How to get started with Self Custody - Bittr Academy

Self-custody means you, and only you, have access to the public and private keys that secure your bitcoin. Mastering this aspect of Bitcoin ownership is essential, as whoever holds the keys ultimately holds the bitcoin.

In other words: Not your keys, not your coins.

At Bittr self custody is essential since we don’t host an account or funds for you. You buy Bitcoin directly into your preferred self custody wallet.

Value Recommendations for Bitcoin Wallets

Self custody is empowering but requires practice. Before diving into complex setups, start small with a mobile wallet and work up to more secure options as your confidence grows. Any recommendations are just a general guide, the best wallet choice depends on your unique situation, security preferences, and comfort level.

Mobile, Desktop Wallet or Lightning Wallet: Wallet for daily spending
Single Signature Hardware Wallet: Home safe with a PIN or combination
Multisignature Hardware Wallet: Vault-level security Other Options could be spreading your Bitcoin on different Wallets or using a Passphrase. Always consider that more Security often also comes with more Complexity and that the most common reason for losing funds is the user himself.

I hold Bitcoin on an Exchange. How do I get them into Self Custody??

Is it a small amount? Then a mobile Wallet like Blue Wallet or Blockstream Green might be perfect. A Tutorial for setting up Blue Wallet you can find later in this article.

You already saved a good amount of Bitcoin but it’s on an Exchange like Coinbase or Kraken? Here are 3 simple steps to put your Bitcoin into Self Custody:

If you already hold a higher amount of Bitcoin it can make sense to spend money on a Hardware Wallet and a Backup Solution. A Hardware Wallet costs between 70€ - 200€. You find a variety at Bitcoin Shop like Bitsaga. A solid Steel Backup you can buy from 95€ at Plebstyle.

I don’t have Bitcoin, I don’t have a wallet. I want to do Self Custody from the Beginning:

Seed Phrases

A seed phrase represents a large, randomly generated number from which all wallet addresses and keys are derived. Think of it as a backup code for your Bitcoin wallet. Wallets don’t directly store Bitcoin but control access via private keys. With a seed phrase, you can recover your Bitcoin even if the wallet software becomes unavailable.

Hardware Wallets

Never buy refurbished or used hardware wallets. Purchase directly from manufacturers to ensure device security.

Foundation Passport: Open-source, intuitive design, highly secure
Blockstream Jade: Affordable, pairs with Green wallet on mobile
Specter DIY: DIY device with multiple functionalities
Trezor Safe 5 / Model 3: Beginner-friendly
BitBox02 (Bitcoin-only): Swiss-made, simplistic and straightforward
Coldcard Mk4: Feature-rich, air gapped
Seedsigner: DIY device adding extra security
Ledger: Easy-to-use, recommendation: use for Bitcoin only
Keystone: Easy to use, many features

How to buy Bitcoin directly into the Bitbox 02

Multisig Bitcoin Custody Solutions

Multisig wallets provide high security but require specific knowledge for effective management. Below are services offering assisted multisig setups, where you hold two keys and the provider holds one. This offers extra security and removes the single point of failure.

Unchained: Known for quality products and Bitcoin-only service.
Casa: Established multisig provider with added security features.
Nunchuk: Newer player with innovative security products and partnerships.

Conclusion

Bitcoin self custody lets you hold your own keys and be your own bank. That’s one of Bitcoin’s greatest advantages. Starting with a mobile wallet is a great way to get comfortable with managing your Bitcoin securely.

Self custody doesn’t have to be complicated, but it’s essential to follow some key practices, like securely writing down your seed phrase. Taking these simple but crucial steps will give you the foundation needed to safeguard your Bitcoin independently.

Final Thoughts

Bitcoin wallets don’t control bitcoin directly. They store Private keys.
A wallet’s seed phrase is a backup code, represented by 12 or 24 words.
If backed up properly, a seed phrase can recover your wallet on any compatible device.