The Hidden Cost of Keeping All Your Bitcoin in One Wallet ‎

[Ronsbit]

Good advice from OP. There is a parable I would never forget so quickly and it says " do not carry all your eggs in one basket" simple simple as this proverbs it passes across a strong message and warning and it is applicable in all fields and walks of life.

As a Crypto enthusiast, we all know how risky and porous the space could be at times and for that reasons, we are to be always on high alert and that involves taking every necessary measures and steps to safeguard our asset's.

One of the easiest way to do that is to split our holdings in different wallet's if we have a huge or big volume of Bitcoin or other assets. Doing so would limit the rate at which your wallets are targeted by hackers, even if they succeed in getting one they can never be able to attack the others because they have no idea about them. But all the same, the security of your assets rests in your hands, you have every information at your disposal to utilise as it interests you.

[Coyster]

One of the easiest way to do that is to split our holdings in different wallet's if we have a huge or big volume of Bitcoin or other assets. Doing so would limit the rate at which your wallets are targeted by hackers, even if they succeed in getting one they can never be able to attack the others because they have no idea about them.

I do not completely agree, just splitting your funds between many wallets does not make them necessarily safer. If you have many online wallets, you are at risk of losing your funds that someone who has one cold wallet and has great operational security.

I understand OP's idea, and as such i think two wallets are okay. One cold wallet and one hot wallet hodling very small funds for spending or payments. Mind you that too many wallets also mean too many seed phrases; and you'd also have to back them up in different locations, and too many people might not be able to do that.

[Cleanshit]

One of the easiest way to do that is to split our holdings in different wallet's if we have a huge or big volume of Bitcoin or other assets. Doing so would limit the rate at which your wallets are targeted by hackers, even if they succeed in getting one they can never be able to attack the others because they have no idea about them.

I do not completely agree, just splitting your funds between many wallets does not make them necessarily safer. If you have many online wallets, you are at risk of losing your funds that someone who has one cold wallet and has great operational security.

I understand OP's idea, and as such i think two wallets are okay. One cold wallet and one hot wallet hodling very small funds for spending or payments. Mind you that too many wallets also mean too many seed phrases; and you'd also have to back them up in different locations, and too many people might not be able to do that.

Having more wallet does not mean your Bitcoin are more secure. If one have to keep all the wallets on same device, having to do backups and seed phrases don’t really reduce the risk.

using a cold wallet for long term saving and then hot wallet for spending is the best option to use, and this works for allow of individual. This makes ur huge funds coldeadly and making things easy for to spend little form ur spending wallet. Good backup and safe handle of seed is much more important than having a bulky of wallets

[Ronsbit]

One of the easiest way to do that is to split our holdings in different wallet's if we have a huge or big volume of Bitcoin or other assets. Doing so would limit the rate at which your wallets are targeted by hackers, even if they succeed in getting one they can never be able to attack the others because they have no idea about them.

I do not completely agree, just splitting your funds between many wallets does not make them necessarily safer. If you have many online wallets, you are at risk of losing your funds that someone who has one cold wallet and has great operational security.

I understand OP's idea, and as such i think two wallets are okay. One cold wallet and one hot wallet hodling very small funds for spending or payments. Mind you that too many wallets also mean too many seed phrases; and you'd also have to back them up in different locations, and too many people might not be able to do that.

I don't think there is anything bad with such idea as long as the owner of such asset is willing to do so. Besides we all are in for the safety of our assets and I can also adopt the measures to keep my  assets safe. In reality, I don't keep my assets in one wallet, I split it into different wallet's and I keep the key phrases of the wallets in different locations where it would be very difficult to locate. That is the measures I took to protect my them all.

[Zaguru12]

I don't think there is anything bad with such idea as long as the owner of such asset is willing to do so. Besides we all are in for the safety of our assets and I can also adopt the measures to keep my  assets safe. In reality, I don't keep my assets in one wallet, I split it into different wallet's and I keep the key phrases of the wallets in different locations where it would be very difficult to locate. That is the measures I took to protect my them all.

One thing is that every measure you think is best to protect your wallet is actually a good one and should be adhered to seriously but I perfectly understand what Coyster is actually on about. If you have large crypto holdings it is best to actually prioritize the cold wallet instead of having multiple hot wallets because most of the time those hot wallets are usually on one device and any malware to that device is actually going to affect all the wallet on that device. Even if it’s multiple devices as along as it is actually hot wallets then it carries same risk.

I definitely second going for multiple wallets but it must be well structured to avoid redundancy and because redundancy will lead to losses than protection. The Idea should be Atleast two wallet or at most three wallet and the seeds should all the in different locations which each seed must also have more than one back up which is where redundancy comes in if the wallet is actually many

[Byebyebtc]

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‎Privacy can also be another main issue when all your Bitcoin is stored in one wallet, it becomes easier for anyone who has knowledge of one of your addresses to easily analyze your transactions and estimate your total holdings which reduces your financial privacy on the block chain.
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You are right, meanwhile you should also have it in mind that modern wallet allows you to make multiple addresses,
So in that case if someone manages to get one address they will not be able to see everything,
If you have 2 address and they get to know one, they will only be able to see transactions you have made in one address, without the knowledge that you have more under that wallet, so to an extent that is also another way of getting privcy with having to create another wallet.

Having to create multiple wallets to invest isn't a bad Idea, but to make things easier you can create more address and even more seed phrase, with that you are doing yourself a favour by protecting your bitcoinn.

[Ronsbit]

One thing is that every measure you think is best to protect your wallet is actually a good one and should be adhered to seriously but I perfectly understand what Coyster is actually on about. If you have large crypto holdings it is best to actually prioritize the cold wallet instead of having multiple hot wallets because most of the time those hot wallets are usually on one device and any malware to that device is actually going to affect all the wallet on that device. Even if it’s multiple devices as along as it is actually hot wallets then it carries same risk.

I definitely second going for multiple wallets but it must be well structured to avoid redundancy and because redundancy will lead to losses than protection. The Idea should be Atleast two wallet or at most three wallet and the seeds should all the in different locations which each seed must also have more than one back up which is where redundancy comes in if the wallet is actually many

The picture is much clearer now as you were more elaborate in details. If sticking to three wallet is also much safer then it is alright to go with it. However, I was wondering if having a wallet in a phone which is not connected to the internet nor have any other app installed in it would be much safer to hold a coin because that phone is void or free of constant internet access without any app in it should be at least to some good percentage be free of exploitation from external sources because nobody would have idea about the he phone except you say it to someone or install app that would grant add access to your device which further exposes and makes the phone prone to external sources through links via ads and messages sent to your pm if you have any chat network installed on your phone.