WEBVTT 00:00:00.000 --> 00:00:03.500 hey hey hey what's up bitcoin maximalists welcome 00:00:03.500 --> 00:00:06.599 to the bitcoin street journal podcast and today 00:00:06.599 --> 00:00:10.019 we're doing something special i'm anna and this 00:00:10.019 --> 00:00:12.910 episode is going to change your life Because 00:00:12.910 --> 00:00:15.990 today we're diving deep into the single most 00:00:15.990 --> 00:00:18.649 important skill every Bitcoin holder needs to 00:00:18.649 --> 00:00:22.190 know. Self custody. That's right. We're going 00:00:22.190 --> 00:00:24.989 step by step through how to take control of your 00:00:24.989 --> 00:00:28.210 Bitcoin, how to be your own bank and how to achieve 00:00:28.210 --> 00:00:31.210 true financial sovereignty. But first, quick 00:00:31.210 --> 00:00:33.770 news update, because some insane stuff is happening 00:00:33.770 --> 00:00:38.899 right now. Bitcoin is trading at $113 ,092. The 00:00:38.899 --> 00:00:41.439 Fed is making their rate decision today at 2 00:00:41.439 --> 00:00:45.600 .30 p .m. Eastern. 97 .8 % chance of a rate cut. 00:00:45.759 --> 00:00:50.000 A $300 home Bitcoin miner just solo mined a block 00:00:50.000 --> 00:00:54.759 worth $347 ,000. And Jack Dorsey just said that 00:00:54.759 --> 00:00:57.780 the dollar in your bank keeps losing value and 00:00:57.780 --> 00:01:02.020 Bitcoin is mathematically going up forever. Plus, 00:01:02.020 --> 00:01:05.109 and this is huge. JP Morgan is planning to allow 00:01:05.109 --> 00:01:07.670 institutional clients to use Bitcoin as loan 00:01:07.670 --> 00:01:11.150 collateral by late 2025. The banks are coming 00:01:11.150 --> 00:01:13.730 around, folks. But here's the thing. If your 00:01:13.730 --> 00:01:15.750 Bitcoin is sitting on an exchange right now, 00:01:15.870 --> 00:01:19.290 you don't own it. The exchange owns it. And after 00:01:19.290 --> 00:01:23.150 everything we've seen, FTX, Celsius, BlockFi, 00:01:23.329 --> 00:01:26.890 Mt. Gox, we should know better. So today, I'm 00:01:26.890 --> 00:01:29.170 going to teach you exactly how to self -custody 00:01:29.170 --> 00:01:32.540 your Bitcoin. We're going to cover... Why self 00:01:32.540 --> 00:01:35.280 -custody matters more than ever. The different 00:01:35.280 --> 00:01:38.400 types of wallets explained simply. Step -by -step 00:01:38.400 --> 00:01:41.260 hardware wallet setup. How to secure your seed 00:01:41.260 --> 00:01:44.099 phrase like a pro. Common mistakes that cost 00:01:44.099 --> 00:01:47.200 people their Bitcoin. And best practices that 00:01:47.200 --> 00:01:50.099 keep your SATs safe. This is going to be educational. 00:01:50.519 --> 00:01:53.680 This is going to be empowering. And by the end 00:01:53.680 --> 00:01:55.819 of this episode, you're going to have a clear 00:01:55.819 --> 00:01:58.599 roadmap to financial sovereignty. Before we dive 00:01:58.599 --> 00:02:01.250 in. Head over to the BitcoinStreetJournal .com 00:02:01.250 --> 00:02:04.709 and set up your free Nostra profile. Self -custody 00:02:04.709 --> 00:02:06.950 your social media while you're at it. And when 00:02:06.950 --> 00:02:08.830 you're feeling grateful for this free education, 00:02:09.210 --> 00:02:12.349 zap me some lightning stats. All right, let's 00:02:12.349 --> 00:02:14.409 talk about the most important thing you can do 00:02:14.409 --> 00:02:17.629 as a Bitcoiner. Taking custody of your own keys. 00:02:18.009 --> 00:02:21.090 Let's go. Quick market update before we dive 00:02:21.090 --> 00:02:24.030 into the self -custody masterclass. Bitcoin is 00:02:24.030 --> 00:02:28.629 currently at $113 ,092. Down slightly from yesterday. 00:02:29.099 --> 00:02:31.439 But who cares about daily moves when we're talking 00:02:31.439 --> 00:02:34.379 about long -term wealth preservation? Market 00:02:34.379 --> 00:02:38.479 cap is sitting at $2 .26 trillion. Bitcoin dominance 00:02:38.479 --> 00:02:42.039 is at 58 .5%. And here's something beautiful. 00:02:42.360 --> 00:02:45.120 Bitcoin hash rate just hit an all -time high 00:02:45.120 --> 00:02:48.580 of 1 .1 zeta hashes per second. That means the 00:02:48.580 --> 00:02:51.439 network has never been more secure. While we're 00:02:51.439 --> 00:02:53.979 learning about self -custody today, just know 00:02:53.979 --> 00:02:56.719 that the Bitcoin network itself is stronger than 00:02:56.719 --> 00:02:59.819 ever. Now, some quick news that's directly relevant 00:02:59.819 --> 00:03:02.900 to our self -custody conversation. The U .S. 00:03:02.939 --> 00:03:06.340 national debt just broke above $38 trillion for 00:03:06.340 --> 00:03:09.439 the first time ever. And like Jack Dorsey said 00:03:09.439 --> 00:03:12.560 today, the dollar in your bank keeps losing value. 00:03:12.960 --> 00:03:16.319 Bitcoin has no top because fiat has no bottom. 00:03:16.419 --> 00:03:20.439 This is exactly why we self -custody. We're not 00:03:20.439 --> 00:03:22.759 just protecting our Bitcoin from hacks. We're 00:03:22.759 --> 00:03:25.000 protecting ourselves from currency debasement. 