New Delhi. DD Taihuttu, along with his wife and three children, sold all his assets and bought the cryptocurrency bitcoin in the year 2017 when it was trading at around $900. Now this Dutch family has kept their cryptocurrencies in secret vaults of four different continents.
“I have hidden hardware wallets in many countries so that if I need to access my cold wallet to exit the market, I won’t have to go very far,” Taihuttu said.
Taihuttu has two hiding spots in Europe, two in Asia, one in South America and six in Australia.
We are not talking about buried treasure. None of the sites are underground or on a remote island. The family told CNBC that the crypto stashes are hidden in different ways and in different locations. These range from rental apartments and friends’ homes to self-storage sites. “I prefer to live in a decentralized world where I have a responsibility to protect capital,” Taihuttu said.
hot and cold storage
There are several ways to store crypto coins. Online exchanges such as Coinbase and PayPal will hold the custody of the token for the users. Whereas more tech savvy people can opt to keep their crypto cash on hardware wallet by avoiding middlemen. Thumb drive-sized devices such as Trezor or Ledger provide a way to secure crypto tokens. Veteran payments company Square is also building a hardware wallet for bitcoin custody.
Hot wallet is connected to the internet
People can store their cryptocurrencies hot, cold or a combination of both. A hot wallet is connected to the Internet and allows owners relatively easy access to their coins to access and spend their crypto.
“Cold storage often refers to crypto that has been moved to a wallet whose private keys are not stored on computers connected to the Internet,” explains Philip Gradwell, chief economist at blockchain data firm Chainalysis. So that hackers cannot hack into the computer and steal the private key. Gradwell said exchanges will often use cold wallets to secure the crypto deposited by their customers.
The Taihuttu family’s 26% crypto holdings are hot. He calls this crypto stash his ‘risk capital’. He uses these crypto coins for day trading. 74% of Taihuttu’s total crypto portfolio is in cold storage. These cold hardware wallets are spread across the globe. This includes bitcoin, Ethereum, and some Litecoins. The family declined to say how much it holds in the crypto.