First, we need to establish what cold storage is. it is a wallet not connected to the internet. To secure your funds in cold storage you can use a paper wallet, it is the cheapest option but also the possibility that needs the most work. So we put in the easy solution in the bottom.
The hard way
To get you started, we made this step by step guide on how to create a safe and secure paper wallet.
- Make sure that your printer is wired directly to your computer for security reasons, so we do not send the private key out into a network
- to create a bitcoin wallet go to https://www.bitaddress.org/ for other coins use https://walletgenerator.net/ supporting 197 currencies and go through the first step which is to create a unique signature you can do this by moving the cursor around on the screen.
- Now you get the first wallet address up, you will not use this one instead you will disconnect from the internet, this is to make sure no one is looking over your shoulders.
- Now you can click on the paper wallet tab in the top menu
- Is a standard set of 3 paper wallets, what is the standard A4 size, And even though you have three wallets on your screen I would click generate.
- Now you get the 3 new wallets up, and you can print them on your wired printer
- When you have created the wallets, you need you will now need to empty your browser history this is to make sure that no one can hack in and gain access to your private keys.
- After you have emptied out your browser history your computer needs to be restarted to empty the RAM-blocks
- Make sure you store you are a paper wallet safely, And no one sees your private key, and you should not take pictures of it, people can hack into your phone or computer if you have a picture so I can see your public and private keys and thereby take all your funds.
- When you need the funds stored on your paper wallet, you should empty the entire wallet, and burn it afterwards because once you use the private key, it is useless. It should be understood that you can still use the wallet, but it is against all recommendation since the private key is out there and others can obtain it by hacking you.
The easy way
It is a lot easier to use a hardware wallet since it does all the calculation on the wallet and thereby keeping the private key internally even though you’re connected to a computer, so your private key will always be safe in the hardware wallet, and you can transfer funds in and out of it. as an added bonus most hardware wallets support multiple coins.
Instructions for using a hardware wallet once it is first set up it’s quite simple and will be included in the package, and in contrast to the paper wallet every time you need a new address on the paper wallet you will have to go through all the 10 steps listed above, where on a hardware wallet it is merely created by a few clicks