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[![en](https://img.shields.io/badge/lang-EN-blue.svg)](/EN-English/README-EN.md) [![cz](https://img.shields.io/badge/lang-CZ-white.svg)](/CZ-Czech/README-CZ.md) [![pl](https://img.shields.io/badge/lang-PL-red.svg)](/PL-Polski/README-PL.md)

# Bitcoin User Manual Booklet

Welcome to the Bitcoin User Manual knowledge repository. This publication by Cryptosteel is part of the **[MotherLode](https://cryptosteel.com/product/motherlode-crypto-starter-kit/)** product range. The manual is for beginners, with valuable information for veteran Bitcoiners as well, among others as a resource for educating hodlers at the start of their adventure in the world of crypto.

![The Easy Way to Get Started](/Assets/cover-the-easy-way-to-get-started.png)


## A few words about the booklet

The Bitcoin User Manual is a pragmatic, step-by-step guide on:

- hardware wallet configuration (Cold Storage),
- creating a permanent recovery seed phrase backup (Deep Frozen Backup),
- Lightning fast transactions (A Hot Spending Account).

Cryptosteel’s mission is to provide security and education for Bitcoin users. In line with this philosophy, we have decided to make the booklet available on the CC platform [Creative Commons Attribution 3.0 Unported (CC BY 3.0)](/LICENSE.md).

**This means anyone can freely download, modify, and share, as long as there is a reference to the source material.**

The guide is designed for easy translation and customization for local needs.

Feel free to mod elements like:

- local crypto trading platforms, as well as other forms of exchanging currencies,
- hardware wallets popular in a specific region,
- popular metal backup methods,
- local Lightning fast payment apps.


## What’s in the repository?

It includes there language versions, each also containing:

- the full booklet in PDF format - perfect for downloading and reading,
- the contents in separate files, allowing community editing,
- illustrations - in open, editable, and encapsulated formats.


## Available language version

The first three versions are English, Polish, and Czech, with further versions in the works. We’re hoping for your support!

|Language|Click the cover to enter a chapter.|
|---|---|
|English|[![EN](/Assets/en.png)](/EN-English/)|
|Czech|[![CZ](/Assets/cz.png)](/CZ-Czech/)|
|Polski|[![PL](/Assets/pl.png)](/PL-Polski/)|


## License

The “Bitcoin User Manual Booklet” and related resources are available at https://github.com/cryptosteel/Bitcoin-User-Manual-Booklet/ based on the license: Creative Commons Attribution 3.0 Unported (CC BY 3.0).


## Contact

If you have any questions or suggestions about this project, please contact us at motherlode.booklet@cryptosteel.com.


## Community contribution

Your suggestions and support in adapting this publication to other languages will be much appreciated both by the Community.


**Cryptosteel**
*The Mother of All Backups*
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# Welcome to the Bitcoin User Manual!

By reading this manual, you are now one step away from learning how to become a sovereign Bitcoin user who embraces self-custody in a safe and responsible manner. The future of finance and technology awaits you!

A few easy steps is all it takes for you to embark on your Bitcoin adventure. Learn how to conduct transactions and safely store your assets.

Congratulations on your responsible approach.

Time to embark on your journey to explore the exciting world of Bitcoin!

***

## TABLE OF CONTENTS

- How can I get bitcoin?
- Tools for handling digital currencies
- Setting up a hardware wallet
- Backup management
- The Lightning network

***

## How can I get bitcoin?

There are many ways to acquire Bitcoin. The most popular method is via purchase on cryptocurrency exchanges, where you can trade traditional currencies (like dollars, Euros, Yen) for Bitcoin.

You can also accept payment for goods or services in Bitcoin.

Consider asking your employer about paying your salary, or part of it, in bitcoin.

Remember, even though exchanges are a popular and easy way to acquire Bitcoin, they’re not recommended for long-term storage due to many risks. Assets stored on an exchange aren’t fully yours, since you don’t control the private keys to your wallet. Hence goes the saying:

**“NOT YOUR KEYS, NOT YOUR BITCOIN”**

In legal terms, you are not the owner of assets deposited on an exchange, you are only entitled to make a claim for their withdrawal.

