Not your keys - Not your bitcoin.
Keeping your Bitcoin on an exchange such as Coinbase base or an ETF is not recommended, they can, and do get hacked, go bust or the government could just decide to take over. They hold the keys to your Bitcoin - not you.
Not your keys - not your Bitcoin.
Not your keys - not your Bitcoin.
Key take aways-
Do not trust exchanges or 3rd parties I.E. Coinbase, Kraken, Wirex, FTX Etc, ETFs etc
Only trust the 12/24 word key you have created under your control
Do not trust exchanges or 3rd parties I.E. Coinbase, Kraken, Wirex, FTX Etc, ETFs etc
Only trust the 12/24 word key you have created under your control
With regular money there are varying levels of security that depend on your circumstances & amounts. You may be happy keeping £200 pounds in your "hot" phone wallet but not £200,000.
Considerations before you buy should be -
Considerations before you buy should be -
- How much ? (start small)
- How fast do I need to access ?
- Single signature or Multisig ?
- How private ?
- Will you be put on a mailing list that could get hacked ?
- Have it posted to a P.O. Box
- Use a private email such as Proton
Privacy & KYC (Know Your Customer)
Avoiding having your identity for ever associated with your stack is like trying to walk through a room full of mouse traps. Every transaction you do is on the public blockchain. If you send bitcoin to someone they can see the balance of your UTXO, previous UTXOs, and future UTXOs.
The analogy is you pay for a £5 Beer with a £200,000 note in a dodgy bar. You get £199,994.50 note change and some mugger follows you into the car park and steals it. Much safer to buy to beer with a £20 note/UTXO. You may split of £20 from your £200,000 UTXO to spend in the bar, but a little chain analysis reveals this just came from a £200,000 UTXO. The mugger is still very interested in where you got the £20 from but there is some doubt as to if you own the £200k UTXO.
On the plus side if the mugger tries to spend the £199,994.50 UTXO and gets KYC'ed by the Lamborghini sales man the chain analysis cops could turn up and arrest him.
The analogy is you pay for a £5 Beer with a £200,000 note in a dodgy bar. You get £199,994.50 note change and some mugger follows you into the car park and steals it. Much safer to buy to beer with a £20 note/UTXO. You may split of £20 from your £200,000 UTXO to spend in the bar, but a little chain analysis reveals this just came from a £200,000 UTXO. The mugger is still very interested in where you got the £20 from but there is some doubt as to if you own the £200k UTXO.
On the plus side if the mugger tries to spend the £199,994.50 UTXO and gets KYC'ed by the Lamborghini sales man the chain analysis cops could turn up and arrest him.
Enter coin mixers eg Whirlpool, Wasabi, Sparrow etc. They work like 100 participants put in 1 x £20 note. The notes are mixed up then everyone retrieves a £20 note. Now the note could have come from any of 100 previous UTXOs. You have greatly enhanced your privacy.
Wallet Apps
Bitcoin wallet apps are the most popular and convenient method to your Bitcoin, with effortless ease and simplicity you can transact with Bitcoin, Lightning or both. These are not recommended for large amounts as they can be hacked or withdrawn from App Stores at a moments notice.
Custodial Wallets vs None Custodial Wallet of Satoshi is probably the easiest to use where they control the back end for you, but the trade off is you are trusting a third party to hold your keys, OK for easy instant payments but not your life savings. Also this is forever linked (KYC'ed) to your email address and any other wallet you send the contents too.(no longer available in the US). These may become the norm, people may never even get as far as having an "on chain" wallet,
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Lightning Wallets Lightning wallets and Onchain Bitcoin are generally integrated into the same app. Lightning payments instant and therefore much better for small instant payments.
Multi function apps Many apps are really upping their game. They include various functions such as -
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Here's some of the best wallet apps. This is a rapidly evolving space, functionality is being added and improved all the time so please refer to their websites for the most up to date info.
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Desktop WalletsMore advanced not for beginners -
Exodus an excellent easy to use multi currency desktop wallet where you can exchange between currencies -in app-. however alt coins are an attack on Bitcoin, so you have to question their intentions, & hence their trustworthiness.
