How to Store Bitcoin Offline in Cold Storage

Bitcoin's streak of breaking its own record price has been relentless for the past few months, with the cryptocurrency climbing over $14,000 (about Rs. 9 lakh) this week, from having been less than $800 (about Rs. 51,600) this time last year. This unprecedented growth – nearly 10 times its value since the start of 2017 – has brought Bitcoin squarely into mainstream attention.

Though the debates over the currency being in a bubble continue to have voices from all directions, what's clear is that those with a big stake with Bitcoin need to be safer than ever with their digital investment. After all, it's real money that's at stake. Bitcoin wallets have faced multiple hacks in the past, so it's worth going the extra step to secure your funds.

The most convenient way to store Bitcoins is by using an online wallet, which allows you to quickly transfer money in and out of the wallet, or turn Bitcoins into alternative cryptocurrencies such as Ethereum, Monero, Litecoin, and others. But the safest option is known as 'cold storage', which stores your Bitcoins offline away from any Internet access. This is all the more important if you’ve got large amounts of Bitcoin.

Here's how to set up cold storage for your Bitcoin wallet:

1. Paper Wallet
The easiest way to take your Bitcoins offline is by using paper and a printer. Yes, really. You'll also need a website that allows you to create an offline Bitcoin address, such as Bitcoin.com or Bitaddress.org. Follow these steps to create a Bitcoin paper wallet:

• Head to the Bitcoin.com paper wallet or the Bitaddress.org page.
• Save the page locally to your computer as an HTML file.
• Next, close the page and disconnect your computer from the Internet.
• Open up the saved local version of Bitcoin.com paper wallet or Bitaddress.org.
• Follow the instructions on the page to create a new Bitcoin address.
• Once you've a pair of keys and QR codes, print the page. Make sure your printer is not connected to the Internet for added security.
• You can now use the new public address/ QR code to transfer Bitcoins from another online wallet.

The printed page is the most valuable piece of document for your Bitcoin investment. You should ideally store the printed page in a water and fire-proof container, such as a safe. If that's not an option, create multiple versions of it and give it for safekeeping with trusted family, in the case of damage to your version. You could also laminate the page for protection.