Suppose I hold lot of bitcoins in exchanges and in some wallet. To prevent the loss of bitcoins, how should one manage them?
Generate multiple new addresses. Distribute the bitcoins among these addresses. Copy the private keys of these addresses to paper wallet.
Is this the way to do it?
What are other better ways to manage large number of bitcoins?
I suggest using only one address to prevent hassle. No reason to store it on multiple addresses whatsoever.
One suggestion is to make a paperwallet offline. Here's a guide on coindesk:
http://www.coindesk.com/information/paper-wallet-tutorial/What I would to though, is to buy a hardware wallet. A ledger nano S to be more specific. It's a device with a size of a USB Flash Drive. If you're interested, look up: Ledger Nano S, Trezor, and Keepkey. I'll list the websites below.
https://www.ledgerwallet.com/https://trezor.io/https://www.keepkey.com/