00:03:25.240 --> 00:03:28.259 JP Morgan is allowing Bitcoin as loan collateral 00:03:28.259 --> 00:03:32.180 by late 2025. Traditional finance is finally 00:03:32.180 --> 00:03:35.479 accepting that Bitcoin is real money. But here's 00:03:35.479 --> 00:03:37.979 the catch. To use your Bitcoin as collateral, 00:03:38.259 --> 00:03:41.620 you need to actually own it. Not your keys, not 00:03:41.620 --> 00:03:45.620 your Bitcoin means not your collateral. And in 00:03:45.620 --> 00:03:49.419 some wild news, a $300 home Bitcoin miner just 00:03:49.419 --> 00:03:54.400 solo mined a block worth $347 ,000. One in 10 00:03:54.400 --> 00:03:57.460 million odds. But you know what? That lucky person 00:03:57.460 --> 00:04:00.099 better have self -custody figured out, or they 00:04:00.099 --> 00:04:02.419 could lose that entire windfall to an exchange 00:04:02.419 --> 00:04:06.379 hack. France is reviewing a motion to ban CBDCs 00:04:06.379 --> 00:04:09.159 and promote Bitcoin. This is the fight of our 00:04:09.159 --> 00:04:12.180 lifetime. Centralized digital currencies that 00:04:12.180 --> 00:04:15.180 give governments total control. Versus Bitcoin 00:04:15.180 --> 00:04:18.500 that gives individuals total control. This is 00:04:18.500 --> 00:04:20.699 why self -custody isn't just about security. 00:04:21.000 --> 00:04:24.399 It's about freedom. It's about sovereignty. It's 00:04:24.399 --> 00:04:27.420 about saying, this is my money and no one can 00:04:27.420 --> 00:04:29.980 freeze it, seize it, or stop me from using it. 00:04:30.439 --> 00:04:33.579 Oh, and Lugano, Switzerland just unveiled a statue 00:04:33.579 --> 00:04:36.459 of Satoshi Nakamoto. They're honoring the creator 00:04:36.459 --> 00:04:39.639 of the hardest money ever created. And you know 00:04:39.639 --> 00:04:42.459 what would make Satoshi proud? Self -custodying 00:04:42.459 --> 00:04:45.379 your Bitcoin like he intended. All right, enough 00:04:45.379 --> 00:04:48.519 market talk. Let's get into the education. Let's 00:04:48.519 --> 00:04:51.220 learn how to actually do this self -custody thing 00:04:51.220 --> 00:04:54.480 properly. Before we get into the how, we need 00:04:54.480 --> 00:04:57.180 to understand the why. Because self -custody 00:04:57.180 --> 00:04:59.680 isn't just a technical thing. It's a philosophical 00:04:59.680 --> 00:05:03.259 thing. It's the whole point of Bitcoin. Let me 00:05:03.259 --> 00:05:05.779 tell you a story. When you keep Bitcoin on an 00:05:05.779 --> 00:05:08.839 exchange like Coinbase, Binance, or Kraken, here's 00:05:08.839 --> 00:05:11.199 what's actually happening. You don't have Bitcoin. 00:05:11.459 --> 00:05:22.160 You have an IOU. They control your Bitcoin. And 00:05:22.160 --> 00:05:24.879 what can happen? Let me count the ways. One, 00:05:25.040 --> 00:05:27.759 they can freeze your account. Don't like your 00:05:27.759 --> 00:05:30.639 political views? Frozen. Think you're doing something 00:05:30.639 --> 00:05:33.560 suspicious? Frozen. Made a mistake with their 00:05:33.560 --> 00:05:37.769 KYC? Frozen. Two, they can get hacked. Mount 00:05:37.769 --> 00:05:43.230 Gox, 850 ,000 Bitcoin, gone. Bitfinex, 120 ,000 00:05:43.230 --> 00:05:45.850 Bitcoin, stolen. And that's just two examples. 00:05:46.389 --> 00:05:50.110 Three, they can go bankrupt. FTX had billions 00:05:50.110 --> 00:05:52.750 of dollars of customer funds and used them for 00:05:52.750 --> 00:05:55.790 their own trading. Celsius promised you interest 00:05:55.790 --> 00:05:59.110 and then gambled your Bitcoin away. BlockFi went 00:05:59.110 --> 00:06:02.670 under. Voyager went under. Four, they can refuse 00:06:02.670 --> 00:06:05.649 withdrawals. Sorry, we're experiencing technical 00:06:05.649 --> 00:06:08.959 difficulties. Meanwhile, your Bitcoin is trapped. 00:06:09.199 --> 00:06:11.620 Now let me tell you what self -custody means. 00:06:11.920 --> 00:06:15.300 You control the private keys. No one can freeze 00:06:15.300 --> 00:06:18.220 your funds. No one can stop you from making a 00:06:18.220 --> 00:06:21.699 transaction. No customer support can lock you 00:06:21.699 --> 00:06:24.220 out. No bankruptcy can take your Bitcoin away. 00:06:24.560 --> 00:06:27.279 But, and this is the important part, with great 00:06:27.279 --> 00:06:30.420 power comes great responsibility. When you self 00:06:30.420 --> 00:06:33.540 -custody, you are the security. You are the backup. 00:06:34.009 --> 00:06:36.750 You are the recovery process. If you mess up, 00:06:36.769 --> 00:06:39.550 there's no calling customer service. If you lose 00:06:39.550 --> 00:06:42.769 your keys, your Bitcoin is gone. It's like cash 00:06:42.769 --> 00:06:46.029 in that regard. Once it's lost, it's lost. But 00:06:46.029 --> 00:06:48.769 that's also what makes it powerful. No one can 00:06:48.769 --> 00:06:52.089 reverse your transaction. No one can create more 00:06:52.089 --> 00:06:55.290 of your Bitcoin. No one can inflate away your 00:06:55.290 --> 00:06:58.310 wealth. Self custody is the double edged sword 00:06:58.310 --> 00:07:01.449 of Bitcoin. The benefits are massive. Complete 00:07:01.449 --> 00:07:04.379 control over your funds. No one can freeze or 00:07:04.379 --> 00:07:07.819 seize them. No counterparty risk. Financial sovereignty. 