Casa Blog - Bitcoin Security Made Easy

If you’re new to bitcoin, true sovereignty over your wealth can be as intimidating as it is empowering. Yes, being your own bank requires you to secure your funds, but today, there are tools like Casa that can help.

With Casa, you can hold your own bitcoin without worrying about loss or theft. It’s important to choose the right amount of security for your investment and revisit it from time to time. In this overview, we’ll walk you through some common scenarios and the level of security Casa experts recommend.

But first, let’s talk about keys

There’s a lot to learn when you’re just getting started down the bitcoin rabbit hole, and security is just one small part. But securing bitcoin is different from any other asset because your wealth is protected with a private key.

A private key is a long, complex passcode that allows you to spend your bitcoin. It’s designed to be unforgeable and unguessable so only you can use it. Without your private key, you can’t spend your bitcoin so protecting that key is critical.

You may have heard of the expression “not your keys, not your coins.” If your bitcoin is in your exchange account, you don’t really own your bitcoin because the exchange has the private key. If something bad happens to the exchange, your bitcoin could be gone forever.

Taking your bitcoin off exchanges is an important step in securing your bitcoin. When you withdraw bitcoin from an exchange, the exchange uses their private key to send a bitcoin transaction to your bitcoin address protected with your private key.

As you acquire more bitcoin or it appreciates in value, we strongly suggest increasing your security to protect your investment, beginning with your private keys.

Beginner <> Mobile wallet

To understand how your security can increase your time, let’s follow the example of John, a beginner.

John wants to “get into bitcoin,” but figuring out how to buy it and where to hold it is overwhelming for him. He decides to ask around and some of his friends use a hardware wallet, but he’s nervous about potentially losing his wallet or seed phrase, and therefore losing access to his funds. John also notices that there’s a lot of news lately about crypto hacks and exchange collapses.

Casa recommends: A single-key wallet on a mobile device, such as the Casa app, is a great fit for total beginners. The Casa app is an easy introduction to bitcoin security that stores your private key in your phone's secure enclave. This first step puts you in control of your keys, making you the sole owner of your bitcoin. And risky exchanges become one less thing to worry about.

Single-key wallets, however, are not a complete security solution for larger amounts of bitcoin. If your phone is compromised, your bitcoin could be gone. But it’s useful to have small amounts of bitcoin on phone wallets for convenient spending. As a rule of thumb, don’t carry more bitcoin on your phone than you would cash in a physical wallet ($1,000 or less).

Intermediate <> Casa Standard

A few months later, John decides that he wants to hold and secure a larger amount of bitcoin as a nest egg for the future. However, he’s not sure where to start with making sure his funds are secure. Is a mobile wallet still enough?

Casa recommends: It’s best to protect long-term bitcoin holdings with multiple private keys in cold storage. That way, you’re protected from single points of failure, such as theft, accidents, and device error. If you only have a key stored on a phone or single hardware wallet, your bitcoin is still vulnerable.

Once you have a significant amount of bitcoin, we recommend upgrading your bitcoin to Casa Standard. It’s everything included with the free app, plus more security to protect your funds along with access to support.

How exactly does the added security of Casa Standard work? Standard adds an extra layer of protection to your hardware wallet in the form of a 3-key vault. With this setup, your bitcoin is protected with three keys: a mobile wallet, a hardware wallet, and the Casa Recovery Key. Sign-offs are needed from two devices to move your funds. This added security protects your savings from things like accidental loss of a device, and physical threats. Additionally, Standard comes with email support to keep you going. We recommend Standard for bitcoin holdings up to $100,000. All Casa memberships come with an optional ethereum vault.

Advanced <> Casa Premium

As time goes on, John continues adding to his savings, and his bitcoin eventually grows to become a significant portion of his net worth. Naturally, this increase brings additional security risk because, although a theft or accident may be unlikely, losing bitcoin would be catastrophic for John’s financial future. So, John does not want anything to happen to his bitcoin. Ever.

Casa recommends: For sizable bitcoin holdings (more than $100,000), we recommend Casa Premium, our best-in-class security plan. Casa Premium protects your bitcoin with a 5-key vault — a mobile key, three hardware wallets, and the Casa Recovery Key — and you need three of these keys to move funds.

Casa vaults allow you to hold your bitcoin with multisig protection against hacks and accidents.

This setup allows you to distribute your keys more effectively across multiple locations and allows you to recover your bitcoin in the unlikely event that two of your keys are lost or stolen. We support this institutional-grade security with seamless client service, including personal onboarding, 24/7 emergency assistance, and unlimited recovery signatures.

Premium also unlocks new flexibility by allowing you to share your account with a loved one. This feature is especially helpful for managing bitcoin as a family and acts as a starter legacy plan.

With Casa Premium, you can have greater peace of mind that your bitcoin is safe.

Need inheritance? <> Casa Private Client

Years pass by and now John is married with kids. Because he has a family, his relationship with his bitcoin has changed, and he began to view his bitcoin as generational wealth. In addition to protecting his bitcoin from attacks and accidents, he needs to ensure it will be safely passed along to his heirs when the time comes.

Casa recommends: Casa Private Client is the perfect fit for bitcoin investors who want to preserve their wealth for generations to come. Designed with a 5-key vault, you can proactively arrange a bitcoin inheritance plan and designate a Recovery Custodian to receive your bitcoin upon your death.

As a Private Client, you have direct access to specialized advisory services and private consultations, so you can obtain assistance right away. Additionally, you also have access to exclusive features such as a 6th key for your vault. This complete plan is ideal for investors securing substantial holdings in bitcoin, such as high-net-worth individuals and family offices, and it can be tailor-made for bespoke needs.

Final thoughts

Bitcoin security is a personal journey that progresses as you learn more about the asset and your stack grows, and there's a Casa membership plan for every investor.

Ready to see for yourself? Schedule a call with a Casa advisor to learn more or get started with Casa Standard here.

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