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Bitcoin is a decentralized digital currency that allows secure peer-to-peer transactions without the need for intermediaries. Here’s a simple roadmap to begin your journey into Bitcoin ownership.
Create an account with a trusted cryptocurrency exchange (like Bitcoin Well, Bull Bitcoin, Kraken or Coinbase).
Purchase Bitcoin using fiat currency (e.g., USD, CAD).
Risk: Your Bitcoin is stored by the exchange, meaning you don’t control the private keys. Exchanges can be hacked, go offline, or freeze your funds.
Withdraw your Bitcoin from the exchange into a hot wallet that uses Seed Words (e.g., mobile or desktop wallets like Aqua, Muun or BlueWallet).
Hot wallets are connected to the internet, offering convenience but less security.
Pros: You control your private keys. Easy access and user-friendly.
Cons: Vulnerable to malware, device theft, or phishing attacks.
Set up a cold wallet using Sparrow Wallet with an air-gapped device or hardware wallet.
Sparrow Wallet allows advanced privacy features like generating a new Bitcoin address for each transaction to improve anonymity.
Cold wallets are offline, offering excellent security and peace of mind.
Pros: Full control of your Bitcoin. Resistant to online attacks.
Cons: Requires more setup and responsibility. If you lose your seed phrase or backup, recovery can be impossible.
Storing Bitcoin on exchanges exposes you to several risks:
Tip: Always withdraw your Bitcoin to a wallet where you control the private keys. Remember: Not your keys, not your coins.
To learn more about Bitcoin and building wealth, Join Maple Bitcoin School
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