00:07:08.079 --> 00:07:13.019 But the responsibilities are real. You must secure 00:07:13.019 --> 00:07:15.879 your seed phrase. You must protect your hardware 00:07:15.879 --> 00:07:19.000 wallet. You must understand how to send and receive 00:07:19.000 --> 00:07:22.180 properly. You must have backups in case of disaster. 00:07:22.519 --> 00:07:25.620 And you know what? I think every Bitcoin holder 00:07:25.620 --> 00:07:28.500 can learn this. I think every person deserves 00:07:28.500 --> 00:07:31.120 financial sovereignty. And that's why we're doing 00:07:31.120 --> 00:07:33.899 this episode. All right. Let's break down the 00:07:33.899 --> 00:07:36.399 types of wallets you're going to encounter, because 00:07:36.399 --> 00:07:40.600 not all wallets are created equal. There are 00:07:40.600 --> 00:07:44.040 three main categories, custodial wallets, hot 00:07:44.040 --> 00:07:47.420 wallets, and cold wallets. Let me explain each 00:07:47.420 --> 00:07:50.500 one. Custodial wallets, the ones you want to 00:07:50.500 --> 00:07:53.579 avoid for long -term storage. These are wallets 00:07:53.579 --> 00:07:57.060 offered by exchanges. Coinbase Wallet, Binance, 00:07:57.139 --> 00:08:00.420 Kraken, Cash App. They work just like a bank 00:08:00.420 --> 00:08:03.800 account. Pros? They're convenient, easy to buy 00:08:03.800 --> 00:08:07.360 and sell, quick transactions. Cons, you don't 00:08:07.360 --> 00:08:10.319 control the keys. They can freeze you. They can 00:08:10.319 --> 00:08:12.959 get hacked. They can go bankrupt. My advice, 00:08:13.180 --> 00:08:16.600 use custodial wallets only for trading or very 00:08:16.600 --> 00:08:19.600 small amounts you're about to spend. Never store 00:08:19.600 --> 00:08:22.879 significant Bitcoin on an exchange. Hot wallets, 00:08:22.899 --> 00:08:25.939 software wallets for spending money. These are 00:08:25.939 --> 00:08:28.220 non -custodial wallets that run on your phone 00:08:28.220 --> 00:08:32.000 or computer. Examples. Blue Wallet, Electrum, 00:08:32.100 --> 00:08:34.960 Sparrow Wallet. You control the private keys, 00:08:35.159 --> 00:08:38.080 but they're stored on your device, which is connected 00:08:38.080 --> 00:08:40.779 to the Internet. Think of hot wallets like your 00:08:40.779 --> 00:08:43.379 physical wallet in your pocket. You keep maybe 00:08:43.379 --> 00:08:47.419 $100 to $500 in it for daily spending. You don't 00:08:47.419 --> 00:08:49.279 keep your life savings in your pocket wallet, 00:08:49.419 --> 00:08:53.080 right? Same with hot wallets. Use them for spending 00:08:53.080 --> 00:08:56.159 amounts. Bitcoin you might use in the next week 00:08:56.159 --> 00:09:01.090 or month. Maybe 0 .01 to 0 .1 BTC, depending 00:09:01.090 --> 00:09:04.710 on your situation. Pros, convenient, easy to 00:09:04.710 --> 00:09:08.370 use, quick transactions. Cons, your device could 00:09:08.370 --> 00:09:11.909 get hacked. Malware could steal your keys. You 00:09:11.909 --> 00:09:15.190 could accidentally expose your seed phrase. Cold 00:09:15.190 --> 00:09:18.409 wallets, hardware wallets for serious storage. 00:09:18.750 --> 00:09:21.929 These are physical devices designed specifically 00:09:21.929 --> 00:09:25.289 to keep your private keys offline and secure. 00:09:25.909 --> 00:09:30.419 Examples. Coldcard, Trezor, Ledger, Bitbox02, 00:09:30.860 --> 00:09:34.360 Tangent. The private key never leaves the device. 00:09:34.620 --> 00:09:37.120 Even when you plug it into your computer, the 00:09:37.120 --> 00:09:40.620 signing happens on the device itself. Think of 00:09:40.620 --> 00:09:44.039 hardware wallets like a safe. This is where you 00:09:44.039 --> 00:09:47.200 keep your real wealth. Your long -term holdings. 00:09:47.200 --> 00:09:51.159 Your life savings in Bitcoin. Pros? Maximum security. 00:09:51.539 --> 00:09:54.539 Keys never touch the internet. Protected from 00:09:54.539 --> 00:09:58.200 hackers. Purpose built for security. Cons, cost 00:09:58.200 --> 00:10:01.919 money, $50 to $200, slight warning curve, not 00:10:01.919 --> 00:10:04.720 as convenient for daily transactions. Here's 00:10:04.720 --> 00:10:07.740 my recommended strategy for most people. Layer 00:10:07.740 --> 00:10:11.059 one, exchange wallet with zero Bitcoin long term. 00:10:11.240 --> 00:10:14.559 Only use it to buy, then immediately withdraw. 