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Hot Wallets Vs. Cold Wallets – What’s the Difference?

Newcomers to the digital currency space frequently have questions surrounding hot wallets and cold wallets. Specifically, how do these different cryptocurrency wallets work, what type of investment is best suited for what type of wallet, and how are these digital currencies kept secure? Let’s take a closer look.

 

Hot vs Cold Wallet

 

Hot Wallets

The primary difference between a hot wallet and a cold wallet is that a hot wallet is kept online and connected to the internet, while a cold wallet is not.

Hot wallet storage is quick, convenient, and conducive to cryptocurrency transactions, but it also has disadvantages. Because hot wallets are connected to the internet, they are significantly more vulnerable to hacks. It is advised to only keep a small amount of money in a hot wallet, then, to offset the risk. While these hacks are not common, they do occur periodically.

Hot wallets can be thought of like checking accounts, while cold wallets are more like saving accounts. It makes sense to keep a small amount directly available in your checking account, while the vast majority is kept safely stored in your savings account, or cold wallet.

 

Cold Wallets

Cold wallets are kept offline and stored either on hardware or paper. Because they are offline, they are kept safe from hackers, but users still assume responsibility to ensure that their paper or hardware wallet is not damaged or stolen.

Hardware wallets are physical devices where you can store your cryptocurrency.  They come in a few different varieties but the most common one is a USB drive. Common examples of cold storage wallets include the Trezor and Ledger wallets.

Meanwhile, paper wallets are also an offline cold storage cryptocurrency option that includes printing out your public and private keys on a piece of paper which you can store and save in a secure place. This option gives you, the user, complete control, but you need to make sure you don’t lose the paper.

Because cold wallets are kept offline, they act as a barrier against hackers, making them the safer, more secure options for long-term investments. This is why, at Bitcoin IRA, we’ve partnered with leading cold storage provider BitGo, the leader in multi-signature security and cold storage wallets.

 

BitGo Cold Storage Wallet

Headquartered in Palo Alto, BitGo’s mission is to make digital currencies usable for business in a regulated economy. The leader in multi-signature technology, BitGo’s technology solves the most difficult security problems associated with blockchains, making them the most trusted providers in the space.

Furthermore, when you open up a BitGo account through Bitcoin IRA, three unique keys are generated. One is with digital wallet BitGo, one is with Bitcoin IRA custodian provider, and one is with backup key provider Keytern.al. The private keys are spread across multiple machines, protecting Bitcoin IRA funds against single machine compromise or single key loss, and customers do not have to worry about holding onto the keys themselves.

 

Protecting Your Bitcoin IRA Investment

Investments in retirement funds are inherently long-term endeavors, which is why they are well-suited for cold wallet storage, where users don’t require access to their coins for months or years at a time. Working with full-service retirement technology company Bitcoin IRA to set up your BitGo account, ensures you will have all of the resources you need to store your retirement funds securely and with peace of mind.

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Bitcoin IRA™ Launches Next Generation of IRA Services for Digital Assets

Company Announces New Partnership with BitGo Trust for Secure Custody; New Offering Features $100 Million Insurance Protections and Lower Fees

LOS ANGELESJune 25, 2019 /PRNewswire/ — Bitcoin IRA, the world’s first, largest and most secure digital asset IRA company that allows clients to self-trade cryptocurrencies and other digital assets 24/7 for their retirement accounts, today announced that it has launched the next generation of investment retirement account services for digital assets. With this launch, a division of Bitcoin IRA has become BitGo Trust’s retail administrator for retirement accounts.

Since 2016, Bitcoin IRA has processed over $350 million in digital asset transactions for self-directed retirement accounts. In 2019, its new self-directed client’s saw significant growth due to the increase in the value of cryptocurrencies in the first half of the year.

Bitcoin IRA’s clients will now have their digital assets stored with BitGo Trust Company, the first qualified custodian purpose-built for digital assets. BitGo Trust’s cold storage carries $100 million in insurance where the offline private keys are held 100% by BitGo or BitGo Trust. Additionally, Bitcoin IRA is able to reduce wallet holding fees by 30% and reduce client transaction fees. Bitcoin IRA and BitGo Trust Company will also be waiving the first year’s account fee for a limited time.

For more information:

Chris Kline, COO, Bitcoin IRA said:

“Our partnership with BitGo Trust provides our clients with faster account funding, lower fees, as well as significantly increased insurance protections. This establishes us not only as the premiere digital asset retirement platform, but also expands us to a leading full-service solution for businesses with a large number of retail clients looking to easily invest in digital assets safely and securely.”

Mike Belshe, CEO, BitGo, said:

“Bitcoin IRA delivers an innovative retirement platform and, with our industry-leading technology and practices for security, custody, and compliance, we have built the industry’s best offering for retail investors who want to make digital assets a part of their retirement investment strategy.”

