hey hey hey what's up bitcoin maximalists welcome
to the bitcoin street journal podcast and today
we're doing something special i'm anna and this
episode is going to change your life Because
today we're diving deep into the single most
important skill every Bitcoin holder needs to
know. Self custody. That's right. We're going
step by step through how to take control of your
Bitcoin, how to be your own bank and how to achieve
true financial sovereignty. But first, quick
news update, because some insane stuff is happening
right now. Bitcoin is trading at $113 ,092. The
Fed is making their rate decision today at 2
.30 p .m. Eastern. 97 .8 % chance of a rate cut.
A $300 home Bitcoin miner just solo mined a block
worth $347 ,000. And Jack Dorsey just said that
the dollar in your bank keeps losing value and
Bitcoin is mathematically going up forever. Plus,
and this is huge. JP Morgan is planning to allow
institutional clients to use Bitcoin as loan
collateral by late 2025. The banks are coming
around, folks. But here's the thing. If your
Bitcoin is sitting on an exchange right now,
you don't own it. The exchange owns it. And after
everything we've seen, FTX, Celsius, BlockFi,
Mt. Gox, we should know better. So today, I'm
going to teach you exactly how to self -custody
your Bitcoin. We're going to cover... Why self
-custody matters more than ever. The different
types of wallets explained simply. Step -by -step
hardware wallet setup. How to secure your seed
phrase like a pro. Common mistakes that cost
people their Bitcoin. And best practices that
keep your SATs safe. This is going to be educational.
This is going to be empowering. And by the end
of this episode, you're going to have a clear
roadmap to financial sovereignty. Before we dive
in. Head over to the BitcoinStreetJournal .com
and set up your free Nostra profile. Self -custody
your social media while you're at it. And when
you're feeling grateful for this free education,
zap me some lightning stats. All right, let's
talk about the most important thing you can do
as a Bitcoiner. Taking custody of your own keys.
Let's go. Quick market update before we dive
into the self -custody masterclass. Bitcoin is
currently at $113 ,092. Down slightly from yesterday.
But who cares about daily moves when we're talking
about long -term wealth preservation? Market
cap is sitting at $2 .26 trillion. Bitcoin dominance
is at 58 .5%. And here's something beautiful.
Bitcoin hash rate just hit an all -time high
of 1 .1 zeta hashes per second. That means the
network has never been more secure. While we're
learning about self -custody today, just know
that the Bitcoin network itself is stronger than
ever. Now, some quick news that's directly relevant
to our self -custody conversation. The U .S.
national debt just broke above $38 trillion for
the first time ever. And like Jack Dorsey said
today, the dollar in your bank keeps losing value.
Bitcoin has no top because fiat has no bottom.
This is exactly why we self -custody. We're not
just protecting our Bitcoin from hacks. We're
protecting ourselves from currency debasement.
JP Morgan is allowing Bitcoin as loan collateral
by late 2025. Traditional finance is finally
accepting that Bitcoin is real money. But here's
the catch. To use your Bitcoin as collateral,
you need to actually own it. Not your keys, not
your Bitcoin means not your collateral. And in
some wild news, a $300 home Bitcoin miner just
solo mined a block worth $347 ,000. One in 10
million odds. But you know what? That lucky person
better have self -custody figured out, or they
could lose that entire windfall to an exchange
hack. France is reviewing a motion to ban CBDCs
and promote Bitcoin. This is the fight of our
lifetime. Centralized digital currencies that
give governments total control. Versus Bitcoin
that gives individuals total control. This is
why self -custody isn't just about security.
It's about freedom. It's about sovereignty. It's
about saying, this is my money and no one can
freeze it, seize it, or stop me from using it.
Oh, and Lugano, Switzerland just unveiled a statue
of Satoshi Nakamoto. They're honoring the creator
of the hardest money ever created. And you know
what would make Satoshi proud? Self -custodying
your Bitcoin like he intended. All right, enough
market talk. Let's get into the education. Let's
learn how to actually do this self -custody thing
properly. Before we get into the how, we need
to understand the why. Because self -custody
isn't just a technical thing. It's a philosophical
thing. It's the whole point of Bitcoin. Let me
tell you a story. When you keep Bitcoin on an
exchange like Coinbase, Binance, or Kraken, here's
what's actually happening. You don't have Bitcoin.
