+2.895% Nvidia 🧠

+2.697% Rheinmetall 🧨

+1.418% Broadcom 💻

+1.392% Ethereum 📈

+1,201% Bitcoin 🚀

+1.059% Mitsubishi Heavy Ind. 🇯🇵

+974% Tesla 🚗

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+933% Crowdstrike 🦅

+828% Commerzbank 🏦

+695% Applied Materials 🪞

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+521% TSMC 🇹🇼

+433% Silver 🥈

+424% ASML 🇳🇱

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+363% AMD 💻

+349% Morgan Stanley 💵

+324% Exxon Mobil 🛢️

+320% Deutsche Bank 💶

+279% Apple 🍏

+270% American Express 💳

+265% Meta 📱

+245% Uber 🚖

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+228% Nasdaq 100 🇺🇸

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>> Which stocks are you invested in and how have they performed?

$NVDA (-2,13 %)
$RHM (-3,42 %)
$AVGO (-2,47 %)
$ETH (+0,03 %)
$BTC (-0,52 %)
$TSLA (-2,4 %)
$MU (-4,14 %)
$CRWD (-4,09 %)

A difficult start to the year for my portfolio, I would say.

$BTC (-0,52 %)
$ACWI
$EXSH (-3,25 %) and much more.

Bitcoin is performing better than many traditional asset classes in the current market environment. Since the beginning of the Iran tensions $BTC (-0,52 %) up around 10.7 percent since the start of the Iran tensions, while the Stoxx 600 and #gold recorded significant losses.

In the short term, price performance was negatively impacted by the unwinding of a short squeeze and restrictive signals from the US Federal Reserve. Around USD 500 million in short positions were liquidated, while at the same time larger sales by so-called whales continue to indicate fragile market sentiment.

Capital flows remain positive overall and are heading for a fourth consecutive week of inflows, but are increasingly sensitive to macroeconomic stimuli. After the FOMC meeting, sentiment turned around in the short term, underlining the high reaction speed of the market.

With significantly lower expectations of interest rate cuts and ongoing geopolitical risks, the environment remains challenging. Nevertheless, the relative strength suggests that Bitcoin is increasingly establishing itself as a macro asset in its own right.

(Text by CoinShares' Head of Research, James Butterfill).

Via the following $CS (-6,68 %) - ETP you can also invest in Bitcoin: $BTC (-0,52 %)

Hello community,

I've been rebuilding my portfolio for a while now. I can't beat the market and I don't have the time or the knowledge to look at every single asset ultra closely. The portfolio is invested for retirement (I have 23 years left). Until then, the dividends will be reinvested.

The $VWRL (-1,44 %) and the $TDIV (-1,36 %) should represent the core of my portfolio.

The $EWG2 (-1,59 %) and $BTC (-0,52 %) should round off the portfolio with 3-5%. A maximum of 1 to 5 individual stocks can (should) be added over the years (max. 2% each)

Now I am asking myself whether I should add a momentum ETF of a certain size: e.g. $IWVL (-2,08 %).

What do you think and would you recommend this or another momentum ETF?

Thank you very much for your swarm knowledge and help

A seed phrase (also recovery seed, mnemonic seed or recovery phrase) is a short sequence of words that serves as a human-readable representation of a cryptographic key. This phrase can be used to restore the private keys and thus access to wallets and the bitcoins stored in them.

How does the seed phrase work technically?

Seed phrases are based on the BIP-39 standard: a random entropy (e.g. 128-256 bits) is converted into a sequence of words from a fixed word list. From this seed phrase, a deterministic wallet (BIP-32/BIP-44) generates a hierarchy of private keys and addresses so that all accounts can be reconstructed from a single phrase.

Length and word lists

• 12 words: usual compromise between security and usability (128 bit entropy).
• 24 words: higher security (256 bit entropy).

Word lists are language-specific (e.g. English, Spanish, German), but compatible implementations usually use the English list.

Meaning of password (passphrase) vs. seed phrase

In addition to the seed phrase, an optional passphrase (also known as BIP-39 passphrase or "25th word") can be used. This increases security by adding an additional secret component. Without the correct passphrase, recovery is not possible - this increases security, but also the risk of irrevocable loss.

Security risks and best practices

Never store your seed phrase digitally - no photos, screenshots, text files or cloud backups - as digital copies can be easily compromised. Instead, store the phrase physically, ideally on durable materials such as engraved or embossed metal that is fire and corrosion resistant. Make multiple copies and store them in securely separated, geographically distant locations (such as a safe in the garden or at home) so that a single damaging event does not lead to total loss. Never share the seed phrase with others: anyone who knows the phrase has full access to your resources. After you have created a backup, you should test the restore in a separate wallet without deleting existing wallets to ensure that the backup is correct. Be vigilant against phishing: rogue wallet software, browser extensions or websites may try to get you to enter the seed phrase - a legitimate wallet will only ask for the phrase once during setup or restore. If you also use a passphrase (BIP-39 passphrase), treat it as a separate, equally securely stored secret and document it separately from the seed phrase, because without both components, recovery is impossible.

Tip

Do not use a safe deposit box. In the future, there is a risk that you will be denied access, the safe deposit box will be confiscated or - as has already happened in several cases - safe deposit boxes will be looted.

Common mistakes that lead to loss

Are often easily avoidable in practice. Many users store their seed phrase insecurely - digitally, as a photo or unencrypted file - and thus make themselves vulnerable to theft. Mistakes when transcribing or typing errors when restoring also prevent access to the funds. Forgetting or losing an optional passphrase often makes recovery impossible, so this must also be stored separately and securely. In addition, distrust unreliable wallets or hardware with untested or manipulated firmware, as such devices may contain security vulnerabilities or backdoors. Finally, passing on the seed phrase to third parties or using it in insecure environments regularly leads to compromised accounts - anyone who knows the phrase has full access.

Seed phrase and hardware wallets

Hardware wallets (Bitbox, Trezor, etc.) generate seed phrases offline and never store private keys in the device in readable form. They offer additional protection mechanisms such as PIN protection, firmware signatures and limited attack surfaces against malware. Nevertheless, the same backup and security rules apply to the seed phrase.

24 words in steel, passphrase separated

The safest, practical basic rule is to permanently stamp the complete 24-word BIP39 seed phrase in steel and store this copy in a safe place. Steel resists fire, water and decay much better than paper and reduces the risk of a single damaging event destroying your backup. You should never store the optional passphrase (the "25th word") together with the punched seed phrase. Store the passphrase separately - for example, in a verified password manager with a strong master passphrase or physically with a trusted person (such as a close family member) in a sealed envelope. This separation ensures that a break-in or fire does not compromise both the seed and the passphrase at the same time.

Tip

Trezor Keep Metal: https://trezor.io/de/trezor-keep-metal-single-share

On Amazon with 24 words: https://amzn.eu/d/08XrVz2z

Recovery test checklist

Before you rely on the security of your backups, carry out a recovery test. Prepare an isolated, clean device for this - ideally an air-gapped laptop or a freshly installed smartphone/computer on which no wallet data or key remnants are present. For the test, either create a dedicated test seed with a small amount of money or, if you are testing the real seed, use a copy of the physical backup strictly in a controlled environment. Start a new wallet instance, select the correct word list language (BIP-39) and enter the 24 words in the exact order. If you are using a passphrase, be sure to test its input as well - different character sets, capitalization and leading/trailing spaces are common sources of error. Synchronize the wallet and send a small amount to a receiving address to verify that transactions are possible. Note any problems that occur (e.g. typos, incorrect word list, passphrase errors) and correct your storage documentation. Document the date, wallet software and version used, device type and test history. Repeat this test at least once a year and after every change - new backups, moving backup locations or firmware updates.

