be helpful, if needed please PM me. Thanks! No matter what you do, hot wallets will always have a security risk attached to them. The safest option to offer is timed withdrawals, where the payouts are processed from the cold wallet system at certain intervals. Another option for a lazy hot wallet solution would be to securely build up on Coinbase or blockchain.info's API. These are relatively secure if all necessary precautions are taken. For cold storage option you can also use armory that will create the transaction on the online computer and signs it on offline computer. I dont really think using a coinbase api or blockchain.info api would significantly secure you because if the server gets compromised, then wheter be it bitcoins on the bitcoind or on your coinbase / blockchain.info - they can be stolen. I ofcourse do recommend these apis just the sake of simplicity and reduce burden on server and your development time. Title: Re: Managing Hot n Cold Wallet Post by: 1bithot on May 17, 2014, 12:40:54 PM Thanks guys for this wonderful info. However it increased my curiousty further as to...
- what is the best tool to manage the hot wallet than? Remember blockchain n coinbase charge u per transaction - can we manage hot wallet using desktop clients ...how to manage security than - also cold wallet .... u have to withdraw whole amount... is there anyway that we can do partial withdrawal Please note I have to manage only a few(1-2) accounts. We are not managing customer based wallet Please let me your kind inputs. Title: Re: Managing Hot n Cold Wallet Post by: Benson Samuel on May 17, 2014, 01:06:45 PM Thanks guys for this wonderful info. However it increased my curiousty further as to... - what is the best tool to manage the hot wallet than? Remember blockchain n coinbase charge u per transaction - can we manage hot wallet using desktop clients ...how to manage security than - also cold wallet .... u have to withdraw whole amount... is there anyway that we can do partial withdrawal Please note I have to manage only a few(1-2) accounts. We are not managing customer based wallet Please let me your kind inputs. Blockchain and Coinbase charge????? Title: Re: Managing Hot n Cold Wallet Post by: dashingriddler on May 17, 2014, 01:44:32 PM Thanks guys for this wonderful info. However it increased my curiousty further as to... - what is the best tool to manage the hot wallet than? Remember blockchain n coinbase charge u per transaction - can we manage hot wallet using desktop clients ...how to manage security than - also cold wallet .... u have to withdraw whole amount... is there anyway that we can do partial withdrawal Please note I have to manage only a few(1-2) accounts. We are not managing customer based wallet Please let me your kind inputs. Blockchain and Coinbase charge????? Title: Re: Managing Hot n Cold Wallet Post by: cuddaloreappu on May 17, 2014, 02:09:31 PM I would like to know @ Hot and Cold Wallet Please . i am newbie here Well to understand the concepts of hot and cold wallet you must first understand the concepts of public and private keys.. I hope you are aware of it... An hot wallet is one which is connected to the internet, where you can send and receive bitcoins... But a cold wallet is a one where you can only recieve bitcoins but you cannot send any, because cold wallet is nothing but the wallet disconnected from the internet. like you put your wallet file in a usb drive and keep it inside your locker, or you make a paper wallet( simply writing both your public and private key in a paper) and storing it in a locker... The real difference is theoretically no one can hack in to your wallet when it is disconnected from the internet right? That is the benefit of having cold wallets and major exchanges have cold wallet storages for security... Did you understand.. Title: Re: Managing Hot n Cold Wallet Post by: 1bithot on May 17, 2014, 04:06:40 PM Hi,
Yes I understand the basic concepts of hot n cold wallet. What I am looking at is a more advanced professional approach. Someone managing large btc account or an exchange would understand Still looking for proper solutions.... Thanks in advance! I would like to know @ Hot and Cold Wallet Please . i am newbie here Well to understand the concepts of hot and cold wallet you must first understand the concepts of public and private keys.. I hope you are aware of it... An hot wallet is one which is connected to the internet, where you can send and receive bitcoins... But a cold wallet is a one where you can only recieve bitcoins but you cannot send any, because cold wallet is nothing but the wallet disconnected from the internet. like you put your wallet file in a usb drive and keep it inside your locker, or you make a paper wallet( simply writing both your public and private key in a paper) and storing it in a locker... The real difference