How many crypto wallets do you own?

[MiliMil]

I was reading about the Luke Dashjr BTC hack and it got me thinking if people have multiple crypto wallets and addresses.

I think having a cold wallet that isn't connected to the internet plus numerous online wallets is a precaution everyone should take.

The benefits being;

- If you are hacked you won't lose all your crypto assets

- If you forget one private key you won't lose all your crypto assets

- Smaller transactions (since your crypto will be dispersed across many wallets) will not draw as much attention thus increasing privacy.

I will be taking these steps in the next few days to give myself peace of mind.

I'm curious if others think I'm being too paranoid or have carried out some of these practices.

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[hosseinimr93]

I think having a cold wallet that isn't connected to the internet plus numerous online wallets is a precaution everyone should take.

Why numerous online wallets? Isn't a single online wallet with small balance for daily use enough?

- If you forget one private key you won't lose all your crypto assets

Why should you forget your private key? Do you memorize your private keys?
You can generate a HD wallet and write down the seed phrase on a piece of paper. It's recommended to keep multiple copies of the seed phrase in different locations.

[Zaguru12]

If you have one cold wallet where majority of your funds are kept then a single online wallet for smaller amounts is required. Having many online wallet doesn’t prevent much of a thing moreover it could be on a same laptop or phone so when this device is compromised either through phishing, then almost all the wallets on will be compromised too. Also The more seed phrases you have the more you store them in less secure places since you might consider to store them in different locations.

Just stick to one each of the wallets and avoid storing much funds on online wallets

[BitcoinGirl.Club]

I think having a cold wallet that isn't connected to the internet plus numerous online wallets is a precaution everyone should take.

I have one Ledger [not recommended anymore, scammers] and one another device (I can not remember the name, it kept as backup). So these two I have. Thing is they are not wallet but devices to access wallet without exposing the private key. In that sense you can create as many wallets as you want. A HD wallet will generate unlimited number of addresses for you. So when you are talking about how many wallets, it does not make sense to me.

But if you ask how many device in other words hardware wallet, then I have two. One as a backup in case the current one does not function like a damaged button, broken display.

[KaliLinux]

I was reading about the Luke Dashjr BTC hack and it got me thinking if people have multiple crypto wallets and addresses.

I think having a cold wallet that isn't connected to the internet plus numerous online wallets is a precaution everyone should take.

The benefits being;

- If you are hacked you won't lose all your crypto assets

- If you forget one private key you won't lose all your crypto assets

- Smaller transactions (since your crypto will be dispersed across many wallets) will not draw as much attention thus increasing privacy.

I will be taking these steps in the next few days to give myself peace of mind.

I'm curious if others think I'm being too paranoid or have carried out some of these practices.

Meaning you are holding a lot of Bitcoin starch  

Anyways, If I have a number of Bitcoin, I would definitely have a hardware wallet for that instead of holding them in many online wallets and with regards to losing your keys, also understand that in Bitcoin investment there is the saying, "Not your Keys Not your Coins"  so your best choice is HD wallet and hold whatever little amount you wish to trade in an exchange wallet except you want to trade in multiple exchanges hence you will be having multiple online wallets which I don't see the sense in that.

[tiCeR]

I think having a cold wallet that isn't connected to the internet plus numerous online wallets is a precaution everyone should take.

Why numerous online wallets? Isn't a single online wallet with small balance for daily use enough?

- If you forget one private key you won't lose all your crypto assets

Why should you forget your private key? Do you memorize your private keys?
You can generate a HD wallet and write down the seed phrase on a piece of paper. It's recommended to keep multiple copies of the seed phrase in different locations.

One advantage of having multiple online wallets is to protect privacy right? The average user doesn't have in mind that one wallet but multiple addresses are not proper protection of privacy if they cross spent UTXO consisting of several addresses within the wallet. I guess it depends on the user's needs or requirements.

Still though when you install an Electrum client you can of course have multiple wallets. Perhaps the "numerous online wallets" as @OP termed it is a bit misleading here? With Electrum you can easily manage several wallets with countless addresses if you need to.

[hosseinimr93]

One advantage of having multiple online wallets is to protect privacy right? The average user doesn't have in mind that one wallet but multiple addresses are not proper protection of privacy if they cross spent UTXO consisting of several addresses within the wallet. I guess it depends on the user's needs or requirements.

Even if that's the purpose, there is no need to have numerous wallets. A few number of wallets should be enough.
There's a disadvantage too. In the case you have multiple wallets, you have to keep multiple keys and that's difficult if you want to keep each of the keys in a separate safe location.
As OP is referring to private key and not a seed phrase, maybe, he/she doesn't know that it's possible to use a HD wallet and have numerous addresses all generated from a seed phrase.

