Store it safely
When you buy bitcoin on an exchange, you do not own bitcoin. You own a claim. An IOU that says the company will give you bitcoin if you ask for it. That works fine until it does not. FTX, Celsius, BlockFi, Mt. Gox. All of them had user "balances" that disappeared when the companies failed. People thought they owned bitcoin. They owned promises. Promises backed by nothing, enforced by no one, redeemable only at the discretion of the entity holding the keys.
Bitcoin exists as unspent transaction outputs on the blockchain. The only way to move those outputs is with the private keys that control them. If you do not hold the keys, you cannot move the bitcoin, which means someone else decides whether you get access. Self-custody, holding your own keys, is how you opt out of other people's mistakes.
Hardware wallets like Bitkey keep your keys on a dedicated device that never touches the internet. Desktop software wallets like Sparrow and Wasabi give advanced users fine-grained control over transactions, coin selection, and privacy. For larger amounts, collaborative custody services like Unchained and AnchorWatch use multisig. Multiple keys are required to move funds, so no single point of failure can wipe you out.
After buying bitcoin, moving it into self-custody is the most important step you can take. Select two tools below and tap Compare to see how they differ on firmware transparency, backup options, multisig support, and key management.
Frequently asked questions
What is the best hardware wallet for bitcoin?
That depends on what you are optimizing for. Bitkey is built for simplicity. A mobile app, recovery key, and hardware device working together. For users who want maximum control and transparency, pairing a hardware signing device with Sparrow desktop software lets you manage every aspect of your transactions: coin selection, fee control, labeling, even connecting through your own node. The right choice depends on whether you need simplicity or sovereignty at the deepest level. You can compare them above.
What's the difference between a hardware wallet and a software wallet?
A hardware wallet stores your private keys on a dedicated physical device that never connects to the internet. Your keys exist in a secure element, isolated from the attack surface of your computer or phone. A software wallet is an application. More flexible, but your keys live on a device that browses the web, opens emails, and runs other software. For long-term storage, hardware wallets are the standard because they reduce the surface area an attacker can exploit. Software wallets like Sparrow are powerful transaction management tools and work best paired with a hardware signer.
What is bitcoin self-custody and why does it matter?
Self-custody means you hold the private keys to your bitcoin. Not a company, not an exchange, not a broker. You. It matters because every single case of users losing bitcoin to a platform failure happened because someone else held the keys. Self-custody removes that entire category of risk. The whole point of Bitcoin is removing trusted intermediaries. If you are trusting an exchange to hold your bitcoin, you have reintroduced the exact problem Bitcoin was designed to solve. You can move your coins to a wallet you control. That is when you own bitcoin.
What is multisig and do I need it?
Multisig (multi-signature) requires more than one key to authorize a transaction. A common setup is 2-of-3: you hold two keys in separate locations and a service provider like Unchained or AnchorWatch holds one. No single key can move funds alone, which means no single device failure, theft, or mistake can wipe you out. For smaller amounts, a single-signature hardware wallet is fine. As your stack grows, multisig becomes worth the additional setup because it eliminates single points of failure without requiring you to trust any one party.
How do I back up my bitcoin wallet?
When you set up a wallet, it generates a seed phrase, typically 12 or 24 words. That phrase is your entire wallet in portable form. Write it down on paper or stamp it into metal, and store it somewhere physically secure and offline. Never photograph it. Never put it in cloud storage. Never type it into a website. If your device is lost, stolen, or destroyed, that seed phrase is the only thing that lets you recover your bitcoin in any compatible wallet. Treat it like what it is: the keys to your sovereignty.
Can I use a hardware wallet with Lightning?
Not in most cases. Hardware wallets are designed for on-chain bitcoin, cold storage where keys stay offline. Lightning requires keys to be available online to route payments in real time. The common approach is to separate concerns: keep your long-term savings on a hardware wallet and use a separate Lightning wallet for everyday spending. Move small amounts over as needed. Think of it like a vault and a spending wallet. Different tools for different time preferences.