00:10:14.820 --> 00:10:18.679 Layer two, hot wallet, software wallet, with 00:10:18.679 --> 00:10:23.399 small spending amounts, maybe 0 .01 to 0 .1 BTC. 00:10:23.600 --> 00:10:26.690 Think of it as your checking account. Layer three, 00:10:26.809 --> 00:10:29.750 cold wallet, hardware wallet with your serious 00:10:29.750 --> 00:10:33.090 holdings, your savings account. This is where 00:10:33.090 --> 00:10:36.210 90 % plus of your Bitcoin should live. And for 00:10:36.210 --> 00:10:39.370 really advanced users, consider multi -signature 00:10:39.370 --> 00:10:42.570 setups where you need two of three or three of 00:10:42.570 --> 00:10:45.250 five keys to spend. But that's advanced stuff 00:10:45.250 --> 00:10:48.129 we won't cover today. The key principle, the 00:10:48.129 --> 00:10:50.950 more Bitcoin you have, the more serious your 00:10:50.950 --> 00:11:21.460 security needs to be. All right. No altcoin support. 00:11:21.700 --> 00:11:25.629 Features? Air -gapped. Never touches your computer 00:11:25.629 --> 00:11:29.389 directly. Dual secure elements. Micro SD card 00:11:29.389 --> 00:11:32.850 for transactions. Built like a tank. Best for 00:11:32.850 --> 00:11:36.009 serious Bitcoiners. Large amounts. People who 00:11:36.009 --> 00:11:39.470 want maximum security. Downsides. Slightly harder 00:11:39.470 --> 00:11:43.309 to use. More expensive. Bitcoin only means no 00:11:43.309 --> 00:11:46.789 altcoins. But who needs them anyway? Trezor Safe 00:11:46.789 --> 00:11:51.870 3. $79. The OG hardware wallet. Been around since 00:11:51.870 --> 00:12:21.490 2014. The most popular hardware wallet. Large 00:12:21.490 --> 00:12:24.450 storage. Supports thousands of coins. Mobile 00:12:24.450 --> 00:12:27.970 app. Bluetooth for phone use. Best for people 00:12:27.970 --> 00:12:31.590 who want convenience. Multi -coin holders. Downsides? 00:12:31.649 --> 00:12:34.570 Not fully open source. Had some controversial 00:12:34.570 --> 00:12:37.529 updates in the past. Bluetooth could be a security 00:12:37.529 --> 00:12:43.470 concern. Bitbox O2. $149. Swiss made. Bitcoin 00:12:43.470 --> 00:12:47.149 only version available. Features? Dual chip architecture. 00:12:47.629 --> 00:12:51.340 Micro SD card backup. Simple design. Open source. 00:12:51.639 --> 00:12:55.139 Best for people who want security and simplicity. 00:12:55.500 --> 00:12:59.799 Swiss privacy. Downsides? Less well -known. Smaller 00:12:59.799 --> 00:13:04.840 ecosystem. Tangent. $55 to $70. The wild card. 00:13:05.059 --> 00:13:08.259 It's a card -based wallet. Features. No seed 00:13:08.259 --> 00:13:11.539 phrase needed. Multiple backup cards. NFC -based. 00:13:11.779 --> 00:13:14.820 Ultra -portable. Best for people intimidated 00:13:14.820 --> 00:13:18.679 by seed phrases. Those who want simplicity. Downsides. 00:13:19.070 --> 00:13:21.710 Different security model, less control, newer 00:13:21.710 --> 00:13:25.429 product. My recommendation for most people, start 00:13:25.429 --> 00:13:29.289 with Trezor Safe 3 or Ledger Nano X. They're 00:13:29.289 --> 00:13:31.750 user -friendly, well -supported, and have great 00:13:31.750 --> 00:13:34.710 tutorials. For Bitcoin maximalists with serious 00:13:34.710 --> 00:13:38.429 holdings, cold card Mach 4. It's built for Bitcoin 00:13:38.429 --> 00:13:41.370 and Bitcoin only. For people terrified of seed 00:13:41.370 --> 00:13:44.610 phrases, Tangium. But understand you're trading 00:13:44.610 --> 00:13:47.490 some control for convenience. Here's what matters 00:13:47.490 --> 00:13:50.860 more than the brand. One, buy from the manufacturer 00:13:50.860 --> 00:13:54.840 directly. Never buy from Amazon or eBay. Devices 00:13:54.840 --> 00:13:58.059 could be tampered with. Two, verify the device 00:13:58.059 --> 00:14:00.799 is genuine. Most hardware wallets have tamper 00:14:00.799 --> 00:14:03.799 -evident packaging. Three, follow the setup instructions 00:14:03.799 --> 00:14:07.360 carefully. Take your time. Don't rush. Four, 00:14:07.539 --> 00:14:10.220 never enter your seed phrase into a computer 00:14:10.220 --> 00:14:13.600 or phone. Only write it on paper. The hardware 00:14:13.600 --> 00:14:16.240 wallet you choose is less important than using 00:14:16.240 --> 00:14:19.789 one. Just pick one and commit. Any hardware wallet 00:14:19.789 --> 00:14:22.409 is 1 ,000 times better than leaving your Bitcoin 00:14:22.409 --> 00:14:25.590 on an exchange. All right, this is the big one. 00:14:26.110 --> 00:14:28.750 Let's go through the exact steps to set up your 00:14:28.750 --> 00:14:31.149 hardware wallet. I'm going to give you a general 00:14:31.149 --> 00:14:34.490 process that works for most devices. Step one, 00:14:34.669 --> 00:14:37.870 purchase your hardware wallet. Buy directly from 00:14:37.870 --> 00:14:41.669 the manufacturer. Trezor .io for Trezor. Coldcard 00:14:41.669 --> 00:14:45.429 .com for Coldcard. Ledger .com for Ledger. Wait 00:14:45.429 --> 00:14:48.320 for it to arrive. Don't be impatient. Security 00:14:48.320 --> 00:14:52.159 takes time. Step two, verify the package. When 00:14:52.159 --> 00:14:54.679 your device arrives, check for tamper evidence 00:14:54.679 --> 00:14:58.200 seals. Most manufacturers have holographic stickers 00:14:58.200 --> 00:15:01.220 or sealed packaging. If anything looks suspicious, 00:15:01.559 --> 00:15:04.740 packaging opened, seals broken, device looks 00:15:04.740 --> 00:15:08.379 used, do not use it. Contact