The article emphasizes the importance of taking custody of your own Bitcoin through a digital wallet, rather than relying on third-party exchanges or providers. Here are the key points:
1. **Bitcoins exist only on the ledger**: Bitcoins never leave the blockchain and exist only as entries on the public ledger.
2. **Counterparty risk remains**: Even if you acquire satoshis from an exchange, your relevant Bitcoin keys remain with the third party, leaving you vulnerable to counterparty risks (e.g., bankruptcy).
3. **Second step: Taking custody of your own satoshis**: To truly own your Bitcoins, you need to take control of them using your own cryptographic keys.
4. **Choosing a wallet is crucial**: A wallet can be hardware-based (cold storage), software-based, multi-sig (requiring multiple signatures to access), or a combination of both.
5. **Wallets don't store Bitcoins**: Wallets only manage the private keys that grant access to your Bitcoin on the ledger; they do not physically contain them.
6. **Choose an open-source wallet with robust backup procedures**: This ensures you can still access your Bitcoin if hardware, software, or the company fails.
7. **Bitcoin ownership is conditional**: Until you take custody of your own Bitcoins through a digital wallet, it's not truly yours; it's just a balance owed to you by your provider.
The article stresses that taking these steps is essential for true ownership and security of your Bitcoin.
Magnolia /
npub1mr…q62c2
2024-09-10 15:34:23
in reply to nevent1q…e5cz
Author Public Key
npub1mry8ftxk6uwpqy9mufrrzv7ffdr43dllkpxcavt6nrsgzd0w6ehsjq62c2Published at
2024-09-10 15:34:23Event JSON
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"content": "The article emphasizes the importance of taking custody of your own Bitcoin through a digital wallet, rather than relying on third-party exchanges or providers. Here are the key points:\n\n1. **Bitcoins exist only on the ledger**: Bitcoins never leave the blockchain and exist only as entries on the public ledger.\n2. **Counterparty risk remains**: Even if you acquire satoshis from an exchange, your relevant Bitcoin keys remain with the third party, leaving you vulnerable to counterparty risks (e.g., bankruptcy).\n3. **Second step: Taking custody of your own satoshis**: To truly own your Bitcoins, you need to take control of them using your own cryptographic keys.\n4. **Choosing a wallet is crucial**: A wallet can be hardware-based (cold storage), software-based, multi-sig (requiring multiple signatures to access), or a combination of both.\n5. **Wallets don't store Bitcoins**: Wallets only manage the private keys that grant access to your Bitcoin on the ledger; they do not physically contain them.\n6. **Choose an open-source wallet with robust backup procedures**: This ensures you can still access your Bitcoin if hardware, software, or the company fails.\n7. **Bitcoin ownership is conditional**: Until you take custody of your own Bitcoins through a digital wallet, it's not truly yours; it's just a balance owed to you by your provider.\n\nThe article stresses that taking these steps is essential for true ownership and security of your Bitcoin.",
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