Bitcoin IRA’s Digital IRA division will be handling all administrative responsibilities including retirement plan administration, transfer application process, BSA/AML compliance, and transaction monitoring.

ABOUT BITCOIN IRA
Bitcoin IRA, available at bitcoinira.com, is the world’s first, largest and most secure digital asset IRA company that allows clients to purchase cryptocurrencies and other digital assets for their retirement accounts.

The company provides a trading platform for self-directed retirement accounts which allows clients to set up a qualified digital asset IRA account, transfer funds from an existing IRA custodian, execute trades in real-time 24/7 through a leading exchange and then move the funds into an industry-leading multi-signature digital wallet from BitGo, Inc.

Since 2016, Bitcoin IRA has processed over $350 million in investments, gained over 4,000 clients and received more than 400 5-star client reviews. The company has been featured extensively in the media, with coverage in Forbes magazine, CNBC, and The Wall Street Journal, among other publications.

Bitcoin IRA is a financial services technology provider and as such is not a financial adviser, cryptocurrency, exchange, custodian, wallet provider, initial coin offering (ICO), or money transmitter. Bitcoin IRA is privately funded and based in Los Angeles. It is currently exploring investment capital.

Learn more about Bitcoin IRA at bitcoinira.com or call 866-333-4307.

ABOUT BITGO
BitGo is the market leader in digital asset financial services, providing institutional investors with security, custodial, and liquidity solutions. BitGo is the world’s largest processor of on-chain bitcoin transactions, processing 15% of all global Bitcoin transactions, and $15 billion per month across all cryptocurrencies. The company supports over 100 coins and tokens and has over $2 billion in assets in wallet. BitGo’s customer base includes the world’s largest cryptocurrency exchanges and spans more than 50 countries. In 2018, it launched BitGo Trust Company, the first qualified custodian purpose-built for storing digital assets. BitGo is backed by Craft Ventures, Digital Currency Group, DRW, Galaxy Digital Ventures, Goldman Sachs, Redpoint Ventures, and Valor Equity Partners.

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Former FDIC Counsel Maryann Bullion Joins BitcoinIRA.com to Spearhead Compliance Strategy

SHERMAN OAKS, Calif.March 13, 2018 /PRNewswire/ — BitcoinIRA.com, the world’s first and largest cryptocurrency IRA conduit that allows customers to purchase Bitcoins and other cryptocurrencies for their retirement accounts, has announced the appointment of Maryann Bullion as its General Counsel and Senior Compliance Officer.

Bullion previously served as Counsel at the Federal Deposit Insurance Corporation’s (FDIC) Financial Crimes Unit in the Washington D.C. area, providing legal advice and guidance to the FDIC in matters concerning the investigation, prosecution and sentencing of persons suspected of committing economic crimes against financial institutions. Prior to that, she served as a Senior Attorney in the Professional Liability and Financial Crimes Section based in Dallas, where she managed investigations and a large volume of civil plaintiffs’ lawsuits against both individuals and insurance carriers.

“As the leaders in the space, we have to set an example and hold ourselves to the highest standard of self-regulation. We are focused on providing unparalleled products for our clients that not only adhere to the most secure measures, but also uphold the most stringent compliance guidelines. Bullion has eight years of experience as a federal regulator, and her strong regulatory background and legal expertise working in the government and private sector will be crucial in enhancing the compliance framework for our organization,” said Camilo Concha, CEO and co-founder of BitcoinIRA.com. “I am proud to welcome Maryann to BitcoinIRA.com, and I’m looking forward to working with her to exceed compliance standards and ensure our customers have the best possible experience.”

Bullion began her legal career as an Assistant Public Defender at the Lake County Public Defender’s Office where she conducted jury and bench trials. From there, she joined the team at Matuszewich, Kelly, & McKeever, LLP in the Chicagoarea as an Associate Attorney, where she provided litigation services to corporate, governmental and individual clients in McHenryLakeKane, and Cook Counties. In addition, she served five years in the United States Army Reserve, where she earned the rank of Captain and, as a Judge Advocate, provided legal advice and guidance to the Command, soldiers, and their families.

“I am honored to take on the role as BitcoinIRA.com’s Senior Compliance Officer and General Counsel. I strongly believe in the future of cryptocurrencies and blockchain technology and the opportunities it presents for investors within a retirement account,” said Bullion. “Furthermore, I did my due diligence researching BitcoinIRA.com in comparison with other companies in the space and I believe they maintain the highest standard of ethics. I am excited to work closely with the executive team to streamline the compliance framework, and to provide the safest and most efficient products and processes for its customers.”

Bullion received her B.A. from Spring Hill College and her J.D. from University of Miami School of Law.

