Get Started with Self-custody, let’s see how to setup Bitcoin wallets.
It works the same for Crypto Wallets.
This article helps anyone to setup a Bitcoin wallet, become autonomous, and explains how to secure seeds and private keys.
Your bitcoin wallet, your rules.
Crypto and Bitcoin Self-custody puts you in full control—no exchange risk—but also makes you responsible for good backups and avoiding common pitfalls (phishing, poor storage, untested recovery).
This page covers the essentials to get started with Bitcoin and crypto self-custody.
Get Started with Self-Custody
There are at least three steps to get started with self-custody. They’re the same for Bitcoin and other cryptocurrencies.
Find a Self-custodial Bitcoin Wallet
This setup is also called non-custodial crypto/Bitcoin wallet.
That means only you can move your crypto. Non-custodial = you control the private keys; no company holds your funds for you.
In all cases, you setup software wallet on your computer or phone to view and move your funds. For stronger protection of your private keys, you can add a hardware wallet.
A seed phrase (12/24 words) stored offline
Human-readable backup of your wallet’s keys. If the device is lost, you can restore access with these words.
Keep it strictly offline—never photographed, copied to cloud, or typed into websites
2–3 protected physical backups
Make multiple copies of the seed phrase and store them in separate, secure places (e.g., home safe, safe deposit box). Consider a metal backup for fire/water resistance. More copies than necessary increases exposure risk.
It’s crucial to understand that you are responsible for your own security. Any mistake that exposes your private keys—or failing to set up a persistent backup—creates a high risk of permanently losing your funds.
Bonus: We will propose a routine for testing and recovery of you funds.
How to setup a Bitcoin Wallet
First things first: choose a wallet that fits your needs.
Beginner: reputable software wallet
To get started, setup a bitcoin wallet well-known on mobile or desktop, then learn the basics.
Setup a Bitcoin wallet is easy, but you must start with small amounts.
As your holdings grow, add a hardware wallet to isolate keys from your phone/computer.
Larger/long-term funds: hardware wallet
For savings you don’t spend often, keep private keys in a hardware wallet.
Use its companion app to view balances and sign transactions securely without exposing the keys.
Criteria
Prefer wallets with auditable code and a strong user/dev community. So we recommend open source wallets.
Regular updates signal active maintenance and security fixes. Ensure they offer PIN/biometric locks and, for advanced users, optional passphrases or additional security features.
Chain-Specific Wallets: Begin with Bitcoin or Ethereum
Wallets are often specific to a single blockchain.
Start with the crypto you’re most likely to use. We recommend beginning with Bitcoin (BTC) or Ethereum (ETH).
Pick a wallet built for that chain first (e.g., a Bitcoin wallet for BTC, an Ethereum wallet for ETH), then add more wallets later if you expand to other networks.
Create and secure your seed phrase
1/ Generate the seed offline in the wallet
Never screenshot/upload it. This prevents leaking your keys to the internet where malware or attackers could capture them.
2/ Write it on paper or metal
Clear handwriting, correct order.
You need a durable, offline copy ensures you can always restore access if your device fails.
3/ Double-check spelling (BIP39 words)
A single typo can make recovery impossible, so verification avoids permanent loss.
4/ Set a strong PIN on the wallet
Don’t reuse passwords. This protects the device and app from local access or theft even if someone gets hold of it.
How many backups of a seed phrase?
Keep this process as simple as possible, with absolute trust in the locations and people involved. Clarity and simplicity reduce mistakes.
2 to 3 physical copies stored in separate places
- 1 at home (discreet; ideally fire/water-resistant) — quick access when needed.
- 1 off-site (bank safe deposit box or a trusted relative’s safe) — protection from home disasters and theft.
Don’t overspread
Every extra copy raises the chance of discovery, theft, or mishandling. Limit to what you can track and secure well.
Alternative: split the mnemonic across 2+ media
Store separate parts in different places (e.g., half on paper at home, half on paper off-site).
