This page will show you how to get started with an easy to use mobile self-custody wallet, Blue Wallet.

Once you’ve mastered this, don’t stop there. Keep learning and consider getting a hardware wallet to keep your private keys offline. For user friendly options, we’d recommend Blockstream Jade or Trezor.

If you’re in South Africa, Bitcoin Only is a great place to get these from!

How to Safely & Securely Store Bitcoin

Using Blue Wallet: A secure self-custody wallet

BlueWallet Website

https://bluewallet.io

Download BlueWallet App on Apple & Android:

https://play.google.com/s tore/apps/details?id=io.bluewallet.bluewallet

https://itunes.apple.com/app/bluewallet-bitcoin-wallet/id1376878040

QUICK Instructions:

1. Download and install the Blue Wallet App. Open the BlueWallet App.

2. Look for ‘Add a wallet’ and select ‘Add now’

3. Choose a name for your wallet and enter it under the ‘Name’ field.

This is just to identify your wallet if you intend on having multiple wallets, but the name doesn’t really matter. You can name your wallet anything you want.

4. Select your type of Wallet.

If you’re using this guide it’s likely the first time you’re creating a Bitcoin wallet. In that case select ‘Bitcoin’ and select ‘Create’. The ‘Bitcoin’ option is highlighted in blue. This is the standard wallet option.

5. SEED PHRASE

After you’ve created your wallet, the app will display the following message:

“Your wallet has been created” and it will also display 12 random words, numbered 1 to 12. Write these words down exactly as it appears on the screen. The numerical order of the words is crucial. This is your mnemonic seed phrase and you can restore your wallet on any other device using only this seed phrase. It is highly recommended that you store it in physical form only, not digital and take into account that fire and water will destroy paper notes.

6. Sending Bitcoin to your new wallet

Open the BlueWallet app. Select your newly created wallet and select ‘Receive’. You should now see a screen with a QR code and, below that, an address which looks something like this:

3MXguvzjuvnj5pue83whwpx4dvf6xcy7vt4qtnh3bGv

This is a public Bitcoin address and this particular address will be unique to your wallet. You can share this address (or the QR code) in order to receive payments to your wallet. The sender, if it is a private individual, will only need this address in order to pay you, nothing else. Unless you are transferring from an exchange account like Luno or VALR, in which case you might need to provide information to the exchange. BlueWallet will automatically create a new address for each new payment you receive, but all your addresses are kept in one wallet unless you create a new wallet, starting at step 2 above.

DETAILED INFO

Strictly speaking, this isn’t necessary to get started, but it’s recommended that you read and understand this to protect your funds.

Type of Wallet.

Other options displayed are “Lightning” and “Vault” both of which are different types of Bitcoin wallets offered by the BlueWallet app.

A Lightning wallet is designed for fast and cheap transactions. You should only consider creating a Lightning wallet if you understand the Lightning Network and intend on using your Bitcoin to make regular and small payments. An easier to use option is Blink. If you’re still unsure, create a standard ‘Bitcoin’ wallet. You can always create a Lightning wallet at a later stage and move some of your Bitcoin from your standard wallet onto your Lightning wallet

A Vault wallet is an ultra-secure wallet intended for long term storage of large amounts of Bitcoin. You should only consider creating this type of wallet if you understand how multi-signature wallets work. This wallet allows you to create a wallet that is controlled by multiple keys, which can be stored in different physical locations. This adds an extra layer of security.

SEED PHRASE

After you’ve created your wallet, the app will display the following message: “Your wallet has been created” and it will also display 12 random words, numbered 1 to 12.

Write these words down exactly as it appears on the screen. The numerical order of the words is crucial. This is your mnemonic seed phrase and you can restore your wallet on any other device using only this seed phrase.

What is a Seed phrase?

Your Bitcoin (and everyone else’s Bitcoin) is stored on the Bitcoin Blockchain. It can never leave the Blockchain. Instead, what we’re actually doing when we’re sending Bitcoin from one person to another, is we’re handing over control of our Bitcoin from one private key to another private key. The private key is what’s stored in your wallet.

Your wallet will automatically generate a new private key every time you receive Bitcoin to that wallet, but all your private keys are generated using your seed phrase as a master private key. And all your future private keys can be regenerated using this master private key / seed phrase.

Without your seed phrase, it is impossible for anyone else to take control of your Bitcoin. It is not recommended, but you could theoretically destroy your phone and, as long as you remember your seed phrase, you could travel with your master key (and thus control of your Bitcoin) stored only in your head.

The seed phrase generated by BlueWallet is also compatible with most other reputable Bitcoin wallets. You could therefore re-generate your wallet using a completely different device and software, for example a laptop and an Electrum wallet.

Your seed phrase is your master key. Keep it safe.

