Author Topic: How to create Cold Storage addresses  (Read 5436 times)

Offline jackielove4u

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How to create Cold Storage addresses
« on: May 19, 2014, 03:54:56 pm »
Cold storage is simply having your Groestlcoins on an address where its private key is "off the network." You can do this yourself but it is a bit tricky (which is kind of the point). Keeping the private key off the network keeps your coins safe from potential hackers/viruses/malware because there is no way they can access them.
When you are ready to spend your coins on a cold storage address, you bring the private key back on the network. This makes the address part of your wallet and no longer cold storage.

Here is just one of the many ways to create cold storage addresses:
•Format a USB drive/flash drive or other kind of external storage.
•Download a fresh copy of the Groestlcoin Client wallet from http://groestlcoin.org and save it on the external storage. Virus scan the external storage. Make sure the storage is clean.
•Disconnect a computer/laptop from the network--no internet, no wi-fi, etc.
•Format the computer and re-install the OS - This insures there is no malware on your computer.
•Install Groestlcoin from the external storage.
•Run Groestlcoin. It will try to sync to the network, but it can't because the computer is off the internet.
•Click on the receive tab to show your Groestlcoin address.
•If you want more than one cold storage address, click the "New Address" button.
•Copy the Groestlcoin address in memory--to paste it later
•Click the "Help" menu and open the "Debug Window."
•Switch over to the "Console" tab.
•Type in this command and paste in your address where noted: dumpprivkey <address>
•Copy and paste your address and the resulting Private Key into a text editor (like notepad).
•Repeat copying and pasting the keys and addresses until you feel you have enough.
•Print and Save this text file to the external storage.
•Done! Format the computer again.

Congratulations you now have your very own Cold Storage Address that has never been connected to the Internet. There are other ways to do it, but this is probably the most secure way.
You now hold two copies in your hand, the text file on the external storage device and a printed copy. Store both in a secure location--or in separate locations for better security.

Three things that are extremely important about cold storage addresses:
•Anyone who can get your private key can spend your coins on that address.
•You can not recover your coins if you lose the private key.
•Security is never 100% guaranteed. You coins are as only safe as you make them.
So make sure you keep it safe, but also make sure you can get it back.
Also highly recommended: Test the entire process with a very small amount. Make sure the whole process works and that you understand it before you put your life's savings in there.

Enjoy your cold storage.