is theoretically no one can hack in to your wallet when it is disconnected from the internet right? That is the benefit of having cold wallets and major exchanges have cold wallet storages for security... Did you understand.. Title: Re: Managing Hot n Cold Wallet Post by: Benson Samuel on May 17, 2014, 04:17:40 PM Hi, Yes I understand the basic concepts of hot n cold wallet. What I am looking at is a more advanced professional approach. Someone managing large btc account or an exchange would understand Still looking for proper solutions.... Thanks in advance! I would like to know @ Hot and Cold Wallet Please . i am newbie here Well to understand the concepts of hot and cold wallet you must first understand the concepts of public and private keys.. I hope you are aware of it... An hot wallet is one which is connected to the internet, where you can send and receive bitcoins... But a cold wallet is a one where you can only recieve bitcoins but you cannot send any, because cold wallet is nothing but the wallet disconnected from the internet. like you put your wallet file in a usb drive and keep it inside your locker, or you make a paper wallet( simply writing both your public and private key in a paper) and storing it in a locker... The real difference is theoretically no one can hack in to your wallet when it is disconnected from the internet right? That is the benefit of having cold wallets and major exchanges have cold wallet storages for security... Did you understand.. You are asking for the architecture. Do scope out the forums, there are tonnes of them around in the Technical section, albeit old. Title: Re: Managing Hot n Cold Wallet Post by: newIndia on May 17, 2014, 05:11:32 PM Thanks guys for this wonderful info. However it increased my curiousty further as to... - what is the best tool to manage the hot wallet than? Remember blockchain n coinbase charge u per transaction - can we manage hot wallet using desktop clients ...how to manage security than - also cold wallet .... u have to withdraw whole amount... is there anyway that we can do partial withdrawal Please note I have to manage only a few(1-2) accounts. We are not managing customer based wallet Please let me your kind inputs. Blockchain and Coinbase charge????? Blockchain.info charges 0.0001 BTC till date as standard. If the Tx wight (amount of data) is more, they charge more. But I was never charged 0.0005 BTC, though my wallets are full of freebitco.in & coinlearn.org satoshis, i.e. Tx data gets heavy with small amounts summing up. Title: Re: Managing Hot n Cold Wallet Post by: dashingriddler on May 17, 2014, 08:45:51 PM Thanks guys for this wonderful info. However it increased my curiousty further as to... - what is the best tool to manage the hot wallet than? Remember blockchain n coinbase charge u per transaction - can we manage hot wallet using desktop clients ...how to manage security than - also cold wallet .... u have to withdraw whole amount... is there anyway that we can do partial withdrawal Please note I have to manage only a few(1-2) accounts. We are not managing customer based wallet Please let me your kind inputs. Blockchain and Coinbase charge????? Blockchain.info charges 0.0001 BTC till date as standard. If the Tx wight (amount of data) is more, they charge more. But I was never charged 0.0005 BTC, though my wallets are full of freebitco.in & coinlearn.org satoshis, i.e. Tx data gets heavy with small amounts summing up. Title: Re: Managing Hot n Cold Wallet Post by: dashingriddler on May 17, 2014, 08:58:50 PM Hi, Yes I understand the basic concepts of hot n cold wallet. What I am looking at is a more advanced professional approach. Someone managing large btc account or an exchange would understand Still looking for proper solutions.... Thanks in advance! I would like to know @ Hot and Cold Wallet Please . i am newbie here Well to understand the concepts of hot and cold wallet you must first understand the concepts of public and private keys.. I hope you are aware of it... An hot wallet is one which is connected to the internet, where you can send and receive bitcoins... But a cold wallet is a one where you can only recieve bitcoins but you cannot send any, because cold wallet is nothing but the wallet disconnected from the internet. like you put your wallet file in a usb drive and keep it inside your locker, or you make a paper wallet( simply writing both your public and private key in a paper) and storing it in a locker... The real difference is theoretically no one can hack in to your wallet when it is disconnected from the internet right? That is the benefit of having cold wallets and major exchanges have cold wallet storages for security... Did you understand.. You are asking for the architecture. Do scope out the forums, there are tonnes of them around in the Technical section, albeit old. To make