[Rikafip]

I was reading about the Luke Dashjr BTC hack and it got me thinking if people have multiple crypto wallets and addresses.

All he had to do is use hardware wallet and he wouldn't get hacked the way he did.

If you are hacked you won't lose all your crypto assets

If your computer gets hacked, hacker will probably clear all your online wallets and won;t restrict himself to one so how exactly would having more of those increase your security?

If you forget one private key you won't lose all your crypto assets

You are supposed to write seed phrase on a piece of paper, not memorize it.

I will be taking these steps in the next few days to give myself peace of mind.

If you want piece of mind, put all your crypto in hardware wallet and write down seed (preferably have several copies and if possible store one copy at another location) and keep in hot wallet only what you need for a few days or a week.

[alik111]

Having more than one wallet is really very useful but I think traders should use hardware wallet. I have a lot of custodial wallets in exchanges. As I am a daily trader I need to use more custodial wallets.

[Oceat]

You won't get hacked if you own a cold wallet but your only problem is if someone's going to steal it from you. It would be better to hide them in safe deposit box and avoid any online wallet to store your crypto they aren't worth it. Not your keys, not your coins.

It's would be a hassle to own a lot of wallet when you could just have a single one that you should not connect to the internet. No matter what wallet do you use it has always their pros and cons but it depends on how you manage to adjust to their disadvantage.

Use a different wallet if you just want to hodl your coins for a long time and that is a cold wallet then use a hot wallet if you casually trade.

[NeuroticFish]

I was reading about the Luke Dashjr BTC hack and it got me thinking if people have multiple crypto wallets and addresses.

I think having a cold wallet that isn't connected to the internet plus numerous online wallets is a precaution everyone should take.

The benefits being;

- If you are hacked you won't lose all your crypto assets

- If you forget one private key you won't lose all your crypto assets

- Smaller transactions (since your crypto will be dispersed across many wallets) will not draw as much attention thus increasing privacy.

I will be taking these steps in the next few days to give myself peace of mind.

I'm curious if others think I'm being too paranoid or have carried out some of these practices.

It seems that Luke was targeted. It seems that Luke didn't use hardware wallet nor a proper cold storage (ie completely offline).
So a proper cold storage (if you know what you're doing) or a hardware wallet should do. Then you cannot really get hacked.
You can make smaller transactions also with one wallet. Nowadays a (HD) wallet can have many addresses and you can use them wisely with the right wallet software.

Of course, I also think that if somebody has really big money in bitcoin then multiple wallets (most probably hardware wallets) may not be a too bad idea.
I think I've read in the news of a family that has a big number of wallets spread all over the world, exactly for this reason.

However, that one cold storage - multiple online wallets (probably watch only?) - thing doesn't make sense to me, but I may be missing/misunderstanding something there.

[Aanuoluwatofunmi]

Am having two bitcoin wallets, the first one is with the centralized crypto exchange, which i use occassionally for the exchange whenever i needed to spend in fiat while the second one is a decentralized bitcoin wallet with electrum, which is an open source cold storage for keeping my bitcoin over a long time, it serve the purpose of bank and i prefer it than using a centralized institution like bank, i have full control over my finances with the bitcoin wallet i use and get satisfied.

[Bananington]

I'm curious if others think I'm being too paranoid or have carried out some of these practices.

There are definitely some benefits to having multiple crypto wallets and addresses like you have listed and they make sense, but I think that it can be stressful and challenging for some people to keep up with all of them and it still will not ensure your safety. Trying to ensure that the wallet you use is safe and kept safe should be your number one goal, not having multiple wallets with still same poor safety practice. Many people will share the same opinion as you,  but personally I do not think it is the best.

[Hamza2424]

You are supposed to write seed phrase on a piece of paper, not memorize it.

hot wallets are not preferred at all as I know they more likely easy to use while trading but the connection between the Dapp and Hot wallet is based on the API and if the Dapp session has any type of vanerability then your funds are in risk.

Proper precautions are required to use Hot wallets any type of small mistake lead to major risk. Writing the seed on paper seems safe but then keeping that piece of paper safe is a tough job on the other hand SS of the seed seems unsafe as it is on your device which might get hacked but keeping it stored in the form of SS is easy where to go.

[Z-tight]

Am having two bitcoin wallets, the first one is with the centralized crypto exchange, which i use occassionally for the exchange whenever i needed to spend in fiat.