Alternative concepts for secure storage

Multisignature (Multisig)

Distributes your assets across a wallet that requires multiple signatures (e.g. 2-of-3). No single seed grants access on its own, loss of a backup is not catastrophic. Secure each signature copy separately on robust material and in different locations.

Shamir's Secret Sharing (SSS)

Split the seed phrase cryptographically into several parts, of which only a defined number is required for recovery (e.g. 5 parts, 3 for reconstruction). This increases resistance to theft, but requires careful management of the individual parts - ideal on different media and locations.

Metal + safe combination

A combination of stamped steel and several fireproof safes offers physical protection against fire, water and burglary. For example, store one copy in your home safe and another in a bank safe deposit box; different locations reduce the risk of simultaneous loss.

Split backup with SSS instead of manual splitting

Avoid simple manual splitting of words (splitting in half is unsafe). Instead, use SSS or proven deterministic methods if you want to split the seed into parts so that individual parts have no value on their own.

Passphrase + physical seed backup

Store the 24 words physically in steel, the passphrase encrypted in a locally encrypted password manager or as a sealed letter with a trusted person. This combination combines physical robustness with convenient but secure handling of the passphrase.

Threat model analysis

Decide on your measures based on specific threat scenarios. Opportunity theft (burglary) requires physical robustness and geographical separation - i.e. steel plates in separate safes. Targeted attacks or insider threats are reduced by separating seed and passphrase, by multisig or by SSS, because a single compromised location does not allow access. Digital compromise (malware, phishing, cloud leaks) is prevented by not using digital copies, by using verified hardware wallets and by practicing secure input processes. Disasters such as fire or flooding require fireproof metal backups and different geographical locations. For government or forensic risks, the distribution principle (multisig with independent custodians) and legal advice are worthwhile; bear in mind that coercive measures raise complex legal issues. Finally, there are self-inflicted risks - forgetting the passphrase, typos, outdated firmware - which are minimized by regular testing, documented processes and redundancy. Weigh probability against damage: the higher the amount, the more costly the protection.

Multisig implementation

Multisig greatly changes the risk profile, but increases the complexity. Basic principle: Transactions require k out of n signatures (e.g. 2 out of 3). Architectures should combine different device types and storage locations - for example, a hardware wallet at your home, a second copy with a lawyer/trustee and a third in a vault or with a second trusted person. When setting up, use wallet software with multisig support (Electrum, Sparrow), generate keys on separate, preferably air-gapped devices and physically secure each key copy (steel, safe). Test the reconstruction with exactly k signatures in a controlled environment. Planned maintenance: firmware updates only after checking compatibility, regular recovery tests and a documented procedure for the loss of a signature (e.g. replacement key, redistribution). Disadvantages include greater operational complexity, possible higher fees and dependence on compatible software; however, for medium to high volumes, the security gain is often worth the expense. For institutions, 3-of-5 or combined multisig with trustees are common; for private users, 2-of-3 is a pragmatic compromise.

Usability vs. security

The most secure solution is not always the most practical. Multisig and SSS offer strong security, but require understanding, coordination and regular maintenance; a technically sophisticated method is of little use if no one can perform the recovery without errors. For beginners and small amounts, the workable combination of 24 words in metal plus a separate passphrase is often sufficient - it is easy to understand, testable and robust against most risks. For higher values, a step-by-step approach is recommended: first physical metal backups and separate passphrase, then add multisig or SSS. Choose a solution that you can test regularly, document and hand over to heirs in a traceable manner in an emergency. Think about usability: clear instructions, labeled backup containers (without secret contents), and a realistic assessment of who can carry out the restoration in an emergency.

Emergency protocol for heirs

Plan a clear, legally compliant emergency protocol in the event of an emergency. Document where backups are located and who should be notified in what order in a separate, securely stored location (e.g. in the will with the notary or in a sealed deposit) without specifying the actual secret data. Use sealed envelopes or locked files with instructions: which documents (death certificate, power of attorney) are required, which person(s) are to be notified and how technical restoration is to be carried out. Combine physical indicators (e.g., notice to attorney) with technical finger pointers (e.g., wallet type name, location of safe) without disclosing seed or passphrase. Consider multisig constructs where heirs must combine keys with each other and with a trustee; this allows an attorney to coordinate the release without having sole access. Have clear step-by-step instructions ready: Identification of storage location, contact information for trusted parties, recommended hardware/software, and an authorized recovery path. Have the protocol legally checked (notary, lawyer) and update it in the event of relocation or personnel changes.

Examples of errors from practice

Many losses are avoidable and follow typical patterns. A common case: Seed as a photo on the smartphone - after cloud sync or a hacked account, the words were compromised. Lesson: no digital copies. Another example: User with 24 words, but who had used a passphrase and never wrote it down - money irretrievably lost. Lesson: always document the passphrase securely and separately. In another case, the only copy was in the home safe; everything was lost in an apartment fire. Lesson: geographical distribution. In the case of manipulated devices, hardware with compromised firmware leaked seeds; as a result, several users fell victim to targeted attacks. Lesson: only verified devices, reputable supply chains and firmware verification. Finally, simple manual splits (halving words) failed during recovery - an SSS solution would have been necessary here. The lesson from every incident: document, test, diversify.

Concrete short solution for private users

Punch the 24-word seed phrase into a robust metal tool and store the disk in a fireproof safe. Store the passphrase separately - encrypted in a high-quality password manager or physically as a sealed letter with a trusted person (e.g. mother or other close relative).

Optional

Supplement the solution with Multisig or SSS if you want greater redundancy and protection against individual points of failure.

Key management policies

The policy is aimed at companies and wealthy private individuals with significant holdings. It defines clear roles (asset owners, key custodians, recovery officers, multisig operators, auditors), segregation of duties, physical and digital safeguards and formalized recovery and audit processes. The aim is to prevent loss, theft and misuse through redundant, shared storage (e.g. multisig/SSS), regular tests, audits, change management and legally secure emergency/legacy regulations. But now in detail:

A clear key management policy defines how private keys, seed phrases (BIP-39) and optional passphrases are generated, backed up and restored in an emergency. The aim is to prevent loss, theft and misuse; the scope includes all physical and digital backups, multisig configurations, hardware wallets and the persons entrusted with custody and recovery.

The distribution of roles must be clear. The asset owner has overall responsibility for inventory management, security levels and transaction decisions. Key custodians physically store individual key copies or hardware wallets (e.g. in a home safe) and are responsible for secure storage, access documentation and regular recovery tests of their copy. A recovery officer coordinates recovery processes and maintains logs; this role should be independent of those who authorize daily transactions. Multisig operators manage multisig setups, take care of configuration and signature processes. Auditors - internal or external - check compliance and report to the asset owner. Designated emergency contacts or heir representatives receive documented instructions in the event of death or permanent loss of the asset owner, without automatically having access to the secret data.

