{"id":17517,"date":"2021-03-15T13:15:54","date_gmt":"2021-03-15T13:15:54","guid":{"rendered":"http:\/\/ci027e218d5000244f"},"modified":"2025-09-28T17:42:02","modified_gmt":"2025-09-28T22:42:02","slug":"bitcoin-wallets-for-beginners-part-one-self-custody-and-avoiding-kyc","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/guides\/bitcoin-wallets-for-beginners-part-one-self-custody-and-avoiding-kyc","title":{"rendered":"Bitcoin Wallets For Beginners, Part One: Self Custody"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><p>Congratulations on deciding to learn about self custody! I recommend giving yourself two hours. These are all the materials so you need to follow along with this step-by-step guide for bitcoin beginners.<\/p>\n<ul>\n<li><a href=\"https:\/\/store.bitcoinmagazine.com\/collections\/hardware\/products\/coldcard-mk3-bitcoin-hardware-walelt\">ColdCard hardware wallet<\/a><\/li>\n<li><a href=\"https:\/\/store.bitcoinmagazine.com\/collections\/accessories\/products\/micro-center-32gb-class-10-micro-sdhc-flash-memory-card-with-adapter-for-mobile-device-storage-phone-tablet-drone-full-hd-video-recording-80mb-s-uhs-i-c10-u1-2-pack\">MicroSD Card<\/a><\/li>\n<li><a href=\"https:\/\/store.coinkite.com\/promo\/BTCMAG\" target=\"_blank\" rel=\"noopener\">Coldpower 9 volt battery adaptor<\/a> and battery<\/li>\n<li><a href=\"https:\/\/store.bitcoinmagazine.com\/collections\/accessories\/products\/amazon-basics-usb-2-0-a-male-to-micro-b-charger-cable-2-pack-6-feet-black\">USB-to-Micro-USB cable<\/a><\/li>\n<li><a href=\"https:\/\/cyphersafe.io\/product\/cypherwheel\/\" target=\"_blank\" rel=\"noopener\">CypherWheel <\/a>or <a href=\"https:\/\/store.bitcoinmagazine.com\/products\/steel-bitcoin-wallet-for-hardware-wallet-backup-cold-wallet-backup-compatible-with-trezor-one-ledger-nano-s-and-keepkey-hardware-wallet\">Billfodl metal backup<\/a><\/li>\n<li>Desktop or laptop computer<\/li>\n<\/ul>\n<figure><img decoding=\"async\" src=\"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2025\/01\/coldcard10.jpg\" title=\"\"><\/figure>\n<p>Here\u2019s how to do that with a ColdCard bitcoin hardware wallet, which is available in the <a href=\"https:\/\/store.bitcoinmagazine.com\/collections\/hardware\/products\/coldcard-mk3-bitcoin-hardware-walelt\"><em>Bitcoin Magazine<\/em> store<\/a>:<\/p>\n<p><strong>1. Purchase your hardware wallet. <\/strong>The ColdCard hardware wallet comes in a blue, tamper-proof bag with a specific serial number. (Don\u2019t publish this number. It identifies your specific device.) Inside the bag you\u2019ll find the hardware wallet and a backup card where you will eventually write down your wallet recovery phrase.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/video-review-coldcard-mk3.png\" title=\"\"><\/figure>\n<figure><img decoding=\"async\" src=\"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/coldcard1.png\" title=\"\"><\/figure>\n<p><strong>2. Connect your hardware wallet to your computer or a power socket using your Micro USB cable and switch it on. <\/strong>You can use almost any Micro USB cable, including the options available in <a href=\"https:\/\/store.bitcoinmagazine.com\/collections\/accessories\/products\/amazon-basics-usb-2-0-a-male-to-micro-b-charger-cable-2-pack-6-feet-black\">the <em>Bitcoin Magazine<\/em> store<\/a>. Make sure to keep your device plugged in the whole time.&nbsp;<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/coldcard2.jpg\" title=\"\"><\/figure>\n<p><strong>3. Set up your PIN.<\/strong> As seen on the device, you can scroll through the menu using the \u201c5\u201d and \u201c8\u201d keys. You will be prompted to set up a PIN. The PIN consists of two parts, each consisting of between two and six digits which will protect your device and the first set will determine the anti-phishing words you see every time you use your hardware wallet. Be sure to write down your anti-phishing words and keep them safe.&nbsp;<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/coldcard3.jpg\" title=\"\"><\/figure>\n<p><strong>4. Set up your new wallet.