Is it safe to call this another safeguard?

[As-Soon-As]

I am thinking, if he has more than one cold wallet and split that into 1.5million each, he would still have 1.5million left, which is what created this thought of mine, is using more than one cold wallet another safeguard practice?

User error is what people are mostly prone to, it could affect overall portfolio, having more than one cold storage in this case looks like a good option? Or not.

Yes, you should never keep all your eggs in one basket, that's why having multiple wallets is the most important thing because your assets will be more secure. If you have more money, you can use more wallets, but you must store the keys of the wallets safely. You should never keep these keys randomly, otherwise the security of your wallet will be lost, so as much as possible, you can write down your password in any way on a piece of paper in your diary and store it safely.
Remember, the more secure your keys are, the more secure your wallet will be, so the chances of your assets being lost will be very low.

[retreat]

User error is what people are mostly prone to, it could affect overall portfolio, having more than one cold storage in this case looks like a good option? Or not.

If I were someone who owned that much crypto, I'd prefer to store it in a single cold storage wallet rather than in multiple ones. That's because it's easier for me to manage a single cold storage than multiple ones—plus, it's not necessary to have more than one cold storage to split assets, since I can split those assets across multiple addresses using a single seed phrase and then manage them without having to store and secure several different seed phrases, which can be more of a hassle than it needs to be. What you need to do is avoid mistakes, rather than adding to your own hassle by having more than one cold storage.

[Creeper0]

When I hear such incidents, one sentence comes to mind, "Don't put all your eggs in one basket". Although such incidents happen very rarely in cold wallets. Still, it is better for us to take necessary steps to stay safe.

Incidentally, I think it was the user's mistake. If a device is not used regularly and is not connected to the internet, then it is very difficult to lose money from that device. The only way for this is user error, if a user accidentally shares his seed phrase with someone or is involved in activities that are risky for the wallet, then such an incident is possible.

[Ojima-ojo]

When I hear such incidents, one sentence comes to mind, "Don't put all your eggs in one basket". Although such incidents happen very rarely in cold wallets. Still, it is better for us to take necessary steps to stay safe.

Incidentally, I think it was the user's mistake. If a device is not used regularly and is not connected to the internet, then it is very difficult to lose money from that device. The only way for this is user error, if a user accidentally shares his seed phrase with someone or is involved in activities that are risky for the wallet, then such an incident is possible.

Cold wallets security is not all about none connecting to the Internet as often as possible, some cryptocurrency holders have they could wallet compromise while it still seating unconnected to the Internet from their end.


Security risks comes from the amount of information you give to hacker's and the access you grant them unknown to you, there are a lot of ways this happens but is you that must give the right to third party without even your knowledge that is how bad it is dealing with hacker's.

[Sobz]

This is not what diversity actually means, but you are not wrong in what you asked about. Having two wallets and split your bitcoin into two to keep in the two wallets or having 3 bitcoin wallets and split your bitcoin into three and have them in the three wallets is better than having just a single wallet to store all your bitcoin. It does not mean if it is online wallet or cold wallet, two, three wallets are better than having one. But the very crucial thing is that you still need to know how to protect your bitcoin for you not to lose it which is very important. Someone can have three bitcoin cold wallets but still willfully send all his bitcoin to scammers or enter his seed phrases on a site designed by scammers.

Protecting these wallets is another thing to consider. To keep the private key, you can always have access to a location where no other person can reach it. This might be a lot of work for someone trying to handle all of them, but if this is difficult for someone to manage, I think it would be better for them to focus on one and keep it safe from people within and online scammers. There are some people who are never good at managing private keys when there is more than one, and this is when one has to make the best choice. So the most important thing is keeping the private keys safe.

[m2017]

Diversity is a thing, I have been advised my times that this is one way of Not losing it all, however user error got the best of someone with. 3milliom worth of crypto in a cold wallet.

I heard about this (relatively) recent story, and even then I was surprised that the user was storing a large sum of money in a single wallet (and also that they couldn't afford to buy multiple wallets. Or perhaps they were relying entirely on the device's security, forgetting that their most vulnerable point was themselves). Unfortunately, they paid the price (finances are unforgiving).

I am thinking, if he has more than one cold wallet and split that into 1.5million each, he would still have 1.5million left, which is what created this thought of mine, is using more than one cold wallet another safeguard practice?

Yes, this is a good (and necessary) security practice called risk diversification. It's best to store large amounts of money split across multiple devices (and in different locations), although this requires storing multiple seed phrases. Having multiple hardware wallets also saves time on delivering a new device if one is broken, lost, or stolen, effectively serving as a backup device.

User error is what people are mostly prone to, it could affect overall portfolio, having more than one cold storage in this case looks like a good option? Or not.

Having multiple wallets also (to a small extent) protects crypto assets from the user. Let me explain. When using social engineering methods (this was the method used in the story of the lost millions), having multiple HW devices will help (again, to a small extent) minimize losses, as transactions from multiple devices require more steps and time than from a single device, and during this time, the user may "come to their senses" and stop making a mistake (transaction).

It should also be clarified that caution should be exercised when purchasing hardware wallets (only buy directly from the manufacturer), as counterfeit devices are often used to steal significant amounts of money.

[Rustam Meraj]

When I hear such incidents, one sentence comes to mind, "Don't put all your eggs in one basket". Although such incidents happen very rarely in cold wallets. Still, it is better for us to take necessary steps to stay safe.

Incidentally, I think it was the user's mistake. If a device is not used regularly and is not connected to the internet, then it is very difficult to lose money from that device. The only way for this is user error, if a user accidentally shares his seed phrase with someone or is involved in activities that are risky for the wallet, then such an incident is possible.

