GetBittr on Nostr: Bitcoin Security Levels: How safe are your sats? Not all Bitcoin holders have the ...
Bitcoin Security Levels: How safe are your sats?
Not all Bitcoin holders have the same level of security. Here are 6 Bitcoin Custody security levels in one post.
Level 0: Bitcoin on an Exchange
💀 If your coins are on an exchange, they are not yours.
🚨 Risk: Hacks, insolvency, frozen accounts.
🔑 Not your keys, not your coins!
Level 1: Hot Wallet on Mobile or Desktop
🔥 You own your private keys, but they are online = vulnerable.
✅ Better than an exchange, but not secure for long-term storage.
💡 Recommended wallets: BlueWallet, Sparrow.
Level 2: Hardware Wallet with Shitcoin Support (or closed source Hardware Wallet)
🔐 More secure than hot wallets, but:
🚨 Many hardware wallets (e.g. Ledger) support altcoins and are not fully Open Source.
❌ Unnecessary attack surface!
Level 3: Bitcoin-Only Hardware Wallet
✅ No altcoin support = reduced attack vectors.
💡 Recommended wallets: BitBox02
➡️ Want even more security? Airgapped wallets! 👇
Level 4: Bitcoin-Only + Airgapped Hardware Wallet
✅ Even fewer attack vectors since transactions are signed via QR code or SD card.
💡 Recommended wallets: Foundation Passport, Coldcard, SpecterDIY
Level 5: Single Seed + Passphrase (Cold Storage)
💪 Extra security: Even if someone finds your seed, they can’t access your funds without the passphrase.
Important: Never store your passphrase digitally
🔐 Recommended wallets: Foundation Passport, SpecterDIY
🚨 Warning: Higher risk as you now have two single points of failure. Your setup must be well thought out.
Level 6: Multi-Sig Cold Storage
🛡️ Multiple keys required to spend = maximum protection.
✅ No single point of failure.
👨👩👦👦 Ideal for families or businesses.
🔐 Can be customized:
➡️ 2-of-3, 3-of-5, mixed hot & cold wallets.
💡 Recommended solutions: Unchained Capital, Sparrow, Blockstream Jade
That's a wrap! Let me know what you think! Do you agree? Did I miss something?
Not all Bitcoin holders have the same level of security. Here are 6 Bitcoin Custody security levels in one post.
Level 0: Bitcoin on an Exchange
💀 If your coins are on an exchange, they are not yours.
🚨 Risk: Hacks, insolvency, frozen accounts.
🔑 Not your keys, not your coins!
Level 1: Hot Wallet on Mobile or Desktop
🔥 You own your private keys, but they are online = vulnerable.
✅ Better than an exchange, but not secure for long-term storage.
💡 Recommended wallets: BlueWallet, Sparrow.
Level 2: Hardware Wallet with Shitcoin Support (or closed source Hardware Wallet)
🔐 More secure than hot wallets, but:
🚨 Many hardware wallets (e.g. Ledger) support altcoins and are not fully Open Source.
❌ Unnecessary attack surface!
Level 3: Bitcoin-Only Hardware Wallet
✅ No altcoin support = reduced attack vectors.
💡 Recommended wallets: BitBox02
➡️ Want even more security? Airgapped wallets! 👇
Level 4: Bitcoin-Only + Airgapped Hardware Wallet
✅ Even fewer attack vectors since transactions are signed via QR code or SD card.
💡 Recommended wallets: Foundation Passport, Coldcard, SpecterDIY
Level 5: Single Seed + Passphrase (Cold Storage)
💪 Extra security: Even if someone finds your seed, they can’t access your funds without the passphrase.
Important: Never store your passphrase digitally
🔐 Recommended wallets: Foundation Passport, SpecterDIY
🚨 Warning: Higher risk as you now have two single points of failure. Your setup must be well thought out.
Level 6: Multi-Sig Cold Storage
🛡️ Multiple keys required to spend = maximum protection.
✅ No single point of failure.
👨👩👦👦 Ideal for families or businesses.
🔐 Can be customized:
➡️ 2-of-3, 3-of-5, mixed hot & cold wallets.
💡 Recommended solutions: Unchained Capital, Sparrow, Blockstream Jade
That's a wrap! Let me know what you think! Do you agree? Did I miss something?