How To Secure Bitcoin

Congratulations on taking the steps to being an earlier adopter of the world’s best money!

We’re still a few years away from bitcoin being widely used as everyday money, but you’re doing the best thing possible for your business going forward!

However, now that you have some bitcoin and will be acquiring more, it’s important to learn how to secure and safely store your precious bitcoin! Bitcoin is different from all other money, and as such, there is a different way to protect your money.

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Wallet of Satoshi (mobile wallet)

Wallet of Satoshi is what is called a noncustodial wallet, meaning that you are in control of your funds. In contrast, your bank account, Venmo, Paypal, etc. are all custodial accounts. You are trusting your money with a custodian. With bitcoin, the only person you have to trust is yourself.

When holding bitcoin in self-custody, you have a seed phrase. Your seed phrase is a list of 12 words that act as proof that you have ownership over your bitcoin and your ability to spend it. It can be thought of as a combination to a safe. Now, let’s get started.

Understanding The Seed Phrase

Bitcoin is different from the existing financial system as it gives you control of your money. This contrasts the existing financial system, in which you ask banks and institutions for permission to access your money and to move it.

Using bitcoin in this noncustodial way introduces the 12 word seed phrase, which is the utmost important piece of information in Bitcoin. Whoever has access to your 12 word seed phrase has access to your money and the ability to steal it from you.

Your seed phrase should be protected and kept in a safe place, just like you would with any other document you don’t want anyone else to see or obtain. You should never take a picture of your seed phrase, take a screenshot of it, put it in a note on your phone, store it in a file on your computer or the cloud. Keep your seed phrase physical, and ideally stamp or engrave it into a steel plate.

Frequently Asked Questions

Is it better to do the Google Drive backup or the Manual backup?

It is best to do the Manual backup as your seed phrase never touches the internet in this way. If you opt for the Google Drive backup, it is strongly recommended to set a password to encrypt the backup.

What happens if I lose my seed phrase and I have to restore my wallet?

Unfortunately, your money would be gone, forever. Take good care of your seed phrase!