<\/strong> We are going to use the \u201cNew Wallet\u201d prompt to set up a new wallet from scratch. ColdCard generated ones are based on a widely-accepted industry standard called BIP39. Part of BIP39 calls out a standardized<a href=\"https:\/\/github.com\/bitcoin\/bips\/blob\/master\/bip-0039\/english.txt\" target=\"_blank\" rel=\"noopener\"> list of 2,048 words<\/a>. No two words on this list share the same first four-letter sequence. Or, in other words, the first four letters of each word are unique compared to the rest of the list.&nbsp;<\/p>\n<p>The wallet device will give you 24 seed words from the BIP39 word list. Be sure to write them down in the correct order and make a second copy as an additional backup. Once completed, the ColdCard will give you random seed words from this list and prompt you to confirm their position to ensure you have saved them correctly. Now your wallet is set up and ready to sign your first transaction!<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/coldcard4.jpg\" title=\"\"><\/figure>\n<p><strong>5. Use your wallet to sign transactions.<\/strong> You can sign transactions on <a href=\"https:\/\/www.youtube.com\/watch?v=tCOpEkaZ7y4\" target=\"_blank\" rel=\"noopener\">the hardware wallet device<\/a> using your microSD card. (If you don\u2019t have one, you can <a href=\"https:\/\/store.bitcoinmagazine.com\/collections\/accessories\/products\/micro-center-32gb-class-10-micro-sdhc-flash-memory-card-with-adapter-for-mobile-device-storage-phone-tablet-drone-full-hd-video-recording-80mb-s-uhs-i-c10-u1-2-pack\">order a set via the <em>Bitcoin Magazine<\/em> store<\/a>.) Alternatively, you could connect your ColdCard to a computer and use different desktop wallets like <a href=\"https:\/\/www.youtube.com\/watch?v=KRPtbq8_1is\" target=\"_blank\" rel=\"noopener\">Bitcoin Core<\/a>, Electrum, Wasabi or the Generic JSON wallet.&nbsp;<\/p>\n<div class=\"youtube-embed\" data-video_id=\"tCOpEkaZ7y4\"><iframe loading=\"lazy\" title=\"Bitcoin Magazine Walkthrough: How To Use Coldcard With Wasabi Wallet\" width=\"696\" height=\"392\" src=\"https:\/\/www.youtube.com\/embed\/tCOpEkaZ7y4?feature=oembed&#038;enablejsapi=1\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<p>For the purposes of this explainer, we will use Electrum as an example and we won\u2019t connect the hardware wallet to the computer via USB. Instead, we will copy transactions back and forth using the microSD card. This is called an \u201cair-gapped\u201d transaction. Electrum is an easy-to-use Bitcoin wallet available on desktop and mobile platforms. If you prefer to use <a href=\"https:\/\/www.youtube.com\/watch?v=st6coM24zmU&amp;list=PLe0djdakvnFZ4N9Nvkx1OO7JG6OE78SCM&amp;index=4\" target=\"_blank\" rel=\"noopener\">Blue Wallet<\/a> or <a href=\"https:\/\/bitcoinmagazine.com\/guides\/bitcoin-wallets-for-beginners-part-four-installing-sparrow-wallet\">Sparrow Wallet<\/a>, here are <a href=\"https:\/\/bitcoinmagazine.com\/guides\/bitcoin-wallets-for-beginners-part-four-installing-sparrow-wallet\">step-by-step<\/a> tutorials on how to get started with those alternative bitcoin wallets.<\/p>\n<div class=\"youtube-embed\" data-video_id=\"st6coM24zmU\"><iframe loading=\"lazy\" title=\"Bitcoin: How To Use Blue Wallet With Coldcard\" width=\"696\" height=\"392\" src=\"https:\/\/www.youtube.com\/embed\/st6coM24zmU?feature=oembed&#038;enablejsapi=1\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<p>Otherwise, to continue with Electrum, you may download the <a href=\"https:\/\/electrum.org\/#download\" target=\"_blank\" rel=\"noopener\">latest version of Electrum here<\/a> and verify your download with <a href=\"https:\/\/coldcardwallet.com\/docs\/glossary#pgp-signature\" target=\"_blank\" rel=\"noopener\">PGP signature<\/a>, then select &#8220;New\/Restore&#8221; from the \u201cFile\u201d menu. Pick your file name and then pick &#8220;Standard Wallet&#8221; followed by &#8220;Use a hardware device.&#8221; Then, select the Coldcard device and choose an address format called \u201c<a href=\"https:\/\/bitcoinmagazine.com\/guides\/what-is-segwit\">SegWit<\/a>,\u201d that starts with \u201cbc1.\u201d Your device is now connected!<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/coldcard5.png\" title=\"\"><\/figure>\n<p><strong>1. Open the <a href=\"https:\/\/electrum.readthedocs.io\/en\/latest\/\" target=\"_blank\" rel=\"noopener\">Electrum<\/a> app.