Hey,
From what I read, for small amounts desktop wallets like Electrum (I currently have Exodus - any thoughts?) are alright.
Exodus is not open source so it's not recommended.
Let's say I have an amount of BTC that I don't feel comfortable holding on an exchange. I will leave a bit on Exodus (then I will look for a desktop that supports SegWit) but for long-term storage, I have those options:
Electrum supports native segwit already (Bech32), but since it's not widely accepted yet you can manually create a normal P2PWKH-P2SH address on Electrum.
1. Best option: Hardware Wallet - send a small amount, wipe clean, check if recovery works and then send the rest.
Yes, a hardware wallet is the best option.
You should try sending also, not just receiving.
2. Paper wallet: Use
https://segwitaddress.org/ on a Linux booted from live CD or USB stick (offline) and write down or print (preferably on a dumb printer with no memory/internet connection). Then store somewhere safe.
This works.
Writing it down is recommended though; the term "paper wallet" is literal: you'll have to write it on a piece of paper.
3. Bitcoin Core Client on a dedicated computer used only for storing Crypto (with TOR for privacy?).
If you want to go the paranoid route then get 2 computers: one offline and airgapped for signing transactions and the other for broadcasting.
So my plan is to generate SegWit address using segwitaddress.org (offline, using Linux installed on USB stick) and send money there.
I think a hardware wallet is better as there are less steps involved so you'll have lower opportunities to make mistakes.
I have some questions:
- Can I send Bitcoins there multiple times without compromising security (I understand that privacy will be compromised anyway??)?
Yes, of course.
Privacy is compromised by reusing addresses because someone could tie that address to an identity.
- When I send from paper wallet I should use Sweep option to send all funds at once. Preferably to HD wallet that has been checked for recovery prior. Am I correct?
Exactly.
Sweep all funds.
Or you risk the change being sent to an address you don't control depending on the wallet.
- Any other tips or guides you can send me to so I can confirm that this is a good way of protecting my BTC?
Like I said earlier, a hardware wallet is better.
It does the functions of a paper wallet and there are smaller vectors of attack and lower probability something would go wrong as a result of human error.
Also whenever you write down your seed, try to import it to see if you wrote it down correctly.
There have been cases where people didn't write down the correct word or wrote it in the wrong order.
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