You both said the same thing… I guess I just need a hardware wallet?
Hearing that cold card is a hardware Wallet…
So probably would invest in one of those, but is that the simplest way to hold my Bitcoin? Those buttons and switches are scary to me.
Discussion
Yes, at first the device appears that way. However, once you follow the guides and video guides on coldcard.com it is much simple to initialize you setup and receive Bitcoin to your wallet address. It can also have several layers of protection and security which isn’t as complex, but if you do the basic setup I think you should be fine.
Also, there are software wallets on mobile or desktop which are simple but simple doesn’t mean secure or private. Thus I feel I depends on your use case and level of security that you are seeking based on how much you are going to hold in your wallet. I still recommend everyone get an mk3 or mk4 based on their budget.
The more my husband explains how I could safely hold my bitcoin, the more my head hurts….
There are hardware wallets, software wallets, and hot wallets/cold wallets…
You don’t put your bitcoin in the hardware, it’s a 🔑….
The key makes a Bitcoin address that you can connect through Nunchuk..
Software wallets like Nunchuk is how you see your Bitcoin… but software wallets aren’t really safe?
You never connect the 🔑 to the computer, Internet, or Wi-Fi…
…& that’s technically a savings account for bitcoin…?
I agree with everything that your husband has explained.
Software wallets themselves may not be the actual problem. It is the environment in which you enter your private keys.
In simple terms, if you use only a software wallet and you enter your private key on your computer into that software, your main risks could be vulnerability in your Operating System, other software's that you run in the background, network security (if you are doing this on an online computer) or even the software wallet having a vulnerability that could expose your private key to a malicious actor.
However, if your keys are generated on a hardware wallet and you use that to sign your transactions (a hardware wallet is actually a signing device or a signer), then you can pair it with a software wallet to perform those transactions on even a malicious computer or network as long as you are aware that any automated transactions that occur on that computer or network requires your personal authorization on the hardware wallet.
The usual setup that I recommend is as follows:
1. Get a hardware wallet (Colcard MK3 or MK4 or the new Q1 if you like a larger screen) and update it to the latest firmware.
2. Generate your seed phrase (Watch the coldcard 5 minute guide here youtu.be/qNjgs1WJfK0?list=PLZKkuPrgFw0axLoDDzxAIYzpZeC_T1i7W)
It explains everything from setting up your coldcard PIN and writing down your seed phrase in a safe location.
3. Connect it with a software wallet and perform transactions using a MicroSD card (It's how I like to do it instead of using a USB cable). How this works is you never have to ever connect your coldcard to your computer or any other place. You just need to power it over a wall charger. You can then export your watch-only wallet file which you can open with Sparrow wallet. This wallet will only let you view the transactions and receive Bitcoin, but not send. To complete sending Bitcoin you will need to export a file to your microsd card and load it up on your software wallet to sign the transaction and broadcast it.