Read on Twitter
The difference between hot and cold wallets is simple:
Hot wallets can be stolen remotely
Cold wallets require wrench attacks https://twitter.com/rasmuslange/status/1389551697568178184
Hot wallets can be stolen remotely Cold wallets require wrench attacks https://twitter.com/rasmuslange/status/1389551697568178184
It’s always important to remember that keys and wallets are often used interchangeably, so let’s get specific
A key stored on an internet connected device is hot
A key stored on a hardware wallet is cold* (more on that soon)
A key stored on an internet connected device is hot A key stored on a hardware wallet is cold* (more on that soon)
So a single-sig mobile wallet is hot, because the is on your phone, and your phone is designed to be online 24/7
A single-sig hardware wallet is cold, because the is on a device whose entire purpose is to never touch the internet*
is on your phone, and your phone is designed to be online 24/7A single-sig hardware wallet is cold, because the
is on a device whose entire purpose is to never touch the internet*
For multisig, hot vs cold depends on how you setup the quorum. For a 2-of-3:
is a hot multisig bc a remote attacker can potentially steal two hot keys
is a cold multisig bc one of the cold keys must to be compromised to move funds
is a hot multisig bc a remote attacker can potentially steal two hot keys is a cold multisig bc one of the cold keys must to be compromised to move funds
Streisand’s Law of Crypto The internet is a one-way function that makes private data public. No going back!
So cold keys can become hot
But hot keys CANNOT become cold
A corollary of the Streisand Effect https://en.wikipedia.org/wiki/Streisand_effect
The good news is that keys are infinite. There are more #bitcoin 
private keys than there are atoms in the universe
Always be careful with keys that are actively storing funds, but keep in mind that creating new keys is easy
private keys than there are atoms in the universeAlways be careful with keys that are actively storing funds, but keep in mind that creating new keys is easy
The two important pieces to long term key management are maintenance and recovery planning
Maintenance - check in on your keys periodically so you know if they’re lost or leaked
Recovery - make a plan for what you would do in the event either of those happens
Maintenance - check in on your keys periodically so you know if they’re lost or leaked Recovery - make a plan for what you would do in the event either of those happens
Before multisig both loss* and theft meant your money was gone
With effective multisig, your security is degraded but can be easily restored by replacing the compromised key
*loss = loss of all copies
With effective multisig, your security is degraded but can be easily restored by replacing the compromised key
*loss = loss of all copies
Put all this together and we have LOTS of tools to play with:
Hot keys
Cold keys
Hardware wallets
Phones and PCs
Servers
Key Recovery Service
Multisig
Steel backups
Cyberspace
Meatspace
Timelocks and more, coming soon with 
Taproot
Hot keys Cold keys Hardware wallets Phones and PCs Servers Key Recovery Service Multisig Steel backups Cyberspace Meatspace Timelocks and more, coming soon with Taproot
If this sounds intimidating, our job at @CasaHODL is to make it simple
Sleep well knowing that your funds are safe and you’re in control
And if this sounds fun and exciting, you should come work with us! https://keys.casa
Sleep well knowing that your funds are safe and you’re in control
And if this sounds fun and exciting, you should come work with us! https://keys.casa
