Lesson 8: Security (multisig, backups, threat models)

Goal: protect bitcoin from loss and theft by thinking in threat models, not vibes.

Beginner

Bitcoin security is mostly about not losing your backup and not giving it to scammers. Your seed phrase is the master key. If someone gets it, they can take your bitcoin.

Intermediate

Think in “what can go wrong?” categories: device loss, fire/water damage, phishing, fake apps, SIM swaps, and trusted-person risk. Good setups use hardware wallets, safe backups, and clear recovery plans.

Backups: store seed phrase securely, ideally in separate physical locations.
Verification: download wallet apps from official sources; verify addresses carefully.
Practice: do a small recovery test before large amounts.

Expert lens

Multisig reduces single point of failure by requiring M-of-N signatures. Operational security matters as much as cryptography: distribution of keys, secure backup of descriptors/metadata, and clear inheritance/recovery procedures.

Security rule: If a “support agent” asks for your seed phrase, you are already in a scam.

Threat model = (what you’re protecting) + (who you’re protecting it from) + (how likely) + (what it costs).

← Previous Next →