What about a bank cold storage, where you place your bitcoins in a cold storage online, but they put it on a paper ant store it for you ? Xapo for example does this. What are your thoughts on this type of cold storage?
I strongly do NOT recommend using Xapo for anything.
If you care enough, please go check the reviews given by others. I personally used it for a negligible while and the first experience is far more than enough to make me stay away from it. Even the founder (Wences Casares) has unethical business practice in the past that collects customers personal information and sold such data to 3rd-parties for profits. You use Xapo at your own risk. You have been warned.
To break can not, but you can lose the keys. If you store them on the computer then hack your PC and steal your codes much easier than to hack e-wallet. I think that in General it is impossible to store a large amount of bitcoins in one place.
Keyloggers are the biggest menace today. The malware can pretend to be a valid program and request the system to access certain file/registry or monitor clipboard changes.
What I do (beside installing anti-keylogger and anti-malware softwares) is that I encrypt my cold storage in an offline + formatted 2nd computer with very strong + long passwords and I never use these passwords on the computer I use for online purposes. As a last resort, I switch off the internet before using any password.
Edit:
I personally suggest SpyShelter Premium/Firewall.
Someone suggested Norton Power Eraser (@ https://www.bleepingcomputer.com/forums/t/640092/is-it-possible-that-i-have-been-hacked-strange-case/).
Generally, you better scan your system while in safe mode.
Hey thanks for the warning, I definitely did not read about xapo at all. Was recommended by a friend so i forgot to double check it
Could you recommend an alternative to xapo ? I mean for the visa card that you can withdraw $$ at an atm from bitcoin, or make purchases?