The more I think about this the more I want to ask

[Outhue]

This question might seem like one that a beginner would ask. In fact, someone recently posed a similar question to me, and I’ve been thinking about it ever since.

A friend of my younger sibling wants to invest in Bitcoin, and he asked me about the best wallet option. I advised him to consider an open-source hardware wallet, since that's what I use as well.

He then asked if he could store 1 BTC in the wallet, to which I responded, "Why not?" His next question caught me off guard: "What about the saying, 'Don't put all your eggs in one basket'?"

I took a moment to think, but deep down I felt confident in my hardware wallet's security compared to hot wallets. However, he argued that it's best to split the Bitcoin into two parts and store them in two different hardware wallets.

What are your thoughts on this? Personally, I keep all my BTC in a single hardware wallet. I’d like to know, from the Bitcointalk community: do you think the saying "don’t put all your eggs in one basket" also applies to those using a single hardware wallet?

[aoluain]

Maybe, Maybe not.

Did he give a specific reason as to why he thought it best to use two hardware
wallets? I'm wondering if it from a security aspect, as in someone finding the seed
if he was using just one?

In that case yea its possible to split funds over two wallets and secure them
in two different locations - there isnt necessarily anything negative about
doing so IMO.

[mindrust]

That quote is about having a diversified portfolio which is a good thing. However having many different btc wallets has nothing to do with diversification. It will only create confusion and confusion will lead to a disaster. Most of us learned this by the hard way in the past and your friend will also understand it eventually. (Hopefully he will see it before losing any coins) There isn’t much you can do about it. You can try to talk sense into him but he won’t understand a damn till he lightens up miraculously.

[Mrbluntzy]

I don't see anything bad about storing all your Bitcoin in one hardware cold storage wallet as long as you are going to diligently and internationally handle the security of that wallet and its secret phrase in the right manner. Even if you store you Bitcoin in two or three different hardware wallet and you don't carefully keep your secret phrase safe, chances that you will lose all your Bitcoin in those wallet is there and for you to prevent that, you don't need to be careless with your security. So, even if you have one wallet and you store everything there, you don't have any issue unless your phrase is exposed.

That phrase of not putting all your eggs in one basket was being said to those people that like to invest all their money in just one asset or when someone put their entire hope on something. For the case of Bitcoin wallet, it is clearly advised that investors should have a cold wallet which is usually offline with the seed phrase also backed up offline In a safe place, if that is done, you don't have anything to fear.

[MAAManda]

What are your thoughts on this? Personally, I keep all my BTC in a single hardware wallet. I’d like to know, from the Bitcointalk community: do you think the saying "don’t put all your eggs in one basket" also applies to those using a single hardware wallet?

Storing things separately is a way to keep things safe. So it's true that what the proverb says is true, not only the ways of guarding have evolved for the better, nowadays scammers also have newer & better ways to deceive their potential victims. But to do those separations, you have to spend more effort & time to manage all of that. In the end, only you know how far you can go.

[Marykeller]

It is when you begin to have doubts about the security features of your hardware wallet that's when the thought of nurturing the idea of having two hardware wallets to store your Bitcoin comes to mind. When you actually don't have doubts or trust issues about the security features of your hardware wallet, you won't just see the need to have two hardware wallets; instead, you would prefer having one hardware wallet since it can comfortably serve the purpose of storing up to 1 BTC without having security bridge.

[Zoomic]

"Don’t put all your eggs in one basket" is not about storage. It is about investment. It means don't make Bitcoin your only investment.

Anyway, it is not clear that storing bitcoins in multiple wallets will reduce your risk of loss because more wallets increases the chances of loss. It also increases the effort needed to maintain them.

Interestingly, I just got a different perspective on this now. I had only viewed the post from the perspective of splitting our Bitcoins and storing them in different wallets. However, I still think the meaning of the phrase "Don’t put all your eggs in one basket" depends on the investor and the definition they choose to give it. In this context, it seems the investor is actually talking about splitting their Bitcoins into different wallets since the discussion at that moment was about the storage method for 1 BTC.

To me, the best definition I can give to putting our eggs in different baskets is diversifying our portfolio. The goal here is to protect our funds. If one asset class performs poorly, there are still other assets performing well, which will balance the returns from the overall investment.

[Smartprofit]

You don't necessarily have to have two hardware wallets. You can, for example, use a hardware wallet to store 0.5 BTC and a cold wallet based on the light Electrum client to store the remaining 0.5 BTC (using two different devices).

In fact, you raise a very interesting question. A hardware wallet is considered a very secure way to store Bitcoin. However, from a paranoid cypherpunk perspective, this is not entirely true. A Bitcoin holder may face various threats and various methods of attack. For example, a hardware wallet has one drawback that is rarely mentioned by those people who advocate storing Bitcoin using a hardware wallet. This drawback is that the very fact that you have a hardware wallet indicates that you have Bitcoin.