An exchange isn't essentially a 'wallet', you should only use an exchange to trade and not to store your money, you can keep your funds for daily spending in your electrum 'hot' wallet and move it to the exchange for trading whenever you want to convert to fiat.

while the second one is a decentralized bitcoin wallet with electrum, which is an open source cold storage for keeping my bitcoin over a long time, it serve the purpose of bank and i prefer it than using a centralized institution like bank, i have full control over my finances with the bitcoin wallet i use and get satisfied.

Electrum is a non-custodial wallet, wallets are either custodial or non-custodial, it is cryptocurrencies and services that are either centralized or decentralized. Electrum is not a 'cold storage' wallet, it depends on how you use it, if you use it on your phone for internet activities, then it is a hot wallet, but if you set it up offline using two devices then it is a cold storage because the device that carries your keys would forever be offline and be used for signing transactions, while the other device would be for watching only and broadcasting transactions. Check if you are doing things correctly to avoid loss of funds.

[isaac_clarke22]

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Well I am still not yet fully invested to cold wallets these days, but I am still considering it. "Numerous" online wallets might be just pushing it too much and one would be just be enough considering that they are unsafe. I only use one online wallet that is localized in here so that I would be able to avail their services since there isn't really direct way from my cold wallet to whatever service I am trying to avail.

When I hold in my online wallet, it is usually just smaller amounts just like how would I do it in exchanges though I stopped day trading long time ago already.

[Fivestar4everMVP]

Well, I personally think that having several crypto wallets and having just one or two both have their pros and cons, and this largely depend on the user.
Like for example, there are people who have a really hard time managing or keeping track of their multiple wallets, for this type of persons, misplacing private keys to one or two of their multiple wallets could really be easy, except the user's multiple wallets are controlled by one seed phrase, which to me, is not very much different from one who have just one wallet.

I personally think everyone should just do that which they find easier and most interesting for them, as long as it does not involve leaving funds on centralized exchanges or using custodial wallet for saving investments for the future.

[Oneandpure]

I don't think good ideas having single wallet for holding all cryptocurrency assets because can't guarantee how protect from hacking and hold or spent assets on several wallet seems worth with one wallet hacked still have chance on other wallet. I have bad experienced when saving assets in single wallet on metamask and got hacked due fatal mistake I made when joining pre sale project.

Learned from this cases I think worth spent assets more than ten wallet but depend on altcoin network kinds for holding, if ethereum network coins I hold on the single wallet and another wallet holding with other network kinds coins like Polygon and BSC Schain network.

[Ultegra134]

Am having two bitcoin wallets, the first one is with the centralized crypto exchange, which i use occassionally for the exchange whenever i needed to spend in fiat while the second one is a decentralized bitcoin wallet with electrum, which is an open source cold storage for keeping my bitcoin over a long time, it serve the purpose of bank and i prefer it than using a centralized institution like bank, i have full control over my finances with the bitcoin wallet i use and get satisfied.

Since when is an exchange considered a wallet? Anyway, for Bitcoin, I've stuck with Electrum; it's a simple non-custodial desktop wallet, but I'm planning to purchase a hardware wallet soon enough. They're much safer and not expensive at all. Perhaps splitting your balances into two wallets adds a second layer of security but I'm not sure if it's actually worth it. I'm also using Metamask, where I keep my stablecoins and some of my BNB; the rest, which is a small amount, is on Binance.

[AmoreJaz]

Am having two bitcoin wallets, the first one is with the centralized crypto exchange, which i use occassionally for the exchange whenever i needed to spend in fiat while the second one is a decentralized bitcoin wallet with electrum, which is an open source cold storage for keeping my bitcoin over a long time, it serve the purpose of bank and i prefer it than using a centralized institution like bank, i have full control over my finances with the bitcoin wallet i use and get satisfied.

Since when is an exchange considered a wallet? Anyway, for Bitcoin, I've stuck with Electrum; it's a simple non-custodial desktop wallet, but I'm planning to purchase a hardware wallet soon enough. They're much safer and not expensive at all. I'm also using Metamask, where I keep my stablecoins and some of my BNB; the rest, which is a small amount, is on Binance.

don't consider CEXs your alternative wallet. they are more prone to hacking and other fraudulent events as they are the target of most scammers or hackers. much better if you will use noncustodial wallet such as electrum. if you put some of your funds in CEX, you are subjecting your funds to unexpected circumstances such as hacking or abandonment of the owners from their platform. if you have your own keys, you can also pretty much sleep peacefully, knowing that you have full control of your funds.