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Bitcoin Wallets

Passing the Test of Time

The Bitcoin Journey

Passing the Test of Time

  • Engraving in steel
  • Think about the next generation!
  • Privacy is important
  • Summary on Bitcoin Wallet Security
Like any form of wealth, your bitcoins must be protected against loss, theft, and degradation, especially over the long term. Safeguarding your bitcoins requires some technical knowledge and an understanding of the associated risks, which opens the way to two main strategies: engraving your bitcoins on a steel plate and establishing an inheritance plan.

Engraving in steel

One method to secure your bitcoins in the long term is to engrave your mnemonic phrase on an extremely durable material like steel. Doing this creates a physical backup of your keys that is resistant to both water and fire damage.
Various solutions are available: some of them are low-cost, such as the "Blockmit", while others may require more specialized equipment. You can explore this topic further in the tutorials section of our academy.

Think about the next generation!

Alongside this first practice, creating an inheritance plan is a crucial step to ensure that your bitcoins are properly managed after your death. This plan involves handwriting a letter where you outline the nature of your assets, their access methods, and the contact information of the trusted individuals who have responsibility over them. It’s also important to discuss the inheritance of bitcoins with an accountant and/or estate attorney to ensure tax compliance, even if this person should never be entrusted directly with the management of your bitcoins.
If you wish to further explore the subject of the inheritance plan for your bitcoins, we recommend reading Pamela Morgan's book Cryptoasset Inheritance Plan or enrolling in the BTC102 course, where we provide guidance on creating your plan.

Privacy is important

In addition to creating physical backups and developing an inheritance plan, privacy is another important topic when it comes to the long-term security of your bitcoins. For example, it is preferable to buy bitcoins without providing identification to minimize the risks of identity theft or tracking of your funds by those entities with the right tools.
Regarding privacy, it is crucial to avoid talking to anyone about your bitcoins. We cannot predict how this technology will be perceived in the future, so maintaining discretion about your ownership is a wise choice: you don’t want to draw attention to yourself or your wallet.
Similarly, avoid openly sharing details about your security system during bitcoin meetings or encounters with strangers...

Summary on Bitcoin Wallet Security

Bitcoin wallets allow you to access bitcoins and make transactions. There are several types:
  • mobile or PC wallets, convenient for small amounts and/or regular expenses;
  • physical wallets, more suitable for storing bitcoins in the medium and long term;
  • multisig wallets, which are more complex to manage and require multiple signatures to perform transactions.
When creating a wallet, it is extremely important that you first backup your list of 12 or 24 words on a piece of paper or a metal plate. This so-called mnemonic phrase allows you to restore your wallet through any Bitcoin wallet application. Be aware that anyone who gains access to this list also gains access to your funds.
In the world of Bitcoin, financial sovereignty is closely tied to individual responsibility, making it essential to secure access to your wallets and backups. To achieve this, it’s important to follow certain guidelines:
  • Create an inheritance plan to ensure that your loved ones can retrieve the money in case of any problem.
  • Avoid leaving your Bitcoins on exchange platforms as they can be susceptible to hacker attacks.
  • Adapt your level of security to your needs and use cases, in order to choose well among the many different Bitcoin wallets available.
Now that we have covered the basics of Bitcoin wallets and the best practices for securing them, in the next chapter we will explore the technical features of Bitcoin. Once again, understanding the basics of the Bitcoin protocol will enhance your comprehension of how it works, empowering you to make better use of it.
Quiz
Quiz1/5
Why should you buy non-KYC bitcoins?