Does a rotation of a DCA HODLing account wallet, guarantee safety from hackers?

[Cryptomultiplier]

I was thinking just how much resources and attention to detail the brokers of whale investors, get to give and dedicate to an investors account inorder not to loose the millions of cash in their care. Same also applies to those of us who would prefer to DCA on our own without the help or services of a crypto broker.

If a whale investor has done well to DCA Bitcoins and have accumulated enough for a while now, and is trying to keep such enormous amount of Bitcoin safe from hackers or scammers, is one of the best ways not to just rotate the DCA holdings annually or periodically between safer wallets, to keep it safe?
Does such kind of rotation of holdings guarantee it's safe from hackers or scammers?

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[BenCodie]

It is less about the address itself, and more about the precautions taken through how the coins are being stored. For anyone holding a significant amount in the long term, it should be a no brainer to use cold storage as opposed to wallets that are connected to a server or have access to the internet. A paper private key/seed, pk/seed on an encrypted external device or hardware wallets are probably the first options that could serve to be safe enough.

The step before a safe wallet however, is a safe system. Windows vs. Linux, Linux. A new account or system that is not a daily driver, one that is known to be safe. Next. The network level. Knowing that the network is free from vulnerability is another, more complex precaution to take.

Checking these three boxes will limit vulnerabilities down to the end user. No mistakes, no loss. Quite a few community members and myself have been discussing and voting for the topic to be added to a separate board to help with improving security and privacy in the Meta board. I recommend those and others interested in the topic to check out the discussion here and if interested in voting, visiting the community vote here.

Rotating the wallet may improve privacy, or provide a level of protection in a world where bruteforcing actually becomes possible (not really a problem at the moment). Ultimately it is superseded by the precautions listed above.

The other kind of security is physical. Ensuring that the wallet can't be breached offline, or has offline risk, is also an important thing to consider.

[The Cryptovator]

I am not sure what rotation means. Whales are not careless like us. They know very well how they should secure their funds. It's important for every crypto user to secure funds in a safe wallet. It doesn't matter if the crypto is accumulated by the dollar-cost averaging (DCA) strategy or any other way. It doesn't make any difference when the question is: secure your funds. Just accumulate and move the funds into a cold wallet. This isn't a hard task nowadays, even for small investors like me. A hardware wallet doesn't cost much compared to how it secures your funds.

[BenCodie]

I am not sure what rotation means. Whales are not careless like us. They know very well how they should secure their funds. It's important for every crypto user to secure funds in a safe wallet. It doesn't matter if the crypto is accumulated by the dollar-cost averaging (DCA) strategy or any other way. It doesn't make any difference when the question is: secure your funds. Just accumulate and move the funds into a cold wallet. This isn't a hard task nowadays, even for small investors like me. A hardware wallet doesn't cost much compared to how it secures your funds.

If I'm not wrong, I believe the OP means moving from one wallet/address to another periodically.

[Zaguru12]

Does such kind of rotation of holdings guarantee it's safe from hackers or scammers?

Moving your coin from one wallet to another periodically will just affect your privacy because when you’re were DCAing there is high chance that it was done on different addresses and by moving them to another wallet you’re actually consolidating them, now a move done periodically will only raise alarm to hackers since everything can be seen publicly.

The first point of security is having a cold wallet either by buying a hardware wallet or if you have the knowledge by setting it up your self on airgapped device this will actually reduce the scammers online getting access to your wallet keys or seeds. The seeds which should be stored totally offline is one area where I will advise the use of a multi sig wallet, this way you back the seeds properly and at different locations as such if one of the seeds gets exposed the scammer wouldn’t be able to spend from it.

You can set up the a 2-of-3 multi sig wallet and back it up as suggested below, this way you don’t need to have two or more wallets (although in some cases is still not bad, especially if you’re using a hardware wallet and the fund is large, split it into two separate hardware wallets from two different prominent companies)

If you want to increase the security of your wallet, you can go for multisig. Although, it is very useful for multiple users purposes. For individual, we have suggested 2-of-3 multisig wallet several times on this forum with the appropriate backups like this:

Seed 1, MPK 2
Seed 2, MPK 3
Seed 3, MPK 1

Backups in different locations. If you lose one of the backups, you can still use the other two to recover your wallet.

[Hispo]

Moving your coins from one address to a different one, as far as I know, I won't help to keep your satoshis safe against hackers and scammers. And there are simple reasons for it: Scammers do not try to break into your wallet but use attack techniques which aim towards one's distraction and human flaws: social engineering, phishing, personification of oficial agents, etc. So it is not suitable to talk about scammers in this context.
Hackers will always to to get your private key, so it is not about moving your coins around periodically, it is rather about keeping them in a cold wallet, passphrases and divide the satothis in different cold wallets. So the hackers will have no chance to get their hands on your satoshis remotely.
Moving your satoshis around in a periodic way could only erode your privacy, because any paying attention to your transactions on the blockchain will eventually see the partner and identify many of your addresses and even those you may use to deposit into exchanges.

[Casdinyard]

Pretty sure there are proven ways to protect yourself from hackers as a DCA-ing Whale but at the same time, rotating your assets upon multiple wallets prove to be the most consistent in giving these people more security than any other method on the market right now. Picture this, you're someone holding millions worth of bitcoins, would you really go out of your own way to venture out and find other ways to secure your crypto, all the while risking yourself getting hacked or scammed in the process?

I don't think so. In this industry, when you've become so big the only problem you have is how you're going to keep your money, sometimes the best answers are those that are already in our faces.

[tabas]

The holders internet activity is the one that can make him into such risk of being scammed or hacked. If we're going to take a look at the whales moving out their funds. Usually, the funds that they're moving have been held and slept to the same wallet for several years. That means to say, that there's no need to rotate the wallet that we've been using to DCA or store our Bitcoins for so long. What matters is how we're keeping them and trying to avoid any exposure to internet activities. But on this one, whatever works for you and what you think is gonna work for you then try to consider that because what might worked for those whales that have funds held on their the same wallet for a very long time might not just be the same for you.

[red4slash]

What needs to be considered in this case is our personal situation because I still feel that it doesn't matter whether we do DCA or buy continuously for investment because ultimately the safety of our domet depends on our rigour.
As long as we are not careless about the security of the wallet we have, then indeed indirectly this can protect the portopolio that we have even though we make transactions by buying bitcoin in DCA.
The point is that it is not our buying strategy that is the problem, it is only our carelessness and negligence that we have that can invite hackers to come.

[Dr.Bitcoin_Strange]

You mean moving one's asset from the old wallet to a new one? Well, the security of our wallets is in our hands. Usually, there are two kinds of wallets: cold and hot. If you have created a Bitcoin address through an air gap device and perhaps you are to use that wallet as your cold wallet, you will make sure that the wallet is not always going online until you are ready to make a transaction from the wallet. After creating the Bitcoin address and obtaining your private key, you can securely keep it safe in a place where you know it will not get destroyed, and after you do so, you can always send Bitcoin to the address even when the wallet is offline. If you kind of have a cold wallet and are very sure that your private keys have not been exposed or have not been compromised, then there's no need to rotate your asset from one wallet to another.

[Z-tight]

I was thinking just how much resources and attention to detail the brokers of whale investors, get to give and dedicate to an investors account inorder not to loose the millions of cash in their care. Same also applies to those of us who would prefer to DCA on our own without the help or services of a crypto broker.

Do you mean whales that hold their crypto in centralized exchanges and centralized services, i don't know of any crypto broker whose sole duty is to help investors store their crypto, but i know they offer services like buying, selling and converting crypto to cash or to another crypto and if you decide you leave your crypto in their platform, it is at your own risk. Buying BTC etf's is another way these brokers manage your coins for you, but in all of these scenarios, you have to trust the service; and BTC is a trustless network, so you should store your coins in your self custodial wallet without trusting third parties.

If a whale investor has done well to DCA Bitcoins and have accumulated enough for a while now, and is trying to keep such enormous amount of Bitcoin safe from hackers or scammers, is one of the best ways not to just rotate the DCA holdings annually or periodically between safer wallets, to keep it safe?
Does such kind of rotation of holdings guarantee it's safe from hackers or scammers?

