I still have few doubts so I thought to create this thread and get some answers from you guys.
I bought few Bitcoins (well at wrong time on 3rd Jan
) and since then all I seen is how bitcoin goes down, but still I have trust in it.
My questions are as follows :
1. I have a wallet at blockchain and I am not storing my private keys online as I printed them out. So does that mean if someone crack my wallet password he can take all my bicoins or he still need my private keys ? Because seriously I am not using my private keys, may be blockchain does when I send some bitcoins to other address, is that understanding true ?
I don't understand. Do you have an account at blockchain.info? Or do you mean you have an address on the blockchain?
2. From Question 1 if it really is true then Blockchain does have my private key so if someone hacks my account he/she gets both then ? (key and coin).
Your wallet contains the private keys, no matter where you store the wallet. You can encrypt the wallet to protect them for others.
3. What are cold storage and/or what is secure way to store your coins then ?
Cold storage is a wallet which is not connected to the internet. For example a computer disconnected from the internet, or a paper wallet.
4. Online wallets are trust worthy ?
Not if you have to trust someone else to protect the private keys.
Usually online wallets are a bit more vulrnable than offline wallets.
Put only pocket change in online (hot) wallets.
5. A while ago I bought a VIP account of nzb indexer through bitcoin (my first purchase) but that site was waiting for me to transfer the requested bitcoin by giving their wallet address and starting a counter (10 min before that transaction will cancel automatically), but what I don't understand is how on earth that site knew that the coin it got is from me, it could have been anyone doing transaction on that moment. I was anonymous user and happens to be transferring bitcoin to that site. But how on earth they knew that I paid them.
Because nobody else knows that address you were sending the coins to.
Every address is very unique and rare.
If there were no transactions made from that address in the past, nobody knows the address.
The address becomes known to the rest of the world when there is a transaction made, then it's a part of the blockchain.
If I have anymore question that will come up during this discussion I will add them.
bring it on.