What is a Hardware Wallet?

Summary:

A hardware wallet is a physical device designed to store your private keys offline, offering strong protection against hacks and malware.

Details:

Hardware wallets are considered one of the safest ways to hold bitcoin. Because they are not connected to the internet, they drastically reduce the risk of remote theft. Transactions are signed on the device itself and then broadcast via a companion app on your phone or computer.

Popular options include Ledger, Trezor, Coldcard, and BitBox. These devices come with built-in protections like PIN codes, recovery phrases, and encryption.

Key Features:
  • Offline storage (cold wallet) of private keys.
  • USB or Bluetooth connection to manage funds securely.
  • PIN and passphrase protections for added security.
  • Seed phrase backup included at setup.
  • Resistant to viruses, keyloggers, and phishing attacks.

What are Bitcoin Wallet Backups?

Summary:

Bitcoin wallet backups ensure you can restore your funds if your device is lost or compromised. The most important backup is your seed phrase.

Details:

Backing up your wallet means saving a copy of your seed phrase in a secure location. For maximum security, write it on paper or store it on a metal backup, and keep it offline. Redundant storage (e.g., one at home and one in a safe) protects against fire, theft, or misplacement.

If you ever need to recover your wallet, simply import your seed phrase into a compatible app or device. Without a backup, your bitcoin cannot be recovered if the wallet is lost.

Key Features:
  • Seed phrase = primary backup method for most wallets.
  • Store offline: paper, metal plates, or fireproof storage recommended.
  • Redundancy: multiple secure locations reduce risk.
  • Test recovery process before storing large amounts.
  • Never store backups in plain text on cloud services.

What is a Seed Phrase?

Summary:

A seed phrase is a 12- or 24-word backup that gives access to your bitcoin wallet. Anyone with this phrase can restore and control your funds.

Details:

Your wallet’s private key is encoded into a list of words called a seed phrase. It serves as a human-readable backup and is typically shown to you when you first create your wallet.

This phrase must be written down and stored securely—preferably offline. If your device is lost, stolen, or damaged, the seed phrase is the only way to recover your wallet and funds. Never store it digitally or share it with anyone.

Key Features:
  • Generated when creating a new wallet.
  • Represents the master key to all your funds.
  • Should be stored offline in multiple secure locations.
  • Can be used to restore your wallet on any compatible app.
  • Loss of this phrase = permanent loss of your bitcoin.

What is Self-Custody?

Summary:

Self-custody means taking full control over your bitcoin by holding your own private keys, instead of relying on a third-party to safeguard your funds.

Details:

When you self-custody your bitcoin, you’re the only person who can move or spend your funds. This provides the highest level of sovereignty and aligns with the ethos of Bitcoin—being your own bank.

However, self-custody comes with personal responsibility. You must secure your keys and backups, and no one can recover your bitcoin if you lose them. For serious holders, self-custody is considered essential.

Key Features:
  • Full control over your bitcoin—no counterparty risk.
  • Eliminates dependence on exchanges or custodians.
  • Requires responsible key and seed phrase management.
  • Can be done via software or hardware wallets.
  • Enables censorship resistance and financial independence.

What are Public and Private Keys?

Summary:

Public and private keys are cryptographic tools that control ownership and access to bitcoin. Your public key is used to receive funds; your private key is required to send them.

Details:

Every Bitcoin wallet generates a unique key pair: a public key and a corresponding private key. The public key allows others to send bitcoin to your wallet, while the private key is your digital signature that proves ownership and authorizes transactions.

Your private key must remain secret—anyone who gains access to it can control your bitcoin. Wallets often represent this private key using a seed phrase for easier backup and recovery.

Key Features:
  • Public key: Used to create addresses and receive bitcoin.
  • Private key: Required to sign transactions and move funds.
  • Asymmetric cryptography: Security based on mathematical one-way functions.
  • Never share your private key—doing so compromises your funds.
  • Wallets often abstract this process but rely on the same key structure.

How to Get a Lightning Address

Summary:

A Lightning address is like an email address for receiving Bitcoin over the Lightning Network. You can get one through supported wallets or services.

