How do you separate your everyday Bitcoin setup from long-term storage?

[Loyang]

An area that's often overlooked is the testing of the back-up itself. If multiple copies of a seed exist, but one of them is wrong, or you are unable to recover your wallet from it, it's not that helpful. That can be detected in a small recovery test before the backup is called for. To me, the differentiation wouldn't be between having so many different devices, rather, I would like to limit how many can reveal the long-term wallet. It's nice to have a spending wallet and the backup/signing process should be as easy and separate as possible.

But it would be best to do a recovery test if there is no Bitcoin or a small amount of Bitcoin in his wallet. Because doing a recovery test with a large amount of Bitcoin or with your total Bitcoin will not be a good decision at all. But yes, if we check our Seed Phrases very well, then maybe it will be enough for us. Because connecting to many or more than one device is not a good decision at all. So if we check it directly, then we will definitely not need to do a recovery test.

Connecting the wallet we are using to the Internet is dangerous. Many people who have a lot of Bitcoin never connect their device to the Internet because of the risk involved.

[Popkon6]

I would like to limit how many can reveal the long-term wallet. It's nice to have a spending wallet and the backup/signing process should be as easy and separate as possible.

It would be best if you keep Bitcoin in a separate wallet for daily expenses, because if you keep the entire cost of Bitcoin in a single place along with the main holding, it is not advisable at all because there may come a time when you may decide to sell all the Bitcoin in the main holding.
In this case, I keep Bitcoin in a separate and strong wallet as much as I can invest according to my plan. Because if you keep it separate for daily expenses, your waste will be very less, because the more limited your spending, the more savings you will have.

[Muskanrani]

I would like to limit how many can reveal the long-term wallet. It's nice to have a spending wallet and the backup/signing process should be as easy and separate as possible.

It would be best if you keep Bitcoin in a separate wallet for daily expenses, because if you keep the entire cost of Bitcoin in a single place along with the main holding, it is not advisable at all because there may come a time when you may decide to sell all the Bitcoin in the main holding.
In this case, I keep Bitcoin in a separate and strong wallet as much as I can invest according to my plan. Because if you keep it separate for daily expenses, your waste will be very less, because the more limited your spending, the more savings you will have.

I think we should always keep saperate the Hot wallet which is used for daily transaction  and offline cold storage for heavy savings this is essential because it keeps your holding completely save from hacks , online phishing and the leakage of data and it is also helpful for making daily usage fast and simple.

Which wallet you prefer for your holdings Hot or Cold storage???

In your opinion is lightening network is best option for those who do transactions at daily basis???

[MisFoxie]

Which wallet you prefer for your holdings Hot or Cold storage???

In your opinion is lightening network is best option for those who do transactions at daily basis???

I use both cold storage and a hot wallet I prefer both. I have made one of my offline devices as cold storage and for regular transactions I use the online device.

Bitcoin Lightning Network will be good only when the users on the other side use the Lightning Network otherwise if we want to transaction with them properly we will have to use some converting service. That’s why in my opinion Lightning Network is still not that much usable for daily transection because of its low adoption.

[Muskanrani]

Which wallet you prefer for your holdings Hot or Cold storage???

In your opinion is lightening network is best option for those who do transactions at daily basis???

I use both cold storage and a hot wallet I prefer both. I have made one of my offline devices as cold storage and for regular transactions I use the online device.

Bitcoin Lightning Network will be good only when the users on the other side use the Lightning Network otherwise if we want to transaction with them properly we will have to use some converting service. That’s why in my opinion Lightning Network is still not that much usable for daily transection because of its low adoption.

Yes , I agreed your point of view but i think Hot wallet should only hold funds which are required for daily basis and i believe that using offline devices as  air-gapped cold storage is the best practice.

 Cold storage indeed is the best option for massive holdings and your point about lightning network is very valid apart from adoption inbound  liquidity  and channel management is another major problem therefore most of the people depends on the on-chain hot wallet and centralized services.  

[AprilioMP]

I would like to limit how many can reveal the long-term wallet. It's nice to have a spending wallet and the backup/signing process should be as easy and separate as possible.

