CoinRecon Group acknowledges there are many different ways to store cryptocurrency such as cold, hot, warm, and paper storage. Each storage device has specific requirements and operating instruction. Storage devices are also designed to only store specific types of cryptocurrencies. The sequence of events described below aims to provide readers with a conceptual understanding of these storage devices are used to transfer cryptocurrency between wallets.
Photo by Twenty20.com
Sequence of Events
1. The user begins by downloading an application on their desktop or mobile device. The application is specific to the storage device.
NOTE: The Trezor or Legend Nano S are two of the most popular storage devices. However, there are other device available for purchase available and have various levels of quality. Coin Recon Group does not specifically endorse these two products but they have good reports of customer satisfaction.
Photo from Trezor.io
Photo from ledgerwallet.com
2. The user opens the device application.
3. Log-on to your coin exchange accounts where you store your cryptocurrency. Copy and paste the wallet hash-addresses to export, transfer, or withdraw cryptocurrency (DO NOT TYPE THE ADDRESS)
NOTE: The hash-address is a long string of capitol and lowercase letters and number in a row. Your cold-storage device will have a hash string, and each respective cryptocurrency exchange will generate the hash for your specific currency within your account.
4. Follow the instructions on set-up for your cold storage device.
NOTE: The cold-storage device will have a complicated permanent code that you write down and store in a safe location, such a bank’s safety deposit box. Then the cold-storage device will have a pin-code that you choose.
5. Copy the hash tag of your cold storage device into the export, withdraw, or send box.
NOTE: Double check that all of the characters of letters and numbers are present. CoinRecon Group recommends sending only a small amount of cryptocurrency during initial setup. Follow-up with verifying the small amounts were transferred t the device.
6. Disconnect the cold-storage device.
CoinRecon Group strongly recommends a Process Check on your cold storage device
8. To determine if the storage of currency worked, e-plug the cold-storage device and enter your codes. Then check the wallet for the cold-storage device for the crypto currency you sent/transferred
9. Repeat the withdrawal to your cold-storage device with larger amounts of cryptocurrency when you gain experience in this process.
NOTE: You will perform the above procedures in-reverse when you want to move the cryptocurrency coins back onto your exchange.