Why Self-Custody is Essential for Bitcoin Holders

Bitcoin was created to give individuals control over their money, free from intermediaries. Yet, many people still store their Bitcoin on exchanges or with third parties, effectively surrendering that control. Self-custody ensures that you and only you hold the private keys to your Bitcoin, embodying financial sovereignty.

The Risks of Third-Party Custody

When you store Bitcoin on exchanges or custodial wallets, you risk: • Hacks: Exchanges are frequent targets, with billions stolen over the years. • Bankruptcy: If an exchange fails (e.g., Mt. Gox, FTX), your funds may vanish. • Censorship: Funds can be frozen or seized due to government or institutional actions.

Self-custody eliminates these risks, giving you full control of your Bitcoin.

The Benefits of Self-Custody 1. True Ownership: No one can take, freeze, or restrict your Bitcoin. 2. Enhanced Security: Reduces exposure to hacks or exchange failures. 3. Financial Sovereignty: Aligns with Bitcoin’s core principle—freedom from third parties. 4. Privacy: Avoids the tracking and sharing of your financial activity.

Hot and Cold Wallets: The Perfect Pair

Self-custody combines security with convenience by using both hot and cold wallets.

Hot Wallets

Hot wallets like Muun, BlueWallet, or Phoenix are connected to the internet and ideal for frequent, small transactions. Only store small amounts for daily use to minimize risks.

Cold Storage

Cold wallets are offline, making them the most secure choice for long-term storage. Recommended options include: • Foundation Passport: User-friendly, open-source, and privacy-focused. • Bitkey: Versatile and easy to use, with robust security. • Coldcard: A favorite for advanced security and offline features like air-gapped usage.

Pairing a hot wallet with cold storage ensures accessibility and maximum protection for your Bitcoin.

How to Start Self-Custody 1. Choose Your Wallets: Select a hot wallet for daily use and a cold wallet for long-term savings. 2. Back Up Your Keys: Store your seed phrase securely—never share it. 3. Start Small: Transfer a small amount to self-custody to get comfortable. 4. Educate Yourself: Learn about best practices and common security pitfalls.

A Hedge Against Uncertainty

Self-custody is your shield against exchange failures, inflation, and capital controls. It ensures your wealth is protected in a volatile world and keeps you in control of your financial destiny.

The Freedom of Self-Custody

Bitcoin isn’t just money—it’s freedom. By embracing self-custody, you reclaim control over your wealth and align with Bitcoin’s decentralized, secure, and sovereign vision of the future.