Your private keys will typically be 12 or 24 words in a specific order. How and where to store your private key is a hot topic with many different options. A great solution for one person may not work for you. How you handle private key storage will depend on your personal living situation. If you already took some bitcoin off an exchange, then you probably have put some thought into this subject. We offer some things to ponder as you decide what will work best for you.
For this post we will discuss hot keys, which are stored on a file available to the software we are using, which is connected to the internet. Since the software is managing your private key, you also want a backup so that if the software has an issue, you can use the backup to restore the software and your balance information.
Large amounts of money, more than what’s needed to operate your network/website, should be in cold storage.
How to store?
- Words written on paper, if possible, having a duplicate stored in a second location helps minimize the cons. Recommended for hot storage.
- Pros: Easy to create, store/hide. Can be sealed in a bag to protect from water.
- Cons: Easily destroyed by flood/fire. Ink and pencil fade over time.
- Memorize your private key, not recommended as the only method of storage in any situation except under duress.
- Pros: Portable for travel.
- Cons: Memory failure or death causes complete loss of access.
Where to store?
This depends on your living situation and the number of individuals that have access to your home. Be careful to put it away after each use or inspection. Set reminders for yourself to confirm their condition and location.
On occasion, you will need access to the private key so if you decide the best fire protection you have is to bury it in a plastic bag, you may also want to consider a second backup indoors so that you don’t need to dig up your flowers unnecessarily.
Ensure the location is secure so that children and peeping guests don’t stumble upon it during a visit.
