Foundation Devices CEO Reveals How to Keep Your Bitcoin Safe
Why You Need to Store Bitcoin on a Hardware Wallet
The Bitcoin Security Debate
Many Bitcoin holders struggle with the question: Should I store my Bitcoin myself, or let an exchange like Coinbase handle it? Even those who understand self-custody may wonder—why use a hardware device instead of a software wallet? Zack Herbert, CEO of Foundation Devices, breaks it all down.
The Risks of Hot Wallets
What Is a Hot Wallet?
A hot wallet is a Bitcoin storage method that remains connected to the internet, typically via a mobile app or computer software. While convenient, hot wallets pose significant security risks.
The Dangers of Internet-Connected Storage
Herbert warns that hot wallets are vulnerable to hacks and malware. “With Bitcoin or crypto, you really don’t want to put too much money’s worth on an internet-connected device because it’s susceptible to things like hacks or software vulnerabilities,” he explains.
Past Security Breaches
Cybercriminals have exploited software wallets countless times. “Over the last decade, you can go Google. There have been dozens, probably hundreds, of hacks and thefts from software wallets,” Herbert states.
Why Cold Storage Is Essential
What Is Cold Storage?
Cold storage refers to keeping Bitcoin on a device that is not connected to the internet. This prevents hackers from accessing your funds remotely, making it the most secure option.
Who Needs Cold Storage?
If you’re holding a significant amount of Bitcoin—tens of thousands, hundreds of thousands, or even millions of dollars—cold storage is a must. “It’s okay to store a small amount of Bitcoin or crypto on an internet-connected device. But best practice is to store large amounts on offline devices,” says Herbert.
How Cold Storage Protects Your Bitcoin
Even if a hacker gains access to your online accounts, they won’t be able to steal your Bitcoin if it’s stored offline. This layer of security is why many experts recommend hardware wallets for long-term storage.
How Foundation Devices’ Passport Enhances Bitcoin Security
Air-Gapped Security
Foundation Devices’ Passport hardware wallet is completely offline, making it immune to online threats. “With our Passport device, for example, it’s fully offline. We call it air-gapped,” says Herbert.
Safe Transaction Methods
The only way to interact with the device is through QR codes or an SD card, ensuring that no direct internet connection is ever required. “Even if your phone wallet were compromised, it wouldn’t be able to trick you or steal your funds,” he adds.
Protect Your Bitcoin with Cold Storage
When it comes to Bitcoin security, the choice is clear—keeping large amounts of Bitcoin on an internet-connected device is a major risk. A hardware wallet like Foundation Devices’ Passport offers unparalleled security, ensuring your digital assets remain safe from hackers. If you’re serious about Bitcoin, it’s time to make the switch to cold storage.
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