Simplest Secure Bitcoin Setup
Minimum Viable Security for Self-Custody
This memo is published by CustodyStress, an independent Bitcoin custody stress test that produces reference documents for individuals, families, and professionals.
What Simplest Means
The search for the simplest secure bitcoin setup reflects a different goal than maximizing security. Rather than asking how protected can I possibly be, the question asks what is the minimum protection that crosses the threshold of acceptable. This satisficing approach—seeking good enough rather than optimal—leads to different configurations than security maximization.
This assessment considers what minimum viable security looks like for bitcoin custody. The approach accepts that some threats will not be addressed while ensuring that common, realistic threats are handled. Simplicity becomes a feature, not a limitation, because simpler systems are more likely to be maintained correctly over time.
What Simplest Means
Simplest means fewest components, fewest steps, and fewest things that can go wrong. It means a configuration that can be explained briefly and maintained without constant attention. It means a setup that non-technical heirs can understand and execute.
Simplicity is not the same as carelessness. A simple system can still be thoughtfully designed. The simplicity comes from removing unnecessary elements rather than from failing to consider important ones. Every component that remains serves a purpose; components that serve marginal purposes are excluded.
Simplicity trades some security for sustainability. A complex system that degrades over time may end up less secure than a simple system that remains intact. The simple system's durability becomes a security asset.
What Secure Means in This Context
Secure, for a simplest setup, means protected against common threats. These include: online attacks targeting connected devices, opportunistic theft of physical materials, loss from device failure, and basic operational errors. Protection against sophisticated targeted attacks falls outside the simplest setup's scope.
The threat model is standard consumer-level exposure. No public visibility, no specific adversaries, no elevated risk geography. The person seeking the simplest secure bitcoin setup typically has modest holdings and ordinary life circumstances. Extraordinary threats call for more than the simplest approach.
Accepting the limited threat model allows meaningful simplification. Protecting against nation-state actors, for example, requires complexity that most people do not need. By defining the threat boundary, unnecessary complexity can be confidently excluded.
The Core Components
The simplest secure bitcoin setup has few components, but each component matters.
A hardware wallet provides the security foundation. Keys remain offline, isolated from the internet-connected devices where most attacks occur. The dedicated device creates a boundary that general-purpose computers cannot provide. This single component addresses a large portion of realistic threat exposure.
A seed phrase backup provides recovery capability. The seed phrase, written down and stored securely, enables restoration if the hardware wallet fails, is lost, or is destroyed. Without this backup, device failure means permanent loss. The backup is the difference between temporary setback and catastrophic failure.
A secure storage location protects the backup. The seed phrase needs protection from unauthorized discovery, from fire and water damage, and from accidental disposal. A fireproof container in a private location serves this purpose. The storage does not need to be elaborate—it needs to be reliable.
What the Simplest Setup Excludes
The simplest secure bitcoin setup deliberately excludes elements that add complexity without proportionate benefit for the target threat model.
Multisig is excluded. The coordination overhead of multiple keys exceeds the benefit for modest holdings facing standard threats. Single-signature with good practices handles this threat level adequately.
Geographic distribution of backups is excluded in the minimal version. A single secure backup location provides recovery capability. Additional locations add complexity while addressing lower-probability scenarios. This is a reasonable exclusion for the simplest approach, though a moderate step up would add one remote backup.
Complex passphrase schemes are excluded. A single strong passphrase, if used, provides meaningful additional protection. Layered passphrases or elaborate derivation add complexity without proportionate security gain at this level.
Elaborate documentation is excluded. Basic instructions covering where materials are and what to do with them serve the purpose. Comprehensive technical manuals exceed what the simplest approach requires.
The Optional Passphrase Question
Adding a passphrase to the seed phrase represents the main decision point in the simplest secure setup. The passphrase provides meaningful additional security—the seed phrase alone does not access funds—but introduces a memory or documentation requirement.
Including a passphrase elevates security significantly with modest complexity cost. If someone discovers the seed phrase backup, they still cannot access funds without the passphrase. This protection layer is high-value relative to its cost.
Excluding the passphrase simplifies the system further at some security cost. The seed phrase backup becomes a complete access credential. Anyone who finds it can take the bitcoin. The simplicity gain is real; the security cost is real.
For the simplest secure setup, including a passphrase generally makes sense. The security gain outweighs the modest complexity. The passphrase becomes the one additional element worth including beyond the absolute minimum.