the manufacturer 00:15:08.379 --> 00:15:12.200 immediately. This is serious. A compromised device 00:15:12.200 --> 00:15:15.679 could steal all your Bitcoin. Step three, unbox 00:15:15.679 --> 00:15:18.879 and initialize. Open the package. You should 00:15:18.879 --> 00:15:22.159 find the hardware wallet device, a USB cable, 00:15:22.399 --> 00:15:25.879 recovery phrase cards, instruction manual. Plug 00:15:25.879 --> 00:15:28.940 in your device or turn it on. Follow the on -screen 00:15:28.940 --> 00:15:32.289 instructions. Most devices will ask you to choose 00:15:32.289 --> 00:15:35.169 a language, create a pin code, generate a new 00:15:35.169 --> 00:15:38.330 wallet. Step four, create your pin code. Choose 00:15:38.330 --> 00:15:41.149 a pin that's six to eight digits. Make it unique. 00:15:41.649 --> 00:15:44.309 Don't use one, two, three, four, five, six, or 00:15:44.309 --> 00:15:47.169 your birthday. Here's the thing. Your pin protects 00:15:47.169 --> 00:15:50.110 your device if someone steals it. After several 00:15:50.110 --> 00:15:52.710 wrong attempts, usually three to 16, depending 00:15:52.710 --> 00:15:56.190 on device, the device will wipe itself. So memorize 00:15:56.190 --> 00:15:59.149 it. Write it down separately from your seed phrase. 00:15:59.639 --> 00:16:02.740 Keep it secure. Step five, generate your seed 00:16:02.740 --> 00:16:05.399 phrase. This is the most important part. Your 00:16:05.399 --> 00:16:08.340 device will now generate a seed phrase. This 00:16:08.340 --> 00:16:12.139 is usually 12 or 24 words. These words are your 00:16:12.139 --> 00:16:14.759 Bitcoin. If you have these words, you have your 00:16:14.759 --> 00:16:17.580 Bitcoin. If you lose these words, your Bitcoin 00:16:17.580 --> 00:16:20.679 is gone forever. The device will display the 00:16:20.679 --> 00:16:23.519 words one at a time. You must write them down 00:16:23.519 --> 00:16:26.419 on the recovery cards provided. Critical rules 00:16:26.419 --> 00:16:29.590 for seed phrase. Write them in order. Word 1, 00:16:29.750 --> 00:16:33.250 Word 2, Word 3, etc. Use the official recovery 00:16:33.250 --> 00:16:36.149 card that came with your device. Use a permanent 00:16:36.149 --> 00:16:40.110 pen or pencil. Not erasable. Write legibly. If 00:16:40.110 --> 00:16:42.690 you can't read it later, you're screwed. Double 00:16:42.690 --> 00:16:45.309 check each word. Make sure you wrote it correctly. 00:16:45.730 --> 00:16:48.809 Never take a photo. Never type it into a computer. 00:16:49.210 --> 00:16:52.110 Never store it digitally. Never share it with 00:16:52.110 --> 00:16:55.769 anyone. Not even customer support. Scammers love 00:16:55.769 --> 00:16:58.730 this trick. Some devices will ask you to verify 00:16:58.730 --> 00:17:01.470 the seed phrase by entering it again in order. 00:17:01.629 --> 00:17:04.470 This ensures you wrote it down correctly. Do 00:17:04.470 --> 00:17:07.990 not skip this. Step six, secure your seed phrase 00:17:07.990 --> 00:17:10.890 physically. Now you have a piece of paper with 00:17:10.890 --> 00:17:13.950 12 to 24 words that represents all your Bitcoin. 00:17:14.109 --> 00:17:17.970 This needs to be secured. Options, fireproof 00:17:17.970 --> 00:17:21.130 safe in your home, safety deposit box at a bank, 00:17:21.250 --> 00:17:23.809 but then you have a third party, metal backup 00:17:23.809 --> 00:17:27.099 plate resistant to fire and water. Multiple copies 00:17:27.099 --> 00:17:30.119 in different geographical locations. Do not store 00:17:30.119 --> 00:17:33.299 it. In a desk drawer. In your wallet. On your 00:17:33.299 --> 00:17:36.359 computer. In the cloud. Google Drive, iCloud, 00:17:36.539 --> 00:17:39.960 Dropbox, etc. In an email to yourself. In a password 00:17:39.960 --> 00:17:42.700 manager. The seed phrase is your master key. 00:17:42.920 --> 00:17:47.359 Treat it like the deeds to your house. Step 7. 00:17:47.880 --> 00:17:50.559 Generate your first receiving address. Now that 00:17:50.559 --> 00:17:52.819 your wallet is set up, navigate to the receive 00:17:52.819 --> 00:17:55.559 function. Your device will generate a Bitcoin 00:17:55.559 --> 00:17:58.579 address. It's a long string of letters and numbers 00:17:58.579 --> 00:18:03.279 starting with BC1, 1 or 3. This address is public. 00:18:03.500 --> 00:18:06.140 You can share it. It's where people send you 00:18:06.140 --> 00:18:09.019 Bitcoin. Some devices will show a QR code you 00:18:09.019 --> 00:18:12.460 can scan or you can copy the address. Step eight, 00:18:12.579 --> 00:18:15.480 send a test transaction. Before you send your 00:18:15.480 --> 00:18:18.599 entire Bitcoin stack, do a small test transaction. 00:18:19.150 --> 00:18:24.450 Send 0 .001 BTC, about $113, from your exchange 00:18:24.450 --> 00:18:27.509 to your hardware wallet. Wait for it to confirm, 00:18:27.690 --> 00:18:30.190 usually 10 to 60 minutes, depending on fees. 00:18:30.609 --> 00:18:33.490 Once it arrives, practice sending it back to 00:18:33.490 --> 00:18:36.430 the exchange. This confirms you know how to receive, 00:18:36.650 --> 00:18:39.710 you know how to send. Everything works correctly. 