About BitcoinIRA.com

BitcoinIRA.com is the world’s first and largest cryptocurrency IRA conduit that allows customers to purchase Bitcoins and other cryptocurrencies for their retirement accounts. The full-service solution includes setting up a qualified cryptocurrency account, rolling over funds from an existing IRA custodian, executing a live trade on a leading exchange and then moving funds into an industry-leading multi-signature digital wallet.

In the last 12 months, BitcoinIRA.com has processed over $300 million in investments, gained more than 4,000 customers, and received more than 600 customer reviews. BitcoinIRA.com has been featured extensively in the media, with coverage in Forbes magazine, CNBC, and The Wall Street Journal, among other publications.

Recently, the company expanded its suite of offerings beyond the retirement space with the launch of Coin Cash, the first full-service platform that allows individuals to purchase digital currencies in a cash account.

BitcoinIRA.com is privately funded and based in Los Angeles.

Learn more about BitcoinIRA.com at https://bitcoinira.com

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Bitcoin IRA Launches Coin Cash™: The First Full-Service Bitcoin Purchasing Service

LOS ANGELESFeb. 7, 2018 — Bitcoin IRA, the #1 retirement solution to allow individuals to purchase digital currencies for an IRS-compliant account, has officially launched Coin Cash. This is the first full-service platform that allows individuals to fund, buy, sell, and store Bitcoins and other digital currencies.

Coin Cash is a turnkey, full-service solution to purchase and store cryptocurrencies. It includes setting up a qualified cryptocurrency account, funding your account with our custodian Kingdom Trust, executing live trades on a leading exchange and moving funds into a secure, multi-signature digital wallet.

Unlike cash exchanges, Coin Cash does not have investment caps, so consumers can invest as much as they’d like, immediately, without restrictions. Coin Cash supports Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ripple (XRP), Ethereum Classic (ETC) and Bitcoin Cash (BCH) and all transactions are stored with BitGo, the leader in multi-signature encryption and digital security with over $10 Billion in transactions per month.

Chris Kline, COO of Bitcoin IRA, said:

“Purchasing, transferring and storing Bitcoin is complicated and one mistake can result in a total loss of your investment. We created Coin Cash based on an enormous demand from our existing IRA client base, who wanted the same fast and secure turnkey full-service solution for cash purchases.”

Together, Coin Cash and its custodian, Kingdom Trust, provide an unparalleled level of security for customers. Kingdom Trust is a recognized custodian with over $12 billion in assets, and provides extensive reporting and tax documentation. Concurrently, Coin Cash has a $1 Million Consumer Protection insurance policy which covers consumers on the transactional side from any internal causes of fraud or theft.

With this launch, Bitcoin IRA has expanded their services beyond the realm of retirement investments and into the larger world of buying and selling cryptocurrency at large.

About BitcoinIRA.com

Bitcoin IRA is the world’s first company that allows customers to purchase Bitcoins and other digital currencies for their IRA or 401(k) retirement accounts. The platform works with leading fintech professionals to provide secure, high-quality cryptocurrency options.

Bitcoin IRA is a turnkey, full-service solution to purchase cryptocurrencies while maintaining full IRS compliance. The service includes setting up a qualified cryptocurrency account, rolling over funds from an existing IRA custodian, executing a live trade on a leading exchange and then moving funds into a secure, multi-signature digital wallet.

Bitcoin IRA is privately funded and based in Los Angeles.

Learn more about Bitcoin IRA at https://bitcoinira.com.

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Bitcoin IRA Launches Litecoin, Ethereum Classic, and Bitcoin Cash for Retirement Investments

Bitcoin IRA Launches Litecoin, Ethereum Classic, and Bitcoin Cash for Retirement Investments

Los Angeles – BitcoinIRA.com, the world’s first company allowing individuals to invest in cryptocurrency in an IRS-compliant retirement account, is now offering Litecoin (LTC), Ethereum Classic (ETC), and Bitcoin Cash (BCH) for investment.

Alternative coins are gaining ground in the cryptocurrency marketspace. Ethereum alone has grown over 4,000% in 2017, reaching an all-time high of around $400. BitcoinIRA.com first offered altcoin Ethereum (ETH) in April of 2017 and released XRP (Ripple) in August.

Chris Kline, Chief Operations Officer of Bitcoin IRA, commented:

“Bitcoin has become the gateway to a new way of investing and altcoins are further advancing that momentum” said Chris Kline, Chief Operations Officer at BitcoinIRA.com. “The value of cryptocurrencies goes beyond the price of each coin, it’s really the underlying technology that’s going to revolutionize our financial system. We’re excited to offer our customers the chance to capitalize on this technology and build a retirement portfolio with Bitcoin and altcoins.”

