The security of your bitcoins has crucial importance, and a simple mistake can have disastrous consequences. That is why we need to learn the best practices to adopt when creating a new Bitcoin wallet.

Please note that the BTC102 course will guide you through this step.

When you set up a wallet, the software usually creates your private key, usually represented by a list of 12/24 words (often called "seed phrase" or "mnemonic phrase"): these words constitute the access to your funds. If this key is ever revealed to a third party, you should consider the associated funds to be compromised. Therefore, when setting up your wallet, it is essential to follow these rules:

You should literally take a blank sheet of paper or print this template, and write the word list with a pen, following the presented order neatly and clearly. Be aware that if the ink fades over time, you may lose your funds. Therefore, it is important to keep this piece of paper protected from those environmental factors that could potentially damage it, like moisture or fire.

Please find an example of how to compile the paper here below: the words are fake, so do not use them!

Be sure not to make any mistakes while clearly and legibly copying the mnemonic phrase, otherwise your heirs may struggle to read it and could be unable to recover the funds. Once you have saved the words, it’s advisable to create a second copy and store it in a different location from the first. This ensures you have a backup in case the original is lost or damaged.

The word lists should be stored in a safe place that you can easily remember. Avoid creating overly-complicated hiding plans that could lead to losing them.

Both 'cold' and 'hot' wallets use the word list method as the standard for backing up private keys. As a result, you can enter your mnemonic phrase into any compatible wallet software or device to restore your access. On the other hand, we strongly advise against using wallets that do not provide a seed phrase, as they may require you to provide an account, an email address, or, even worse, an ID.

If you wish to discover, step by step, how to set up your own wallet and get your first bitcoins, we recommend taking this other course: