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How to set up Bitcoin cold storage wallet

Nov 16, 2022

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Since the introduction of Bitcoin in 2009, the world of cryptocurrencies has grown in size and popularity, especially in recent years. The use and acceptance of virtual currencies has increased, as have the number of tokens and investors. However, as they have grown in importance, theft, fraud, and hacker attacks have also become more common. Because there is no legal framework for virtual currencies, owners who fall victim to fraud or theft often have no recourse.

Responsibility for the security of cryptocurrencies generally rests with investors. Users must decide how to keep their cryptocurrencies as safe as possible while still being able to access them. We have mentioned steps below to set up Bitcoin cold storage wallet

Steps to set up Bitcoin cold storage wallet

Steps to set up a hosted wallet

Choose a platform you trust. Your main considerations should be security, ease of use, and compliance with government and financial regulations.

Create your account. Enter your personal info and choose a secure password. It’s also recommended to use 2-step verification (also called 2FA) for an extra layer of security.

Steps to set up a non-custodial wallet

Download a wallet app. Popular options include Coinbase Wallet.

Create your account. Unlike a hosted wallet, you don’t have to provide any personal information to create a non-custodial wallet. Not even an email address.

Be sure to make a note of your private key. It comes in the form of a random 12-word phrase. Keep it in a safe place. If you lose or forget this 12-word phrase, you won’t be able to access your cryptocurrency.

Transfer crypto to your wallet. It is not always possible to buy cryptocurrencies with traditional currencies (like US dollars or euros) using a non-trusted wallet, so you need to transfer cryptocurrencies from another place to your non-trusted wallet.

Final Words

So here we conclude our article on how to set up Bitcoin cold storage wallet. Bitcoin can be divided into smaller units known as “stashes” (up to 8 decimal places) and used for payments, but it’s also considered a store of value like gold. This is because the price of a single bitcoin has increased considerably since its inception from less than a cent to tens of thousands of dollars. When discussed as a market asset, bitcoin is represented by the ticker symbol BTC.