Protect Your Bitcoin from Thieves: Foolproof Methods for Concealment and Hidden Wallets
How to Hide Your Bitcoin from Thieves: Setting Up a Decoy Wallet on Your Hardware Wallet
Bitcoin has become a popular investment and store of value, but with its increasing value comes the risk of theft. As a Bitcoin holder, it’s important to take steps to protect your digital assets from potential thieves. One effective strategy is to set up a decoy wallet on your hardware wallet. In this article, we will explore how to do just that.
What is a Hardware Wallet?
Before we dive into setting up a decoy wallet, let’s first understand what a hardware wallet is. A hardware wallet is a physical device that securely stores your private keys, which are necessary to access and manage your Bitcoin. It looks like a USB stick and can be plugged into your computer’s USB port. Some popular hardware wallet brands include Trezor, Blockstream Jade, and Coldcard.
Why Use a Decoy Wallet?
A decoy wallet is a wallet that contains a small amount of Bitcoin, intended to deceive potential thieves. By setting up a decoy wallet, you can protect your larger holdings by diverting attention away from them. Thieves may be satisfied with stealing the funds from the decoy wallet and not dig deeper to find your hidden wallet.
Choosing the Right Hardware Wallet
When setting up a decoy wallet, it’s important to choose a reliable and secure hardware wallet. Trezor, Blockstream Jade, and Coldcard are all reputable brands that offer excellent security features. However, it’s worth noting that Ledger hardware wallets are not recommended due to their software not being open source and their history of data breaches.
Setting Up a Decoy Wallet on Your Trezor
To set up a decoy wallet on your Trezor hardware wallet, follow these steps:
1. Plug your Trezor into the USB port of your computer.
2. Go to the Trezor website and click on the “App” section.
3. Choose the option to set up a new wallet.
4. Follow the instructions to generate a 12-word recovery seed. Write down these words in the correct order and keep them secure.
5. Skip the option to set up a PIN for now, but remember to do it later for added security.
6. Complete the setup and access the screen of your Trezor.
7. Create a fresh address for your decoy wallet and send a small amount of Bitcoin to it.
8. Keep your larger holdings in a hidden wallet, which we will set up next.
Setting Up a Hidden Wallet on Your Trezor
To set up a hidden wallet on your Trezor, follow these steps:
1. Eject the decoy wallet by going back to the Trezor screen and selecting the hidden wallet option.
2. Enter a passphrase for your hidden wallet. Make sure it is unique and not easily guessable.
3. Confirm the passphrase on your Trezor and wait for the setup to complete.
4. Generate a fresh address for your hidden wallet and securely store it.
5. Transfer your larger holdings to this hidden wallet, keeping them safe from potential thieves.
Managing Your Decoy and Hidden Wallets
To access your decoy wallet or hidden wallet on your Trezor, follow these steps:
1. Plug your Trezor into the USB port of your computer.
2. Choose the standard wallet option to access your decoy wallet.
3. If you want to access your hidden wallet, enter the passphrase you set up earlier.
4. Use the decoy wallet to store a small amount of Bitcoin, while keeping your larger holdings in the hidden wallet.
Frequently Asked Questions
Q: Can I use any hardware wallet to set up a decoy wallet?
A: It is recommended to use a reputable and secure hardware wallet like Trezor, Blockstream Jade, or Coldcard for setting up a decoy wallet.
Q: How much Bitcoin should I keep in my decoy wallet?
A: The amount you keep in your decoy wallet should be enough to satisfy a potential thief, but not enough to cause significant loss if stolen. A small amount, such as $500, is often sufficient.
Q: What happens if someone finds my 12-word recovery seed?
A: If someone finds your 12-word recovery seed, they can access your decoy wallet. However, they won’t be able to access your hidden wallet without the passphrase.
Q: How can I ensure my hidden wallet is accessible in case of my death?
A: To ensure your hidden wallet is accessible in case of your death, you can store your 12-word recovery seed in one place and your passphrase in another. Provide the necessary information to a trusted individual who can combine them to access the hidden wallet.
Q: Are there any additional security measures I should take?
A: It is always recommended to keep your hardware wallet and recovery seed in a secure location, such as a safe or a safety deposit box. Additionally, consider using multi-signature (multi-sig) wallets for added security.
In conclusion, setting up a decoy wallet on your hardware wallet can be an effective strategy to protect your Bitcoin from potential thieves. By diverting attention away from your larger holdings, you can increase the security of your digital assets. Remember to choose a reliable hardware wallet, set up a strong passphrase, and keep your recovery seed and passphrase secure.
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can we get a cold card version of this video?! 😀
If you send from an exchange to your hidden wallet isn't, the wallet address is still seen on chain.? o this is a precaution for a physical thief that knows your 12 seeds words?
