Key management methods
Ways to store your keys
Managing your own Bitcoin means storing your keys. Each method has its own uses and limitations.
What are you storing?
A private key is secret information used to sign transactions. Many wallets derive multiple keys from a seed and provide a mnemonic—a list of words—for backup and recovery. Before choosing a storage medium, understand what you are backing up and what you would need if the device were lost. The five approaches below offer a starting point.
Five approaches
Paper wallets
Back up a seed phrase or private key on paper. Consider the low cost alongside the risks of damage, loss, and exposure.
Metal wallets
Record keys on metal for greater durability than paper. Explore cassette, capsule, and punch designs, along with stress-test results.
Brain wallets
Memorizing seed phrases and using memory techniques. An approach that must account for forgetting and memory errors.
Hardware wallets
Store keys and sign transactions with a dedicated device. Topics include hardware and software risks and verifying transaction details.
Smartphones as signing devices
An example using an unused smartphone and a separate app, with network isolation and transaction data exchanged through QR codes.
Self-custody basics
Start with private keys, seed phrases, and the role of a wallet before choosing a storage method. Explore the essential concepts in the Coconut tutorial.