Access control and segregation of duties are key security principles. The principle of least privilege ensures that only people with a specific need have access to seeds or passphrases; temporary access is limited in time and subject to logging. The separation of initiator and signatory (segregation of duties) prevents one person alone from initiating transactions and controlling the necessary signatures - particularly important for multisig. Physical access to safes or lockers should be linked to identity checks and every opening should be fully logged. All access, withdrawals or tests on backup copies are logged with details of who, when, why and, if possible, an accompanying person.

Secure storage combines physical and digital measures. Physically, 24-word seed phrases in stainless steel (stamped or etched) and multiple copies in geographically separated, fireproof locations such as home safes are recommended. Digital photos, cloud backups or unencrypted text files should be strictly avoided. The optional passphrase should always be stored separately from the seed, for example encrypted in a locally operated password manager with a strong master passphrase or as a sealed letter with a trusted person; never in the same place as the steel backup. For key generation and signatures, verified hardware wallets with verifiable firmware should be used; where possible, critical operations should take place on air-gapped devices. For large volumes, the use of multisig or Shamir's Secret Sharing (SSS) on verified implementations is also recommended, whereby parts or signatures are distributed to different custodians.

Recovery processes must be formal and documented. A written recovery plan describes step by step which documents (e.g. death certificate or power of attorney) and which persons are required, how backups are recovered and how seeds are reconstructed in a fresh wallet. Recovery tests must be carried out at least once a year and repeated immediately in the event of any significant change (new copies, change of location, firmware update). Test logs contain the date, participants, wallet software and firmware version used as well as the result; any errors and corrections that occur are documented in a traceable manner. Escalation paths regulate the procedure in the event of missing or damaged copies; replacement copies may only be created in accordance with a defined, secure procedure and ideally with witnesses.

The operation of multisig increases security, but also complexity. Multisig architectures should combine heterogeneous device types and storage locations - such as different hardware wallet manufacturers and geographically dispersed signers - to avoid single points of failure. The setup includes generating keys on separate devices, creating the multisig configuration and testing the reconstruction with the required number of signatures. Key rotations and replacement of failed signers must have formalized processes and be retested after each change. Disadvantages include increased administrative effort and potentially higher transaction costs; however, for medium to high volumes, the security benefits outweigh the additional effort.

Audits, monitoring and change management create revision security. Internal checks should take place every six months, external security audits at least once a year or in the event of structural changes such as a new multisig setup. Audit checkpoints include physical storage, logs, recovery test results, firmware status and role staffing. Continuous monitoring generates alerts for unauthorized safe openings or inventory discrepancies; inventory reconciliations occur at set intervals. Changes to storage locations, responsible parties, multisig configurations or passphrase storage require a written change request with risk assessment and approval, while historical inventories and logs are securely archived.

Training and awareness are crucial for practical maturity. All key custodians, recovery officers and selected heirs should receive regular training on secure procedures, phishing attack detection and recovery processes. Practical recovery drills under realistic conditions (without actually disclosing secrets) increase the ability to act correctly in an emergency.

Emergency and inheritance arrangements must be legally secured. File an index without secret data with the notary or lawyer, listing the locations of the backups, wallet types, names of those responsible and contact details. Combine legal instructions with technical mechanisms such as multisig so that heirs are only granted access after defined conditions have been met. Provide clear, secure instructions for heirs: Identification of the find, required documents, contact to technical support persons and the authorized recovery path.

Technically and organizationally, redundancy and diversification are essential: multiple copies in separate locations, but never all in one place; combination of different technologies (multiple hardware wallet vendors, multisig, SSS) and defined continuity plans for key custodian failure (death, abroad, incapacity) with clear replacement processes. Data protection principles require that personal information is not unnecessarily linked to the secrets; local legal requirements regarding inheritance law and safekeeping must be observed and, if necessary, legally reviewed.

For practical implementation, we recommend a written key management manual that documents roles, processes and emergency plans. Formally appoint asset owners, key custodians, recovery officers and auditors, carry out initial recovery tests and implement physical metal backups, verified hardware wallets and separate passphrase storage. Establish regular audits, training, drills and formal change management. This creates a traceable, verifiable and manageable level of security for the secure storage of Bitcoin.

Conclusion

The seed phrase is the central element of control over Bitcoin holdings: it enables recovery and full access, but at the same time represents a single point of failure. Careful physical security, the use of proven hardware and procedures such as multisig and optional passphrases reduce the risk of loss.

Glossary of technical terms:

Seedphrase / Mnemonic

A human-readable sequence of words used to derive all the private keys of a deterministic wallet.

BIP-39

The standard for generating and encoding seed phrases, including word lists and checksum mechanism.

Passphrase (BIP-39 Passphrase)

An optional, additional secret component; without it, recovery of the associated key is not possible.

Private key

The cryptographic key with which transactions are signed; derived from the seed.

Multisig (multisignature)

A wallet concept in which several keys are required to sign a transaction (k-of-n).

Shamir's Secret Sharing (SSS)

A cryptographic method that divides a secret into n parts, whereby only k parts are required for reconstruction.

Hardware wallet

A physical device that securely stores private keys and signs transactions, often with a PIN and optional passphrase.

Air-gapped

A device that is permanently or temporarily disconnected from the network to reduce digital attack surfaces.

Recovery/test wallet

A fresh wallet instance that is used to check whether the seed and passphrase are correct.

Disclaimer

The information presented in this article on Bitcoin custody methods - in particular the seed phrase and the use of a passphrase - is for informational and educational purposes only and does not constitute legal, tax or financial advice. It is not a substitute for individual advice from a qualified professional who is familiar with your personal situation.

We assume no liability for the completeness, accuracy or timeliness of the content. To the extent permitted by law, we accept no liability for damage or loss arising directly or indirectly from reliance on or use of the information described here (e.g. due to theft, incorrect operation, technical errors, loss of access data or damage to backup materials).

The use of specific products, manufacturer names or procedures is not to be understood as a recommendation. Please check the security features, guarantees and liability conditions of the respective providers yourself. Please also note that legal and tax regulations on cryptocurrencies vary from jurisdiction to jurisdiction and may change; please consult a lawyer or tax advisor for binding information.

The safekeeping of Bitcoin and the handling of seed phrases is at your own risk. Take appropriate precautions (physical security, secure storage, access restrictions, redundancy) according to your individual security needs.

---

$BTC (-0,52 %)
#bitcoin

Bitcoin wallets form the interface between the user and the blockchain. They do not store coins, but manage the cryptographic keys that enable access to Bitcoin. The actual Bitcoin is always in the form of UTXOs on the public blockchain, while the wallet only controls the private key that grants the right to issue these UTXOs. Every interaction begins with this key material, which is why the secure storage of the private key is at the heart of every wallet technology. Modern wallets today use a variety of cryptographic standards, protection mechanisms and operating concepts to make handling Bitcoin possible for both beginners and professional users. The rapidly growing variety of wallet types, from mobile hot wallets and hardware devices to off-chain systems such as Lightning or Cashu, reflects the enormous breadth of the Bitcoin ecosystem.

Private keys, public keys and addresses

The foundation of every Bitcoin wallet is the private key, a randomly generated 256-bit value in the form of a long alphanumeric character string. Based on this key, the wallet generates a public key using elliptic curve cryptography, which in turn leads to the generation of the Bitcoin address. In the early years, wallets mainly used addresses in P2PKH format that begin with a "1". With the advent of SegWit, more efficient formats emerged such as P2SH SegWit addresses starting with "3", followed by Bech32 addresses starting with "bc1q" and supporting native SegWit functionality. The most modern form of address is the Taproot address, which begins with "bc1p" and uses state-of-the-art cryptography such as Schnorr signatures, key aggregation and Merkle script trees. This allows complex output conditions to be mapped efficiently and privately, as only a single signature key is usually visible, even if several keys or conditions are hidden behind it.

