Video - Bitcoin Q and A Hot vs. cold wallets

The dangers of custodial accounts; not your keys, not your money. Security practices for long-term vs. short-term storage, trading, and transacting. I don't leave any currency (crypto or fiat) in an exchange for longer than 15 minutes. I use these cryptocurrencies to pay my bills, so I transact very often. So far, I've only ever lost small amounts of bitcoin through stupid mistakes.

1. Don't leave your money on exchanges longer than you have to. If you day-trade, make sure you understand the risk that entails.

2. Organise a tiered storage system of hot and cold wallets, factoring in the amount of bitcoin you're storing, how you plan to use it (soon or not for a long time), and what security risks you're willing to take with each tier.

3. Use cold storage (i.e. paper wallets) for large amounts or for bitcoins you don't plan on using for a longer period of time.

4. Use hardware wallets that are PIN or password-protected

5. Use multi-signature multi-party or multi-factor wallets for carrying out your weekly business transactions.

6. Use hot wallets (ex. mobile wallets) for petty cash, or if you are the Oprah of cryptocurrency.

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Written by Andreas M. Antonopoulos on May 11, 2017.