Quote from: webtricks on Today at 07:14:31 PM

Quote from: sh3llshock87 on Today at 06:51:54 PM

I downloaded Electrum but waiting on GPA to sync so I can verify the public key they have on their site.
I do have a question about "first have to either import or sweep the private key in a non-custodial wallet like Electrum. Then you can send the coins to the Crypto Exchange using current network fees" I now know non-custodial would be a wallet in Electrum compared to Coinbase where they have the keys etc.

Correct! However, there are two things I was talking about. I will clear them so you don't confuse the two:

1. If you are using HD wallet: After downloading Electrum wallet, it will ask you to create a new wallet. When you proceed, it will show you seed phrase of 12 words. You have to write them down on a piece of paper. These 12 words will be used to create keys and addresses for you. The process is known as hierarchical deterministic (HD) process. This is a secure way to use bitcoin and since you are looking to regularly use bitcoin, this is the way I was recommending you in earlier post. By taking backup of seed, you have taken wallet into your custody. If you lose seed phrase, you will lose the access of your wallet.

2. If you are using cold storage (e.g. hardware wallets,paper wallet): In case of paper wallet, you will print hard copy of private key in the form of QR code and place it safely. So now there are no trace of private key on your computer. Then you will only import/sweep the private key in Electrum whenever you intend to spend/sell the coins. Whereas, hardware wallets work differently. You can sign transactions in a separate device without actually sweeping/importing private keys on your computer. Electrum is not a hardware wallet so you will have to purchase device like Trezor if you intend to use hardware wallet. Note: Hardware wallets are the securest among all and uses HD process to generate keys and addresses as well.

Thank you for explaining. I verified the key for Electrum and will install it. Take a look around. I read previously about the seed words. I will be sure to make multiple copies on paper. Would it be okay to store a copy in Keypass? I use Keypass at work and home for storing my credentials. I have read that you should write down the seed words but curious if storing them in encrypted format/program along with paper copies would be okay?