Seed phrases and the architecture of HD wallets

The BIP32, BIP39 and BIP44 HD wallet standards were developed to simplify the management of multiple keys. The wallet first generates a master seed, which is represented by a 12-, 18- or 24-word mnemonic phrase. This seed phrase is never changed and forms the root material of all subsequently derived keys. Although hundreds of thousands of possible private keys can be generated in the background, the user only needs to keep this one word list secure. Using derivation paths such as "m/84'/0'/0'/0/5", the software recognizes which key belongs to which account and which address. In addition, newer standards such as BIP86 have been developed for Taproot wallets, which will make future multiple signatures more efficient.

Hot wallets

Among the most widespread solutions are mobile hot wallets, which run on smartphones and offer fast, uncomplicated access to Bitcoin. Wallets such as Phoenix from ACINQ specialize heavily in Lightning payments and integrate sophisticated mechanisms such as splicing, in which on-chain BTC and Lightning channels are dynamically merged. Muun works with a hybrid architecture of on-chain keys and automatic submarine swaps, making lightning payments possible without the user having to understand lightning channels or routes. BlueWallet combines straightforward on-chain management with optional Lightning via LNDHub. Breez relies on an embedded non-custodial Lightning node and combines this with extensions such as streaming payments for podcasts. Zeus, on the other hand, is aimed at users who operate their own node and offers extensive remote control for LND, Eclair or Core Lightning. Privacy wallets such as Ashigaru for Android or Wasabi for desktop also expand the range and integrate modern CoinJoin mechanisms. A variety of smaller mobile wallets such as Simple Bitcoin Wallet, Bitcoiner Wallet, Green Wallet from Blockstream or Apex Wallet complete this ecosystem.

Desktop wallets play a particularly important role in the professional sector. Sparrow Wallet is now considered one of the most comprehensive tools for on-chain analysis, PSBT signatures, UTXO management and multi-sig setups. Electrum is one of the oldest Bitcoin wallets and offers a modular, extensible system that supports custom scripts, Lightning integration and hardware wallet connectivity. Specter Desktop optimizes the management of hardware wallets and large multi-sig configurations. Wasabi offers high privacy at desktop level through ZeroLink CoinJoins and automatic anonymization mechanisms.

Mobile hot wallets (on-chain)

• BlueWallet (on-chain)
• Blockstream Green
• Bitcoiner Wallet
• Simple Bitcoin Wallet
• Aqua Wallet
• Apex Wallet
• Ashigaru Wallet
• Wasabi (Mobile Beta)
• Electrum Mobile

Desktop Hot Wallets (On-Chain)

• Sparrow Wallet
• Electrum Desktop
• Wasabi Wallet
• Specter Desktop
• Bitcoin Core (with activated wallet module)
• Fully Noded (Mac)

Note

We do not recommend Wasabi Wallet. Although it presents itself as a privacy wallet, the actual implementation often does not correspond to the expected level of privacy convenience. Many functions appear to be better advertised than they are in practice, which is why other privacy solutions are the more reliable choice in our view.

Cold wallets

Cold wallets are among the most secure methods of self-custody. Classic hardware wallets such as BitBox02, Trezor Model T, Ledger Nano X, Ledger Stax or Blockstream Jade store the private keys on separate chips and sign transactions locally on the device. Even higher security levels are offered by air-gapped devices such as Coldcard, Foundation Passport or DIY solutions such as SeedSigner or Krux. With these devices, keys are generated exclusively offline and transactions are signed via QR codes or SD cards. This means that there is no direct data flow between the device and the internet, which significantly reduces the risk of attacks.

Air-Gapped / High-Security

• Coldcard MK4
• Coldcard Q1
• Foundation Passport
• SeedSigner
• Krux
• Specter DIY

Classic hardware wallets

• BitBox02
• BitBoxNova
• Trezor Model T
• Trezor Safe 3
• Ledger Nano S
• Ledger Nano X
• Ledger Stax
• Blockstream Jade
• Keystone Pro

Note: In the past, Ledger has lost trust in the community due to various decisions and security discussions. If the choice falls on a classic hardware wallet, we therefore recommend devices such as the BitBox02 or the Trezor models, as they are considered to be more transparent and community-friendly.

Paper / Metal Backup (Seed, no device)

• Seedplate
• Cryptosteel
• Billfodl

Multi-sig architectures

Multi-sig wallets distribute responsibility across multiple keys. Typical configurations are two-out-of-three or three-out-of-five key systems where multiple independent devices work together. This means that neither a single device loss nor physical theft of a key can compromise the coins. Tools such as Nunchuk, Sparrow, Specter or Caravan make it easy to set up such multi-sig systems. Modern variants use Taproot-based MuSig2 signatures, which appear to the outside world like a normal single signature, thus saving fees and improving privacy.

Multi-sig capable mobile wallets

• Nunchuk Mobile
• BlueWallet (multi-sig possible)

Multi-sig desktop solutions

• Specter Desktop
• Sparrow Wallet
• Caravan (Unchained Capital)
• Electrum (advanced scripts)

Hardware multisig compatible devices

• Coldcard
• Passport
• BitBox02
• Ledger (with restrictions)
• Trezor

Full nodes and wallets

If you want to manage your Bitcoin with complete sovereignty, you can operate your own full node. Wallets can connect directly to this node, which verifies all transactions itself. This eliminates the need to trust external servers. Systems such as Bitcoin Core, Electrum Personal Server, BTCPay Server or complete node operating systems such as Umbrel, Raspiblitz, Start9 or MyNode enable private or professional node operation.

Wallets that fully verify their data themselves

• Bitcoin Core
• Electrum + own Electrum Personal Server
• Sparrow + own node
• Specter Desktop + own node
• BTCPay Server Wallet
• Umbrel Full Node Wallet
• MyNode Wallet
• Raspiblitz Node Wallet
• Start9 Embasssy Node Wallet

Lightning Wallets

The Lightning Network forms a second layer on top of Bitcoin, enabling almost instant and very cheap transactions. Payments are not written directly to the blockchain, but are processed via payment channels between nodes. Custodial lightning wallets such as Wallet of Satoshi or Blink take over the technical complexity completely and allow easy use, but require trust in the operator. Non-custodial wallets such as Phoenix, Breez or Zeus enable Lightning self-custody and use modern technologies such as multi-path payments and splicing to make operations as transparent as possible for the user.

Custodial Lightning wallets

• Wallet of Satoshi
• Blink Wallet
• Strike (partially custodial)
• Coinos
• Alby Browser Wallet

Non-Custodial Lightning Wallets

• Phoenix
• Breez
• Zeus
• Muun (technically hybrid, but non-custodial for on-chain keys)
• Electrum Lightning
• Eclair Mobile (older, but exists)
• Blixt Wallet (Lightning + LNURL)

Lightning node wallets (with their own node)

• Zeus (with LND / CLN / Eclair)
• Thunderhub
• RTL (Ride The Lightning)
• LNbits wallets
• Umbrel Lightning Wallet

Cashu - Bitcoin-Ecash

Cashu is a new off-chain technology that is completely designed for privacy. The functionality is based on Chaumian Blind Signatures, where the mint signs tokens without being able to recognize who they belong to. This creates a system that enables lightning-fast, private and virtually fee-free transactions. Wallets such as Nutshell, Cashu.me, eNuts or Minibits implement this principle. Although Cashu is technically custodial, it enables a level of privacy that both on-chain and Lightning hardly achieve.