You have an IOU. They control your Bitcoin. And
what can happen? Let me count the ways. One,
they can freeze your account. Don't like your
political views? Frozen. Think you're doing something
suspicious? Frozen. Made a mistake with their
KYC? Frozen. Two, they can get hacked. Mount
Gox, 850 ,000 Bitcoin, gone. Bitfinex, 120 ,000
Bitcoin, stolen. And that's just two examples.
Three, they can go bankrupt. FTX had billions
of dollars of customer funds and used them for
their own trading. Celsius promised you interest
and then gambled your Bitcoin away. BlockFi went
under. Voyager went under. Four, they can refuse
withdrawals. Sorry, we're experiencing technical
difficulties. Meanwhile, your Bitcoin is trapped.
Now let me tell you what self -custody means.
You control the private keys. No one can freeze
your funds. No one can stop you from making a
transaction. No customer support can lock you
out. No bankruptcy can take your Bitcoin away.
But, and this is the important part, with great
power comes great responsibility. When you self
-custody, you are the security. You are the backup.
You are the recovery process. If you mess up,
there's no calling customer service. If you lose
your keys, your Bitcoin is gone. It's like cash
in that regard. Once it's lost, it's lost. But
that's also what makes it powerful. No one can
reverse your transaction. No one can create more
of your Bitcoin. No one can inflate away your
wealth. Self custody is the double edged sword
of Bitcoin. The benefits are massive. Complete
control over your funds. No one can freeze or
seize them. No counterparty risk. Financial sovereignty.
But the responsibilities are real. You must secure
your seed phrase. You must protect your hardware
wallet. You must understand how to send and receive
properly. You must have backups in case of disaster.
And you know what? I think every Bitcoin holder
can learn this. I think every person deserves
financial sovereignty. And that's why we're doing
this episode. All right. Let's break down the
types of wallets you're going to encounter, because
not all wallets are created equal. There are
three main categories, custodial wallets, hot
wallets, and cold wallets. Let me explain each
one. Custodial wallets, the ones you want to
avoid for long -term storage. These are wallets
offered by exchanges. Coinbase Wallet, Binance,
Kraken, Cash App. They work just like a bank
account. Pros? They're convenient, easy to buy
and sell, quick transactions. Cons, you don't
control the keys. They can freeze you. They can
get hacked. They can go bankrupt. My advice,
use custodial wallets only for trading or very
small amounts you're about to spend. Never store
significant Bitcoin on an exchange. Hot wallets,
software wallets for spending money. These are
non -custodial wallets that run on your phone
or computer. Examples. Blue Wallet, Electrum,
Sparrow Wallet. You control the private keys,
but they're stored on your device, which is connected
to the Internet. Think of hot wallets like your
physical wallet in your pocket. You keep maybe
$100 to $500 in it for daily spending. You don't
keep your life savings in your pocket wallet,
right? Same with hot wallets. Use them for spending
amounts. Bitcoin you might use in the next week
or month. Maybe 0 .01 to 0 .1 BTC, depending
on your situation. Pros, convenient, easy to
use, quick transactions. Cons, your device could
get hacked. Malware could steal your keys. You
could accidentally expose your seed phrase. Cold
wallets, hardware wallets for serious storage.
These are physical devices designed specifically
to keep your private keys offline and secure.
Examples. Coldcard, Trezor, Ledger, Bitbox02,
Tangent. The private key never leaves the device.
Even when you plug it into your computer, the
signing happens on the device itself. Think of
hardware wallets like a safe. This is where you
keep your real wealth. Your long -term holdings.
Your life savings in Bitcoin. Pros? Maximum security.
Keys never touch the internet. Protected from
hackers. Purpose built for security. Cons, cost
money, $50 to $200, slight warning curve, not
as convenient for daily transactions. Here's
my recommended strategy for most people. Layer
one, exchange wallet with zero Bitcoin long term.
Only use it to buy, then immediately withdraw.
Layer two, hot wallet, software wallet, with
small spending amounts, maybe 0 .01 to 0 .1 BTC.
Think of it as your checking account. Layer three,
cold wallet, hardware wallet with your serious
holdings, your savings account. This is where
90 % plus of your Bitcoin should live. And for
really advanced users, consider multi -signature
setups where you need two of three or three of
five keys to spend. But that's advanced stuff
we won't cover today. The key principle, the
more Bitcoin you have, the more serious your
security needs to be. All right. No altcoin support.