Details:

Several Lightning wallets and custodial services (such as Alby, Wallet of Satoshi, or Zebedee) offer Lightning addresses formatted like [email protected]. These make sending you bitcoin fast and easy—ideal for tipping, digital content, or recurring income.

After registering and choosing a username, the address can be shared publicly. Behind the scenes, it automatically creates new Lightning invoices for each incoming payment.

Key Features:
  • Simple, reusable identifiers (e.g., [email protected]).
  • Automatically handles invoice creation and routing.
  • Great for social media, websites, and streaming money.
  • Custodial and non-custodial options exist.
  • Most effective for receiving small, frequent payments instantly.

How to set up a bitcoin wallet

Summary:

Setting up a bitcoin wallet involves choosing a wallet type, downloading the app or initializing the device, and securely backing up your recovery phrase.

Details:

To get started, download a reputable wallet app (like BlueWallet, Muun, or Sparrow) or purchase a hardware wallet (like Trezor or Coldcard). Follow the setup instructions to generate a new wallet. You’ll be shown a 12- or 24-word recovery phrase—this is your master backup.

Store the recovery phrase offline in a secure location. If you lose your device or app access, this phrase is the only way to recover your funds. Never share it with anyone.

Key Features:
  • Choose a trusted wallet provider (software or hardware).
  • Write down your seed phrase and store it securely offline.
  • Enable optional security features like PINs or passphrases.
  • Test your setup with a small amount of bitcoin before transferring more.
  • Always verify the wallet is non-custodial and gives you control of your keys.

How to Use the Lightning Network

Summary:

Using the Lightning Network requires a Lightning-enabled wallet and lets you send and receive bitcoin instantly with extremely low fees.

Details:

After downloading a Lightning wallet, you can open a Lightning channel or receive an inbound channel. Once funded, you can send bitcoin via Lightning invoices or Lightning addresses. Payments are settled instantly without waiting for blockchain confirmations.

This is ideal for small payments, online tipping, subscriptions, and peer-to-peer transfers. Many mobile wallets like Phoenix, Muun, or Wallet of Satoshi make it easy to get started.

Key Features:
  • Enables near-instant payments with minimal fees.
  • Requires a Lightning-compatible wallet (e.g. Phoenix, Breez, Muun).
  • You can scan Lightning invoices or use Lightning addresses.
  • Ideal for micropayments, streaming money, and frequent transfers.
  • Less secure for large payments—best for small, fast transactions.

 How to Receive Bitcoin

Summary:

To receive bitcoin, you generate a new address in your wallet and share it with the sender. The funds are deposited after network confirmation.

Details:

Most wallets allow you to generate a fresh receiving address with a single tap. You can copy the address or display a QR code for the sender. Once the sender initiates the transaction and miners confirm it, the bitcoin appears in your wallet.

For privacy, it’s recommended to use a new address for each transaction. Most wallets support automatic rotation.

Key Features:
  • Receiving bitcoin requires only a valid address.
  • You can display addresses as QR codes for convenience.
  • Funds appear after at least one network confirmation.
  • Use new addresses per transaction to improve privacy.
  • No fees are paid by the receiver—only by the sender.

How to Send Bitcoin

Summary:

Sending bitcoin involves entering the recipient’s address, specifying the amount, and broadcasting the transaction to the Bitcoin network.

Details:

To send bitcoin, you open your wallet, paste the recipient’s address, enter the amount, and confirm. Most wallets will let you set a custom transaction fee—higher fees result in faster confirmations. Once sent, your transaction is included in a new block and permanently recorded on the blockchain.

Always double-check the recipient address before sending. Bitcoin transactions are irreversible—once confirmed, they cannot be undone.

Key Features:
  • Requires the recipient’s bitcoin address.
  • Transaction fees vary based on network congestion and speed preference.
  • Transactions typically confirm in ~10 minutes (on-chain).
  • QR codes simplify address input, especially on mobile.
  • Double-check all details—bitcoin transfers are irreversible.