Cashu wallets (Chaumian Ecash)

• Nutshell Wallet
• Cashu.me Wallet
• eNuts Wallet
• Minibits Wallet
• NUTS CLI Wallet (command line)
• Strobe Wallet
• Phoenix-Cashu (experimental)

Advantages and disadvantages

Bitcoin wallets each offer different strengths and weaknesses. Hot wallets are easy to use, but are naturally online and therefore more susceptible to attacks. Cold wallets offer maximum security, but require more care when setting up. Multi-sig increases security, but requires structure and documentation. Lightning wallets are ideal for everyday, fast payments, but are technically more complex. Finally, Cashu offers great speed and privacy, but requires trust in the respective Mint.

Protecting privacy with Bitcoin

Privacy wallets aim to increase the financial privacy of users by making data leaks, on-chain analysis and movement profiles more difficult or impossible. While Bitcoin as a system is transparent, suitable wallet software nevertheless creates very strong privacy layers, whether through Coin Control, CoinJoins, PayJoin, Tor integration or the use of alternative cryptographic systems such as Monero transactions. Two wallet projects that are receiving more and more attention in this area are Cake Wallet and Ashigaru.

Bitcoin privacy wallets

• Ashigaru Wallet (a fork from Samourai Wallet)
• Fully Noded
• Simple Bitcoin Wallet (with extended UTXO options)
• Zeus Wallet (private, if via own node)
• Electrum (private only via own node + Tor)
• Specter Desktop (full node privacy)
• StackDuo, Stack Wallet (private only via own node + Tor)

Multi-asset wallets with strong privacy features

• Cake Wallet (Bitcoin via Tor)
• Aqua Wallet
• BlueWallet (on-chain private, if via own Electrum server)
• Exodus (limited, but with Tor option on desktop)

Node-based private wallets

• Bitcoin Core Wallet (completely private via own node)
• Sparrow Wallet + own node
• Electrum + Electrum Personal Server
• Specter Desktop + own Bitcoin Core
• Fully Noded (iOS) + own node

Tip

The Cake Wallet is suitable for both Monero and Bitcoin and is characterized by a strong focus on privacy. The team is considered to be very progressive and has consistently delivered high-quality work in the past.

The Ashigaru Wallet is a modern and recommendable alternative to the Samourai wallet and offers strong privacy features without unnecessary complexity.

If you need maximum control over your Bitcoin, the Sparrow Wallet is an outstanding solution. It is considered one of the best options for users who prefer complete transparency, precise UTXO management and in-depth control.

Note

For strong privacy, Wallet and Node should always be configured via Tor at all times. If you are serious about data protection, you should also run a own nodeso that no external servers can see your data. Particularly privacy-focused Bitcoiners also rely on open source operating systems for their nodes - so don't use Umbrel, but rather an x86 node, StartOS or the Ashigaru Node.

Best practices for self-custody

If you want to self-custody Bitcoin, you should follow some basic security principles. One of the most important measures is to operate the wallet and node consistently via Tor so that no connection can be traced directly to your IP. In addition, having your own Bitcoin node significantly increases your privacy and security because you are not querying transactions and addresses via third-party servers. Many privacy-oriented Bitcoiners also rely on open source systems in order to retain control over their infrastructure. The correct handling of the seed is just as important: never take screenshots, never save them digitally and always back them up offline, preferably on robust metal backup disks. These few basic rules form the basis of secure and sovereign Bitcoin custody.

Partially Signed Bitcoin Transactions

PSBTs play a central role in the use of cold wallets or multi-sig setups. A PSBT is a partially signed Bitcoin transaction that is exchanged between devices without the private key ever leaving the secure hardware wallet. The software wallet (e.g. Sparrow or Specter) builds the transaction, saves it as a PSBT and transfers it to the hardware device, e.g. via SD card or QR code. There, the transaction is securely signed and then returned to the software, which broadcasts it to the network. PSBTs therefore make it possible to use cold storage systems and hardware wallets securely, even in complex multi-sig configurations.

UTXO management

Bitcoin is based on the principle of so-called UTXOs ("Unspent Transaction Outputs"). Each incoming payment generates a new, independent UTXO, which is treated like a single "banknote" in your wallet. A wallet therefore does not consist of a single account balance, but of many individual UTXOs of different sizes.

UTXO management means keeping track of how many UTXOs you have, how big they are and which transactions they originate from. Well-structured UTXO management helps to keep fees low, better understand your own history and ensure a clean allocation of holdings in the long term.

If UTXOs grow in a disorganized manner, unnecessarily high fees can arise later on, as a large number of small UTXOs can lead to an expensive, large transaction. Similarly, disorganized UTXO structures can compromise privacy, as different payment histories could be unintentionally linked.

Conscious UTXO management therefore ensures that the wallet remains efficient, traceable and cleanly structured - and forms the basis for later steps such as privacy tools, multi-sig setups or long-term cold storage strategies.

Coin Control

Coin control (or UTXO management) means that you choose which of your UTXOs are used for a transaction. A UTXO is an "incoming coin", i.e. the amount you have received from a previous transaction. Your wallet can consist of many small and large UTXOs, similar to different banknotes in a wallet.

The graphic shows this principle

For example, the wallet has two UTXOs, one for 0.2 BTC and one for 0.5 BTC. When you make a payment, you can decide which one should be used. This prevents UTXOs from different sources from being mixed and unintentionally revealing information about your history. At the same time, Coin Control helps to avoid unnecessarily high fees by specifically selecting smaller or larger UTXOs.

Without Coin Control, your wallet can automatically mix UTXOs that should actually remain separate. This can dilute CoinJoin results and blockchain analytics can better recognize correlations. With Coin Control, you retain full control over privacy, fees and the structure of your wallet.

Conclusion

Bitcoin wallets are much more than simple apps or devices - they are the key to true financial self-determination. The wide variety of wallet types shows that users can use completely different tools depending on their needs: From mobile hot wallets for everyday use, to hardware wallets for long-term security, to lightning and cashu systems for fast and private off-chain payments.

If you want to manage Bitcoin confidently, you need to develop a basic understanding of the technical concepts: UTXOs, coin control, PSBT workflows, node connectivity and the importance of the seed phrase form the basis for secure self-custody. Privacy-oriented users in particular benefit from tools such as Sparrow or Ashigaru, which offer deep control and strong data protection mechanisms.

In the end, everyone decides for themselves how much responsibility they want to take on. But the more you understand and the more you master the tools, the stronger your independence becomes. Bitcoin rewards precisely this combination of knowledge, discipline and the willingness to protect your own assets. If you use your wallet confidently, operate Tor and your own node and store seeds securely offline, you not only hold your Bitcoin in your own hands, but also your privacy.

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Disclaimer

The information contained in this article regarding Bitcoin wallets, seed phrases, backup methods and security procedures is for educational purposes only and does not constitute legal, tax or financial advice. For individual decisions, you should seek expert advice if necessary.

