If you store your Bitcoin yourself, you take responsibility for your assets and take care of the security yourself.
There are many aspects that you should consider if you want to store bitcoin yourself. This article summarizes the most important ones and gives you tips on which procedures have been tried and tested in recent years.
Be your own Bank
First, it's essential to approach the topic of self-custody with the right mindset: If you store your bitcoin yourself, it really belongs to you. You then have full control over the bitcoin. Your wealth is then no longer dependent on the whims and financial decisions of others.
But you must be aware that this privilege also entails risks. You are now also responsible for ensuring that your bitcoin do not get lost.
You should therefore store your Bitcoin in such a way that you don't have to worry that it will be stolen from you or that you will lose it due to your own mistakes. It's the only way you can sleep peacefully.
Choosing the right Wallet
Choosing the right wallet is the next important step. There are various types of wallets, from mobile wallets that are convenient for everyday use to hardware wallets that offer greater security. Because a hardware wallet stores your keys offline, it provides better protection against online threats and prevents hackers from gaining access to your assets.
How does a Wallet actually work?
You can think of a wallet as a keychain for your digital assets. The wallet stores the private keys for you. With any private key, bitcoin can be moved to an associated address.
When you set up your hardware wallet, it will generate your keys for you if you wish. For this reason, it is very important to choose only trustworthy providers.
Remember: Whoever owns the private keys also owns the bitcoin.
Your Emergency Access
The seed phrase, usually a sequence of 12 or 24 words, is emergency access to your bitcoin in case you lose your wallet or it no longer works. Therefore, it is very important to store these words securely. You should also not share your seed with anyone and never store it digitally. To ensure that the seed phrase is unique and only belongs to one user, it must be generated through a highly random process known as entropy. Since people are not good at making really random choices, it is recommended to use a hardware wallet such as Bitbox02. With the code 21BTC, you get a 10% discount on your Bitbox.
One of the safest and most durable ways is to emboss the seed in metal. This protects your emergency access from fire, water and corrosion.
Long-term Security with Seedor Safe
The Seedor Safe offers a long-lasting way to secure your seed phrase.
Made of extremely heat-resistant stainless steel, it protects against fire, water and corrosion and thus ensures long-term safety.
Conclusion
- Be aware of what it means to store bitcoin yourself and do your research first.
- Choose a wallet that meets your needs and rely on trustworthy providers.
- With a long-lasting backup, ensure that you still have access to your bitcoin even if you lose your wallet.