Features? Air -gapped. Never touches your computer
directly. Dual secure elements. Micro SD card
for transactions. Built like a tank. Best for
serious Bitcoiners. Large amounts. People who
want maximum security. Downsides. Slightly harder
to use. More expensive. Bitcoin only means no
altcoins. But who needs them anyway? Trezor Safe
3. $79. The OG hardware wallet. Been around since
2014. The most popular hardware wallet. Large
storage. Supports thousands of coins. Mobile
app. Bluetooth for phone use. Best for people
who want convenience. Multi -coin holders. Downsides?
Not fully open source. Had some controversial
updates in the past. Bluetooth could be a security
concern. Bitbox O2. $149. Swiss made. Bitcoin
only version available. Features? Dual chip architecture.
Micro SD card backup. Simple design. Open source.
Best for people who want security and simplicity.
Swiss privacy. Downsides? Less well -known. Smaller
ecosystem. Tangent. $55 to $70. The wild card.
It's a card -based wallet. Features. No seed
phrase needed. Multiple backup cards. NFC -based.
Ultra -portable. Best for people intimidated
by seed phrases. Those who want simplicity. Downsides.
Different security model, less control, newer
product. My recommendation for most people, start
with Trezor Safe 3 or Ledger Nano X. They're
user -friendly, well -supported, and have great
tutorials. For Bitcoin maximalists with serious
holdings, cold card Mach 4. It's built for Bitcoin
and Bitcoin only. For people terrified of seed
phrases, Tangium. But understand you're trading
some control for convenience. Here's what matters
more than the brand. One, buy from the manufacturer
directly. Never buy from Amazon or eBay. Devices
could be tampered with. Two, verify the device
is genuine. Most hardware wallets have tamper
-evident packaging. Three, follow the setup instructions
carefully. Take your time. Don't rush. Four,
never enter your seed phrase into a computer
or phone. Only write it on paper. The hardware
wallet you choose is less important than using
one. Just pick one and commit. Any hardware wallet
is 1 ,000 times better than leaving your Bitcoin
on an exchange. All right, this is the big one.
Let's go through the exact steps to set up your
hardware wallet. I'm going to give you a general
process that works for most devices. Step one,
purchase your hardware wallet. Buy directly from
the manufacturer. Trezor .io for Trezor. Coldcard
.com for Coldcard. Ledger .com for Ledger. Wait
for it to arrive. Don't be impatient. Security
takes time. Step two, verify the package. When
your device arrives, check for tamper evidence
seals. Most manufacturers have holographic stickers
or sealed packaging. If anything looks suspicious,
packaging opened, seals broken, device looks
used, do not use it. Contact the manufacturer
immediately. This is serious. A compromised device
could steal all your Bitcoin. Step three, unbox
and initialize. Open the package. You should
find the hardware wallet device, a USB cable,
recovery phrase cards, instruction manual. Plug
in your device or turn it on. Follow the on -screen
instructions. Most devices will ask you to choose
a language, create a pin code, generate a new
wallet. Step four, create your pin code. Choose
a pin that's six to eight digits. Make it unique.
Don't use one, two, three, four, five, six, or
your birthday. Here's the thing. Your pin protects
your device if someone steals it. After several
wrong attempts, usually three to 16, depending
on device, the device will wipe itself. So memorize
it. Write it down separately from your seed phrase.
Keep it secure. Step five, generate your seed
phrase. This is the most important part. Your
device will now generate a seed phrase. This
is usually 12 or 24 words. These words are your
Bitcoin. If you have these words, you have your
Bitcoin. If you lose these words, your Bitcoin
is gone forever. The device will display the
words one at a time. You must write them down
on the recovery cards provided. Critical rules
for seed phrase. Write them in order. Word 1,
Word 2, Word 3, etc. Use the official recovery
card that came with your device. Use a permanent
pen or pencil. Not erasable. Write legibly. If
you can't read it later, you're screwed. Double
check each word. Make sure you wrote it correctly.
Never take a photo. Never type it into a computer.
Never store it digitally. Never share it with
anyone. Not even customer support. Scammers love
this trick. Some devices will ask you to verify
the seed phrase by entering it again in order.
This ensures you wrote it down correctly. Do
not skip this. Step six, secure your seed phrase
physically. Now you have a piece of paper with
12 to 24 words that represents all your Bitcoin.
This needs to be secured. Options, fireproof
safe in your home, safety deposit box at a bank,
but then you have a third party, metal backup
plate resistant to fire and water. Multiple copies
in different geographical locations. Do not store
it. In a desk drawer. In your wallet. On your
computer. In the cloud. Google Drive, iCloud,
Dropbox, etc. In an email to yourself. In a password
manager. The seed phrase is your master key.
