How to Protect Bitcoins Part 03
Method3 {Keeping Your Wallet Offline} :-
1: Use offline transaction signing. With offline transaction signing, you keep the bulk of your Bitcoins on a computer that is not connected to any network. That offline computer must be used to sign the transaction before it can be completed.
Using your online computer, you would initiate a new transaction and then save it on a thumb drive. You then take the thumb drive to the offline computer and use it to sign the transaction. Return the thumb drive to the online computer to complete the transaction.
2: Record your wallet on a CD or vinyl disk. Not everyone has access to two computers, or can keep one of them completely offline. If offline transaction signing doesn't appeal to you, consider creating a sound wallet.
With a sound wallet, your private keys are encrypted into sound files and recorded on a CD or even a vinyl record. A spectroscope app is then used to decipher the files. While secure, this may not be the most convenient option if you make frequent Bitcoin transactions.
3: Buy a hardware wallet. Hardware wallets are more popular options for keeping your Bitcoins securely offline. These small devices are designed to be nothing but a wallet. They can't connect to a network, and no software can be installed on them.
You can still backup a hardware wallet, so you don't lose your Bitcoins if you lose the device.
Some hardware wallets can be combined with other security methods, such as multi-signature verification.
You can order hardware wallets online. The most popular brands typically run around $100.
4: Try a paper wallet. If you're not convinced that cold storage is right for you, a paper wallet can allow you to keep your Bitcoins offline while simultaneously being able to access them a bit more quickly.
With a paper wallet, your keys are turned into two QR codes: one for your public key and one for your private key. To add Bitcoins to your software wallet for transactions, simply scan the QR codes.
If you're using a paper wallet, remember to keep those print-outs safe, just as you would cash. They can be used by anyone who finds them. Buy a safe, or take out a safe deposit box at your bank.