Bitcoin is still early

[Zaphod]

You can buy stainless steel tablets that can be engraved for protection from fire and water.

thus defeating the purpose. why oh why is so much of crypto self defeating and ofc, learning about how we came to the financial world as we know it ah....

[chucki]

The cold wallet/device holds your encrypted private keys. Use that to access your coins in the blockchain. The device also has a password so just having the physical device is not enough. If you lose your device, then you can regenerate your private keys using the seed phrase. AFAIK, you do not choose your seed phrase -- it is initiated and generated upon activation of your hardware (aka cold) wallet. There are more complex/secure multi-signature wallets as well which require more steps.

[G]

The cold wallet/device holds your encrypted private keys. Use that to access your coins in the blockchain. The device also has a password so just having the physical device is not enough. If you lose your device, then you can regenerate your private keys using the seed phrase. AFAIK, you do not choose your seed phrase -- it is initiated and generated upon activation of your hardware (aka cold) wallet. There are more complex/secure multi-signature wallets as well which require more steps.

Definitely fancier than the handwritten note and shovel needed to access the gold in my backyard.

[Panscan]

The cold wallet/device holds your encrypted private keys. Use that to access your coins in the blockchain. The device also has a password so just having the physical device is not enough. If you lose your device, then you can regenerate your private keys using the seed phrase. AFAIK, you do not choose your seed phrase -- it is initiated and generated upon activation of your hardware (aka cold) wallet. There are more complex/secure multi-signature wallets as well which require more steps.

So the actual coins themselves aren’t stored on the device ? It’s just the keys to access the coins, which are stored where ? If you can regenerate your keys with losing the device then what is the purpose of the device ?

this all seems so counter intuitive

[CordMcNally]

So the actual coins themselves aren’t stored on the device ? It’s just the keys to access the coins, which are stored where ? If you can regenerate your keys with losing the device then what is the purpose of the device ?

this all seems so counter intuitive

Bitcoins are stored on the blockchain. I strongly encourage anyone to read the CFA Institute PDF I posted multiple times as that would answer many of these questions. The device basically acts as a way that you can move your Bitcoins around, like a check or credit card, etc. If you don't want to move anything around ever then you could just keep your seed phrase safe and not use any devices until you want to.

[Nysoz]

So the actual coins themselves aren’t stored on the device ? It’s just the keys to access the coins, which are stored where ? If you can regenerate your keys with losing the device then what is the purpose of the device ?

this all seems so counter intuitive

You mean the files are *IN* the computer?

[Brains428]

https://www.youtube.com/watch?v=Sj5HdGjvXcE

Where did all the files go?

[fatlittlepig]

i wouldn't bother investing in bitcoin if i had to deal with these cold or hot wallets, passphrases etc.

[Jantoven]

i wouldn't bother investing in bitcoin if i had to deal with these cold or hot wallets, passphrases etc.

Do you keep it on the exchange, then?

[fatlittlepig]

Do you keep it on the exchange, then?

Robinhood.

[CordMcNally]

Do you keep it on the exchange, then?

No, he doesn’t actually own his Bitcoins.

[Jantoven]

Ethereum is the blockchain where all the DeFi projects are created on, they use ERC20 tokens as their currency. I don't give individual picks, but I did list a bunch of the top market cap ones earlier. The small cap projects are where you make the most bank - higher risk but much higher reward. A simple google search will lead you to them, or check out Bankless newsletter. It's a complicated field, so there's a learning curve re: terminology, names, projects, how to transact etc. But the ultimate payoff is worth it IMO.

Thanks, appreciate the insight. Have learned a lot reading through this thread.

[Panscan]

Bitcoins are stored on the blockchain. I strongly encourage anyone to read the CFA Institute PDF I posted multiple times as that would answer many of these questions. The device basically acts as a way that you can move your Bitcoins around, like a check or credit card, etc. If you don't want to move anything around ever then you could just keep your seed phrase safe and not use any devices until you want to.

gonna need a few days its like 60 pages

[Lordosis]

No, he doesn’t actually own his Bitcoins.

Do these companies that are putting their cash into bitcoin actually hold the coin in these hotboxes? What if Elon forgets his password? If several people are in charge of it what keeps a disgruntled employee from swiping some? How tracible are these transactions?

[fatlittlepig]

No, he doesn’t actually own his Bitcoins.

Personally I wouldn’t want to bother with these wallets, paraphrases and danger of losing access etc. if it were complicated I would just rather not bother.