Treat it like the deeds to your house. Step 7.
Generate your first receiving address. Now that
your wallet is set up, navigate to the receive
function. Your device will generate a Bitcoin
address. It's a long string of letters and numbers
starting with BC1, 1 or 3. This address is public.
You can share it. It's where people send you
Bitcoin. Some devices will show a QR code you
can scan or you can copy the address. Step eight,
send a test transaction. Before you send your
entire Bitcoin stack, do a small test transaction.
Send 0 .001 BTC, about $113, from your exchange
to your hardware wallet. Wait for it to confirm,
usually 10 to 60 minutes, depending on fees.
Once it arrives, practice sending it back to
the exchange. This confirms you know how to receive,
you know how to send. Everything works correctly.
Step 9. Transfer your main holdings. Once you're
confident everything works, transfer your main
Bitcoin stack. Send from exchange to your hardware
wallet. Wait for confirmations, usually three
to six confirmations for large amounts. Verify
it arrived by checking your hardware wallet balance.
Step 10. Disconnect and store securely. Unplug
your hardware wallet. Store it in a safe place
where it won't be lost, damaged, or stolen. Remember,
the hardware wallet itself is just convenience.
Your C -phrase is what actually controls your
Bitcoin. Congratulations. You now have self -custodied
Bitcoin. You are your own bank. You control your
financial destiny. All right. Now let's talk
about the mistakes people make. Because knowing
what not to do is just as important as knowing
what to do. Mistake number one, storing seed
phrase digitally. I cannot stress this enough.
Never take a photo of your seed phrase. Never
type it into your phone. Never store it in the
cloud. Hackers can access your phone. Malware
can key log your computer. Cloud services get
breached. Your seed phrase should only exist
on paper or metal, physical backups only. Mistake
number two, not testing with small amounts first.
People get excited and send their entire stack
without testing. Then they realize they sent
it to the wrong address or they don't know how
to access it. Always send a test amount first.
0 .01 BTC is cheap insurance. Mistake number
three, losing their seed phrase. I'll remember
where I put it. Famous last words. Write it down
immediately. Store it securely. Make multiple
copies in different locations. If you lose your
seed phrase and your hardware wallet, your Bitcoin
is gone. There is no recovery process. Bitcoin
doesn't have customer support. Mistake number
four, falling for phishing scams. Scammers will
text or email pretending to be hardware wallet
support. Your device has been compromised. Enter
your seed phrase here to protect your funds.
Never enter your seed phrase anywhere except
the physical device during setup. There is no
customer support that needs your seed phrase.
It's always a scam. Mistake number five, not
verifying receiving addresses. Malware can hijack
your clipboard and replace addresses. You copy
BC1Q, what actually gets pasted, scammer's address.
Always verify the first and last six characters
of an address before sending. Some wallets let
you double -check on the device screen. Mistake
number six, buying hardware wallets from third
parties. Never buy from Amazon, eBay, or random
resellers. Only from official manufacturers.
Attackers can replace the device, pre -generate
seed phrases, install malware, buy direct, pay
the extra shipping. It's worth it. Mistake number
seven, not having a backup plan. What if your
house burns down? What if you die unexpectedly?
You need multiple seed phrase copies in different
locations, a plan for inheritance. Your family
needs to know about your Bitcoin. Consider fireproof,
waterproof safes, metal backup plates, safety
deposit boxes, dead man switch services. Mistake
number eight, forgetting about UTXO management.
This is advanced, but important. Every time you
receive Bitcoin, it creates a UTXO, unspent transaction
output. If you receive 50 small transactions,
when you try to spend them all, the transaction
size is huge. The fees can be enormous. Best
practice, self -custody amounts of at least 0
.01 BTC at a time. Consolidate small amounts
on the exchange before withdrawing. Mistake number
nine, panicking and making rash decisions. Part
where a wallet won't turn on, don't panic. As
long as you have your seed phrase, you can recover
on a new device. Can't find your device? Don't
panic. Your seed phrase can restore everything.
See a scary news story about your wallet brand?
Don't panic. Research before acting. Move to
a new wallet if necessary using your seed phrase.
The seed phrase is your ultimate backup. As long
as you have it, you can recover. Mistake number
10, not updating firmware. Hardware wallets release
security updates. Connect periodically and update,
but never update in a panic. Never click links
in emails. Only update from official software.
