Dutchman Didi Taihuttu, along with his wife and three children, made a fateful decision in 2017: then the family sold almost all of their property and invested the proceeds in Bitcoin. At that time, the price of the crypto was still hovering around $ 900. Over the years, the invested amount has grown dozens of times; so now Taihuttu is doing everything possible to safely store coins. They sealed in secret vaults on four continents of the world.
How to handle crypto
The history of the Dutch family has attracted the attention of journalists before. Here is a quote from a recent interview with her chapter in which Didi shared his own experience of digital asset storage.
“I hid hardware wallets in several countries; so that I don’t get the idea of flying far to access my savings if I suddenly want to sell something on the market”.
Recall that hardware wallets are special devices that store the user’s private keys. They keep important combinations inside themselves on special chips and do not disclose them on the Internet. In addition, the transaction is signed on the device itself; and for this you need to enter a password and approve the transfer.
So, in this way, Didi insured himself against the influence of emotions. Since it is impossible to sell crypto or do anything with it without hardware wallets; he will have to fly personally to another country to gain access to the devices. And this requires a lot of effort and time; that is, in fact, Taihuttu is unlikely to do this – at least in a hurry due to possible sharp market fluctuations. In the end, it all boils down to making it simply impossible to drastically drain your own digital assets.
Two such Taihuttu repositories are located in Europe, two more in Asia, one in South America and one in Australia. Note that we are not talking about some kind of underground bunkers. As Didi notes, wallets are kept in rented real estate, with friends, or in rented property lockers. Here is a quote from him.
“I prefer to live in a decentralized world where the responsibility for preserving my capital depends only on me”.
Indeed, in this case, the safety of funds really depends on Didi. If he forgets the password for the hardware wallet and, in addition, loses access to the unique mnemonic phrase of 24 words; then he will no longer be able to dispose of crypto.
Hot and cold wallets
Recall that there are two ways to store crypto – hot and cold wallets. The former connected to the Internet, so you can easily and quickly make a transaction from them; while also increasing the risk of hacking by hackers. The latter isolated from any external environment; and without direct access, funds from them cannot in any way fall into the hands of fraudsters. Taihuttu chose mainly the second option, because such a choice is considered more reliable for long-term storage of digital assets.
About 26 percent of the family’s fortune is kept in hot wallets: this is what Didi calls “risk capital”. He uses it for daily trading and trades that help limit potential losses in the event of a market crash. It is noteworthy that the crypto lover also used these funds to successfully buy and sell the altcoin DOGE; the price of which skyrocketed at the beginning of the year.
The Taihuttu family’s strategy from the very beginning to the present day is one of the most profitable – investors have earned huge profits in just a few years simply by storing Bitcoins and other coins. In addition, they took a very responsible attitude to the storage of crypto, significantly reducing the risk of force majeure. This is exactly what investors should do if they want to invest in BTC for at least a few years.
We think the idea of storing cryptocurrency on special devices in different locations seems like a great idea. However, it is only suitable for those investors who are looking for a long term. Nevertheless, in the event of a sharp growth in the market; it may simply not be possible to sell coins in such conditions due to lack of time.