I am not sure that the principle of "not putting all your eggs in one basket" should not be applied to the Bitcoin storage system. I doubt it. From a paranoid cypherpunk perspective (I guess), the principle of diversification is a universal principle.

[Dunamisx]

He then asked if he could store 1 BTC in the wallet, to which I responded, "Why not?" His next question caught me off guard: "What about the saying, 'Don't put all your eggs in one basket'?"

From here, I will have to take you for being responsible for that, because you're not able to give a complete information, responding yes only does not makes you a pro in bitcoin, this shows that it's either you don't know and couldn't afford to give from what you already knew, 1btc is not a joke, this deserves you taking his on seat to discuss more about how he could diversify in many ways, instead of you to surprise him, he was the one that ended surprising you all because you don't give enough information needed.

[Ultegra134]

I believe that the subject of first wallets and basic storage questions has been discussed broadly before. Electrum is a great wallet to start out with, and it's pretty basic to set up; even a newbie can do it. As for what your friend told you, I will agree with the previous users; it's about portfolio diversification, not for Bitcoin storage. There's nothing wrong with using a single hardware wallet to store your Bitcoin; they'll be safe. However, I don't see why you couldn't split your coins on a second wallet as well, if that makes you feel safer. The only downside I could think of, apart from overcomplicating things, is the cost of buying a second hardware wallet.

[Kemarit]

I took a moment to think, but deep down I felt confident in my hardware wallet's security compared to hot wallets. However, he argued that it's best to split the Bitcoin into two parts and store them in two different hardware wallets.

It's possible and it might be a good idea specially if he is a beginner. I know someone who split his Bitcoin into 4 different wallet and never touches it.

What are your thoughts on this? Personally, I keep all my BTC in a single hardware wallet. I’d like to know, from the Bitcointalk community: do you think the saying "don’t put all your eggs in one basket" also applies to those using a single hardware wallet?

There is no right or wrong answer here. Anyone can do who they see will be a perfect strategy for them. 1 or 10 it doesn't matter. What matter is that you will have total control of those wallets and then you know how to practice safe hygiene like not keeping your private key in a safe multiple location and back it up.

Although the quote "don't put all your eggs in one basket" connotes diversification not splitting your Bitcoin or any crypto for that matter into different wallets.

[franky1]

best strategy is to have nearly 1btc in a secure cold wallet, and then a few sats in another wallet as play/losable funds
(hot/cold wallet principles)

the reason
if your exploited by a relative/neighbour someone physically you can give them the small wallet acting as if it is all you have to pacify them into leaving you alone without them getting to your main stash

definitely dont store large life effecting amounts on a web/cellular phone wallet that you access frequently

[JiiBs]

He then asked if he could store 1 BTC in the wallet, to which I responded, "Why not?" His next question caught me off guard: "What about the saying, 'Don't put all your eggs in one basket'?"

I took a moment to think, but deep down I felt confident in my hardware wallet's security compared to hot wallets. However, he argued that it's best to split the Bitcoin into two parts and store them in two different hardware wallets.

Even that too is an idea that should be exploited. Should you have the leverage to have several wallets, why not utilize them? It doesn’t do you any wrong to do so. It’s a security measure you know, you don’t get lose all in the event of any compromise, doesn’t matter the source. So long as you didn’t have them all and both wallets in one place, you would be safe at least, in one end and that too is a step wise towards security of your asset.

best strategy is to have nearly 1btc in a secure cold wallet, and then a few sats in another wallet as play/losable funds
(hot/cold wallet principles)

Like Franky1, I don’t subscribe to the idea of an equal splitting too.

[EL MOHA]

He then asked if he could store 1 BTC in the wallet, to which I responded, "Why not?" His next question caught me off guard: "What about the saying, 'Don't put all your eggs in one basket'?"

I took a moment to think, but deep down I felt confident in my hardware wallet's security compared to hot wallets. However, he argued that it's best to split the Bitcoin into two parts and store them in two different hardware wallets.

What are your thoughts on this? Personally, I keep all my BTC in a single hardware wallet. I’d like to know, from the Bitcointalk community: do you think the saying "don’t put all your eggs in one basket" also applies to those using a single hardware wallet?

Hardware wallet are currently the most safest option for a beginner but does that mean the wallet is totally secured? I would say No because we all have seen hardware wallets getting hacked through leak of seed phrases and the likes, yes we all can say that it is dependent on how you handle your back up phrases but one can never be too sure on cases like this.

