What is better? Using one storage option or using several methods? - Bitcoin.

[Kakmakr]

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 usually avoid selling large amounts of coins on exchanges>

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.  

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

[fiulpro]

It depends on the amount of bitcoins you are storing.
I don't myself have that much to store at different places but if you do have a lot of bitcoins you should think about storing using different things and different wallets or paper wallets and such , because you might not know it but sometimes even though you are thorough with your safety procedures regarding the online crime anything might happen .
If you loose one wallet you will loose a part , not all.
You should know that no option is perfect everything does have a downside.

[Swingle]

I feel the best option to yo store the BTC in various storage device. You can't be too careful so as to lose all your assets through a mistake that can never be reverse. But having it on various storage devices give an assurance that sould hin case a device was compromise, another is there to sustain one.

[OROBTC]

...

Once you reach a point that your BTC are worth more than what you would like to lose......

So I store my BTC on both hardware wallets (85%, for longer-term HODL and just 15% for shorter term ease of spending in online wallets & flexibility). 

The online wallets offer a nice flexibility when traveling, you do not need to carry a HW device.

[Kakmakr]

I feel the best option to yo store the BTC in various storage device. You can't be too careful so as to lose all your assets through a mistake that can never be reverse. But having it on various storage devices give an assurance that sould hin case a device was compromise, another is there to sustain one.

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.    We frequently hear about some service finding some kind of exploit in their code or some human error, causing people to lose coins.

Would you rather risk losing all your coins by storing everything with one method or would you distribute the risk by using multiple methods and continuously losing small amounts of coins?

I think avoiding 3rd party services, decrease your chances of losing coins.  

[avikz]

I feel the best option to yo store the BTC in various storage device. You can't be too careful so as to lose all your assets through a mistake that can never be reverse. But having it on various storage devices give an assurance that sould hin case a device was compromise, another is there to sustain one.

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.    We frequently hear about some service finding some kind of exploit in their code or some human error, causing people to lose coins.

Would you rather risk losing all your coins by storing everything with one method or would you distribute the risk by using multiple methods and continuously losing small amounts of coins?

I think avoiding 3rd party services, decrease your chances of losing coins.  

I genuinely think that it makes sense to store coins in multiple methods including 3rd party services for quick transactional requirement! It's all about distributing risks in small plates so that you don't loose all your coins in one go if anything goes wrong!

I personally don't prefer bitcoin core wallet because of the blockchain size but I prefer to use a mix of 3rd party services like Electrum, Greenwallet, coinbase etc. The way we use more than one bank accounts, same applies to crypto world as well!

[hatshepsut93]

I keep my coins in multiple offline Electrum wallets, to avoid putting all eggs into one basket, just in case there's something wrong with a wallet. As for copies, I use multiple methods of storing the seeds, which should mitigate some of the flaws of each medium (for example, flash memory degrades over time if it spends too much time unpowered). Ideally I would keep my backups in different places, but I haven't found any place that I can trust yet.

When you are thinking about safety and security of your coins, you should first think about what dangers can happen. A $5 wrench attack can defeat any encryption or hiding of your wallets, housefire or flood can destroy paper wallets and USB sticks, robbers can take coins from unencrypted wallets.

[Juggy777]

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 usually avoid selling large amounts of coins on exchanges>

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.  

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

This is an interesting topic earlier I used to store all my coins on coinbase, and then I came to know that exchanges get hacked very easily hence I stopped storing my coins on exchanges. Then I started storing my coins on Electrum wallet, and I have never looked back as it’s secured and super easy to use. I don’t use my coins daily but since I’m using Electrum I can buy or sell anytime I wish, if that’s what you’re asking.

[romero121]

• 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

[dothebeats]

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. <I usually avoid selling large amounts of coins on exchanges>

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.  

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.

[sandra_x]

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.

[bitart]

...

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 )) 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...

[squatter]

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.

[dul48]

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 usually avoid selling large amounts of coins on exchanges>

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.  

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.

[ralle14]

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.

[Aveatrex]

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.    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.

[iamverybusyperson]

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

[ghost424]

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.

[pooya87]

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.

[Delos]

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.