"How do I store Bitcoin?"

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In this post, we are going to take a look at the essential steps necessary to withdraw Bitcoin to your wallet. If you are interested in understanding how to execute this Bitcoin operation and learning the best practices for properly storing your Bitcoin, don't go anywhere! Also, make sure to read our previous blog post to familiarise with the small glossary at the start of the article, as it will come in handy this time around as well.

If you are reading this blog post, we will assume that you already acquired some Bitcoin through a reputable exchange, or a peer-to-peer platform. Once the Bitcoin has been purchased, it is vital to withdraw the funds to your own wallet, i.e. a noncustodial storage solution that is controlled by you (and, potentially, other trusted owners of your choice) exclusively, with no third party/intermediary involved.

Before we start hashing out the details, it is essential that you install and initialise your own Bitcoin wallet. Instructions and best practices on how to safely download and run a wallet application on your computer can be found here. Irrespective of the specific solution you ultimately choose, it is crucial that you understand the concept of recovery "seed phrases", also known as "mnemonic phrases", which are a standardized method for creating a backup of a Bitcoin wallet's private key that controls your wallet and approves outgoing transactions.

The BIP39 standard defines a list of 2048 words that can be used to generate a series of 12, 18, or 24 words that represent a seed phrase. This seed phrase can be used to recover a wallet's private key if it is lost or stolen. It is important to keep this seed phrase secure and backed up in a safe location to prevent others to access your funds, while also avoiding the risk to lose it. If you are wondering how secure the Bitcoin network is using this standard, make sure to check out this 5-minute video, and be prepared to be blown away. If you are considering owning more than a few pennies worth of Bitcoin, we strongly encourage purchasing a hardware wallet, which is a storage solution that never exposes your private keys to the internet, providing a much higher level of security.

After you completed the initial set up of your wallet, the user can then transfer their Bitcoin from the exchange to the their own wallet. This process is typically relatively simple and involves sending the Bitcoin from the exchange to an address generated by the wallet interface. Once the transfer is complete, the user can rest assured that their Bitcoins are safe and secure in his or her own custody. While this process may sound intimidating at first, it is actually easier and faster than filling up the necessary information to request a bank transfer. Let's go over this process, step by step:

• Obtain an address (public key) from wallet

A Bitcoin address, also known as a public key, is a string of numbers and letters that represents a user's Bitcoin address. It is used to receive Bitcoin and is publicly visible on the blockchain. Public keys are created from private keys and are an essential part of Bitcoin transactions. An example of a Bitcoin address is:

174uzhhPu3tVNLw5fqEpQxPQaT3LS9eYsE

If you are interested in testing how this appears on the blockchain, head over here, copy and paste the address above into the search bar, and check out the transaction history associated with that address! Also remember: you can have as many addresses associated with your private keys as you want, but you'll still be able to control them through the same private keys that only you should have access to.

• Initiate the withdrawal request from the exchange

Log into your reputable digital assets exchange of choice, and locate the page where you can initiate the process of getting your Bitcoins out. Most major exchanges have an intuitive interface, but make sure to ask their customer support, should you have any doubt. Once you identified the withdrawal page, select Bitcoin and proceed.

• Confirm the withdrawal details

Before withdrawing your Bitcoin to your wallet, it is important to review the few, but essential details of the transaction, including:

1) the amount of Bitcoin being transferred,

2) the address (public key) you provided, which should match exactly that provided by the wallet application you previously chose,

3) any fees associated with the transaction.

Confirm that the details are correct before proceeding with the withdrawal.

• Wait for the withdrawal to be processed

After confirming the withdrawal details, you must wait for the exchange to process the withdrawal. This process can take anywhere from a few minutes to a few hours, depending on how quick the exchange is, since the Bitcoin transaction per se only takes a few minutes. As long as you are sure that the details entered in the previous step are correct, you have nothing to worry about! Grab a cup of your favourite hot beverage and wait a bit.

• Verify that the Bitcoin has been successfully transferred to your wallet

Once the withdrawal has been processed, it is important to verify that the Bitcoin has been successfully transferred to your cold wallet. Check the balance of your cold wallet to ensure that the funds have been transferred. To do that, you can check on the user interface of you wallet, and also check the transaction here by pasting the Bitcoin address you used in step 2) while withdrawing from the exchange.

• Store your wallet securely

We cannot stress this enough: securing your wallet is essential to ensuring the safety of your Bitcoin. Make sure to store your recovery seed phrase in a private location, such as a safe or safety deposit box, and keep it away from potential threats such as fire, water damage, or theft.

In our next blog post, we will tackle the importance of Bitcoin self-custody while also address ing some of the common misconceptions about Bitcoin. Stay tuned!