100 sats \ 0 replies \ @Jon_Hodl 28 Oct \ on: Questions about your cold wallets rotation bitcoin_beginners
Do you use an extracted xpub from the cold wallet or simply fully open your wallet?
Absolutely. Nothing but air gapped hardware wallet for savings. For smaller stacks, I use a ColdCard that I plug directly into my computer.
How often do you check the balance of a cold wallet using the xpub extracted prior?
Whenever I open Sparrow wallet, it queries my node and updates all address balances and UTXOs.
Are you keeping all the time a "watch-only" wallet in specific apps, to deposit or just check the balance? Or are you import the xpub only to check or deposit?
I only use Sparrow wallet as my client software and that checks my xPub with my own node. I use this to receive as well as send.
Do you periodically rotate your UTXOs? What do I mean by that?
No new wallets. I hodl in the same wallet after I generated my own seed phrase on an air gapped signing device.
Whenever I find an old wallet with a balance, I move to the native SegWit address format.
Why do you still keep that legacy wallet? Ask yourself.
Because I have not moved some sats in a long time. I will move them eventually but not until I am ready to dig those addresses up out of the ground.
why do you keep all your stash in just one giant wallet?
I don't. I decentralize my risk. I have long-term savings, short-term savings, and some sats for sending mostly to do experiments.
I use burner wallets to "erase" my wallet after I spend all the sats in it. It helps to fragment any potential address clusters over a long time. In the event that even an empty wallet is compromised, the transaction history may be worth a lot more to a CA attacker than the bitcoin itself so I use a lot of short-term wallets to keep things lite and never link too many UTXOs.
In a perfect world, I would CoinJoin every sat I receive then send it to lightning or savings but that isn't always practical with fees and coordinators being shut down.
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