This will only give you a false sense of security, to keep your BTC's safe you have to use extra layers of security like multisig or adding a passphrase to your seed phrase, you should also use a hardware wallet or create your own airgapped wallet, but sending your funds from one wallet to another is not a method of security, except one wallet was compromised.

[SamReomo]

I don't think that the ones who follow a DCA strategy need to do something like that because the investors who accumulate a lot of Bitcoin often tend to use multiple wallet addresses to store their Bitcoin and it's not worth it for them to move their Bitcoin from one wallet to other wallet for safety purpose.

The whales or you can say high roller investors always prefer to keep their Bitcoin into multiple wallets and all of those wallets are cold wallets which never get to see internet again until the investors devices to make them online in order to convert their Bitcoin in fiat.

Even without any rotation their Bitcoin are safe from hackers and I'm pretty sure that hackers don't really focus a lot on the wallets that have low amount of Bitcoin because it will be a troublesome job for them to hack such wallets. In fact hacking of a Bitcoin wallet isn't an easy task for any level of hacker. The investors are mostly well aware about hackers and that's why they try their best to have all security measures at first before investing in Bitcoin.

[Cryptomultiplier]

You mean moving one's asset from the old wallet to a new one? Well, the security of our wallets is in our hands. Usually, there are two kinds of wallets: cold and hot. If you have created a Bitcoin address through an air gap device and perhaps you are to use that wallet as your cold wallet, you will make sure that the wallet is not always going online until you are ready to make a transaction from the wallet. After creating the Bitcoin address and obtaining your private key, you can securely keep it safe in a place where you know it will not get destroyed, and after you do so, you can always send Bitcoin to the address even when the wallet is offline. If you kind of have a cold wallet and are very sure that your private keys have not been exposed or have not been compromised, then there's no need to rotate your asset from one wallet to another.

I casually thought most whale movements might have been not primarily for converting of BTC to fiat but for security reasons, of which one easy solution that popped up is to periodically or annually rotate the HODLing wallet account, just to be sure to keep intruders or hackers or scammers guessing.

Cold wallets sure does the trick, but I figure it might be too easy to discover, mostly when those around know of such DCA investment and live in proximity so as they can dicipher where the key phrases or cold wallet secret location is.

[Bananington]

If I'm not wrong, I believe the OP means moving from one wallet/address to another periodically.

If you can practice proper security measures, you will not need to move your bitcoins from one wallet to another regularly. Moving bitcoins from place to place can be as dangerous as the danger you are trying to avoid.

With any slight mistake while moving the bitcoins around, they can get lost by being sent to a wrong address etc.

[Dr.Bitcoin_Strange]

Cold wallets sure does the trick, but I figure it might be too easy to discover, mostly when those around know of such DCA investment and live in proximity so as they can dicipher where the key phrases or cold wallet secret location is.

"Those around?" You mean who? Who's going to reveal your identity to them as the person holding those assets? And who is also going to reveal to them where your secret phrase or private key is hidden? The reason why I said the security of your asset lies in your hands is because, if you fear that you will get hacked, you will not unless you by chance expose your secret information to a third party, or perhaps you have your Bitcoin wallet on your phone or PC, and through some unsecure sites that you normally visit, you mistakenly grant access to hackers.

When keeping your seed phrase, you don't only keep it in one place or one location; in fact, don't you know that you can keep your secret phone in 3 or 6 different locations? For example, if you have 12 secret phrases for your Bitcoin wallet, you can shear the phrases into 3 pieces, which means in one piece, you have four seed phrases; on the second piece, another four phrases; and on the last piece, you will have the remaining four phrases to sum up the total of 12 secret phrases for your wallet. You can keep those three pieces in three different locations. To access your Bitcoin wallet, you need to gather the 12 phrases from three different locations.

By so doing, you can't just get compromised because no one will know where to find all the seed phrases.