00:18:40.309 --> 00:18:43.670 Step 9. Transfer your main holdings. Once you're 00:18:43.670 --> 00:18:46.410 confident everything works, transfer your main 00:18:46.410 --> 00:18:49.809 Bitcoin stack. Send from exchange to your hardware 00:18:49.809 --> 00:18:52.690 wallet. Wait for confirmations, usually three 00:18:52.690 --> 00:18:55.769 to six confirmations for large amounts. Verify 00:18:55.769 --> 00:18:58.269 it arrived by checking your hardware wallet balance. 00:18:58.630 --> 00:19:02.769 Step 10. Disconnect and store securely. Unplug 00:19:02.769 --> 00:19:05.210 your hardware wallet. Store it in a safe place 00:19:05.210 --> 00:19:08.269 where it won't be lost, damaged, or stolen. Remember, 00:19:08.450 --> 00:19:11.009 the hardware wallet itself is just convenience. 00:19:11.230 --> 00:19:13.950 Your C -phrase is what actually controls your 00:19:13.950 --> 00:19:19.460 Bitcoin. Congratulations. You now have self -custodied 00:19:19.460 --> 00:19:22.519 Bitcoin. You are your own bank. You control your 00:19:22.519 --> 00:19:25.519 financial destiny. All right. Now let's talk 00:19:25.519 --> 00:19:27.680 about the mistakes people make. Because knowing 00:19:27.680 --> 00:19:30.319 what not to do is just as important as knowing 00:19:30.319 --> 00:19:33.759 what to do. Mistake number one, storing seed 00:19:33.759 --> 00:19:36.220 phrase digitally. I cannot stress this enough. 00:19:36.420 --> 00:19:38.980 Never take a photo of your seed phrase. Never 00:19:38.980 --> 00:19:41.519 type it into your phone. Never store it in the 00:19:41.519 --> 00:19:44.500 cloud. Hackers can access your phone. Malware 00:19:44.500 --> 00:19:47.420 can key log your computer. Cloud services get 00:19:47.420 --> 00:19:50.279 breached. Your seed phrase should only exist 00:19:50.279 --> 00:19:54.480 on paper or metal, physical backups only. Mistake 00:19:54.480 --> 00:19:57.119 number two, not testing with small amounts first. 00:19:57.460 --> 00:20:00.400 People get excited and send their entire stack 00:20:00.400 --> 00:20:02.900 without testing. Then they realize they sent 00:20:02.900 --> 00:20:05.619 it to the wrong address or they don't know how 00:20:05.619 --> 00:20:08.480 to access it. Always send a test amount first. 00:20:08.779 --> 00:20:13.579 0 .01 BTC is cheap insurance. Mistake number 00:20:13.579 --> 00:20:16.470 three, losing their seed phrase. I'll remember 00:20:16.470 --> 00:20:19.730 where I put it. Famous last words. Write it down 00:20:19.730 --> 00:20:22.950 immediately. Store it securely. Make multiple 00:20:22.950 --> 00:20:25.990 copies in different locations. If you lose your 00:20:25.990 --> 00:20:28.890 seed phrase and your hardware wallet, your Bitcoin 00:20:28.890 --> 00:20:32.710 is gone. There is no recovery process. Bitcoin 00:20:32.710 --> 00:20:35.269 doesn't have customer support. Mistake number 00:20:35.269 --> 00:20:38.569 four, falling for phishing scams. Scammers will 00:20:38.569 --> 00:20:40.869 text or email pretending to be hardware wallet 00:20:40.869 --> 00:20:44.109 support. Your device has been compromised. Enter 00:20:44.109 --> 00:20:46.150 your seed phrase here to protect your funds. 00:20:47.289 --> 00:20:50.049 Never enter your seed phrase anywhere except 00:20:50.049 --> 00:20:52.970 the physical device during setup. There is no 00:20:52.970 --> 00:20:55.009 customer support that needs your seed phrase. 00:20:55.190 --> 00:20:59.250 It's always a scam. Mistake number five, not 00:20:59.250 --> 00:21:02.789 verifying receiving addresses. Malware can hijack 00:21:02.789 --> 00:21:05.710 your clipboard and replace addresses. You copy 00:21:05.710 --> 00:21:10.089 BC1Q, what actually gets pasted, scammer's address. 00:21:10.920 --> 00:21:13.640 Always verify the first and last six characters 00:21:13.640 --> 00:21:16.579 of an address before sending. Some wallets let 00:21:16.579 --> 00:21:20.359 you double -check on the device screen. Mistake 00:21:20.359 --> 00:21:22.880 number six, buying hardware wallets from third 00:21:22.880 --> 00:21:26.579 parties. Never buy from Amazon, eBay, or random 00:21:26.579 --> 00:21:29.119 resellers. Only from official manufacturers. 00:21:29.940 --> 00:21:33.180 Attackers can replace the device, pre -generate 00:21:33.180 --> 00:21:36.500 seed phrases, install malware, buy direct, pay 00:21:36.500 --> 00:21:39.549 the extra shipping. It's worth it. Mistake number 00:21:39.549 --> 00:21:42.190 seven, not having a backup plan. What if your 00:21:42.190 --> 00:21:44.490 house burns down? What if you die unexpectedly? 00:21:44.910 --> 00:21:48.069 You need multiple seed phrase copies in different 00:21:48.069 --> 00:21:52.509 locations, a plan for inheritance. Your family 00:21:52.509 --> 00:21:55.710 needs to know about your Bitcoin. Consider fireproof, 00:21:55.789 --> 00:21:58.890 waterproof safes, metal backup plates, safety 00:21:58.890 --> 00:22:02.730 deposit boxes, dead man switch services. Mistake 00:22:02.730 --> 00:22:05.349 number eight, forgetting about UTXO management. 