The self-custody of bitcoin refers to the fact that users can take complete control of their digital assets. Self-custody gives a user the ability to send, receive, and store one's cryptocurrency without relying on any third party. Bitcoin is only unconfiscatable and censorship-resistant if one holds it in a self-custodial wallet.
There are many options for storing your Bitcoin. These options mostly fall into two categories: Hot Wallets and Cold Wallets. A Hot Wallet is wallet software that is connected to the internet when a recovery seed phrase is generated. A Cold Wallet is a wallet that is not connected to the internet when a recovery seed phrase is generated. In general, meaningful amounts of bitcoin should be stored in cold wallets offline.
Options for Self-Custody: Cold Wallets
Ledger Hardware Wallet
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A Ledger hardware wallet is a small USB device that plugs into a computer and uses LedgerLive, the Ledger software, to read bitcoin account balances and send and receive bitcoin.
The device stores the private keys of addresses created on the wallet and thereby secures any bitcoin stored on the device. |
Other options for secure bitcoin cold storage include the following companies:
Options for Self-Custody: Hot Wallets
Blue Wallet App
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Blue Wallet is an app that can be downloaded on your phone or device. Within the Blue Wallet app you can create self-custodial on-chain bitcoin wallets as well as custodial lightening wallets.
The Lightening Network is a powerful 2nd layer on top of bitcoin that allows for bitcoin to be transferred nearly instantaneously and free. |
Another option for secure bitcoin hot wallet storage includes the following wallet: