Self-Custody

Self-custody means you control the keys that spend your bitcoin. It also means you own the failure modes: lost backup, stolen seed phrase, bad transaction, forgotten passphrase, or unclear inheritance plan.

Start Simple

Do not make your first setup complex. A reputable hardware wallet plus tested offline backup is already a major improvement over exchange custody.

Add complexity only when it solves a concrete problem:

• A passphrase can reduce seed theft risk, but it creates memory and inheritance risk.
• Multisig can reduce single-device risk, but it adds coordination and backup complexity.
• Geographic backup distribution can reduce disaster risk, but it increases exposure points.

Backup Rules

Your backup must survive device failure, house problems, and your own memory.

• Write seed words offline.
• Do not photograph or type them.
• Consider metal backup for durability.
• Store backups where theft, fire, and water are not single points of failure.
• Test restore before adding meaningful funds.

Passphrases

A passphrase creates a separate wallet on top of the seed phrase. It can protect against seed theft, but only if the passphrase is strong and recoverable.

Lost passphrase means lost wallet. A passphrase that heirs cannot discover may be indistinguishable from burned coins.

Inheritance

If nobody can find and use your backup when you die, the bitcoin is gone. If too many people can use it while you are alive, it is not secure.

Write an inheritance plan that explains what exists, where to find instructions, and who should help. Do not put seed words in the same document as the instructions.