A Bitcoin vault is a savings account that uses cold storage to keep your money safe. For this reason, at CriptoTendencia we want to teach you about this tool, focusing on how you can configure your own Bitcoin vault with Xapo.
Learn about Xapo and its Bitcoin vault
Xapo is a service for the purchase of Bitcoin online, with advanced security elements. In addition to a Bitcoin exchange, it can be defined as a Bitcoin wallet and vault with multiple security factors, which make it one of the most solid services in this area.
The Xapo Vault implements cold storage and has become the preferred storage solution for many of the world’s most powerful institutions and people, and has the largest Bitcoin storage available.
Cold storage refers to the process of storing funds offline to keep them safe and inaccessible.
On the other hand, it is a type of cold storage where not only the funds are stored offline, but also the system that owns the funds has never been online or connected to any type of network.
Now, for users who need to raise the security bar, Xapo offers a Bitcoin vault, with highly advanced security features. You can transfer the funds from your wallet to a vault easily, paying a price for the service, of course.
This modality incorporates elements of cryptographic security to insure your capital. These include multi-factor authentication and private key segmentation.
According to the information provided on its website, the Bitcoin Xapo vault is located underground, in geographically dispersed areas on three continents. Also, cryptographic material and private keys are cold stored. In other words, this data is on servers not connected to the Internet.
It also details that when the user transfers his funds to his Bitcoin vault, Xapo places his funds on a computer that he never has and will never have access to the Internet.
They then encrypt all the data, separate it into different fragments, and copy it to external drives. Those backups are safely stored in physical vaults in geographically dispersed locations as well mentioned above.
The vault was originally created for Bitcoin, although they have developed a vault that is compatible with global storage.