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What's the purpose of separating the 'float' and the 'cold storage'? Is it to increase security by limiting the amount of BTC exposed to an attacker who breaks
by wsxcde 13y ago
What's the purpose of separating the 'float' and the 'cold storage'? Is it to increase security by limiting the amount of BTC exposed to an attacker who breaks in Mt. Gox?
- whackedspinach 13y agoCorrect. A cold storage scheme might be private keys printed on paper and stored in a safety deposit box, for example. Then, if their network is compromised, they won't lose everything. Not sure how much exchanges normally keep in their "hot wallets", but I've heard numbers from 10%-30%. If an exchange is hacked and decides to close and go under, they can also use cold storage to send some percentage of user's balances back to them.