We assume no responsibility for the accuracy, completeness or timeliness of the content. Liability claims for damages arising directly or indirectly from the use of the information described - for example due to theft, operating errors, technical problems or loss of access data - are excluded to the extent permitted by law.

The mention of specific products or procedures does not constitute a recommendation. Always check the security features and legal framework independently. Regulations on cryptocurrencies may vary and change depending on the country.

The safekeeping of Bitcoin - in particular the handling of seed phrases and backups - is at your own risk. Take appropriate security precautions according to your personal protection needs.

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You will learn a lot about Bitcoin in this article today and then be able to understand it better. It is important that you continue to inform yourself, read, watch and question a lot. Bitcoin is a very complex topic. It is often said that Bitcoin is like a rabbit hole: questions pop up everywhere and you want to find answers. Moving from one topic to the next is quite normal. $BTC (-0,52 %)
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BITCOIN ORIGINS

Most people who hear about Bitcoin mainly look at the price and how it fluctuates. However, they often do not question why Bitcoin was created in the first place. In 2009, Satoshi Nakamoto published the Bitcoin white paper. Satoshi is a cypherpunk - a person or group of tech-savvy people who advocate for privacy in electronic data processing. They pursue the goal of realizing this by encrypting data and communication channels.

Cypherpunks have played a crucial role in protecting our privacy for several years. They have extensive knowledge of our system and are often very intelligent and advanced. These individuals have understood our existing system and have often been one step ahead of us in terms of future developments. They often open our eyes and offer perspectives that could be relevant in the future.

Satoshi Nakamoto wanted to separate the state and money. Later in the 'history of money', we will learn why our current monetary system has failed and what changes Bitcoin can bring.

BACK QUESTIONS

It is important to understand that Bitcoin was created out of necessity. It is intended to protect us from future challenges. Digitalization is advancing rapidly and governments are planning to introduce central bank digital currencies (CBDCs) and abolish cash. With the introduction of CBDCs, we would lose our freedom and experience many other negative consequences - more on this later.

It is crucial to ask ourselves the following questions: Why do governments decide on currencies, and where does money actually come from? We also need to understand why the current system does not work and why fiat and sovereign currencies are increasingly losing stability.

Why were states allowed to print trillions of dollars during the coronavirus crisis? What gives states the right to do this? We are born into this system, which can be compared to the Matrix - we need to wake up. It is important to become aware of the system, this matrix. Only then can we understand why our reality does not work as it should.

HOW DID BITCOIN START NOW?

The first Bitcoin block, the so-called Genesis block, contained the following message: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks." Satoshi Nakamoto was referring to an article that graced the cover of the January 3, 2009 issue of The Times. As the first Bitcoin block was also mined on this date, the message also serves as a kind of time stamp. The article quoted was about further bank bailouts in the wake of the 2008 financial crisis.

After the incident with WikiLeaks, Satoshi Nakamoto became increasingly cautious. WikiLeaks, a revelation platform founded in 2006, enables the anonymous publication of documents that are restricted due to secrecy or censorship. The platform assumes a public interest in the information and uses the anonymization network Tor to upload files. According to the WikiLeaks website, this platform was founded by Julian Assange. It published secret information from the state.

Because of his revelations, Assange was considered a "danger" and was placed on the red list, which meant that there were threats against him. Various governments urged companies such as PayPal and Visa to block WikiLeaks transactions. As a result, WikiLeaks turned to Bitcoin to accept donations. This was an impressive demonstration of Bitcoin's robustness as a permissionless currency. With Bitcoin, no one can take money away from you or stop donations.

THE FIRST BITCOIN PURCHASE - PIZZA DAY

On May 22, 2010, the US programmer Laszlo Hanyecz paid 10,000 Bitcoin for what were probably the two most exclusive pizzas ever ordered, for his and his children's dinner.

Hanyecz asked at the time: "Is nobody really going to sell me two pizzas? Is 10,000 Bitcoin too little?" Eventually, student and Papa John's employee Jeremy Sturdivant went along with the deal. The pizzas were delivered, the Bitcoin transferred, and Laszlo posted photos of the dinner with his children as proof.

As was customary at the time, Hanyecz had mined the digital money himself. If he hadn't spent the Bitcoin on the dinner, he would be a multimillionaire today. Does he regret it? Of course not, he says. "Bitcoin was an interesting system, but nobody used it. And if nobody uses it, it doesn't matter how many Bitcoin I own." He pushed the idea of Bitcoin further and became not rich, but a legend.

THE INCIDENT - WIKILEAKS

Satoshi said WikiLeaks had stirred up a hornet's nest and now the swarm was out to get us. Bitcoin was in the spotlight too much, too soon. Satoshi had created a new currency. He feared that this 'sting in the wasp's nest' had come too soon for the project. It would not survive an attack. It was probably then that he began to consider whether he should leave the project. And finally Satoshi Nakamoto disappeared.

ABOUT SATOSHI NAKAMOTO

However, it is unclear whether the individual software developer or the entire team is behind the name or pseudonym. There are countless theories circulating on the internet about who the father of cryptocurrencies might be. There are no valid answers. What is also important to understand is that Satoshi Nakamoto or the group of cypherpunks were. Satoshi Nakamoto was not only a brilliant cryptographer, but also studied the Austrian School of Economics around Ludwig von Mieses for years. Satoshi Nakamoto still holds 1.1 million Bitcoin to this day, which has never been moved.

Bitcoin is absolutely apolitical. It is a truly free, permissionless network for storing and transferring value. The virtual world is not an isolated world. No, it is firmly connected to our world. Every digital action has an impact on real life.

1 BITCOIN = 1 DOLLAR

Bitcoin was not created for criminals, no, it was created to enable free, autonomous transactions. In 2011, the mark of 1 bitcoin = 1 dollar was cracked. From this day on, Satoshi Nakamoto withdrew from the project. There were no more public posts, only a few emails to the Bitcoin developers. He only wanted to guide and advise.

SATOSHI MAKES A CUT.

Gavin Andresen said: 'I was just at the CIA. They wanted to talk about Bitcoin. In April 2011, Satoshi Nakamoto received an email from Gavin Andresen, one of the programmers. He accepted the CIA's invitation to talk about Bitcoin. From that day on, Satoshi Nakamoto never wrote another email. That was it. Gavin Andresen knew nothing about Satoshi Nakamoto. But Satoshi made a cut. He didn't want to take any risks and jeopardize the project. He knew they would do everything they could to find him. But they would not succeed. Satoshi Nakamoto no longer needed the 'Bitcoin' program. It was stable enough to grow and fulfill its function, no matter for what purpose. Satoshi Nakamoto knew that a human behind such a project would be a weak point. He knew that if Bitcoin was to become something big, he would have to leave to protect Bitcoin.

IMPREGNABLE CITADEL

The network could live without Satoshi Nakamoto. It didn't matter whether he was still there or not, it no longer needed him. There was no need for an intermediary, trust was based on the code and unfolded in the network. Satoshi Nakamoto remained silent, and Bitcoin grew and stabilized more and more. The program ran decentrally on countless computers. This made Bitcoin unassailable.