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In browser wallets
In browser extension wallets typically lightning only are for directly interacting with websites. You may be on a news feed where it costs a few sats to view instead of the usual dreaded adverts & privacy sucking cookies. Examples include Alby which can be installed into Firefox.
Hardware wallets.
Hardware wallets are dedicated devices that do not connected directly to the internet or only connect in a limited access way that makes it virtually impossible to hack. Some store your private keys on board. Seedsinger doesn't hold the keys once the device is unplugged, so its imperative you store your keys by physically writing them down in word form or QR code or stamped into a metal plate. Reverting to physical security, something we intuitively understand. Other hardware wallets do retain the keys when unplugged for quicker access.
Privacy tip - Do not order the hardware wallet to your home address, instead order it to a P.O. box. This way your name and address wont be on a list of bitcoiners that gets leaked or hacked.
Seedsigner - Recommended ✅
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Seedsigner is my top recommended hardware wallet. It can be built from scratch with off the shelf parts & a 3D printed case. Suitable for DIY'ers that want top level security & the privacy of not being on a leaked bitcoin hardware wallet mailing list like ledger. It also protects against software wallets being removed from app stores (if governments get their way).
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Coinkite Coldcard
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A hardware wallet that is never connected to the internet, data is transferred via a micro SD card, so as to completely “air gaped”.
https://coinkite.com |
Bitkey |
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Ledger
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While this WAS probably one of the best hardware wallets- Due to PRIVACY CONCERNS, & HACKING OF THEIR DECENTRALISED APPS LEADING TO LOSS OF FUNDS I DO NOT RECOMMEND Ledger.
If you still have funds on one do not use it in conjunction with the supplied Ledger live app. Only use the Ledger in conjunction with Electrum or Sparrow wallet - (see vid) . Check thoroughly on the screen of the Ledger its self that the addresses & amounts are correct. Due to concerns they "could" export XPUBs and private keys 🚩 Possibly KYC AML Legislation or the wallets support for shitcoins has forced these companies to log far more privacy details than is necessary for Bitcoin only. Recent concerns over Ledgers recover service found that the private keys are encrypted split into 3 parts and stored on 3 different servers. This has upset the Bitcoin community because Ledger have always said this is not possible, if someone else has your keys it is possible for them to steal your coins. A huge 🚩. Ive found that as soon as companies start dealing in S#1T coins they tend to become more concerned about bottom line rather than separation of money and state. |
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"Physical" Bitcoin
Physical Bitcoin Revolutionary ? A bit like handing over cash, physical Bitcoin is now a thing but how do you know they haven't copied your private key before hand ?
Offline Cash
Opendime
Opendime is a small USB stick that allows you to physically spend or give away Bitcoin like a dollar bill. Pass it along multiple times. Connect to any USB to check balance. Unseal anytime to spend online. Trust no one.
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We’ve combined currency-grade printing with secure NFC chips to create the easiest to use cold storage product. Electronic cold storage meets secure printing. offline.cash
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Multi-sig Wallets
Not for beginners -
Another awesome tutorial from BTC sessions "Sparrow wallet: manage your bitcoin (hot cold and multi-sig)" For 10x security multi signature wallets offer the highest security. 2 of 3 multi sig requires 2 of the 3 key holders to sign a transaction. which should protect against the wrench attack (some breaks in and threatens you), or a 7 of 9 signature wallet would protect against flaky business partners.
Seed signing devices are now being used in combination with multi signature wallets. |
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Physical security
We all know instinctively how to stuff cash under the mattress. What if you have a fire? a metal plate wouldn't burn, or second copy somewhere else would still be ok.
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Foundation Passport
For people who want to buy off the shelf signing device Foundation passport .
However you will be added to a customer database, which could get leaked. Consider having it mailed to a P.O. box for privacy
However you will be added to a customer database, which could get leaked. Consider having it mailed to a P.O. box for privacy
Bitcoin in your head !Keep your private key in your head with borderwallets and walk right through customs with Bitcoin literally in your head 🤯
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Other resources
Here's a real good wallet guide from bitcoin.org
