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guides:security:coldwallet

How to set up a cold wallet

What is a cold wallet and why do I need it?

A cold wallet is the safest way for most individuals to store their cryptocurrencies. The idea of a cold wallet, is that you store your coins in a place that is not connected to the internet. This makes it different from a hot wallet, which is instantly accessible and in sync with the blockchain.

A simple cold wallet

  • Download the latest Chia client installer from the Official Chia Network Github on any computer with an internet connection;
  • Copy the file ChiaSetup-x.x.x to a safe computer with a known clean OS and no internet connection using a clean USB;
  • Install the client on the new PC
  • Make sure that no-one can see your screen. Create a new private key. You will be presented with 24 words, which is called your mnemonic seed phrase. You don't need to copy them yet.
  • Go to the Wallet Tab in the GUI and copy the receive address. At this point, you need to decide if you want to have one public address associated with your cold wallet, or if you want multiple. If the latter is the case, generate another / multiple address(es) by selecting New Address and write these addresses down in a Wordfile or Notepad. These public addresses can be shared without compromising your security (hence “public”).
  • Click the Logout button on the top right, which will bring you back to the page where you created your key.
  • make sure no-one can see your screen. Click the eyeball icon which says “See private keys”. Copy this information carefully. The 24-words are needed to later restore your wallet, so copy them carefully and in numbered order! Most people copy it using notepad to a clean USB stick, but you can also write it on paper or etch it in wood or steel to make it more durable.
  • Make sure to store it in a safe place; if you lose it, you will never be able to retrieve anything you receive on your cold wallet(s)!
  • After you are done and checked everything, delete the 24 words from the computed by clicking the bin icon. Then uninstall Chia and remove all related folders.

Future of Chia wallets

There is currently no support for hardware wallets like Trezor and Ledger. There is a possibility that Chia will be secured using yubi-keys, as Chia aims to develop the ease and security of wallets further than any other blockchain currently.

Multisig wallets

Multisignature wallets (or multisig, for short), are cryptocurrency wallets that require two or more private keys to sign and send a transaction. The storage method requires multiple cryptographic signatures (a private key’s unique fingerprint) to access the wallet. The most notable disadvantage to these type of wallets, is that all parties need to be aligned when tranfering founds out of the wallet.

From Cold to Hot wallet

If you want to access your funds again in the future, you can make your wallet “hot” again by installing the Chia Client on a clean machine with an internet connection. Import from 24-word mnemonic and let your wallet sync up for a few minutes.

Sources

guides/security/coldwallet.txt · Last modified: 2022/07/15 12:25 by vleesbanaan