Bittr π·π° 10 months ago 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 π If your coins are on an exchange, they are not yours. π¨ Risk: Hacks, insolvency, frozen accounts. π Not your keys, not your coins! Level 1: Hot Wallet on Mobile or Desktop π₯ You own your private keys, but they are online = vulnerable. β Better than an exchange, but not secure for long-term storage. π‘ Recommended wallets: BlueWallet, Sparrow. Level 2: Hardware Wallet with Shitcoin Support (or closed source Hardware Wallet) π More secure than hot wallets, but: π¨ Many hardware wallets (e.g. Ledger) support altcoins and are not fully Open Source. β Unnecessary attack surface! Level 3: Bitcoin-Only Hardware Wallet β No altcoin support = reduced attack vectors. π‘ Recommended wallets: BitBox02 β‘οΈ Want even more security? Airgapped wallets! π Level 4: Bitcoin-Only + Airgapped Hardware Wallet β Even fewer attack vectors since transactions are signed via QR code or SD card. π‘ Recommended wallets: Foundation Passport, Coldcard, SpecterDIY Level 5: Single Seed + Passphrase (Cold Storage) πͺ Extra security: Even if someone finds your seed, they canβt access your funds without the passphrase. Important: Never store your passphrase digitally π Recommended wallets: Foundation Passport, SpecterDIY π¨ 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 π‘οΈ Multiple keys required to spend = maximum protection. β No single point of failure. π¨βπ©βπ¦βπ¦ Ideal for families or businesses. π Can be customized: β‘οΈ 2-of-3, 3-of-5, mixed hot & cold wallets. π‘ Recommended solutions: Unchained Capital, Sparrow, Blockstream Jade That's a wrap! Let me know what you think! Do you agree? Did I miss something?
