Sunday, 13 January 2019

Can someone ELI5 where do my coins "live" when using a cold wallet like trezor?

Hi, I'm having trouble understanding how do cold wallets work, specifically the recovery process.

So the difference between using an online wallet and a cold one is that you have 100% control and access over your coins using the provided device and whatever pin/password you use instead of relying on a third party to store them.

But then if you lose the Trezor device you have the option of using a seed to gain access back from another device.

Doesn't this imply that Trezor must have a way of linking that seed to your private key? If so, how is that different from trusting an online wallet with your account info?

Reading the FAQ didn't help much so any help would be appreciated

submitted by /u/Sr_CaraDePapa
[link] [comments]

No comments:

Post a Comment