00:22:05.650 --> 00:22:08.799 This is advanced, but important. Every time you 00:22:08.799 --> 00:22:12.559 receive Bitcoin, it creates a UTXO, unspent transaction 00:22:12.559 --> 00:22:15.700 output. If you receive 50 small transactions, 00:22:15.960 --> 00:22:18.440 when you try to spend them all, the transaction 00:22:18.440 --> 00:22:22.440 size is huge. The fees can be enormous. Best 00:22:22.440 --> 00:22:24.980 practice, self -custody amounts of at least 0 00:22:24.980 --> 00:22:28.640 .01 BTC at a time. Consolidate small amounts 00:22:28.640 --> 00:22:31.799 on the exchange before withdrawing. Mistake number 00:22:31.799 --> 00:22:34.740 nine, panicking and making rash decisions. Part 00:22:34.740 --> 00:22:37.339 where a wallet won't turn on, don't panic. As 00:22:37.339 --> 00:22:39.859 long as you have your seed phrase, you can recover 00:22:39.859 --> 00:22:42.839 on a new device. Can't find your device? Don't 00:22:42.839 --> 00:22:45.859 panic. Your seed phrase can restore everything. 00:22:46.319 --> 00:22:48.980 See a scary news story about your wallet brand? 00:22:49.500 --> 00:22:52.720 Don't panic. Research before acting. Move to 00:22:52.720 --> 00:22:55.339 a new wallet if necessary using your seed phrase. 00:22:55.579 --> 00:22:59.000 The seed phrase is your ultimate backup. As long 00:22:59.000 --> 00:23:01.839 as you have it, you can recover. Mistake number 00:23:01.839 --> 00:23:05.220 10, not updating firmware. Hardware wallets release 00:23:05.220 --> 00:23:09.039 security updates. Connect periodically and update, 00:23:09.220 --> 00:23:12.140 but never update in a panic. Never click links 00:23:12.140 --> 00:23:14.880 in emails. Only update from official software. 00:23:15.140 --> 00:23:18.000 You've set up your hardware wallet. You've avoided 00:23:18.000 --> 00:23:20.819 the mistakes. Now, let's talk about long -term 00:23:20.819 --> 00:23:23.740 best practices. Practice number one, periodic 00:23:23.740 --> 00:23:26.819 check -ins. Once every six to 12 months, plug 00:23:26.819 --> 00:23:29.140 in your hardware wallet. Make sure it still works. 00:23:29.400 --> 00:23:32.299 Verify your balance. This ensures the device 00:23:32.299 --> 00:23:35.579 still functions. You remember your PIN. You can 00:23:35.579 --> 00:23:38.380 still access your Bitcoin. Think of it like checking 00:23:38.380 --> 00:23:40.900 your emergency supplies. You don't wait until 00:23:40.900 --> 00:23:43.700 the emergency to find out they expired. Practice 00:23:43.700 --> 00:23:47.140 number two, test your recovery. once a year consider 00:23:47.140 --> 00:23:50.140 wiping your device restoring from your seed phrase 00:23:50.140 --> 00:23:53.200 confirming you can recover this is nerve -wracking 00:23:53.200 --> 00:23:56.059 but valuable it proves you seed phrase works 00:23:56.059 --> 00:23:59.299 only do this with a small test wallet first if 00:23:59.299 --> 00:24:03.180 you're nervous practice number three inheritance 00:24:03.180 --> 00:24:05.779 planning what happens to your bitcoin if you 00:24:05.779 --> 00:24:08.460 die your family needs to be able to access it 00:24:08.460 --> 00:24:11.700 options tell trusted family members where the 00:24:11.700 --> 00:24:14.460 seed phrase is stored but not what it's for until 00:24:14.460 --> 00:24:18.019 needed Use a lawyer or estate planner. Multi 00:24:18.019 --> 00:24:20.799 -sig with family members as co -signers. Dead 00:24:20.799 --> 00:24:23.880 man switch services. Detailed instructions in 00:24:23.880 --> 00:24:26.480 your will. Bitcoin doesn't have beneficiaries. 00:24:27.019 --> 00:24:31.220 Plan ahead. Practice number four. Geographic 00:24:31.220 --> 00:24:34.039 distribution. Don't keep all your seed phrase 00:24:34.039 --> 00:24:37.539 backups in one place. Consider one at home, one 00:24:37.539 --> 00:24:40.240 at a family member's house, one in a safety deposit 00:24:40.240 --> 00:24:43.400 box. If your house burns down, you still have 00:24:43.400 --> 00:24:46.539 backups elsewhere. Practice number five. Use 00:24:46.539 --> 00:24:49.779 metal backups for critical storage. Paper can 00:24:49.779 --> 00:24:52.940 burn, tear, or fade. For large amounts, consider 00:24:52.940 --> 00:24:55.900 metal backup plates. These are stainless steel 00:24:55.900 --> 00:24:58.460 plates where you stamp or engrave your seed words. 00:24:58.779 --> 00:25:03.700 Fireproof. Waterproof. Corrosion resistant. Built 00:25:03.700 --> 00:25:07.440 to last. Brands. Cryptosteel. Bill Fottle. Blockplate. 00:25:07.869 --> 00:25:12.309 Cost, $50 to $150, but worth it for serious holdings. 