If you lose this phone, your seed phrase will enable you to recover your wallet on a new device. Your seed phrase is also the ONLY thing you need to recover your wallet. It will therefore also enable whoever has your seed phrase to steal your Bitcoin by moving it to a wallet you do not control. This seed phrase is the equivalent of both the key to the safe, and the safe itself.

[This single-point-of-failure nature of a single-key setup is why the ‘Vault’ option mentioned earlier exists. It enables you to create a ‘multi-signature’ wallet secured by more than one key so that even if someone gains access to one key, they would still need the other key/s to move your Bitcoin. This enables you to store multiple keys in multiple different locations, adding extra layers of security. But if done incorrectly it can also lock you out of your own wallet. If you’re unsure, stick with the standard ‘Bitcoin’ wallet. You can always create a ‘Vault’ wallet at a later stage and move your Bitcoin, if necessary.]

Your seed phrase exists only in two places. On your phone and on the paper you’ve just written it down on. It was generated for the first time when you created this wallet and this exact combination of words in a seed phrase does not exist in any other Bitcoin wallet. The odds of guessing this exact combination of words, in this exact order, or of randomly creating the same seed phrase in another wallet, is mathematically less likely than correctly picking a random star from within the known universe, which is roughly 1 in 70 Billion Trillion (7 x 10²²)

Thus, as long as your seed phrase is safe, your Bitcoin is safe.

Do not ever type your seed phrase on any device that is connected to the Internet. Also do not store your seed phrase together with your wallet / phone. You definitely do not want to lose both your phone and your seed phrase at the same time, as that would mean a total loss of your Bitcoin. The idea is that, if you lose your phone, you can access your seed and restore your wallet.

If you lose the seed phrase (but not your phone) you will be able to view the seed phrase again from within the wallet on your phone at a later stage. But in this case it is recommended that you follow the above process again and create a new wallet with a new seed phrase. So that you can move your Bitcoin to a new wallet, just in case someone got hold of your lost seed phrase and used it to steal your Bitcoin.

Sending Bitcoin to your new wallet

Open the BlueWallet app. Select your newly created wallet and select ‘Receive’. You should now see a screen with a QR code and, below that, an address which looks something like this:

3MXguvzjuvnj5pue83whwpx4dvf6xcy7vt4qtnh3bGv

This is a public Bitcoin address. It is unique to your wallet and, should you send Bitcoin to this address, it essentially represents the ‘location’ of your Bitcoin on the Blockchain. This ‘location’ is what’s controlled by the private keys that are held in your new wallet.

If you control the private keys that control a certain ‘location’ (where any amount of Bitcoin is stored on the Blockchain) you can move that ‘location’ somewhere else on the Blockchain. Either to a different ‘location’ that you also control with a private key, or to a ‘location’ controlled by someone else who owns the private key of that new ‘location’. This is essentially what happens when you pay someone in Bitcoin: you’re basically moving your Bitcoin to a new public address, the private key of which is controlled by the person you’re paying.

You can also scan the QR code, if possible, to avoid entering / copying & pasting the incorrect address. Otherwise copy & paste it and check that it was copied & pasted correctly. The process of sending Bitcoin to this address will vary, depending on where you’re sending it from. If you’re sending it from an exchange like Luno or VALR, you may need other details from your exchange account, like email / phone number verification, etc. However, this public address is the only detail you’ll need from your new Bitcoin wallet in order to receive payments. And anyone, anywhere in the world, can send you Bitcoin with only this address. They don’t even need to know your name.

There is no harm done in disclosing your public address. Your Bitcoin cannot be moved without the private key that controls the public address. The only thing someone can do if they get a hold of this public address is send Bitcoin to that address. And view its entire payment history.

This complete transparency of the blockchain ensures Bitcoin’s core value proposition: a verifiable supply. Which is what makes it anti-inflationary, unlike fiat money. But, also due to this transparency, for basic privacy, public address reuse is not recommended. However, BlueWallet takes care of this automatically. Every time you receive Bitcoin to your BlueWallet, the app will automatically create a new public address for you. And all your public addresses are controlled by private keys which are controlled by the master private key / seed phrase you already generated earlier. So you can receive a near infinite amount of transactions to a single wallet, with a near infinite amount of different public address / private key combinations, all generated automatically.

All you need to consider is keeping your one master key / seed phrase safe.

Welcome to the wonderful world of being self-sovereign and being the master of your own bank! Welcome to Bitcoin.

Hardware Wallets & Cold Storage

While BlueWallet is a safe way to store larger amounts of Bitcoin, it is worth considering a hardware wallet, which can be used in a way that prevents your master private keys from ever being connected to an online device. This is referred to as cold storage. This is the only way to be 100% certain that your master private key isn’t compromised and is highly recommended for storing very large amounts of Bitcoin.

Go to Bitcoin Only for more info.