Cold wallets security is not all about none connecting to the Internet as often as possible, some cryptocurrency holders have they could wallet compromise while it still seating unconnected to the Internet from their end.


Security risks comes from the amount of information you give to hacker's and the access you grant them unknown to you, there are a lot of ways this happens but is you that must give the right to third party without even your knowledge that is how bad it is dealing with hacker's.

Belief that offline hardware device can not be used to steal a credit card is wrong confidence and ignores the advanced techniques employed by bad guys these days to steal credit card numbers for money. Cold wallet is not connected to internet and is as safe as outer edge protecting recovery seed and Tx approval. I think Biggest risk, for me, have long gone from misuse of the technical devices, to just something simple bad permissions for smart contracts. No need for hackers to crack device any more. In order to use the asset, they only need for the asset owner to give them access to the asset by accident or even hand out backup phrases through fake interfaces. Real security is watchful, constantly watchful, when it comes to third parties, the best security is not offline silicon chip, but human judgment.

[purple_sparkles]

Belief that offline hardware device can not be used to steal a credit card is wrong confidence and ignores the advanced techniques employed by bad guys these days to steal credit card numbers for money. Cold wallet is not connected to internet and is as safe as outer edge protecting recovery seed and Tx approval. I think Biggest risk, for me, have long gone from misuse of the technical devices, to just something simple bad permissions for smart contracts. No need for hackers to crack device any more. In order to use the asset, they only need for the asset owner to give them access to the asset by accident or even hand out backup phrases through fake interfaces. Real security is watchful, constantly watchful, when it comes to third parties, the best security is not offline silicon chip, but human judgment.

I agree. I think most people already know the basic ways to protect their money, but they often lose it because of a small, thoughtless mistake.
For example, they might grant a permission requested by a website or an app just to complete an action. Many people don't realize how everything is connected behind the scenes, and later they can't explain how it happened or where they went wrong.Very often, it's the small details or a moment of carelessness that lead to serious mistakes.

[Chinesebaby]

Diversity is a thing, I have been advised my times that this is one way of Not losing it all, however user error got the best of someone with. 3milliom worth of crypto in a cold wallet.

I am thinking, if he has more than one cold wallet and split that into 1.5million each, he would still have 1.5million left, which is what created this thought of mine, is using more than one cold wallet another safeguard practice?

User error is what people are mostly prone to, it could affect overall portfolio, having more than one cold storage in this case looks like a good option? Or not.

Diversifying your asset is a good practice to avoiding to avoiding theft or only hacking by which someone might have had access to your device or wallet by infecting it with virus. But when it comes to this case stating that he lost his crypto worth 3million due to user error, then it is very sad to hear such, because that's actually one of the most common issues people normally have while using cold wallets, since it is a wallet that is totally cut off from online, and you handle the sole responsibility of protecting that your fund. Of which any small mistake you make as a user might cost you either losing your entire funds. And one of the most common user errors include when a user either loses his wallet recovery seed phrase, or writing it incorrectly or either forgetting the pin or their cold wallet. Those are the common mistakes people make that usually cost them losing their crypto. And right now it's good people are very careful with making use of cold wallets.

[Sticky Bomb]

I am thinking, if he has more than one cold wallet and split that into 1.5million each, he would still have 1.5million left, which is what created this thought of mine, is using more than one cold wallet another safeguard practice?

The user doesn't need more than one cold storage, he can create one wallet with one seed word and split the money into more than one address. You will only end up creating more seed phrases when you have more than one cold wallet, it's still better and safer if you manage everything in one place.

If the person in quote wants proper asset segmentation, like he wants different cold wallets for different activities, then he can go ahead and create multiple wallets with same seed phrase and different passphrases, at least it's easier to document and maintain as you don't keep both in the same place. However he should ensure the additional word is long enough, up to 25-30 character length to prevent easy brute forcing and when he misplaces his seed phrase, anyone who recovers it gets the wrong wallet.

But in OP's case I don't the need for multiple could wallets, most times less is actually more.

[tabas]

Diversifying in a way of having several wallets, that's the whole point of what OP is trying to say. If you own some bitcoins, don't put it on one bitcoin address and wallet which is fine. User error will happen if you're not verifying things before you do it. Having multiple wallets is a good practice if you want to safekeep the bitcoins you're holding. Each of us has their own way of keeping their wallets safe and what is convenient to them in terms of security. And one practice is about people shouldn't keep their funds in the web wallets and closed source wallets should be also be reminded.

[Sonia_123]

Saving your bitcoin in different wallet give you more security and makes it less risky by preventing you from losing all your bitcoin once due to mistake or in case of danger, but alot of persons still sees it as being difficult to do .

Diversification means totally a different thing from sharing your funds into a different wallet, when to diversify, it means getting another/expanding your business through your savings or reward from your bitcoin investment for a better living.

[SeriouslyGiveaway]

Saving your bitcoin in different wallet give you more security and makes it less risky by preventing you from losing all your bitcoin once due to mistake or in case of danger, but alot of persons still sees it as being difficult to do .

Diversification means totally a different thing from sharing your funds into a different wallet, when to diversify, it means getting another/expanding your business through your savings or reward from your bitcoin investment for a better living.

In more details, it is like

Saving your bitcoins in different wallets.
Using different passwords for your different wallets.
Using different wallet softwares to store your bitcoins (like Bitcoin Core, Electrum, Unstoppable) because there is no coincidence of all wallet softwares have issues and compromised at the same time.

With all wallets, make sure to backup wallets accurately, store backups safely.