<\/strong> Click on the \u201cSend\u201d tab and enter the Bitcoin address as well as the amount of bitcoin you would like to send. Remember to double check the Bitcoin address before you click to \u201cFinalize\u201d the transaction.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/coldcard8.jpg\" title=\"\"><\/figure>\n<p><strong>2. Select \u201cExport\u201d and pick \u201cFor hardware device.\u201d <\/strong>Make sure to include the \u201cxpubs &gt; Export to file\u201d part. Do not choose the upper \u201cExport to file\u201d option because the file that generates is not compatible with the ColdCard hardware wallet. You want the option with \u201cxpubs.\u201d<\/p>\n<p><strong>3. Save the .PSBT file<\/strong> (which you just generated when you selected \u201cExport\u201d) directly to the microSD card used before with your ColdCard wallet. Pick a short file name that describes the transaction like the date, making sure the file name ends in .PSBT. Note that the .PSBT file extension is specific to bitcoin transactions, comparable to the way .JPG is specific to image files.<\/p>\n<p><strong>4. Remove the <a href=\"https:\/\/www.youtube.com\/watch?v=i-FEoX_gymA&amp;list=PLe0djdakvnFZ4N9Nvkx1OO7JG6OE78SCM&amp;index=8\" target=\"_blank\" rel=\"noopener\">microSD card <\/a>from your computer and insert it back into your ColdCard device.<\/strong>&nbsp;&nbsp;<\/p>\n<div class=\"youtube-embed\" data-video_id=\"i-FEoX_gymA\"><iframe loading=\"lazy\" title=\"Bitcoin Magazine Video Walkthrough: Coldcard Micro SD Card Backups, Wallet Recovery And More\" width=\"696\" height=\"392\" src=\"https:\/\/www.youtube.com\/embed\/i-FEoX_gymA?feature=oembed&#038;enablejsapi=1\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<p><strong>5. Switch on your ColdCard wallet and pick the \u201cReady to sign\u201d option from the main menu.<\/strong><\/p>\n<p><strong>6. Using the ColdCard, pick the .PSBT file you just saved to the microSD card and approve the details of the transaction.<\/strong> The transaction will be saved with the same name as the previous file but this time it ends in \u201c-final.txn.\u201d With this file you will be able to broadcast the transaction on any copy of Electrum or a public service like <a href=\"http:\/\/blockstream.info\/tx\/push\" target=\"_blank\" rel=\"noopener\">Blockstream.info<\/a>.<\/p>\n<p><strong>7. Broadcast the transaction file using Electrum. <\/strong>Remove the microSD card from your ColdCard wallet and reinsert it into your computer. Open Electrum and select \u201cTools\u201d followed by \u201cLoad transaction\u201d then \u201cFrom file.\u201d Your signed transaction will be loaded and broadcast to the network.<\/p>\n<p>That\u2019s it. You did it. Welcome to the bitcoin economy!&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this part of our \u201cBitcoin Wallets For Beginners\u201d series, we cover the importance of bitcoin self custody and how to get started with a hardware wallet.<\/p>\n","protected":false},"author":2955,"featured_media":3151,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[43],"tags":[286,542,284],"class_list":{"0":"post-17517","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-guides","8":"tag-bitcoin-wallets","9":"tag-kyc","10":"tag-self-custody"},"author_data":{"id":2955,"name":"Dion Guillaume","nicename":"dion-guillaume","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/715161a28a76b38287a13b36837311219ef34dcd77e78d290138261ec0d10110?s=96&d=robohash&r=g"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/image-placeholder-title.jpg","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/17517","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/2955"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=17517"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/17517\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/3151"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=17517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=17517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=17517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}