[2015-11-29] Cold Storage – The Safest Way To Vault Your Bitcoin

[tyz]

Even the most robust and advanced platforms suffer from hacking attacks. DDoS attacks targeted at Kraken disabled bitcoin withdrawals and froze user accounts for days. More than 18,000 bitcoins were stolen from European bitcoin exchange Bitstamp earlier this year. Still, many bitcoin users rely on hot (online) wallets.

http://www.newsbtc.com/2015/11/29/storing-bitcoins-in-cold-storage/

[Small]

Multi signature is not a option to protect your Bitcoins if they are stored close to each other or signed on the same computer. A hacker can easily get both/all of the keys and hack your Bitcoin address. Paper wallet does provide more than adequate security if the generating device is virus free. They claimed that many were against the use of paper wallet but users can make several backup with BIP38 encryption on all of them. It is as secure as a Ledger nano if we were to compare that aspect.

[1Referee]

Of course cold storage is the best possible storage, but it can't be achieved as long as people want the option to be able to cash out their coins instantly if they activate a withdrawal request. Exchanges have no other option than using hot wallets for storing a part of their Bitcoins to make it easy and instantly for people to withdraw their coins if they so wish.

You want the safety of offline cold storage? Then people don't need to moan about the withdrawal process taking hours and hours with a lot hassle combined. If you want instant and easy withdrawals, then don't complain about hot wallets. It's that simple.