the things as easy as possible, apart from hot wallet and cold wallet - there is a need for another wallet and i can term it as warm wallet ;) When ever hot wallet reaches a threshold, i move the bitcoins to a warm wallet. The hot wallet exists on the server and the warm wallet exists on my computer. Next when ever warm wallet reaches its threshold i will move it to cold wallet for which the encrypted keys are there in bank locker. If server gets compromised only hot wallet is gone and warm wallet is still safe and cold wallet has always been safe. Using this model i am able to maintain with less than 5% of wallet funds on the server and another 5-10% on my personal computer. When ever there is a bit big withdrawal, i do not want to run to the bank to access the cold storage - so here the warm wallet comes in handy. I just transfer the needed extra coins from warm wallet to hot wallet and process the withdrawals. And again based on thresholds i will move new bitcoins from hot to warm. Now moving from warm to cold will take more time coz the warm was used up just now. Using this model, there has been no need for me to access cold storage even once to fulfill the customer's withdrawal till now. If lots of customers try to withdraw at same time - i ofcourse will need to access my cold storage to fulfill those withdrawals though. Title: Re: Managing Hot n Cold Wallet Post by: 1bithot on May 20, 2014, 04:48:50 PM That's a really smart strategy ... thanks for the idea..
Hi, Yes I understand the basic concepts of hot n cold wallet. What I am looking at is a more advanced professional approach. Someone managing large btc account or an exchange would understand Still looking for proper solutions.... Thanks in advance! I would like to know @ Hot and Cold Wallet Please . i am newbie here Well to understand the concepts of hot and cold wallet you must first understand the concepts of public and private keys.. I hope you are aware of it... An hot wallet is one which is connected to the internet, where you can send and receive bitcoins... But a cold wallet is a one where you can only recieve bitcoins but you cannot send any, because cold wallet is nothing but the wallet disconnected from the internet. like you put your wallet file in a usb drive and keep it inside your locker, or you make a paper wallet( simply writing both your public and private key in a paper) and storing it in a locker... The real difference is theoretically no one can hack in to your wallet when it is disconnected from the internet right? That is the benefit of having cold wallets and major exchanges have cold wallet storages for security... Did you understand.. You are asking for the architecture. Do scope out the forums, there are tonnes of them around in the Technical section, albeit old. To make the things as easy as possible, apart from hot wallet and cold wallet - there is a need for another wallet and i can term it as warm wallet ;) When ever hot wallet reaches a threshold, i move the bitcoins to a warm wallet. The hot wallet exists on the server and the warm wallet exists on my computer. Next when ever warm wallet reaches its threshold i will move it to cold wallet for which the encrypted keys are there in bank locker. If server gets compromised only hot wallet is gone and warm wallet is still safe and cold wallet has always been safe. Using this model i am able to maintain with less than 5% of wallet funds on the server and another 5-10% on my personal computer. When ever there is a bit big withdrawal, i do not want to run to the bank to access the cold storage - so here the warm wallet comes in handy. I just transfer the needed extra coins from warm wallet to hot wallet and process the withdrawals. And again based on thresholds i will move new bitcoins from hot to warm. Now moving from warm to cold will take more time coz the warm was used up just now. Using this model, there has been no need for me to access cold storage even once to fulfill the customer's withdrawal till now. If lots of customers try to withdraw at same time - i ofcourse will need to access my cold storage to fulfill those withdrawals though. Title: Re: Managing Hot n Cold Wallet Post by: Fernandez on May 29, 2014, 06:14:32 AM If you are using cold wallets, get a new computer (a netbook will work), and install armory on it, and make sure it never touches anything else, even internet. Whenever you want to transfer out, use a camera (your mobile cam will do) to sign the transaction.
Title: Re: Managing Hot n Cold Wallet Post by: 1bithot on May 29, 2014, 08:49:08 AM If you are using cold wallets, get a new computer (a netbook will work), and install armory on it, and make sure it never touches anything else, even internet. Whenever you want to transfer out, use a camera (your mobile cam will do) to sign the transaction. Sound gr8... can u plz elaborate... |