BitcoinIRA.com now offers six coins for investment: Bitcoin, Ethereum, Ethereum Classic, XRP, Litecoin and Bitcoin Cash – and individuals can rollover retirement funds into whole coins or into a percentage of each. All cryptocurrency investments are held securely in a BitGo R symbol wallet with three keys kept in cold-storage. BitGo R symbol is widely considered the most secure digital wallet with multi-signature encryption and over $1 Billion transactions per month.

About BitcoinIRA.com

BitcoinIRA.com is the world’s first company that allows investors to purchase Bitcoins and other cryptocurrencies for their IRA or 401(k) retirement accounts. The platform works with leading fintech professionals to provide secure, high-quality cryptocurrency investments.

BitcoinIRA.com is a turnkey, full-service solution to purchase cryptocurrencies while maintaining full IRS compliance. The service includes setting up a qualified cryptocurrency account, rolling over funds from an existing IRA custodian, executing a live trade on a leading exchange and then moving funds into a secured, multi-signature digital wallet.

Bitcoin IRA is privately funded and based in Los Angeles.

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Bitcoin IRA Launches XRP

Bitcoin IRA Launches XRP

Los Angeles – BitcoinIRA.com, the world’s first company to allow individuals to purchase cryptocurrencies for an IRS-compliant retirement account, has made the digital asset XRP available to clients.

XRP’s value is derived from its utility as the best digital asset for payments, and is one of the largest digital assets by market capitalization. With the addition of XRP, Bitcoin IRA is expanding its cryptocurrency options, which also include Bitcoin and Ethereum.

Chris Kline, COO of Bitcoin IRA, said:

“We’re the only company in the world to offer an XRP feature in this way. Demand from our customers has been immense. XRP is an unique innovation in modernizing cross-border payments using superior blockchain technology. We’re excited to feature XRP and work with BitGo to bring this extraordinary asset opportunity to market.”

Customers who opt for XRP on BitcoinIRA.com will have their XRP stored in a multi-signature digital wallet from BitGo. BitGo is widely considered the most secure digital wallet, with multi-signature encryption.

BitcoinIRA.com is the first company to allow investors to purchase cryptocurrencies for their retirement portfolios. It provides an IRS-compliant solution that includes: setting up a qualified cryptocurrency account, rolling over funds from an existing IRA custodian, executing a live trade and then moving funds into a secured, multi-signature digital wallet. In the coming weeks, Bitcoin IRA plans to announce additional alternative coins including Litecoin, Ethereum Classic, and Bitcoin Cash.

Customers can learn more about digital asset XRP and other cryptocurrencies at: https://bitcoinira.com.

About BitcoinIRA.com

BitcoinIRA.com is the world’s first company that allows customers to purchase Bitcoins and other cryptocurrencies for their IRA or 401(k) retirement accounts. The platform works with leading fintech professionals to provide secure, high-quality cryptocurrency options.

Bitcoin IRA is a turnkey, full-service solution to purchase cryptocurrencies while maintaining full IRS compliance. The service includes setting up a qualified cryptocurrency account, rolling over funds from an existing IRA custodian, executing a live trade on a leading exchange and then moving funds into a secured, multi-signature digital wallet.

Bitcoin IRA is privately funded and based in Los Angeles.

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The switch from Fiat to Bitcoin is like going from Analog to Digital: Chris Kline

When it comes to investments, one has a range of options to select a definitive investing strategy. But when it comes to retirement investment solutions, the pick has to be stable with good returns and have a unique quality that would set it apart from other types of investments. After thorough study, a Sherman Oaks, CA based firm have come up with an unique and viable retirement investment strategy. This involves using Bitcoin in Investment Retirement Accounts.

Chris Kline and CrushTheStreet

Bitcoin has proved out to be a very good portfolio asset owing to its high returns and acceptable volatility. Its growing adoption has boosted its application in various streams and not so surprisingly people have accepted Bitcoin as a part of their IRA. Bitcoin IRA crossed $4 Million mark last week in sales and launched “Bitcoin Bull Watch”, a weekly report on Bitcoin market insights. On this occasion, Chris Kline, COO of Bitcoin IRA and Director of Operations at Fortress Gold Group featured in an interview on CrushTheStreet talking about the rapid rise in Bitcoin adoption levels.

Chris believes that the $ 4 Million mark goes on to show how quickly people are adopting to Bitcoin and the idea that it belongs in an IRA. He believes that the switch from Fiat to Bitcoin is like going from Analog to Digital and would revolutionize the economic system. In the interview, Chris goes on to talk about the new aspects of Bitcoin that BitcoinIRA.com has to offer. How to use Bitcoin for the IRA for the future, the deflationary nature of fiat currency in the existing system. Also he explained some of Bitcoin virtues, how other digital currencies come into play and and how BitcoinIRA works in full detail