Scenarios Where Simplest Works
Bitcoin representing a few months of expenses, held by someone with limited technical interest and non-technical family members. The simplest setup—hardware wallet, seed phrase backup, basic documentation—serves this situation well. Elaborate security would be disproportionate to what is protected and would complicate inheritance unnecessarily.
Early accumulation phase where holdings are small but may grow. Starting with the simplest setup allows building custody skills without overwhelming complexity. As holdings grow, the setup can evolve. Beginning with elaborate security for small amounts creates unnecessary burden during the learning period.
Backup holdings for someone whose primary custody is institutional. A smaller self-custody position maintained for insurance against system failure can use the simplest approach. The primary holdings are elsewhere; this is the fallback, not the main store.
Older individuals who want exposure but cannot manage complexity. Technical sophistication may never develop or may have declined. The simplest setup accommodates limited capability while still providing meaningful protection. Complexity that exceeds management capability creates risks rather than reducing them.
Scenarios Where Simplest Is Insufficient
Holdings that represent significant portion of wealth. When bitcoin is a major financial asset rather than a minor allocation, proportionate protection becomes appropriate. The simplest setup may be underpowered for substantial holdings.
Elevated threat exposure from public visibility or known adversaries. Standard consumer-level threats do not cover targeted attacks. The simplest setup assumes no one is specifically trying to steal your bitcoin. If that assumption is wrong, more protection is needed.
Situations requiring protection against coercion. The simplest setup does not address scenarios where someone forces you to move your bitcoin. Coercion resistance requires complexity the simplest approach excludes.
Organizational or shared custody requirements. Multiple parties needing control over bitcoin cannot be served by single-signature custody. The simplest approach is personal; organizational needs require different configurations.
Maintenance of the Simplest Setup
Simple systems still require some maintenance. The simplest setup is not a set-and-forget configuration. Periodic attention ensures the system remains functional.
Verifying backup accessibility matters. The seed phrase backup location needs periodic checking—is the backup still there? Still readable? Still accessible? These checks catch degradation before it becomes critical.
Updating documentation matters. If anything changes—new hardware wallet model, changed storage location, updated contact information—documentation needs corresponding updates. The gap between documentation and reality grows without maintenance.
Confirming device functionality matters. The hardware wallet needs occasional use to verify it still works. Devices can fail, batteries can die, firmware can become outdated. Periodic interaction catches problems early.
The maintenance burden is light but not zero. The simplest setup requires attention perhaps once or twice per year. This minimal maintenance is the cost of sustainability.
The Inheritance Angle
Simple setups tend to be more inheritable than complex ones. Heirs who know nothing about bitcoin face lower barriers with simpler configurations. This inheritance friendliness is a significant advantage of the simplest approach.
Documentation for simple setups can be brief. Explaining where the hardware wallet is, where the seed phrase backup is, and what to do with them takes a page, not a manual. Heirs can comprehend brief documentation even under grief.
Recovery from simple setups requires fewer steps. Finding one seed phrase and restoring a standard wallet is achievable for non-technical heirs with online guidance. Finding multiple keys, understanding quorum requirements, and coordinating multi-party signing is not.
The simplest setup's inheritance advantage may justify its security limitations. A configuration that heirs can actually use may serve family interests better than a configuration with theoretically superior security that heirs cannot navigate.
What the Simplest Setup Achieves
The simplest secure bitcoin setup achieves protection against common, realistic threats while maintaining a configuration that ordinary people can manage over time. It is not maximum security—it is sustainable security that fits the threat model most people actually face.
The approach accepts tradeoffs explicitly. Some threats are not addressed. Some security layers are not included. This acceptance is not neglect—it is appropriate scoping for the situation at hand.
The simplest setup provides a foundation that can be built upon. Starting simple and adding complexity as needed is easier than starting complex and trying to simplify. The simplest approach offers an entry point that can evolve.
Outcome
The simplest secure bitcoin setup prioritizes sustainability and manageability over maximum protection. Core components include a hardware wallet, a secure seed phrase backup, and optionally a passphrase. This configuration addresses common threats facing people with standard exposure and modest holdings.
Simplicity is achieved by deliberately excluding multisig, geographic distribution, elaborate passphrases, and complex documentation. These exclusions are appropriate when holdings are modest and threats are standard. Larger holdings or elevated threats call for more than the simplest approach.
The simplest setup's advantages include maintainability over time, inheritability by non-technical heirs, and avoiding complexity that exceeds management capability. The light maintenance burden and inheritance friendliness may outweigh the security limitations for many situations.
System Context
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