So I personally agree with your brothers friend, there is no too secure wallet that can defeat the idea of "don’t put all your eggs in one basket" for me he can actually split them into two or more wallet, 1 bitcoin might be small for some investors to split into two wallets but might be huge for some.

The only problem with having two or more wallet is the way you store their seeds do not back them up together do not over spread them for redundancy sake.

[Mia Chloe]

He then asked if he could store 1 BTC in the wallet, to which I responded, "Why not?" His next question caught me off guard: "What about the saying, 'Don't put all your eggs in one basket'?"

It's a bit of technical question though it's more of a preference thing in my opinion. To start with you actually need to consider making use is a hardware wallet or a cold storage of your choice. Then you need to make use of an open source wallet as a watch only wallet because trust me it's important.

If you want , for extra privacy you can also consider running your own node and that would help in masking your IP and public keys. Also you should avoid sharing your address so you don't get monitored.

[Proty]

For me I think hardware wallets are reliable in terms of your bitcoin been safe however it will be unwise to save all your bitcoin in one wallet no matter how secure the wallet maybe.If you have a reasonable amount of bitcoin in your holdings the best option will be to store them in different hardware wallets to avoid stories.Not that hardware wallets is not good or secure for storing bitcoin but one stand at great financial risks of losing one's bitcoin if the wallet is hacked or being tempered with.

[Hazink]

There is not much difference from having 2 or more wallets; if you can't safeguard them very well, I know your friend is talking about staying safe and not just keeping everything in one place, but what's the point of having all these wallets if you can't protect them and can be careless with all of their security?

I will prefer to have one secure hardware wallet (open source) and have the backup secured in a different location and also another hot wallet (open source) with less money inside with the wallet key secured in a different location than having 2 hardware wallets, which I might not be able to safeguard their key very well.

[Odohu]

This question might seem like one that a beginner would ask. In fact, someone recently posed a similar question to me, and I’ve been thinking about it ever since.

A friend of my younger sibling wants to invest in Bitcoin, and he asked me about the best wallet option. I advised him to consider an open-source hardware wallet, since that's what I use as well.

He then asked if he could store 1 BTC in the wallet, to which I responded, "Why not?" His next question caught me off guard: "What about the saying, 'Don't put all your eggs in one basket'?"

I took a moment to think, but deep down I felt confident in my hardware wallet's security compared to hot wallets. However, he argued that it's best to split the Bitcoin into two parts and store them in two different hardware wallets.

What are your thoughts on this? Personally, I keep all my BTC in a single hardware wallet. I’d like to know, from the Bitcointalk community: do you think the saying "don’t put all your eggs in one basket" also applies to those using a single hardware wallet?

Being someone good in risk management, I'm tempted to agree with him because I see that there is so much wisdom in what he is saying. With just one storage medium, any loss of property or the password will lead to the loss of everything. Instead of this ugly situation to happen, it is better to divide the entire assets into two or three different parts and save them separately. I feel this is a better way of securing one's Bitcoin than keeping everything together. Storage medium can be hardware wallet with open source like you suggested but this time, it could be two of three different hardware wallets.

[serjent05]

What are your thoughts on this? Personally, I keep all my BTC in a single hardware wallet. I’d like to know, from the Bitcointalk community: do you think the saying "don’t put all your eggs in one basket" also applies to those using a single hardware wallet?

If one is cynical and is not comfortable using a single wallet, then he can use another wallet may it be an opensource software or a hardware wallet.  This is to ease his minds of and avoid getting hacked and losing all his funds because he only uses a single wallet.  There is nothing wrong in using multiple wallet to secure one's funds, instead, it is highly recommended.

You can also give this link: https://bitcoin.org/en/choose-your-wallet to help him choose which wallet he prefers. If he is somehow impatient then he can jump directly to this link: https://bitcoin.org/en/choose-your-wallet?step=5

[GreatArkansas]

(....)

What are your thoughts on this? Personally, I keep all my BTC in a single hardware wallet. I’d like to know, from the Bitcointalk community: do you think the saying "don’t put all your eggs in one basket" also applies to those using a single hardware wallet?

This is depends on you because if you increase number of your wallets - you will came up in a problem how you will secure it, for example how you will keep your seed phrases/private keys since you will have a lot of wallets here.
But if that is not your concern, then having multiple wallets is fine.

(....)
That phrase of not putting all your eggs in one basket was being said to those people that like to invest all their money in just one asset or when someone put their entire hope on something. For the case of Bitcoin wallet, it is clearly advised that investors should have a cold wallet which is usually offline with the seed phrase also backed up offline In a safe place, if that is done, you don't have anything to fear.

This is also what I understand about "don't put all your eggs in one basket" but depends on how you will use this case, for OP - it's about how you keep your Bitcoins. Which for me, it's still valid.