How We Recommend Hardware Wallets

At The Bitcoin Way, we are uncompromising on the hardware wallets that we recommend and support for our clients. The hype surrounding“crypto” over the last decade or so has led to countless wallet options, and most support Bitcoin.

But not all are created equal. And when it comes to securing generational wealth, choosing a device for storing keys is not a decision to be taken lightly.

‍

Our Criteria

It is for this reason that we base all our hardware wallet recommendations on three core principles:

1.       Open source

2.       Air-gapped

3.       Bitcoin-only

Let’s explore what each of these mean and why applying them to your Bitcoin self-custody setup is so important.

‍

Open Source

The concept of “open source” is not new. Linux, for example, is an open-source operating system for computers created in 1991 that can be run in place of Windows or MacOS.

Open-source software is software whose underlying code has been made completely publicly available. In releasing the code into the world for all to see, you can, with much greater certainty, ensure that there aren’t surveillance backdoors, bugs, or other unwanted “features” that affect the tool’s functionality, security or privacy. In short, you can use these tools trustlessly, without hoping that the creator is somehow going to rug pull you.

Millions of eyes all looking at the same code make it much more difficult for a critical defect to be missed. In this way, it is much easier to trust open-source software because you aren’t trusting one entity but rather trusting the thousands or millions of people that have vetted the software in the public domain. If you have the technical skills, you can even review the code yourself.

On the contrary, when you use closed-source or proprietary software, only the company providing it knows everything that the code does. We can’t fully know what our iPhones or Windows PCs are doing (or not doing) under the hood because nobody outside of these companies has access to the source code.

An “open-source hardware wallet” is one whose code has been made available to the public and is therefore easier to audit and vet. The result over time is an increasingly robust product as defects are identified and weeded out more rapidly.

When you make the correct choice to secure your Bitcoin in100% self-custody, the question of whether to choose an open-source or closed-source hardware wallet it critical. Closed-source solutions require that you trust a third party, open-source solutions do not.

It is for this reason that The Bitcoin Way will never recommend or support closed-source wallet options.

‍

Air-Gapped

Our next criteria for recommending hardware wallets hinges on whether the device is “air-gapped” or not.

Air-gapped wallets have a “gap of air” between them and any computer, phone, or Internet-connected device. In other words, air-gapped hardware wallets are never plugged into anything, except to a wall outlet for charging. (Note: You should still be careful when plugging a device into the wall for charging, as outlets can be tampered with to retrieve data from devices. Purchase a “data blocker” to plug into if ever charging a hardware wallet outside your home.)

Instead of using a cable to connect, air-gapped wallets use either a MicroSD card to be passed back and forth between the wallet and computer to setup and sign transactions or, more recently and very conveniently, QR codes that utilize a camera on the wallet and the computer todo the same.

Many wallets compromise on this feature and allow for their devices to be plugged into a computer to initiate transactions. This is a major vulnerability because of the prevalence of malware and other malicious tools used to remotely access or tamper with devices.

The Bitcoin Way certainly recommends you lock down your devices and provides both Personal Cybersecurity and Privacy Phone services.However, it is completely unnecessary to risk plugging your hardware wallet into any Internet-connected device when robust air-gapped options exist.

We take no chances with generational wealth and therefore we only support air-gapped hardware wallets.

‍

Bitcoin-Only

Finally, we refuse to support any devices that aren’t exclusively designed to protect the keys to your Bitcoin. Various options on the market today support Bitcoin and other cryptocurrencies. We stay far away from these for two reasons:

1.       On a technical level, companies seeking to support multiple cryptocurrencies must inherently compromise to do so.Different tokens require different measures for security, and trying to slap them all on one device means that shortcuts are invariably being taken somewhere in the development process to accommodate this.

2.       Philosophically, we believe that Bitcoin and “crypto” are often conflated but are two completely different categories of technology. Bitcoin is competing as the most decentralized and secure form of digital, sound money. Most other cryptocurrencies are based on memes or outright scams. We choose to support those building on the monetary technology of the future, not those chasing quick gains in crypto-land.

Again, there are several great hardware wallets that are Bitcoin-only, so we simply won’t risk your security or our values to try and accommodate everything.

‍

Self-Custody vs. Proper Self-Custody

There are innumerable ways you can “self-custody” yourBitcoin. But only a few variations of tools today allow for what we call “proper self-custody.”

Proper self-custody involves using only the best open-source, air-gapped, and Bitcoin-only hardware wallets combined with other important measures like an open-source, Bitcoin-only software wallet to help facilitate transactions and track your balance.

Additionally, to be fully financially self-sovereign, you need to run a Bitcoin node. This ensures that your transactions are broadcast privately to the Bitcoin network and that we continue, together, to enhance network decentralization.

‍

Wrapping It Up

So, are there ways to self-custody your Bitcoin by relying on closed-source tools that support multi-crypto? Sure.

But when Bitcoin is $1M, $5M or $50M a coin, will you be happy with this setup? Not a chance!

There are enough fantastic options for securing your Bitcoin with ease that align with our values, so we refuse to compromise on the tools we recommend and support. It is yet another way that The Bitcoin Way separates itself from the herd; we are unwilling to take chances with our own money or with yours and are committed to helping you get self-custody done right the first time.

‍