I am thinking about following this plan:
- Regularly buy bitcoins in an online exchange, 100€/month at market prices.
- Once the balance in the exchange exceeds a certain limit (500€), move those bitcoins to cold storage, as long-term savings.
(the reason why I want to do 2 is that I do not feel I really own bitcoins until they are in a wallet under my control)
With this scheme I would be transferring to my cold wallet a couple of times per year. I have read that reusing a bitcoin address is not recommended. I am worried about these two facts:
- Will reusing my cold-storage address decrease the security of my cold-storage wallet?
- The balance of the offline wallet will be visible on the blockchain. I have read about privacy implications of having several parties transfer to a single bitcoin address (employer being able to see my rent, for example), but since the only one transferring to this account will be myself, from the account in the online exchange, there is no danger of private information becoming public, correct? That is, from these regular transfers no spending habits can be inferred. Furthermore, the receiving address will not be linked to any real persona. The only one knowing the identity of the sender is the exchange, and the identity of the receiver (the cold wallet) is completely hidden since he is not engaging in other transactions with any other party. Is this correct?
Note: I am not planning to spend from the offline wallet at the moment, and I know that spending changes the security and privacy implications. I am planning to only save into the offline wallet.