At What Value Would You Consider Buying a Cold Storage for Your Crypto Holdings?

Aerith-Waifu on 29/06/2021 - 20:00

I have been thinking about this and of course everyone will have different answer.

BTC costs like min $30 to transfer out each time, other coins are better but still would cost money.

At what value (total value) would you think about putting your crypto in cold storage like ledger?

I have in total around $4000 face value at start (now down to around $1800, i know its been bad lately), its spread to around 8 exchanges and online wallets. (Reason I am doing this is to spread the pain of my crypto getting stolen, can still happen but 8 hit at the same time is……well, not really likely)

Sooner or later I will be needing to consolidate into one.

What value would you considering to putting all of them into one hardware wallet?

Poll has been added

Poll Options

  • 1
    1: $500
  • 2
    2: $1000
  • 1
    3: $2000
  • 0
    4: $4000
  • 3
    5: $5000 to $10000
  • 1
    6: $10000 to $25000
  • 12
    7: $25000+
  • 2
    8: What you do is ok by spreading the risk among 8 exchanges and wallets for now........
Financial Cryptocurrency

Comments

  • Trying2SaveABuck on 29/06/2021 - 20:06
    +1

    depends on the crypto - i stake almost everything i hold

    • Aerith-Waifu on 29/06/2021 - 20:09

      How do you value the interests on the stakes though? On the day its sold or do you value it on the day it was received?

      • Trying2SaveABuck on 29/06/2021 - 20:13
        +1

        sold.

        Ill say this i reckon more money has been lost from hard wallets then hacking - a bloke on Monday just lost 1bn of BTC after a freak drowning accident in which he died and it is unlikely anyone had his passphrase.

        How many people have threw out old hard drives etc

        If you actually own a lot of BTC which is f**ken valuable then a hard wallet in a safety deposit box might be the way to go

        • Kenb0 on 29/06/2021 - 20:46
          +1

          Just FYI, you’re supposed to value the interest you get from staking on the day it’s received as income, it’s quite a clear directive from the ato

          https://www.ato.gov.au/general/gen/tax-treatment-of-crypto-c…

          https://community.ato.gov.au/t5/Cryptocurrency/Staking-rewar…

          That $ value on the day that it’s received also serves as the cost base for that particular token/coin when it’s eventually sold.

          • Trying2SaveABuck on 29/06/2021 - 20:49

            @Kenb0: Fair enough i stand corrected thanks for letting me know

            • Kenb0 on 29/06/2021 - 20:53

              @Trying2SaveABuck: No worries. It can get a bit finicky if your staking rewards daily or quite frequently but i assume services like koinly should calculate it all correctly. I know my accountant would freak out otherwise if given daily staking rewards which need to be tracked and accounted for, both for income and cgt calculations

              • Trying2SaveABuck on 29/06/2021 - 20:55

                @Kenb0: legit question where you honest about you're Crypto gains or did the ATO tap you on the shoulder…?

                • Aerith-Waifu on 29/06/2021 - 20:56

                  @Trying2SaveABuck: I think ATO will do anything to get you if you dont do the correct thing. Thats how ATO works….

                • Kenb0 on 29/06/2021 - 21:35

                  @Trying2SaveABuck: Hehe, the honest answer is that I actually work at the ATO(in an unrelated department to tracking crypto, etc) so I pretty much have to have a squeaky clean record when it comes to my tax stuff otherwise my job is in jeopardy.

                  I just buy and hold anyway, so not like there’s any realised gains to even lie about(yet…)

                  • Trying2SaveABuck on 29/06/2021 - 21:44

                    @Kenb0: Bahaha i love the 'yet'

                    As someone who started in Crypto recently and got smashed with this recent drop i only got losses to report lol

          • Aerith-Waifu on 29/06/2021 - 20:55

            @Kenb0: Thats great to know. Is there any calculator you can use online to make the staking easier to track? Something for later for me maybe but not now.

            • Kenb0 on 29/06/2021 - 21:37

              @Aerith-Waifu: Try koinly, that’s what has been recommended to me. I haven’t used it myself as I don’t stake my coins, nor sell any of my coins, so there’s not exactly a lot for me to report tax-wise.

              • Aerith-Waifu on 29/06/2021 - 21:58

                @Kenb0: Thanks for that. I will check it out for sure. One more question, the moving costs, says it costs 30 TEL to be moved, is this 30 TEL fees are based on the day of the transaction to form a cost base later when sold?

  • [Deactivated] on 29/06/2021 - 22:05

    $20.

  • iDroid on 29/06/2021 - 22:48

    Don't use a hardware wallet.

    They suit no use other than (maybe) being a tiny bit more convenient.

    Use a paper wallet.

    Even if you do use a hardware wallet, you'll still likely want a "paper" copy of your key/seed or your coin is gone if the hardware dies.

    • Aerith-Waifu on 30/06/2021 - 17:45

      Can you use a paper wallet for all ALT Coin though?

      • iDroid on 01/07/2021 - 10:18

        I don't know all ALT coins, but I don't see why not.

  • rektrading on 29/06/2021 - 23:04

    Never keep all your digital assets in one wallet or in one physical place. Spread them out using a combination of hot, web, mobile, cold, and paper/tangible wallets.

    CEX wallets for short-term spot and leverage trading.
    DEX + Web for on-chain spot, farming, and chain hopping.
    Mobile for fast and convenient 24/7 entry/exit.
    Cold for long-term HODL.
    Paper/tangible wallets for safe storage where power is unreliable or in hostile environments.

    The value for when one should use a cold wallet depends on how much one can afford to lose. Don't end up like these people.
    https://youtu.be/1vD_TEFt1GY

    • Aerith-Waifu on 30/06/2021 - 17:46

      My holding is tiny even though I am spreading at 8 different exchange and wallets. Thanks for the link by the way.

  • Strahany on 30/06/2021 - 10:00
    +1

    One of the first rules in crypto is that your crypto isn't "yours" if it's on an exchange. You're entirely trusting the exchange to not only protect your funds from bad actors, but also not to steal it, themselves.

    I always recommend having full control, yourself. Whether that's a purchased hardware wallet (ALWAYS buy from the source - it is too easy for someone to purchase a hardware wallet, not down the security phrase, then on-sell it and later drain the funds by recovering the wallet with the phrase). At the very least you should use a paper wallet. Ideally have multiple copies, each in secure locations free/safe from accidents like fire or flooding, or simple theft.

    Some people go for more elaborate ways, such as linking the security phrases from their wallet to a book (e.g instead of writing down the 1st word, you would write down "page 45, line 3, word 7"). This would require you to make sure you either don't lose that book, or ensure it's a book (and edition number - remember words can change between prints) that is easily re-obtainable should you lose your copy. This is just one example of many.

    • Aerith-Waifu on 30/06/2021 - 17:48

      Very good suggestion. The bible is the most popular book I guess many people uses that. By the way, are paper wallets available on all coins including the ALT coins? Is there video or instructions on how to make them?

  • abctoz on 09/08/2021 - 18:37

    $30? if you use the min fee on electrum its like 50c/transaction atm, i literally just made 2 transactions and right now it is as fast as using a high fee because there is no congestion, exchanges will charge you $20+ tho because they are greedy

    if you are decent with computers then do your research thoroughly(avoid scams) and use a free open source wallet like electrum, with an air gapped computer you can do a very secure setup with a watch only wallet for transactions, (you can even do it on the same computer with a usb boot stick and unplugging the internet each time)

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