You've set up your hardware wallet. You've avoided
the mistakes. Now, let's talk about long -term
best practices. Practice number one, periodic
check -ins. Once every six to 12 months, plug
in your hardware wallet. Make sure it still works.
Verify your balance. This ensures the device
still functions. You remember your PIN. You can
still access your Bitcoin. Think of it like checking
your emergency supplies. You don't wait until
the emergency to find out they expired. Practice
number two, test your recovery. once a year consider
wiping your device restoring from your seed phrase
confirming you can recover this is nerve -wracking
but valuable it proves you seed phrase works
only do this with a small test wallet first if
you're nervous practice number three inheritance
planning what happens to your bitcoin if you
die your family needs to be able to access it
options tell trusted family members where the
seed phrase is stored but not what it's for until
needed Use a lawyer or estate planner. Multi
-sig with family members as co -signers. Dead
man switch services. Detailed instructions in
your will. Bitcoin doesn't have beneficiaries.
Plan ahead. Practice number four. Geographic
distribution. Don't keep all your seed phrase
backups in one place. Consider one at home, one
at a family member's house, one in a safety deposit
box. If your house burns down, you still have
backups elsewhere. Practice number five. Use
metal backups for critical storage. Paper can
burn, tear, or fade. For large amounts, consider
metal backup plates. These are stainless steel
plates where you stamp or engrave your seed words.
Fireproof. Waterproof. Corrosion resistant. Built
to last. Brands. Cryptosteel. Bill Fottle. Blockplate.
Cost, $50 to $150, but worth it for serious holdings.
Practice number six, consider passphrases. A
passphrase is like a 25th word added to your
seed phrase. Even if someone finds your seed
phrase, they can't access your Bitcoin without
the passphrase. But be careful. If you forget
the passphrase, your Bitcoin is lost. There's
no recovery. Only use passphrases if you're confident
in your memory and security practices. Practice
number seven, separate hot and cold storage.
Keep one to five percent of your Bitcoin in a
hot wallet for spending. Keep 95 to 99 percent
in your cold wallet for long term storage. This
limits your exposure if your hot wallet gets
compromised. Practice number eight, stay educated.
Bitcoin technology evolves. Taproot, Lightning,
new security features. Follow Bitcoin news. Join
communities. Learn continuously. Thank you. Thank
you. Thank you. But it's the future of Bitcoin
payments. Air -gapped transactions. Some wallets,
like Coldcard, can sign transactions completely
offline. You create the transaction on a computer.
Transfer it via micro SD card. Sign on the air
-gapped device. Transfer signed transaction back.
Maximum security for large amounts. These are
advanced topics. Master the basics first. But
know they exist for when you're ready. All right,
Bitcoin maximalists. We've covered so much today.
Let me recap the key points. One. Self -custody
means you control your Bitcoin. No exchange,
no bank, no third party. Your keys, your Bitcoin.
Two, use a hardware wallet for serious holdings.
Trezor, Ledger, Coldcard, Bitbox. Just pick one
and use it. Three, your seed phrase is everything.
Write it down, secure it, never lose it, never
share it. This is your master key. Four, test
with small amounts first. We'll be right back.
The Fed is making their rate decision. The dollar
is being debased. The national debt is over $38
trillion. Traditional finance is accepting Bitcoin
as collateral. The time to act is now. The time
to self -custody is now. Here's your action plan.
Step one, go buy a hardware wallet today. Don't
wait. Pick one and order it. Step two, while
you wait for it to arrive, watch setup videos,
read guides. Step 3. When it arrives, follow
the steps we covered today. Take your time. Do
it right. Step 4. Once set up, withdraw your
Bitcoin from exchanges. Take custody. Be your
own bank. Step 5. Share this episode with every
Bitcoin holder you know. Help them achieve financial
sovereignty. Visit thebitcoinstreetjournal .com
for more resources. Set up your Nolster profile.
Zap me some lightning sats if this episode helped
you. And remember, this isn't just about protecting
your Bitcoin. This is about freedom, financial
sovereignty, independence from the system. When
you control your own keys, you control your own
destiny. No government can freeze your Bitcoin.
No bank can deny you access. No exchange can
steal your funds. This is what Bitcoin was made
for. This is what Satoshi Nakamoto envisioned.
a system where individuals are sovereign, where
money is controlled by math, not men. So take
control, self -custody your Bitcoin, be your
own bank, and join the revolution of sound money.
Not your keys, not your Bitcoin. Not your keys,
not your freedom. This has been the Bitcoin Street
Journal podcast. I'm Anna, and I'll see you on
the next block.