Ensure the safety of your Bitcoin by using your own hardware wallet for storage.

***

## HOW CAN I GET BITCOIN?

### Trade or Earn

***

Wages vary, but we all earn money by working, and our work is measured in hours. If time is money, here are some suggestions for you depending on how much of your time/money you invest in Bitcoin. These will help you figure out how playful you can be and when it’s time to upgrade to something more serious:

- **one hour’s worth of work:**
experiment with transactions, test various online apps,

- **a day’s work:**
decide which free app to install on your smartphone,

- **two weeks:**
decide which hardware wallet to buy,

- **one month:**
acquire a metal backup to create a permanent backup for your recovery seed phrase. You can then recover your assets in case you lost your hardware wallet.

Bitcoin, like any traditional currency, is divided into subunits. Each bitcoin is a whopping one hundred million Satoshis (100,000,000 SATS). This makes it possible to buy bitcoin with a fraction of a cent.
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## HARDWARE WALLET SETUP

While modern computers and smartphones are capable of running the cryptographic algorithms required to use Bitcoin, they are inherently insecure.

These devices perform multiple tasks, such as taking photos or browsing. Generally, the more a device can do, the greater security vulnerabilities it may have.

### HARDWARE WALLET

A hardware wallet is an electronic device that can perform a limited number of tasks: creating a password, calculating a Bitcoin address, or authenticating a transaction. The risk of succumbing to a hack attempt is mitigated by reducing the functionality of the device.

### ADDITIONAL DISPLAY

Hardware wallet devices are designed with a built-in display. Validation on this additional display prevents unauthorized access and boosts security.

### PRIVATE KEYS

To keep your coins secure, a hardware wallet isolates your private key in offline encrypted memory, and will never send your private keys to the computer it is connected to.

In alphabetic order: Bitbox, Blockstream, ColdCard, Foundation, Ledger, and Trezor are the leading hardware wallet brands.

### BITCOIN GLOSSARY:

**PRIVATE KEY** - a very strong password

***

## HARDWARE WALLET SETUP

### What’s a hardware wallet and why do I need one?

***

## HARDWARE WALLET SETUP - PREPARATION

Prepare to set up your hardware wallet – it shouldn’t take longer than 30 minutes.

Prepare your computer, a piece of paper and something to write with. Make sure you have internet access and a moment of peace and quiet.

Make sure no one interrupts or observes you during this procedure – this will ensure the process is conducted safely and efficiently.

**Most of the operations in this guide involve sensitive data – we recommend conducting them in a private location.**

Remember, your hardware wallet can be easily reset to factory settings and you won’t lose your coins as long as you still have the seed phrase for recovery. You can repeat this step several times if you feel the need to practice.

***

## Find a quiet spot - bring a pen and paper

***

## HARDWARE WALLET SETUP - DOWNLOAD THE APP

### Setting up Your Hardware Wallet

This process usually begins with installing software on your computer that allows convenient use of the hardware wallet.

Carefully follow the instructions shown on your computer screen and the display on the device. Add additional security measures (usually a PIN code) according to the manufacturer’s instructions. Next, write down the words displayed on the hardware wallet screen - this is your secret recovery seed phrase.

### Secure Your Recovery Seed Phrase

**The seed phrase is extremely important and indispensable for retrieving assets in case the hardware wallet is lost, damaged, or destroyed. It should be stored in a safe location.**

### Transferring Assets to Your Hardware Wallet

After a proper wallet setup, you can transfer bitcoin assets to it from another wallet or from an exchange.

We recommend reading the instruction manual supplied by the manufacturer, since the process may differ depending on the wallet model.

***

## Download the app

***

## HARDWARE WALLET SETUP - PRIVATE KEY

Hardware wallets are designed in such a way that only their owner can access the private key - this boosts security.

The recovery seed phrase is usually a sequence of 12 or 24 words that encode the private key to your wallet. Remember, these words allow access to your assets!

A seed phrase can be transferred between hardware wallets made by different manufacturers. **The recovery seed phrase is more important than the device that holds it.**

Lost your hardware wallet? Or has it stopped working? Or perhaps you’d like to replace it with another model? No problem! Just enter your recovery seed phrase into the new wallet to regain access to your assets.

