How do large exchanges keep cold wallet passwords?

A. How to store and trade bitcoins

Storage: Users can store bitcoins in their own encrypted digital currency wallets, and mainstream wallets support bitcoin deposits and withdrawals . Users can also deposit bitcoins in encrypted digital currency exchanges, and hand them over to the exchanges for custody.

Transactions: Bitcoin transactions are divided into “exchange and over-the-counter”. On-site trading, placing orders through encrypted digital currency exchanges, that is, “secondary market trading” in the popular sense; OTC trading: by looking for a counterparty, both parties can achieve face-to-face or point-to-point transactions, that is, directly through wallets Address transfer to achieve bitcoin transactions.
But before trading bitcoins, in addition to mining or other people directly donating bitcoins, you need to buy bitcoins through legal currency. Users can send fiat currency to the individual who holds bitcoin through the over-the-counter market, and this person will then transfer the bitcoin to your bitcoin account.

B. How to save bitcoins

Methods/steps
1 Close the bitcoin client and find the wallet.dat file.
WinXP start menu, select “Run” and enter the following: explorer%APPDATA%BitCoin
Windows Vista or Windows 7, directly enter wallet.dat in the “Search programs and files” box of the start menu to search
2 Right-click on the file, select “Add to Compressed File…”, and the following dialog box will appear:
3 Set a file name and check “Delete source file after compression”.
Then click the “Advanced” tab:
4 Click “Set Password…”, enter the same password twice in the pop-up dialog box
Click the “OK” button, and click again” “OK” button, the encryption is completed.
5 You will see that the original wallet.dat file in the wallet folder is gone, and there is an extra .rar file.
6 Encryption is successful.
Restore Wallet
1 You just need to follow the steps of “Backup Wallet” (introduced in the previous experience value) to open the wallet folder of the official Bitcoin Bitcoin client.
2 Copy the backup wallet.dat file to this folder and overwrite the original file.
Notes
If you encrypt the backup with WinRAR, you will first need to enter the correct password to restore wallet.dat.

C. How to enter the exchange in the cold wallet

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D. How to store cryptocurrencies securely

As a reminder, it is not safe to store cryptocurrencies on trading websites.

Summary

Everyone must be careful when managing cryptocurrency storage, never put your “positions” directly on the trading platform, and you must take good care of yourself ‘s private key. Cold storage of cryptocurrencies can be achieved through hardware wallets or paper wallets, if possible. Other than that, beware of phishing attacks or internet scams, and be careful with every hyperlink and URL you encounter while surfing the web.

*Reference source: hackernoon, compiled by FBAlphah4ck, reprint please indicate from FreeBuf.COM

E. How to get the private key from the exchange

Entering the currency circle, buying and selling tokens is inevitable. Swap is what most people choose. Tokens are usually stored on exchanges or wallets. For ordinary investors, tokens are usually stored on exchanges. Here, Lone Bird briefly explains how tokens stored on exchanges are kept or transferred.
Take bitcoin as an example; the trading platform has huge bitcoin trading activities every day, and users have tens of thousands of bitcoins on the platform. In order to ensure the security of Bitcoin, the exchange will store Bitcoin on the host server every day, put the Bitcoin in the cold storage wallet, and only keep a small amount of Bitcoin on the server to deal with normal withdrawal requests. there’s one more thing. If the exchange uses the user’s bitcoin for other purposes, the user will have no coins to withdraw.
Why keep it in a cold wallet is for safety. Even if the computer is hacked, the hacker cannot obtain the private key of Bitcoin. The private key does not appear on other online terminals or the network; the exchange will generate a large number of private keys. As well as the address where the user’s bitcoins are stored.
So, how does the switch perform cold storage and withdrawal? The first is the generation and backup of the private key,
1) Generate 10,000 private keys and corresponding addresses on a completely offline computer, use AES to encrypt the private key key, and then delete the original private key.
2) Keep the AES cipher in the hands of two people belonging to different places.
3) Use the encrypted private key and plaintext address to generate a QR code encrypted file, and scan a completely offline computer to generate the QR code of the address file for daily use.
To put coinsTransfer from hot wallet to cold wallet, each time must be an unused address, and each address cannot be reused, and then transfer coins online to cold wallet,
1) Take out the corresponding address from the address file;
2) According to the security level, each address does not exceed 1000 bitcoins, each address is used once and not used.
Finally, take the coins out of the cold wallet. The process of withdrawing coins is as follows:
1) Scan the ciphertext of the private key into a completely offline computer through the QR code;
2) Someone with the AES password decrypts it on the completely offline computer, and Get the plaintext of the private key. Scan the QR code, import the private key into another computer, sign the transaction, and synchronize the signed transaction to all network computers through the QR code and broadcast it.

