🔐 Keys & Wallets
Your keys, your Bitcoin. Not your keys, not your coins.
The Most Important Lesson
Not Your Keys, Not Your Coins
This isn't just a slogan—it's the fundamental principle of Bitcoin ownership. If you don't control the private keys, you don't truly own the Bitcoin.
🔑 Private Keys Explained
A private key is a 256-bit number—essentially a very long password that proves you own your Bitcoin.
5HueCGU8rMjxEXxiPuD5BDku4MkFqeZyd4dZ1jvhTVqvbTLvyTJThis is a real private key format (WIF). Never share yours!
Anyone with your private key can spend your Bitcoin. There is no "forgot password" recovery. Lost keys = lost Bitcoin forever.
🌱 Seed Phrases
A seed phrase (recovery phrase) is 12-24 words that can regenerate all your private keys.
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Do
Write it on paper, store in multiple secure locations, consider metal backup for fire/water resistance.
Don't
Store digitally, take photos, email it, store in cloud, share with anyone.
👛 Types of Wallets
Hot Wallets
Connected to internet. Convenient for daily use but less secure. Examples: mobile apps, browser extensions.
Cold Wallets
Offline storage. Maximum security for long-term holdings. Examples: hardware wallets, paper wallets.
Use hot wallets like a checking account (small amounts for spending) and cold wallets like a savings account (bulk of holdings).
🏛️ Austrian Economics: Property Rights
"The program of liberalism, condensed into a single word, would have to read: property." — Ludwig von Mises
Austrian economists emphasize that property rights are the foundation of a free society. Bitcoin's self-custody enables true property rights over your wealth—no government or institution can seize it if you control the keys.
In 1933, the US government confiscated citizens' gold (Executive Order 6102). With Bitcoin self-custody, such confiscation becomes practically impossible.
🛡️ Hardware Wallets
Hardware wallets are dedicated devices that store your private keys offline, signing transactions without ever exposing keys to the internet.
Ledger
Popular choice with mobile app
Trezor
Open-source, trusted brand
Coldcard
Bitcoin-only, air-gapped
🔐 Multisig Security
Multi-signature wallets require multiple keys to authorize a transaction (e.g., 2-of-3 keys needed).
Store one key at home, one in a bank safe deposit box, one with a trusted family member. Any two can recover funds, but losing one doesn't lose everything.
📝 Check Your Understanding
Complete the quiz to unlock the next lesson. You need 80% to pass.