Subnostr

I understand wallets (hot or cold) are needed to generate seed phrases and keys to move bitcoin. But are wallets necessary for static HODLing?

Is it possible to use a wallet to generate a seed phrase, transfer Bitcoin to that account, then after securing phrase, wipe the wallet and create a new seed phrase and allocate Bitcoin to it?

What are the advantages or disadvantages of diffusing reasonable amounts (larger that typical for daily use wallets) of Bitcoin over multiple, in a sense “accounts?”

Wouldn’t this improve security over “all in one account,” and provide granular transfer to “daily use” wallets or gifting?

Asking for a friend.🤫🤥

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Discussion

Chris Krause 1y ago

You can do it like you described. As long as you physically backup all seed phrases with which you "stored" bitcoin.

If you have no "active" wallet with your stash, you cannot transfer more bitcoin to it, unless you enter your seed phrase in a wallet. But just for hodling, this should be sufficient.

But if you are hodling a large amount of satoshis, you should be very sure, that the device with which you created your keys, is not compromised.

Hardware wallets are just for creating keys, which cannot be compromised (unless the user makes a mistake).