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Why you need bitcoin
How to self-custody bitcoin
Self-custodying bitcoin involves generating and storing your own private keys, which are like the master password to your bitcoin. You create a wallet (software or hardware device) that generates a unique seed phrase of 12 or 24 words. Write down this seed phrase on paper and store it safely, as anyone with these words can access your bitcoin.
Your wallet uses these keys to sign transactions when you want to send bitcoin. The key rule: if you don't control the seed phrase, you don't control the bitcoin.
What are wallets?
Bitcoin wallets are software or hardware tools that store your private keys and allow you to send and receive bitcoin. They don't actually hold bitcoin itself, but rather the cryptographic keys that prove ownership of bitcoin on the blockchain. Hot wallets are connected to the internet (mobile apps, desktop software) and are convenient for daily use but less secure.
Cold wallets are offline devices (hardware wallets, paper wallets) that provide maximum security for long-term storage. All wallets generate a seed phrase that acts as a backup to recover your bitcoin if the wallet is lost or damaged.
What are keys?
Your bitcoin private key is a unique secret number that proves ownership of your bitcoin - there are so many possible keys, more than there are grains of sand on Earth! This private key is like having the only password to your digital vault. Your seed phrase translates this complex number into 12 or 24 everyday words that are much easier to write down and remember.
If your wallet breaks or gets lost, you can enter these words into any compatible wallet to restore full access to your bitcoin. The seed phrase is essentially a human-readable backup of your private key.
How to secure your passphrase
Write your seed phrase on paper and keep it in a safe place like a home safe or safety deposit box. It's smart to have two copies stored in separate locations to protect against fire, floods, or other disasters. Never store your seed phrase digitally on phones, computers, or cloud storage where hackers could find it.
For extra durability, consider using metal backup plates that won't burn or deteriorate over time. The key is keeping it offline and secure while ensuring you can always access it when needed. With proper storage, your Bitcoin remains safe and under your complete control.
How to make bitcoin transactions
Making a Bitcoin transaction is simple: open your wallet, enter the recipient's Bitcoin address (a long string of letters and numbers), specify the amount you want to send, and confirm the transaction. Your wallet automatically calculates the network fee and broadcasts the transaction to the Bitcoin network.
The transaction typically confirms within 10-60 minutes as miners include it in a block. Once confirmed, the Bitcoin is permanently transferred to the recipient. Always double-check the address before sending, as Bitcoin transactions cannot be reversed.
Ready to get started?
Follow our step-by-step beginner's guide to set up your first wallet, secure your keys, and make your first Bitcoin transaction. We'll walk you through everything from choosing the right wallet to completing a safe test transaction.
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