26% of its cryptocurrencies are in hot wallets, while the other 74% are in cold wallets. What does this mean?
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August 24, 2021
2 min read
A few years ago, a Dutch family sold all their assets to buy bitcoins when it “barely” cost $ 900. You are now safeguarding your crypto fortune in secret vaults on four different continents.
According to account CNBC, Didi Taihuttu, his wife and their three bought bitcoins in 2017 and has hidden his hardware wallets in various countries to always have his cold wallet relatively close. According to the report, the Taihuttu have two hiding places in Europe, another two in Asia, one in Latin America and a sixth in Australia.
The so-called Bitcoin Family told CNBC that these cryptocurrencies are stored in places as different as apartments for rent, warehouses and even friends’ houses.
“I prefer to live in a decentralized world where I have the responsibility to protect my capital,” Taihuttu told the US newspaper.
What are cold wallets and what are hot wallets?
There are a number of ways to store the cryptocurrencies you invest in. One of them is to use online traders like Coinbase and PayPal, who take care of those tokens and have them ready to trade. This is one hot wallet since it allows quick action in case you want to sell or buy assets.
On the contrary, if the person prefers to store their cryptocurrencies on a hardware device that does not immediately connect to the internet (such as an external hard drive), they are using a cold wallet. They offer an extra level of protection because there is no way that hackers can attack them.
The Taihuttu family noted that 26% of their cryptocurrencies are in hot wallets and they use them for investment. The other 74% are in cold wallets in vaults around the world.