00:25:12.650 --> 00:25:15.990 Practice number six, consider passphrases. A 00:25:15.990 --> 00:25:18.869 passphrase is like a 25th word added to your 00:25:18.869 --> 00:25:21.390 seed phrase. Even if someone finds your seed 00:25:21.390 --> 00:25:23.750 phrase, they can't access your Bitcoin without 00:25:23.750 --> 00:25:27.029 the passphrase. But be careful. If you forget 00:25:27.029 --> 00:25:29.809 the passphrase, your Bitcoin is lost. There's 00:25:29.809 --> 00:25:33.849 no recovery. Only use passphrases if you're confident 00:25:33.849 --> 00:25:36.819 in your memory and security practices. Practice 00:25:36.819 --> 00:25:39.500 number seven, separate hot and cold storage. 00:25:39.700 --> 00:25:42.319 Keep one to five percent of your Bitcoin in a 00:25:42.319 --> 00:25:45.900 hot wallet for spending. Keep 95 to 99 percent 00:25:45.900 --> 00:25:48.859 in your cold wallet for long term storage. This 00:25:48.859 --> 00:25:51.099 limits your exposure if your hot wallet gets 00:25:51.099 --> 00:25:54.519 compromised. Practice number eight, stay educated. 00:25:55.000 --> 00:25:58.500 Bitcoin technology evolves. Taproot, Lightning, 00:25:58.759 --> 00:26:02.200 new security features. Follow Bitcoin news. Join 00:26:02.200 --> 00:26:22.279 communities. Learn continuously. Thank you. Thank 00:26:22.279 --> 00:27:01.539 you. Thank you. But it's the future of Bitcoin 00:27:01.539 --> 00:27:05.559 payments. Air -gapped transactions. Some wallets, 00:27:05.559 --> 00:27:07.859 like Coldcard, can sign transactions completely 00:27:07.859 --> 00:27:10.920 offline. You create the transaction on a computer. 00:27:11.180 --> 00:27:14.940 Transfer it via micro SD card. Sign on the air 00:27:14.940 --> 00:27:17.940 -gapped device. Transfer signed transaction back. 00:27:18.380 --> 00:27:20.880 Maximum security for large amounts. These are 00:27:20.880 --> 00:27:24.359 advanced topics. Master the basics first. But 00:27:24.359 --> 00:27:26.819 know they exist for when you're ready. All right, 00:27:26.920 --> 00:27:29.779 Bitcoin maximalists. We've covered so much today. 00:27:29.940 --> 00:27:34.500 Let me recap the key points. One. Self -custody 00:27:34.500 --> 00:27:37.099 means you control your Bitcoin. No exchange, 00:27:37.420 --> 00:27:41.160 no bank, no third party. Your keys, your Bitcoin. 00:27:41.440 --> 00:27:44.759 Two, use a hardware wallet for serious holdings. 00:27:44.960 --> 00:27:49.079 Trezor, Ledger, Coldcard, Bitbox. Just pick one 00:27:49.079 --> 00:27:52.359 and use it. Three, your seed phrase is everything. 00:27:52.700 --> 00:27:55.819 Write it down, secure it, never lose it, never 00:27:55.819 --> 00:27:59.740 share it. This is your master key. Four, test 00:27:59.740 --> 00:28:15.400 with small amounts first. We'll be right back. 00:28:31.289 --> 00:28:33.769 The Fed is making their rate decision. The dollar 00:28:33.769 --> 00:28:37.269 is being debased. The national debt is over $38 00:28:37.269 --> 00:28:40.750 trillion. Traditional finance is accepting Bitcoin 00:28:40.750 --> 00:28:44.549 as collateral. The time to act is now. The time 00:28:44.549 --> 00:28:47.470 to self -custody is now. Here's your action plan. 00:28:47.710 --> 00:28:51.349 Step one, go buy a hardware wallet today. Don't 00:28:51.349 --> 00:28:54.589 wait. Pick one and order it. Step two, while 00:28:54.589 --> 00:28:56.950 you wait for it to arrive, watch setup videos, 00:28:57.250 --> 00:29:01.799 read guides. Step 3. When it arrives, follow 00:29:01.799 --> 00:29:04.779 the steps we covered today. Take your time. Do 00:29:04.779 --> 00:29:08.380 it right. Step 4. Once set up, withdraw your 00:29:08.380 --> 00:29:11.960 Bitcoin from exchanges. Take custody. Be your 00:29:11.960 --> 00:29:15.640 own bank. Step 5. Share this episode with every 00:29:15.640 --> 00:29:18.799 Bitcoin holder you know. Help them achieve financial 00:29:18.799 --> 00:29:22.539 sovereignty. Visit thebitcoinstreetjournal .com 00:29:22.539 --> 00:29:25.460 for more resources. Set up your Nolster profile. 00:29:26.009 --> 00:29:28.490 Zap me some lightning sats if this episode helped 00:29:28.490 --> 00:29:31.470 you. And remember, this isn't just about protecting 00:29:31.470 --> 00:29:34.829 your Bitcoin. This is about freedom, financial 00:29:34.829 --> 00:29:38.069 sovereignty, independence from the system. When 00:29:38.069 --> 00:29:41.089 you control your own keys, you control your own 00:29:41.089 --> 00:29:43.589 destiny. No government can freeze your Bitcoin. 00:29:43.809 --> 00:29:47.289 No bank can deny you access. No exchange can 00:29:47.289 --> 00:29:50.190 steal your funds. This is what Bitcoin was made 00:29:50.190 --> 00:29:53.009 for. This is what Satoshi Nakamoto envisioned. 00:29:53.660 --> 00:29:56.420 a system where individuals are sovereign, where 00:29:56.420 --> 00:29:59.960 money is controlled by math, not men. So take 00:29:59.960 --> 00:30:03.500 control, self -custody your Bitcoin, be your 00:30:03.500 --> 00:30:06.460 own bank, and join the revolution of sound money. 00:30:07.059 --> 00:30:10.319 Not your keys, not your Bitcoin. Not your keys, 00:30:10.460 --> 00:30:13.240 not your freedom. This has been the Bitcoin Street 00:30:13.240 --> 00:30:16.400 Journal podcast. I'm Anna, and I'll see you on 00:30:16.400 --> 00:30:17.019 the next block.