Benefit: a single compromised part isn’t enough.
Risks: losing one part locks you out; requires clear documentation and recovery testing.
Protect access to backups
Don’t label them “seed” / “recovery”
Use neutral hints to avoid advertising their value if discovered.
Use sealed envelopes, safes, or fireproof bags
It adds tamper evidence and physical protection against theft and disasters.
Never use photos, cloud, email, or password managers
Digital copies are easily duplicated, hacked, or leaked.
Avoid Shamir and passphrases as a beginner
Add them later once you’ve practiced, since misconfiguration or forgetting details can permanently lock you out.
Test before moving real money
A quick end-to-end test builds confidence and catches mistakes while the stakes are low.
By proving you can send, receive, and fully recover your wallet from the seed, you confirm your backups work and your process is solid before moving meaningful funds.
- Receive $5–$20 to test. (Sending a transaction between two wallets you control or from a exchange)
- Use an amount you’re comfortable losing.
- Test recovery
- wipe (carefully) your wallet
- restore with the seed
- confirm address/funds
- When all good, move larger amounts gradually.
Security routine
Check wallet updates monthly
Regular updates patch security issues and keep compatibility with networks.
Review backups twice a year
Practice ensures you can restore under stress and that your seed truly works—you’ll sleep better at night.
Simulate a recovery once a year
Practice ensures you can restore under stress and that your seed truly works.
Adjust locations
After major changes: moves or long trips can change risk profiles, so relocate backups accordingly.
Common mistakes to avoid
Photographing or storing the seed online
Digital copies can be copied, hacked, or leaked without you knowing.
Typing the seed into a site for “verification” (scam)
Any website or “support” asking for your seed is attempting theft.
Confusing public address with seed phrase
An address is shareable; the seed is secret and controls all funds.
Sharing the seed with “support” on Telegram/Discord
Legitimate support will never ask for your seed; sharing it hands over your wallet.
Skipping a recovery test
You won’t know backups work until you prove you can restore.
Keeping everything on one device with no backup
A single failure or loss can wipe out your funds.
Java‑certified engineer and P2PStaking CEO, I secure validators across Solana, Polkadot, Kusama, Mina, and Near. My articles reflect hands‑on wallet ops and real recovery drills so you can set up self‑custody safely, step by step.
Setup Bitcoin Wallet FAQ
How many backups seed phrase?
2–3 physical copies in separate locations. 1 home, 1 off-site (safe deposit), optional metal copy. Too many copies increase exposure.
What is self-custody?
You hold your private keys, not an exchange. Upside: sovereignty. Responsibility: backups and security.
How to “get started self-custody” quickly?
1/ Pick a reputable wallet.
2/ Generate the seed offline.
3/ Make 2–3 physical backups.
4/ Set a strong PIN.
5/ Test send + recovery.
6/ Scale funds gradually.
Self custody for beginners: mobile or hardware wallet?
Start with a mobile wallet to learn; move savings to a hardware wallet later. Keep small daily-use funds on mobile.
Self custody risks and mistakes?
Seed loss/theft, phishing, malware, poor backups, no recovery test, forgotten passphrase, ignored updates.
Additional passphrase (25th word), useful?
Yes, but only if you’re confident: protects if seed leaks, but forgetting it = lost funds. Back it up separately with a clear protocol.
Paper vs metal backup?
Paper: cheap but vulnerable to water/fire. Metal: best for long-term and disasters. A mixed approach is ideal: one metal copy off-site.
Can I split my seed (Shamir)?
Advanced. Good for large amounts/shared custody. Risk of misconfiguration and loss. Practice first and document thoroughly.
I already typed my seed on a website—what now?
Assume it’s compromised. Create a new wallet, move funds immediately, make clean backups.
How to plan inheritance?
Write simple instructions: where backups are, how to restore, which wallets/chains. Seal and store in a safe/notary. Avoid unnecessary technical detail.
