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Getting Started with Bitcoin

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.

🪙 Good: Buy and Hold on an Exchange

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.

🔒 Better: Use a Hot Wallet with Seed Words

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.

🧊 Best: Use a Cold Wallet + Sparrow Wallet

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.

🔥 Hot vs 🧊 Cold Wallets: What’s the Difference?

🚫 Risks of Storing Bitcoin Online

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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