Here is the gist of what I hear many of you saying:
- Stop messing with private keys on "hot wallets", because... ??
- What might happen? What is a "hot wallet"? How does having a "hot wallet" cause potential loss?
If you have your private keys on an online device, you have a hot wallet.
Any online device is always to prone to hacking and that's why it's recommended to have your private keys on an offline (preferably to be air-gapped) device.
Take note more softwares you import your seed phrase to, the more attack vectors you may open for hackers.
- Go offline ("air-gapped"), do part offline, do part online (all with the blinds/drapes closed), because... ??
- How is this safer than just importing the wallet into Blue on my iPhone and then sending to Coinbase?
- I can see how 1 option is an anxiety-inducing difficult and confusing set of steps and how the other option is tap-tap, send, easy/done, but I do not understand how the super difficult option is "safer" than the super easy option?
As I said above, any online device is prone to hacking.
With importing your private keys into an air-gapped device, you can be sure that your private keys don't connect to the internet there is no way your wallet can be compromised.
- LoyceV said, and I quote "You can't possibly be sure about this, there's always a risk."
LoyceV is right.
There no is no way to make sure your device hasn't already been compromised, if it's online.
- But apparently there IS NO 100% safe. There is ALWAYS risk, but risk of what?? Why is the method I am going to try any LESS SAFE than another method?
Go for a cold storage. That's the most secure option.
- Coinbase sucks so don't use it, because... ??
- Is Coinbase compromised somehow? Is this a "you are not a serious crypto pro if you use Coinbase" type bias?
- It's just the place we need to send the BTC to so that we can get it withdrawn out into the checking account, so how could this be a bad idea?
Coinbase is custodial service. It means that they have full control over your fund and they can freeze your fund at any time for any reason.
If you want to use Coinbase only for exchanging your bitcoin, not holding your bitcoin, then there's no problem.
Don't forget to read coinbase terms before depositing your bitcoin.
Coinbase has a non-custodial wallet too, but since that's close-source, I would recommend everyone to avoid it.
I am not trying to upset anyone and I greatly appreciate all the feedback and helpful info. I just want to understand why something that looks and feels totally straightforward and impossible to mess with/hack/steal (importing the paper wallet private key into Blue Wallet on my iPhone and then sending that BTC to my personal Coinbase BTC wallet for withdrawal) seems to induce ire and/or fear on some folks' parts.
You can import you private key into an online device and easily make a transaction, but I woudn't do so, especially if dealing with big amount of bitcoin.
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