In this guide, we guide you through setting up your own cooling folder. Before you get into the process, you may wonder, what is cold storage?
Put simply, “cold storage” means that your Bitcoin is completely offline. Cold Storage, also known as the Cold Storage Wallet, is the opposite of a hot wallet where your Bitcoin is online. Because Bitcoin is a digital asset, online storage increases your risk or attack surface if your Bitcoin is stolen when you are working online with a security service. Keeping your Bitcoin in a cold store will greatly reduce your attack surface.
The first step in getting your Bitcoin into the cold store is to create an offline bitcoin address. This address will have both a public and a private key pair that never goes online (until you’re ready to spend it). In this guide, we’ll show you how to use the paper wallet method to create a free cooling folder.
Setting up a paper wallet
Setting up your cool paper purse is pretty easy and requires little technical knowledge. The first step will be to go here to the Bitcoin.com Paper Wallet Tool.
Before you do anything else, save it locally to your computer on this page. To save a web page to your local computer, press Ctrl-S and save the file as a full webpage (for example, on your desktop). After saving, just close the open Bitcoin.com Paper Wallet Tool Page. Then disconnect your computer from the internet; do not worry, you only need it temporarily for this task offline.
After disconnecting from the Internet, open the saved file (on your desktop). Hover over the page and / or enter random characters in the text box to create additional entropy (randomness). This will create a random bitcoin address that has both a public and a private key pair. Because you saved the file locally and are not connected to the Internet, the Bitcoin address you created was created completely offline.
The final paper wallet page should look similar to this example page
Print the page
The next step is to make an offline copy of your Bitcoin address that you can later load with Bitcoin for a complete cooling solution. If you are not already connected to the Internet, click the Print button on the locally saved paper wallet page. Warning: Before printing the page, make sure that the printer is also offline (for example, not connected to the Internet via Wi-Fi). Once you are sure, print the page. Congratulations, the difficult part is over! You have now created an offline bitcoin address and saved it locally for backup. On the printed page should be the public Bitcoin address and the QR code with the corresponding private key and QR code. We strongly recommend that you keep the paper folder in a safe place, such as a fireproof safe. You can now safely connect to the Internet again.
How does this work?
Add funds to your wallet
The next step is that you want to add Bitcoin to your wallet. As with any other Bitcoin transaction, use a wallet that you have online, scan the QR code of the public cold store exchange or copy the address and send money to your cooling storage. You can check the status of the funds at any time with a Bitcoin Block Explorer.
Redeem Bitcoin from the cold store
When you’re ready to spend out of your wallet, you’ll need to import the private key into a Bitcoin wallet that’s online. Any wallet that supports importing private keys works. For example, if you download the Bitcoin Unlimited wallet (which is a full Bitcoin client), you can import the private key. Just follow these steps:
Open the client and click Help
Select the debug window and click the Console tab
Enter the field “importprivkey <bitcoinprivk…………..