Now, 26% of the family’s cryptocurrencies are in hot wallets while the other 74% are in cold wallets. What does this mean?
2 min read
A few years ago, a Dutch family sold all its assets to buy Bitcoins when it “barely” cost $900. The family is now safeguarding its crypto fortune in secret vaults on four different continents.
According to CNBC, Didi Taihuttu, his wife and their three children bought Bitcoins in 2017 and have hidden the hardware wallets in several countries, always keeping their cold wallets relatively close. According to the report, the Taihuttu have two hiding places in Europe, another two in Asia, one in Latin America and a sixth in Australia.
The so-called Bitcoin Family told CNBC that those cryptocurrencies are stored in places as different as apartments for rent, warehouses and even friends’ houses.
“I prefer to live in a decentralized world where I have a responsibility to protect my capital,” Taihuttu told the American newspaper.
What are cold wallets and hot wallets?
There are a number of ways to store the cryptocurrencies you invest in. One of them is to use online traders like Coinbase and PayPal, which take care of those tokens and have them ready to trade. This is a hot portfolio, as it allows for quick action should you want to buy or sell assets.
Related: PayPal Users in the UK Can Now Buy, Hold and Sell Cryptocurrencies
On the contrary, if the person prefers to store his or her cryptocurrencies on a hardware device that does not immediately connect to the internet (such as an external hard drive), he or she is using a cold wallet. They offer an extra level of protection because there is no way that hackers can attack them.
The Taihuttu family noted that 26% of their cryptocurrencies are in hot wallets, and they use them for investment. The other 74% are in cold wallets in vaults around the world.