**Protect your seed phrase – it’s the only method to regain access to your assets in case you lose your hardware wallet.**

Without your seed phrase, you irreversibly lose access to your cryptocurrency holdings and the ability to manage them.

**WARNING!**

**NEVER CREATE A DIGITAL COPY (PHOTO, TEXT MESSAGE, EMAIL) OF YOUR RECOVERY SEED. ALSO, NEVER READ YOUR SEED PHRASE OUT LOUD AND AVOID TYPING IT ON A COMPUTER CONNECTED TO THE INTERNET!**

### BITCOIN GLOSSARY

**RECOVERY SEED PHRASE** - a private key used as a backup in case of hardware wallet failure
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### BACKUP MANAGEMENT

**Why do I need a recovery seed backup?**

You’re the only person who has access to your seed phrase, so make sure to create a backup. Backup management is simple and secure as long as it stays offline.

Electronic devices seldom survive for longer than 10 or 20 years: they’re not a good solution for long-term asset storage.

A recovery seed phrase backup provides effective protection in case of errors related to software and firmware updates.

Retrieving a backup-up recovery seed phrase takes just a few minutes.

Make sure your seed phrase backup is never posted, uploaded, attached or sent online. Don’t take pictures of your passwords and don’t store them in the form of digital content.

***

## BACKUP MANAGEMENT

### You need a safe backup for restoring access if you damage or lose your wallet

***

### BACKUP MANAGEMENT - PREPARATION

Your Hardware Wallet generates an offline seed phrase - it is never uploaded to the Internet from your hardware wallet, as this type of device is always offline. This makes it much safer than a mobile phone or a computer app.

**Never take pictures of your seed phrase!**

**Remember, photos can be seen or accessed – even without your knowledge!**

No-one other than you should access that seed phrase - the moment the device is initiated, it’s stored in the hardware wallet’s encrypted memory. You should already have an initial paper backup copy.

**Protect your seed phrase – create a permanent, metal backup.**

Creating a metal backup will take about 30 minutes.

This will protect your seed phrase from hazards like water, fire, electrical shocks, or and physical degradation over time.

Buy a ready-made backup tool or check online tutorials for DIY solutions.

You can also use tutorials available on youtube.com/@Cryptosteel.

### BITCOIN GLOSSARY

**METAL BACKUP** - a permanent metal backup copy of the your recovery seed phrase

***

## Prepare the right tools

***

## BACKUP MANAGEMENT - METAL BACKUP

Creating a metal backup of your seed phrase ensures durability and higher resistance to damage compared to other storage methods.

Metal backups are highly resistant to electric shock, fire, water, and physical degradation over time.

**A METAL BACKUP IS THE BEST WAY TO PROTECT YOUR SEED PHRASE IN CASE OF UNFORESEEN SITUATIONS.**

Cryptosteel is a patented, easy to use, and extremely durable device.

Manually stamping a password onto a metal plate using dots is an alternative solution. It has also been widely tested, although it’s much more time consuming. After deciphering, the dots represent private keys or a recovery seed phrase.

If you prefer budget, DIY solutions, you can buy a set of engraving tools, a metal plate, and etch your seed phrase onto it. Nevertheless, this solution may be less safe due to low-quality materials and illegibility.

***

## Create a metal backup

***

## BACKUP MANAGEMENT - TEST YOUR BACKUP

Make sure your seed phrase backup works before it’s ever needed: in days, months, or years.

**TEST YOUR BACKUP IMMEDIATELY INSTEAD OF ASSUMING IT’S CORRECT**

To finalize the backup procedure, make sure the seed won’t fail you when you most need it.

### THE TEST

- Transfer a small amount to your new seed phrase
- Reset the device
- Conduct the recovery process

The test is successful if you can access your assets after conducting the recovery process. Congratulations! Your backup is properly configured and will allow you to recover access to your assets in the future, any time you need it.

**ATTENTION!**

**ONLY A TESTED BACKUP WILL ENSURE FUTURE ACCESS TO YOUR ASSETS. WALLET RECOVERY IS IMPOSSIBLE IF THE SEED PHRASE IS INCORRECT.**

***

## Test your backup copy
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