[hatshepsut93]

If a whale investor has done well to DCA Bitcoins and have accumulated enough for a while now, and is trying to keep such enormous amount of Bitcoin safe from hackers or scammers, is one of the best ways not to just rotate the DCA holdings annually or periodically between safer wallets, to keep it safe?
Does such kind of rotation of holdings guarantee it's safe from hackers or scammers?

There are no attacks in Bitcoin that target a specific address or wallet. Hackers steal coins by spreading malware across the Internet, hoping that eventually it will reach a crypto holder. Or if they know an identity of a holder, they can send them an email or a message with malware or malicious link.

So it's important to protect your privacy, never interact with anything unsafe and keep your wallets isolated from the Internet.

[hd49728]

If a whale investor has done well to DCA Bitcoins and have accumulated enough for a while now, and is trying to keep such enormous amount of Bitcoin safe from hackers or scammers, is one of the best ways not to just rotate the DCA holdings annually or periodically between safer wallets, to keep it safe?
Does such kind of rotation of holdings guarantee it's safe from hackers or scammers?

To have safe storage for your bitcoin and same for your capital, you should never store all you have (bitcoin, capital, cash) in one place, one account, one wallet.

Storing your bitcoins in different wallets and if anything goes wrong with one wallet, one device, you will have one or more wallets to use and this method of diversifying storage can help you losing all bitcoin, all capital with a single accident, hack, compromise.

I don't think moving your bitcoin around wallets can be helpful because if your device is compromised and all information about all wallets are stored at it, it can not help.

[avikz]

Does such kind of rotation of holdings guarantee it's safe from hackers or scammers?

Nothing can guarantee any safety from hackers. Whatever you do, will only increase your chance of not getting hacked. Also moving from one account to another will not guarantee anything at all.

The best you can do is to have two factor authentication enabled. Where every outgoing transaction will have to be validated by two factor authentication. That will provide you with the similar level of security like rotating accounts.

To be honest nothing can really guarantee any safety from hacker.

[hd49728]

Nothing can guarantee any safety from hackers. Whatever you do, will only increase your chance of not getting hacked. Also moving from one account to another will not guarantee anything at all.

The best you can do is to have two factor authentication enabled. Where every outgoing transaction will have to be validated by two factor authentication. That will provide you with the similar level of security like rotating accounts.

To be honest nothing can really guarantee any safety from hacker.

I agree.

Multi-sig wallet, cold storage wallet, airgap wallet can be helpful with better security and safety but nothing can guarantee 100% safety. In my post, I emphasized the importance of having different wallets on different devices and locations. To have all of devices, wallets compromised will be harder than have one device and wallet compromised.

Diversify your bitcoin in different wallet softwares and have different wallets to store your bitcoin on different devices.

[Cryptomultiplier]

Cold wallets sure does the trick, but I figure it might be too easy to discover, mostly when those around know of such DCA investment and live in proximity so as they can dicipher where the key phrases or cold wallet secret location is.

"Those around?" You mean who? Who's going to reveal your identity to them as the person holding those assets? And who is also going to reveal to them where your secret phrase or private key is hidden? The reason why I said the security of your asset lies in your hands is because, if you fear that you will get hacked, you will not unless you by chance expose your secret information to a third party, or perhaps you have your Bitcoin wallet on your phone or PC, and through some unsecure sites that you normally visit, you mistakenly grant access to hackers.

When keeping your seed phrase, you don't only keep it in one place or one location; in fact, don't you know that you can keep your secret phone in 3 or 6 different locations? For example, if you have 12 secret phrases for your Bitcoin wallet, you can shear the phrases into 3 pieces, which means in one piece, you have four seed phrases; on the second piece, another four phrases; and on the last piece, you will have the remaining four phrases to sum up the total of 12 secret phrases for your wallet. You can keep those three pieces in three different locations. To access your Bitcoin wallet, you need to gather the 12 phrases from three different locations.

By so doing, you can't just get compromised because no one will know where to find all the seed phrases.

This is a better idea. Do I suppose you put into consideration that the investor still maintains or observes a steady DCA strategy?
 I don't expect hackers or scammers to be able to also detect the address for funding used when fulfilling a DCA investment pledge percentage for the time, because the steady frequency of DCAing might give in, else, why use password authenticator services for security too?