Zero to Hero Guide: Storing Bitcoin with a Cold Wallet

Zero to Hero Guide: Storing Bitcoin with a Cold Wallet

A cold wallet might sound like a high-tech concept, but understanding it is as simple as putting on a coat in winter to stay warm. Think of a cold wallet as Bitcoin’s “coat,” keeping your cryptocurrency completely offline and safe from hackers.

A cold wallet is a way to store cryptocurrency completely offline, without any connection to the internet. This means that even if hackers gain access to your computer or smartphone, they can’t easily get to your Bitcoin. Imagine a cold wallet as a safe, while a hot wallet (an online wallet) is like your regular wallet — convenient but not as secure as a safe.

• High Security: Since a cold wallet is not connected to the internet, it’s nearly impossible for hackers to remotely access it.
• Theft Prevention: Even if your computer is infected or your account is compromised, your Bitcoin remains safe.
• Long-Term Storage: If you plan to hold onto Bitcoin for a long time, a cold wallet is an ideal choice.

Cold wallets come in different forms, suitable for various needs:

• Hardware Wallets: These are specially designed devices, like a USB stick, that store your private keys (the keys to access your Bitcoin). Popular hardware wallets include Ledger and Trezor.
• Paper Wallets: A paper wallet involves printing your Bitcoin address and private key on a piece of paper. The security of this paper depends on how well you hide it. Don’t tell anyone where it’s stored, and keep it away from damp places.
• Offline Computers: You can use an old computer that’s not connected to the internet to store your Bitcoin. This method is a bit more cumbersome, but just as secure.

I personally recommend using a paper wallet because, whether you use a hardware wallet or an offline computer, you’ll still need to store your wallet’s private key (or seed phrase) on “paper.” So, why not cut to the chase and create a paper wallet directly?

Creating a paper wallet is simple, but security is key. Make sure your tools are ready, including a computer + Chrome browser + printer + A4 paper.

Here’s a 5-step guide to making a paper wallet:

1.Open an Incognito Window: On your computer, open Chrome, and as shown below, open a new incognito window.

2.Get the Paper Wallet Generator: In the address bar, type www.bitaddress.org and press Enter to open the page.

You’ll notice some green dots appearing as you move your mouse around. This is normal — it’s generating random numbers to ensure your Bitcoin wallet address is unique.

Important: Don’t create your wallet just yet. You’re still online. You need to save the current HTML page and then generate the cold wallet offline. Right-click, and select “Save as.”

3.Save the Paper Wallet Generator: Name the HTML file as “ColdWallet.html” and save it to your desktop, as shown below.

4.Go Offline to Create the Paper Wallet: This is a critical step — disconnect from the internet, restart your computer, and open Chrome in incognito mode again. Drag the “ColdWallet.html” file into the Chrome window, as shown below.

On the page that appears, keep randomly moving your mouse until the percentage reaches 100%. This means a new random number has been generated, and you can create your cold wallet.

5.Print the Paper Wallet: Follow the arrows in the image above, click “Paper Wallet,” enter the number of cold wallets you want to generate, and click “Generate.” If you see the image below, your wallet has been created.

The left box contains your Bitcoin wallet address, and the red circled area on the right, along with the QR code, is your private key. Don’t let anyone see your private key, or your Bitcoin won’t be yours anymore.

Once confirmed, click the “Print” button shown above to print it out.

Congratulations! Your Bitcoin cold wallet is now ready. Just keep that piece of paper safe. The address on the left doesn’t need to be copied manually; you can scan it with a tool. The address is: 1Hhj1jv3soATqcXTQQms8fHYN4rz6q2twa

In the future, just send Bitcoin to the address on the paper wallet. Now, let’s transfer the 0.001 BTC you purchased in our previous guide, “How to Buy 0.001 BTC,” to this paper wallet.

First, connect to the internet and click this link to go to the Binance web version, as shown below.

Follow the arrows in the image to find the withdrawal button and click it, leading to the following page.

Follow the arrows in the image, and finally, click the “Withdraw” button to proceed to the next page.

Click “Continue” to proceed to the next page.

Click “Cancel” to go to the next page.

Click the arrow shown above to continue to the next page.

Click the “Email” button to complete email verification. Find the verification code Binance sent to your registered email, and enter it. (If you see the “Authenticator App” option like I did, it’s because I’m using Google’s Authenticator code. If you haven’t set this up, you might be prompted for phone verification instead.)

After verification, you’ll see the page below, confirming that your request was successful and that your transaction is being processed.

That’s it! You’ve successfully transferred Bitcoin to your cold wallet. From now on, only someone who knows your cold wallet’s private key can take your Bitcoin.

However, because the Bitcoin network confirms a block every 10 minutes, your transaction might take up to an hour to be confirmed by the blockchain. You can check your account status using this Bitcoin blockchain explorer by entering your address into the search bar, as shown below.

Paste the address in the input box and press Enter. You’ll see the balance in your cold wallet has been updated — 0.000932BTC.

Click the address to go to the details page, as shown below.

You can bookmark this page and check it periodically for updates to your account.

From now on, only you control your Bitcoin. Even the U.S. government can’t do anything if they don’t know your private key. So, keeping your printed “paper wallet” safe is your top priority. Here are some precautions to keep in mind:

• No Photos or Screenshots: If you photograph your paper wallet, anyone who gets the photo can steal your Bitcoin.
• Avoid Folding or Damage: Keep the paper wallet intact, avoid folding, damaging, or exposing it to sunlight for too long to prevent the private key from becoming unreadable.
• Regularly Check the Paper’s Condition: Periodically check your paper wallet to ensure it hasn’t been damaged by moisture or other environmental factors.

You might be wondering how to retrieve Bitcoin from a cold wallet. We’ll cover that next time.

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