SATOSHI NAKAMOTO FOUND

The 'Newsweek' people found someone called Satoshi Nakamoto. Everyone thought they had found him. It was absurd. Satoshi Nakamoto, who only had the name, didn't even know anything about Bitcoin. Satoshi Nakamoto wouldn't have used his real name. Basically, they were looking for a Max Mustermann. They found one and claimed it was Satoshi Nakamoto. The reporters harassed the man at home. He was in the spotlight. He was a quiet guy, he didn't want attention. It was very uncomfortable for him. The 'Newsweek' people acted quite unethically. He wasn't a software developer either, he was a development engineer on other projects.

Hal Finney in 2009 was one of the first computer scientists to take an interest in Bitcoin and communicate with Satoshi Nakamoto. He developed some key elements for Bitcoin's success. Satoshi Nakamoto had asked for help. He needed people to help him implement and mine to 'activate' Bitcoin. Hal Finney and Satoshi Nakamoto cooperated. Satoshi Nakamoto sent him the very first Bitcoin. Only an autonomous system can be free, Hal Finney understood that. Bitcoin is not just a simple digital currency, but a means to absolute independence. Bitcoin is the new gold, digital gold. As with gold, the amount of Bitcoin is limited. As with gold, the difficulty for miners to find it is growing.

BLOCKCHAIN AND MINING

It is now an industry as well as a philosophy and it is the cornerstone of Bitcoin technology. It is a monetary system, and money can be earned or sent. That's all you do with it. In computer systems, this is anchored in databases that show who has how much money. If someone wants to send money, you change the database.

If it is to be decentralized, as with Bitcoin, all participants have a copy of the same database - the Bitcoin node. If a transaction changes the database, everyone has to coordinate. Everyone must agree that the transaction is permissible. It is impossible to hack 30,000 or 2,000,000 computers to modify the database, compared to a single bank computer.

To send you a bitcoin, I have to make a transaction. It takes place in a transaction group. Behind this are the so-called Bitcoin miners. The miners combine their computing power in a mining pool and generate a block. The miners are all in competition with each other to validate the transaction block. The network creates a very complex mathematical puzzle, so to speak, which must be solved in order to expand the blockchain and add a new block.

The whole thing can be viewed on mempool.space: https://mempool.space

You have to try all combinations. With 'heads or tails' you would have to throw 'tails' 90 times in a row. You can't do that in a lifetime. That's why you have to repeat it billions and billions of times. It's not a complicated problem, it's just high material and energy costs. Someone solves the problem first, wins, and gets the Bitcoin for it - that's the motivation.

A block consists of (network fees + newly created Bitcoin, currently 2023 - 6.25 Bitcoin). These are dropped later, but the network fees increase.

The block is added to the chain. This validates the transaction and you receive the Bitcoin from me. The Bitcoin blockchain is the register that records all Bitcoin transactions since the very first transaction. Blockchains existed before Bitcoin. It's an old idea, each piece of information is linked to the previous one and you can trace the chain back. Even art dealers did it this way. Since the 16th century you know, 'This is a painting by Rubens, Mr. Whatever bought it', then it ends up in the museum. That's why you can trace the origin of some paintings back several centuries.

Mining is very important to ensure system security. This is measured in TH/s. Terahash is the name given to Bitcoin: https://www.blockchain.com/explorer/charts/hash-rate

No one would invest this huge amount of electricity if they were not sure that all transactions in the current block are legitimate. If not everything is legitimate, the block will not be validated and costs and efforts would be in vain. The miner would have invested time and energy for nothing.

I TRUST BITCOIN

NO ONE ELSE.

But I don't trust the miners, the transactions or the blocks created. I verify everything - my node verifies everything, and since everyone verifies everyone else and no one trusts anyone else, we can all trust the end result. Because it's verified by thousands of nodes/computers. It's incredibly difficult or impossible to lie on the Bitcoin network.

Bitcoin is not dependent on anyone. An entire network supports Bitcoin. There is no central bank. It is an unassailable, transparent, distributed register. Such a branched system cannot be stopped, cannot be captured. It is a fortress.

MINING AND THE ENVIRONMENT

It requires high computing power. That's why miners invest in special equipment such as ASIC miners, servers, computers, etc. People say that Bitcoin mining consumes too many resources and pollutes the environment disproportionately. They are right! It takes a lot of energy. It is not free. But you have to look at the cost as an investment. Bitcoin requires a high 'expenditure' of energy.

BUT WHAT DO WE GET IN RETURN?

The broad mass of people still don't see the philosophy behind it - which Satoshi Nakamoto actually wanted to change. It's a cypherpunk idea! Protection of your own data, decentralization, independence from the banks. A new system that is in the hands of the people. These are big ideas. People think the cheap, easy way is to use coal power or gas and it's more expensive and responsible to use green power. But coal or gas power is not that cheap. After all, you have to mine the coal and then burn it. For renewable energies such as wind and hydropower, you have to invest in dams, but then you have electricity for hundreds of years. More on this in the article mentioned above.

Every virtual action leaves traces. Digital pollution. We're not just talking about Bitcoin here. Much of our modern life takes place online. Bitcoin is just as useful as social networks or streaming services, and it will stay that way. That's why we need to constantly improve the system.

HAL FINNEY

The email conversation between Satoshi and Hal Finney is public. They talked about the carbon footprint, about the fact that more and more miners are becoming professionalized. They discussed all of this in the early days of Bitcoin, and it reflected exactly what was really happening. He put a lot of time into the Bitcoin project. When he died, he was cryopreserved, frozen. So by our clinical definition, Hal Finney is dead. But there is a small chance that he will come back at some point. He was a good man, a philanthropist and a gifted software developer and cryptographer.

INTEREST IS GROWING

In January 2013, there were only a dozen people at the Bitcoin meeting in San Francisco. In March, the price was 260 dollars. A hundred people came. Venture investors handed out business cards. That's when Bitcoin suddenly became real. Unfortunately, people were only interested in the price, as most people still are today, and didn't really understand the idea and philosophy behind Bitcoin. With the disappearance of Satoshi Nakamoto, creation was unleashed. Through the interplay of supply and demand, Bitcoin became an extremely volatile object of speculation, as many still call it today, especially financial investors. Today you can buy a small car for one Bitcoin and tomorrow a sports car. Currently still too volatile for a currency. Bitcoin became an issue in the US Congress. Many companies invested in products and services. One Bitcoin was worth more than 1000 dollars and people were stunned. It was a new technology, a store of value. Naturally, the price rose as more people learned about the philosophy: Data control and criticism of the banking system - fiat money system. Trust in the banks is crumbling more and more, so there is growing interest in new currency systems that offer better value stability than state currencies.

QUESTIONING THE CURRENT MONETARY SYSTEM

Bitcoin was planned to be limited from the start. The amount that can be mined is fixed and gradually decreases through halving, approximately every 4 years, where the payout to miners in rewards is halved. One day there will be no more halving and no more new Bitcoin will be created. Traditional currencies such as the euro can be issued by central banks at will, without limits and without democratic control by the population. What is the purpose of this money? For example, what is the point of paying taxes if you can create unlimited amounts of money?

Satoshi Nakamoto was brilliant in terms of monetary policy. He invented digital scarcity: the Bitcoin upper limit is 21 million, or 20,999,999.97690000 Bitcoin to be precise. The maximum amount of money is calculated according to the formula. There will never be more than 21 million Bitcoin. For this reason, the existing Bitcoin will retain its value - a hard promise or even increase in value, as it is at the moment, instead of losing value over time.

