Crypto Wallet Types & Security
Choosing the right storage method is the most important decision in bitcoin self-custody. The right approach depends on how much you hold and how often you transact.
Hot Wallets (Software Wallets)
Software wallets run on your phone or computer and keep keys on an internet-connected device. They offer convenience for daily transactions but are vulnerable to malware, phishing, and device compromise. Best suited for small amounts you plan to spend — like a physical wallet with cash.
Mobile Wallets
Apps like BlueWallet or Trust Wallet. Convenient for everyday payments. Keep only what you would carry in a physical wallet.
Desktop Wallets
Software like Sparrow or Electrum. More features and control than mobile. Suitable for moderate amounts with advanced tools.
Browser Wallets
Extensions like MetaMask. Easy access for web apps and DeFi. Use a dedicated browser profile for extra security.
Cold Wallets (Hardware Wallets)
Hardware wallets store private keys on a tamper-resistant secure chip that never exposes them to the internet. Even if your computer is compromised, the attacker cannot extract the keys without physical access to the device and its PIN. This is the recommended choice for long-term savings.
Hardware Wallets
Devices like Trezor or Ledger. Keys never leave the secure chip. Transactions are signed on-device, protecting you even if your computer is compromised.
Air-Gapped Wallets
Devices that never connect to the internet — not even USB. Transactions pass via QR codes or microSD cards, eliminating all remote attack vectors.
Paper Wallets
Keys printed on paper. Fragile and harder to use than hardware wallets. Generally not recommended when better cold storage options exist.
Multisig Wallets
Multisig wallets require more than one private key to authorize a transaction. A 2-of-3 setup means 2 out of 3 keys must sign to move funds. This eliminates single points of failure — if one key is lost or compromised, your bitcoin stays safe. Common in estate planning and shared custody.
Standard Multisig
You hold all keys across separate devices or locations. Removes single-device failure risk. More complex to set up and manage.
Assisted Multisig (Savel)
You hold 2 keys, Savel holds 1. No single party can move your funds. Savel co-signs when you approve, adding a security layer without losing self-custody.
The Safest Solution: Savel Security
Savel combines multisig security with assisted self-custody. Your bitcoin is protected by a 2-of-3 multisig setup where you control 2 keys and Savel holds 1. No single party — not you, not Savel — can move your funds alone. This is the safest approach for self-custody because it eliminates both single-device failure and single-party trust.
You Hold 2 Keys
Your Key and your Family Recovery Key stay with you. Even if Savel disappears, you retain full control of your bitcoin with 2-of-3 signing.
Savel Holds 1 Key
Savel co-signs transactions when you approve them. This adds a second layer of security — if your device is compromised, the attacker still cannot move funds without Savel's key.
Inheritance & Recovery
If you lose access, Savel's Key plus your Family Recovery Key can still sign transactions. Your bitcoin is never lost as long as 2 of 3 keys survive.
Comparison
| Solution | Key Control | Internet | Best For |
|---|---|---|---|
| Hot Wallet | You hold keys | Online when in use | Daily spending |
| Hardware Wallet | Keys on secure chip | Offline by default | Long-term savings |
| Air-Gapped | Keys fully offline | Fully offline | High-value storage |
| Exchange | Exchange holds keys | Always online | Active trading only |
| Savel 2-of-3 Multisig | You hold 2, Savel holds 1 | Software or air-gapped key | Maximum self-custody security |