F. CEO exchange, do they use cold wallet or hot wallet system for their transactions?

They are a combination of the two, and they will suggest a larger amount. It is suitable for cold wallets, and hot wallets are recommended for small amounts. Their hot and cold wallet system is the most perfect one I have seen so far.

G. Is the wallet of the OKEX exchange a cold wallet?

It should be, OKEX’s technology is still very reliable, and it is safe enough to be placed on the exchange.

H. How to create a cold wallet

To easily generate a cold wallet, you need tools: mobile phone + memory card.
The steps are as follows:
Step 1: Find an unused mobile phone or a mobile phone specially used as a wallet, and restore the phone to factory settings;
Step 2: Disconnect the mobile phone network;
Step 3 :Install imtoken wallet;
Step 4: Create a wallet with imtoken wallet;
Step 5: Back up the private key to the memory card, copy the mnemonic phrase for multiple backups, and export the wallet address.
Extension information:
1. Advantages of cold wallets
Cold wallets are never connected to the Internet and cannot be accessed by the network, thus avoiding the risk of hackers stealing private keys, and it is more secure than hot wallets.
Value investors, put the cold wallet in the safe, avoid putting it on the exchange, and operate it from time to time.
Of course, if it needs to be used for frequent transactions or frequent transactions, when the assets are large, the hot and cold wallets are used together, and those that often need transactions are stored in hot wallets; those that do not require process transactions are stored in cold wallets.
2. Cold wallet (Cold wallet), corresponding to hot wallet, also known as offline wallet or disconnected wallet, one of the types of blockchain wallets, which means that the network cannot access the user’s private key.
Cold wallets usually rely on “cold devices (computers, mobile phones, etc. that are not connected to the Internet) to ensure the security of Bitcoin private keys, and use QR code communication to keep private keys from accessing the Internet, avoiding the risk of hackers stealing private keys. However, it may also face physical security risks (such as computer loss, damage, etc.).
Three, the basic concept
Wallet is a tool for storing and using digital currency, one currency corresponds to one wallet. It is used to store currency, or ” Transaction currency.
Bitcoin wallets allow users to check, store, and spend their bitcoin holdings, in various forms and in complex or simple functions, it can be a variety of tools that operate in compliance with the bitcoin protocol, Such as computer client, mobile client, website service, special equipment, or just a medium that stores Bitcoin’s private key, such as a piece of paper, a password, a U disk, a text document, because as long as the privacy of Bitcoin is mastered You can dispose of the bitcoin contained in its corresponding address.Bitcoin cannot be deposited into a general bank account, and transactions can only be carried out on the bitcoin network. Before using it, you need to download the client or connect to the online network.
Cold wallet refers to the bitcoin storage technology developed by an information technology company that provides secure storage solutions for blockchain digital assets. Kushen cold wallet integrates digital currency storage, multiple transaction password settings, releases the latest market and information, and provides hard points Fork solution and other functions all in one, and the use of QR code communication makes the private key never touch the Internet, which can effectively prevent hackers from stealing.
Operating environment: Product model: Huawei mate 30 System version: EMUI 10

I. How to calculate the fees for withdrawals from major currency trading platforms to cold wallets?

The fees are different and cannot be calculated uniformly. There are some currency trading platforms, and the currencies they sell are just some virtual currencies, so we try to choose not to buy them, because these platforms are not reliable.

For example, Selling certain electronic coins online, claiming that these electronic coins can generate income on this platform, and continue to grow. The premise is that you have to top up on these platforms, so you start to inject a lot of your own funds.

Of course, we will also see the continuous growth on these platforms. But these increased amounts are not your real currency, but some virtual currencies in the network. These currencies cannot be traded in real life, that is to say you justMoney just buys a bunch of numbers.

If there are many currency trading platforms on the Internet, the currency they sell is real gold or jewelry, then we also need to see whether the platform for sale is legitimate and whether there is counterfeiting.

J. Is it better to put digital currency in an exchange or in a digital wallet

It is not a good choice, the top exchanges and wallets that have been widely used are generally It can be trusted, but nothing is absolutely safe. So it is best to spread risk, and it is best not to put eggs in one basket. In addition, if you do not need to trade for a long time, it is better to put it in a cold wallet.

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