WALLET - PRIVATE AND PUBLIC KEY

A Bitcoin wallet is the equivalent of a bank account. But you control it yourself. You have a password and the so-called private key. With the public key, others can view the account to enable transactions. But you only really have access with the private key. That's why it's extremely important! 'Not your keys, not your coins! Without the private key, you cannot access the Bitcoin. Someone who has the key doesn't own the Bitcoin either. That's good and bad. Because if you lose it, your wallet or account is lost for all eternity, and it's a donation to everyone in the Bitcoin universe.

In a decentralized system, there is no central authority that you have to trust. There are of course pros and cons here. Because there is no customer service to ask for help, unless you trust a third party to take care of custody again. But as history has shown time and time again, this trust is abused and you end up losing everything. That's why it's important to take care of the safekeeping and the key yourself.

SATOSHI NAKAMOTO WEALTH

He could not touch his wealth, otherwise the trust and work he had so painstakingly built up would be destroyed. The 1.1 million Bitcoin have not been moved to this day. Satoshi constructed the value creation machine and did not touch the money. He is a modern Prometheus, a modern hero. It's incredible stuff, like something out of a novel or a movie. Satoshi could have influenced Bitcoin again by buying and selling Bitcoin and thus stabilizing it again. 'Let's see what happens. But with a key signature, he could let us know what he intends to do with Bitcoin. This is the only way Satoshi can prove that he is Satoshi.

CRAIG WRIGHT

A clown who tried to impersonate Satoshi Nakamoto would never present himself to the media and television again. But he did it on camera... The Australian entrepreneur backed up his claim by accessing Bitcoin blocks that were created at the very beginning of the Bitcoin system. He wanted to demonstrate how to sign a message using the public key associated with the very first Bitcoin transactions. It went wrong. The pursuit of fame, vanity. Anonymity is the price of Satoshi's freedom.

'Anyone who claims to be the inventor of Bitcoin is lying.

META AND CRYPTO

People and companies tried to bring a currency to the market that would allow them to reap the benefits. The company Facebook, now Meta, 'the world destroyer', wanted to sell Libra to the people. Many others also tried their luck - crypto. Whether Cardano, Ethereum, etc., all projects striving to become a new currency. In reality, however, it was all about fast money and power.

CBDCs - central bank digital currency

CBDCs are not cryptocurrencies on a blockchain. They are more like data center currencies like Libra from Meta. Bitcoin - Decentralized, autonomous currency without a third party. The opposite of what Meta promised with Libra. Privacy has two big enemies: the internet giants (big data) and the states. The states have projects for digital central bank money. These currencies are issued centrally and debt-based. 'As they have always been'. But there is one difference. Digitalization would make cash disappear sooner or later. The deanonymity. The end of freedom.

PERSONAL DATA

You are very valuable, but only a few people know that.

We use apps, interact, like, post, share etc. without making any financial gain. And the providers of these services are getting rich from it. It's like a silent robbery. They learn even more about us, sell us even more services and make a profit. They can define exactly who we are - who YOU are! This increases their power over users, over the economy, over people's lives and even state entities, especially totalitarian states, would like to have CBDCs. For more control over the privacy of citizens and the economy and also the attempts of democratic states to create CBDCs in Europe pursue similar goals. Not totalitarian control like in China, but they follow a similar logic.

SOCIAL

Everything is dematerializing and leaving digital traces. These digital traces are processed in the Social Credit System, among others. It is a points system based on information from various apps. For example, on purchasing behavior, but not only that. The social rating has concrete effects on people/consumers. Some things become more expensive for you. When you get to the airport, you might be told 'you're not allowed to fly because you haven't paid a fine'. It's a big threat to privacy, to us humans, which unfortunately many don't realize, which the cypherpunks have been warning about for ages. It's a threat to our freedom if this technology is used for surveillance purposes. Let's imagine the whole thing with modern AI. It's just a very powerful tool.

At the expense of our privacy and freedom, they are increasingly expanding their power. An ultra-centralized, non-transparent, traceable, digital state currency. Which will use our data against us. This is exactly what the cypherpunks have always feared. A nightmare and the end of privacy. Seeing the end of privacy is one thing. Witnessing it is quite another. It's not surprising that China is building CBDCs and wants such a financial system.

After all, it is a totalitarian society. But it is surprising that European, American and Japanese authorities are also considering it and want to implement it. They are happily working towards the end of cash and the ability to monitor and control every payment, no matter how small.

The degree of totalitarianism of a state can now be determined by the development of its digital currency, as electronic transactions are traceable and endanger privacy.

PRIVACY

One way out of this system is through FOSS, self-custodial, NoKYC and open source applications that respect privacy and are transparent.

Open source means that the source code of the software is public and can be viewed by anyone. Development is public, collaborative and transparent. It's a great thing. Bitcoin is open source and also has a collaborative development system. With Bitcoin, we also want to decentralize the decision-making processes. The whole community decides which changes are made or not. Everyone can participate. Anyone can suggest changes. However, the technology is really very specific and complex. The people you work, collaborate and compete with are first-class cryptographers and first-class software developers at the top of their game.

TODAY

A lot has happened so far, and it continues to happen every day. Development is accelerating more and more. Many companies and entire new industries are emerging around Bitcoin.

Seeds and major banks are officially announcing that Bitcoin will be included in their investment portfolios. This is big news. The first countries are also accepting Bitcoin as a means of payment. It's getting serious! Private companies are buying Bitcoin and calling it an "investment for the future". Bitcoin is becoming more and more user-friendly and is slowly entering society. Bitcoin is already a currency. It works. Perhaps we will live to see Bitcoin's triumphal march, but it will definitely outlast us. But it will take a while yet. Only a tiny proportion of the world's population understands it, but it will change the world.

Bitcoin is homeless. But behind it is an army of computers - nodes, programmers, miners and users. It's like a hydra. It's pointless to chop off the hydra's heads. It has too many and they would keep growing back. Besides, how are you going to make all the billions that are in circulation disappear?

There are people who worship Satoshi Nakamoto. And if Satoshi Nakamoto wasn't anonymous, they would worship a specific person. Anything that person would say or do would have a disproportionate impact on the project. I think it's brilliant and a great gesture that Satoshi Nakamoto has remained anonymous. It has symbolic power. The motif of the father quest, the search for the almost divine creator, helps to create a myth around Bitcoin. And myths have a use. You can give things physicality, especially virtual things.

Whether Satoshi Nakamoto is still working on projects for data protection or has retired, nobody knows today. Bitcoin continues to grow inexorably. Satoshi Nakamoto wanted to create an alternative to banks, states and faceless large corporations. Bitcoin was born out of necessity.

We hope that you have been able to take away some valuable insights and have developed a better understanding of Bitcoin. Stay tuned as it is a gateway to a fascinating rabbit hole. Once you dive in, you'll keep discovering new aspects and asking yourself endless questions as you search for answers.

However, it is important to understand that we can only show the way; you have to take the step into the depths yourself. Start questioning and making your own discoveries.

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Important note

The opinions and information provided by us do not constitute financial advice. They are for informational and educational purposes only and are not intended as a substitute for individual advice from qualified professionals.

After selling all individual stocks at the end of 2025 and shifting into money market ETFs (equity for real estate) and MSCI World, I added a little $BTC (-0,52 %) mixed in with 5%.

MSCI World = age + large purchases

Money market ETF = real estate

Bitcoin = age + large purchases + property

In this sense, be prepared for Bitcoin to crash soon, because I have a good hand with timing.