Four simple steps for taking control of your Bitcoin through self-custody.
Embracing self-custody, the act of personally safeguarding your Bitcoin, stands as a top-tier approach to securing your assets. It not only affords you total authority over your BTC but also grants you the freedom to conduct transactions as per your preferences. To initiate your journey into self-custody, consider these four straightforward steps.
1. Research it yourself!
As Bitcoin enthusiasts, our approach is rooted in verification, not blind trust. Before fully embracing self-custody, it’s essential to educate yourself about its significance and implications.
To provide a brief overview, all Bitcoin wallets fall into one of two categories:
- Custodial Wallets: These involve a third party holding your private keys. You don’t have direct control over your keys in custodial wallets.
- Non-custodial Wallets: In this case, you maintain control over your private keys, making you the sole person with access to your funds.
While custodial wallets can be useful for beginners, non-custodial wallets offer a distinct advantage. They provide you with greater autonomy in how you conduct transactions, which significantly enhances the security of your assets. Furthermore, many non-custodial wallets support offline transactions, allowing you to manage your funds anytime and anywhere, unlike most custodial wallets that require an internet connection.
2. Examine the choices
The initial self-custody choice is a hot wallet, which consists of downloadable software or smartphone/computer applications that remain consistently connected to the internet. The primary benefit of utilizing a hot wallet is its cost-effectiveness (often free) and widespread availability. Here are some of our recommended hot wallets:
A more secure alternative, your second choice, involves a hardware wallet—a physical device resembling a flash drive. These devices often come equipped with a small LED screen and navigation buttons for user interaction. Here are some of our top recommendations for hardware wallets:
Hot wallets and hardware wallets serve various needs and preferences. If you’re new to Bitcoin, a hot wallet is a reasonable choice due to its accessibility. However, for individuals holding a substantial amount of Bitcoin or planning to retain it for an extended duration, the added security provided by hardware wallets is a worthwhile investment. In the end, your selection should align with your specific requirements and financial considerations.
3. Move your Bitcoin
Now that you possess your own non-custodial wallet, it’s the right moment to move all the Bitcoin you intend to “HODL” (hold) into it.
If you opted for a hot wallet, the process of transferring your Bitcoin is generally straightforward. You’ll need to acquire the wallet address or scan the QR code of your new wallet and input it into your Noones Wallet.
However, if you chose a hardware wallet, note that each device may have a distinct method for sending and receiving. It’s essential to acquaint yourself with the specific procedures associated with your chosen hardware wallet.
4. Activate additional security safeguards
With your new wallet in place, it’s time to enhance your security. For hot wallets, this might involve the straightforward step of enabling two-factor authentication (2FA) for all transactions. As for hardware wallets, you can take measures such as backing up your entire wallet on a separate drive or safeguarding your seed phrase in a secure location.
Experience all the advantages of self-custody
Are you prepared to embrace full control of your finances? Excellent, because now, your wallet is entirely under your authority. You are no longer reliant on third parties and can use your Bitcoin as you see fit, whenever you desire.
Welcome to financial independence!