It would be best if you keep Bitcoin in a separate wallet for daily expenses, because if you keep the entire cost of Bitcoin in a single place along with the main holding, it is not advisable at all because there may come a time when you may decide to sell all the Bitcoin in the main holding.
In this case, I keep Bitcoin in a separate and strong wallet as much as I can invest according to my plan. Because if you keep it separate for daily expenses, your waste will be very less, because the more limited your spending, the more savings you will have.

It’s a good idea to use separate wallets for storing Bitcoin. For daily use, a software wallet is sufficient, while a cold wallet is best for long-term storage. Implementing this storage strategy by keeping your assets separate can help protect them. When using a software wallet for regular transactions [daily or short-term needs], you should choose it carefully and wisely—don’t just use any wallet for storage. Using them incorrectly can be risky. I recommend Electrum along with BlueWallet. Both of these wallets are excellent. BlueWallet is available on iOS and Android.

[PERtua]

I believe the question that is more useful to ask yourself is what if this device is compromised? rather than how many devices/browsers am I using? A hot wallet should have money that I can afford to lose and long-term funds should be in a different signing process. Also, I believe watch-only setups are underutilized because there are times where you would want to keep an eye on balances without having the signing keys on a device connected to the Internet. The most important thing to remember is that there are two systems: spending and signing long-term. If they are going to make the setup more complicated, it doesn't make any sense to add more layers.

[GeorgeJohn]

keep most BTC in cold storage and only a small amount in a hot wallet for regular use.

It seems that you already know the answer of your questions before asking, actually if you wants to be spending your bitcoin regularly or daily, you can use an electrum wallet to store your BTC so that it will give you access to make use of it as possible as you want....But if you want to store for long-term, you have to use hardware cold wallet....So hardware is meant for long-term storage.

[Catenaccio]

seems that you already know the answer of your questions before asking, actually if you wants to be spending your bitcoin regularly or daily, you can use an electrum wallet to store your BTC so that it will give you access to make use of it as possible as you want....

Electrum is a SPV wallet so it is a lightweight wallet in data storage and it's convenient for many users but if people want privacy, they will have to consider of wallets like Bitcoin Core to run a Bitcoin full node or prune node. They can use Tor with Electrum wallet but using a wallet with Bitcoin full node is better for privacy.

With Electrum wallet, it's light and simple to use but there are notes on security and guides to use Electrum wallet safely.
[GUIDE] How to Safely Download and Verify Electrum.
TUTORIAL: How to use Electrum (for beginners).
TUTORIAL: How to use Electrum (for advanced users).
The paranoid user's security guide for using Electrum safely.

But if you want to store for long-term, you have to use hardware cold wallet....So hardware is meant for long-term storage.

People can use either hot wallets or cold wallets for their bitcoin storage, and for either short term or long term storage.

With hot wallets, they can use wallet passphrase (custom words) to increase security. Or they can use hot wallets with co-signers (multisig wallets). Cold wallets are not only available options for bitcoin storage or long term bitcoin storage.

[LIST] Open Source Hardware Wallets.
[LIST] Multisig wallets.
[GUIDE] How to buy a Hardware Wallet the right way.

[abaeze]

Which wallet you prefer for your holdings Hot or Cold storage???

In your opinion is lightening network is best option for those who do transactions at daily basis???

I use both cold storage and a hot wallet I prefer both. I have made one of my offline devices as cold storage and for regular transactions I use the online device.

Bitcoin Lightning Network will be good only when the users on the other side use the Lightning Network otherwise if we want to transaction with them properly we will have to use some converting service. That’s why in my opinion Lightning Network is still not that much usable for daily transection because of its low adoption.

For the security and ease of use of Bitcoin, it is a wise decision to use hot wallet and cold storage at the same time. Although the convenience of hot wallet is more than any other wallet but it also has higher risks.