Many thanks for your videos Matthew! At the end of the video you brought up a point I was thinking about for a while: what if I "get hit by a bus"… How to make sure I don't take my Bitcoin to the grave? The stronger the security setup is, the harder it is to pass it to someone else… Especially when the kids are still too young, the wife and the parents aren't very tech-savvy… You mentioned that you dedicate a paid course to this subject, but maybe you could share some of your thoughts about this in a public video? Thanks again, watching you daily!
Hi Matthew. Solid video, as always. I greatly appreciate the work you are doing. There is a topic I would love for you to discuss. Forgive me if you have already addressed in an earlier video, but perhaps it may deserve a video all to itself. It is the issue of transparency/privacy. I heard someone recently mention that Monero is ultimately a better currency because, unlike Bitcoin, your purchases are not traceable on it's blockchain. Is this true? Can we be searched for and 'found' by our real world names or some other means on the Bitcoin blockchain by entities like the US Government or even ordinary crypto-savvy criminals, and then all of our transactions seen, tracked, taxed, punished, etc? What precisely is our level of anonymity in Bitcoin? Thanks!!
I understand that 12 words to guess is complicated, but why wouldn't you use 24 words as it is harder to hack if it ever came down to it?
Pls do a video on how BUSD will affect Bitcoin Sir. 🙏
can you make a video on Taleb's Bitcoin Black Paper
Hi Matt, would you change your mind about Ledger if the company one day decided to have open source firmware?
Thanks Matt! Nice vid as always. Was thinking why is ledger not open source? If they were more people would use them… So why? after your ask yourself thinks like that and are using a ledger… how can you sleep well?
this one slipped past me somehow! Matt I don't know if this is useful info but I usually withdraw from exchanges into a newly generated core wallet (hot) address and then immediately to the address associated with my hw. unfortunately I have been unable to connect my node to my hw. the reason I do this is because the exchanges records the initial address its withdrawn to. I need a trezor model t now.
Sir can we have under 18 student offers on your courses?🥺
I am from india
Well done..🧡👑🦅🚀♾️🤠🗽
Great material as usual Matt. Thanks!
Question: I have a multisig setup and am in the process of running my own node. Can I link my multisig to my node?
what happens if I forget my pass phrase for the hidden wallet? How can I gain access to it again?
Can you do this on a Ledger or Jade, or it's just a Trezor feature?
Why use a hardware wallet at all? Why not a brain wallet?
Hello? Is anybody home? Is my question difficult to answer?
One very important issue is that you should always order these artifacts DIRECTLY from the manufacturer to ensure they are not tampered with. as well as cell phones.
Nice review of the hidden wallet functionality for Trezor!
HI MATT , WE NEED THE UP TAKE OFF BTC <NOT FROM CHINA < WE NEED THE COST OF AND IN CONTRACT OFF FREE <WALLETES?
AND CREATE A CONTRACET< WITH EATCH APP? so IT WILL BE HOSTED?
Does the Trezor wallet have a recoverable log of transactions which could indicate to a viewer any transfers to a Hidden Wallet – thus indicating it is in use ?
Shit I have a ledger nano
Here's how you hide it… don't tell anyone you own bitcoin and how much.
Can you change the secret pass phrase? Thx 🙏🏻
From what I understand using a passphrase is more secure than 256 bits because it adds an xfp to the end of the xpub (256 bit master key) so it's not like your funds could be accessed with some other seed phrase, is this correct?
you dislike ledger for being closed source, which is a valid argument for sure. it isnt so cut and dry though that open source is always better. In general it is, but also having source code available to everyone in a security application also opens the doors up for hackers to have way easier access to figuring out how to hack it.. and ppl can hack any hardware..
I got a trezor but, it has never worked from day 1, tried it on multiple computers and their software would not recognize the hardware no matter what. Their support was very lackluster as well, so i have not used it. Ledger has so far seemed like much better hardware
when we type our recovery seed, is it possible that trezor can see and know our recovery seed?
So when I enter my seed phrase+pass phrase it will create a completely new wallet? Separate from my hidden wallet?
Do you still recommend to use trezor after all the bad press?
How is Trevor considered a cold wallet when it has to be connected to a computer with Internet access to read and communicate?
If the 12 seed words are for the standard wallet, how do we recover the hidden wallet if Trevor goes belly up?
thanks for very helful video, very helpful in deed. can you help me out with this confusing, set the wallet as hidden wallet , if your trezor got spoiled how could you import it to ledger/ keystone as it has pass phrase? In this case assume that import the hidden wallet into keystone wallet – keystone has 24 seeds .. so how it work?
do you think btc can go up to 650- 1 millions? that what people rumors …. would like to hear your thoughts
Is ledger 24 words, and BlueWallet 12? Thanks 🙏🏼
Can one do this on Tangem 2.0?