Security overview
A secure wallet is a complete system
Self-custody security depends on more than one device or one backup. It includes how the wallet is created, how recovery information is stored and how transactions are reviewed.
A strong setup should protect against theft, accidental loss, device failure, phishing, physical damage and user error.
The most secure system is one you understand and can recover calmly under pressure.
Core principle
Security should reduce single points of failure without making recovery too complicated.
Before setup
Prepare before creating the wallet
Choose a trusted wallet
Use established wallet software or hardware from a verified official source.
Use a clean device
Update the operating system, remove suspicious software and avoid public or shared computers.
Understand the recovery process
Know how the wallet can be restored before storing a meaningful amount of bitcoin.
Plan secure backup storage
Choose where recovery information will be kept before creating the wallet.
Wallet setup checklist
Create the wallet securely
Download wallet software only from the official source
Verify the device or software is new and not preconfigured
Generate the wallet yourself
Record the recovery phrase accurately and in the correct order
Keep the recovery phrase offline
Set a strong wallet or device PIN
Avoid reusing passwords or PINs
Test the recovery backup before transferring significant funds
Send a small test transaction first
Stop immediately
Never use a wallet that arrives with a seed phrase already created.
Transaction checklist
Verify before approving
Verify the receiving address
Check the address on a trusted device before sharing it or sending bitcoin to it.
Check the destination address
Compare the full destination address carefully before approving a payment.
Review the amount
Confirm the amount shown is exactly what you intend to send.
Review the fee
Make sure the transaction fee is reasonable for the urgency of the payment.
Use a small test payment
For a new address or large transfer, consider sending a small amount first.
Pause when details differ
Do not approve anything when the wallet device and computer show different information.
Take your time
Bitcoin transactions are generally irreversible. A short pause to verify the details is worth more than rushing.
Backup checklist
Protect against device failure and loss
Keep at least one reliable backup
The backup must be complete, readable and able to restore the wallet.
Separate wallet and backup
Avoid storing the signing device and its only recovery backup in the same location.
Protect against physical damage
Consider fire, water, humidity, theft and accidental disposal.
Do not store seed words digitally
Avoid photos, cloud documents, email, messaging apps and ordinary text files.
Test recovery
Confirm the backup works before relying on the wallet for significant savings.
Plan for inheritance
Ensure the intended beneficiary can recover the wallet without exposing the seed phrase now.
Reliable backup
Complete, readable, private, durable and tested.
Weak backup
Unverified, photographed, incomplete or stored beside the wallet device.
Privacy checklist
Reduce unnecessary information sharing
Use your own Bitcoin node
A wallet connected to your own node reduces the need to reveal addresses and balances to third-party servers.
Avoid address reuse
Use a new receiving address for each payment when the wallet supports it.
Limit personal information
Avoid linking wallet addresses publicly to your identity unless necessary.
Use trusted networks
Avoid managing important wallets over unknown public Wi-Fi networks.
Phone
Use trusted apps and keep the device updated.
Computer
Avoid untrusted software and suspicious downloads.
Node
Verify balances and transactions using your own node.
Ongoing maintenance
Review the setup over time
Monthly
Confirm the wallet application still opens normally
Check for official software or firmware updates
Review recent transactions
Confirm your node is syncing correctly
Every 6–12 months
Inspect physical recovery backups
Confirm backup locations remain secure
Review emergency and inheritance instructions
Check that replacement hardware remains available
After a major change
Retest recovery after changing wallet setup
Update instructions after moving backup locations
Confirm all signers understand a multisig change
Move funds if a seed phrase may have been exposed
Emergency response
Know what to do before a problem occurs
Seed phrase may be exposed
Create a new wallet with a new recovery phrase and move the funds as soon as it is safe.
Hardware wallet is lost
Restore the wallet using the recovery phrase on a compatible trusted device.
Wallet device still works but the backup is lost
Create a new wallet and transfer funds before the device fails.
You approved a suspicious transaction
Review the transaction immediately and move remaining funds to a new secure wallet if necessary.
Computer or phone is compromised
Stop using the affected device for wallet activity until it has been cleaned or replaced.
A custodial service blocks withdrawals
Follow the service process, preserve records and avoid sending additional funds.
Final review
My self-custody setup is ready when
I control the private keys
My recovery phrase was generated by me
My recovery phrase is stored offline
I have verified every recovery word
I have tested the recovery process
I understand how to check transaction details
I know how to recover after device loss
My wallet software came from an official source
I use a setup I can explain and operate
I have considered privacy and inheritance
Never rush into a more advanced setup until you can recover and operate your current setup confidently.