In other ways, the network effect that you have highlighted in the case of Lightning is logical, but one thing that needs to be clarified here is that a conversion service is not required for every Lightning payment. If a merchant or individual accepts Lightning, payments can be made directly from the Lightning wallet and its technical capabilities are very good for small daily transactions.

[PVequalNRT]

I think we should always keep saperate the Hot wallet which is used for daily transaction  and offline cold storage for heavy savings this is essential because it keeps your holding completely save from hacks , online phishing and the leakage of data and it is also helpful for making daily usage fast and simple.

We talked about cold storage but we don't talk about people that does not have much Bitcoin. It's necessary to have a cold storage, but only necessary if you have large Bitcoin. If you have Bitcoin for daily spending, I think got wallet is enough since you are not going to be keeping Bitcoin there for long time. If you are doing a long term storage then it's necessary to have a cold storage for your Bitcoin for maximum security.

Which wallet you prefer for your holdings Hot or Cold storage???

In your opinion is lightening network is best option for those who do transactions at daily basis???

You can have both but how do you think lightning network work, not everyone actually use lightning network like the main network

[Fordsmith]

Cold storage for savings, hot wallet for spending. Beyond that, it's really easy to overthink things. Sticking to basic safety habits and protecting your seed phrase matter way more than a complex setup.

[Zaka1221]

For the security and ease of use of Bitcoin, it is a wise decision to use hot wallet and cold storage at the same time. Although the convenience of hot wallet is more than any other wallet but it also has higher risks.

In other ways, the network effect that you have highlighted in the case of Lightning is logical, but one thing that needs to be clarified here is that a conversion service is not required for every Lightning payment. If a merchant or individual accepts Lightning, payments can be made directly from the Lightning wallet and its technical capabilities are very good for small daily transactions.

For long term accumulation always having cold wallet is one of the best option I adopted this in early days because I check many stories and other stuff related I never want to have things which bring problems and I lost my hard earned savings just because of this keeping things in cold wallet helps enough while for having regular use using other walllets are also not bad at all because these are also working perfectly.

I was having mind about hardware wallet but its also having side effects just becasue of this now my old system is secure enough and doing good job in long run never connecting with internet and doing all work on other desktops enough for me to stay safe and enjoying this independent life with bitcoin.

[SilverCryptoBullet]

For long term accumulation always having cold wallet is one of the best option I adopted this in early days because I check many stories and other stuff related I never want to have things which bring problems and I lost my hard earned savings just because of this keeping things in cold wallet helps enough while for having regular use using other walllets are also not bad at all because these are also working perfectly.

Cold wallets are best but not only a wallet type is enough to secure your bitcoin. Hardware wallets have close source and open source, good wallets and bad wallets in security. The incident of Coldcard hardware wallet is a very strong warning about that risk.

I practically would like to use different wallets, not store all my bitcoin in only one wallet (software/ manufacturer) because I don't want to lose all my coins because of a single wallet software / manufacturer incident.

Pay attention on practice and security is always worth to do.
[GUIDE] How to buy a Hardware Wallet the right way.
The paranoid user's security guide for using Electrum safely.

[hadesdex]

Overkill starts where the complexity you add becomes a bigger risk than the threat you are defending against. Every extra layer of separation is another thing you can get wrong yourself, and self-inflicted loss is far more common than the targeted attacks these elaborate setups defend against. A phone kept permanently offline sounds great until the device dies and you discover your backup assumptions were wrong.

My own line: two seeds, one hot one cold, and the cold one never gets typed into anything that has touched the internet. Amounts that would hurt to lose go cold, walking-around money stays hot. That covers the realistic threats. What I do not do is maintain compartmentalized browser identities for coin things. If holding bitcoin requires an antidetect browser, the problem is not the browser, it is that you are doing coin things on a machine you do not trust. Fix the machine or use a dedicated clean device. Two honest devices beat five personas.

The test for whether your separation scheme has gone past overkill: if you lost access to your main setup tomorrow, could you recover everything from backups alone without heroic effort? If the scheme is so complex that recovery is doubtful, it has already failed, just quietly. Complexity you cannot recover from is not security, it is a slow-motion loss.