Mattimore’s Bitcoin Guide

How to protect your wealth from the collapse of the traditional USD banking system, in 3 easy steps

Dear family, friends, and whoever else may have found themselves here,

I’ve had more people reach out to me since the 2023 banking crisis began, asking how acquire and store Bitcoin, than ever. People are waking up. If you are one of them, this guide is for you.

Let me be clear, your money is not safe in the banks. It doesn’t matter what bank you use, though the regional banks are likely to fail sooner than the “systemically important” ones. The reality is that all banks are insolvent, and no bank is safe.

Where can you store your wealth, so that your purchasing power is protected, now and into the future? The answer is Bitcoin.

This guide will walk you through the simple process of how to buy, store, and spend Bitcoin as needed, in order to become self sovereign.

After reading this guide, you will have the tools you need to protect your family’s purchasing power now, and for hundreds of years into the future.

Let us begin.

Step 1. Acquire Bitcoin

There are many ways to acquire Bitcoin. You can earn Bitcoin from an employer who pays you in Bitcoin. You can convert your cash into Bitcoin at a Bitcoin ATM. You can also buy Bitcoin peer-to-peer without ever having to go through a centralized exchange.

That said, in 2023, the easiest way to convert large amounts of dollars into Bitcoin is still to buy from a centralized exchange.

Which one should you use?

There are many to choose from, and it does not much all that matter which one you go with, so long as you follow these two simple rules:

Rule 1. Only buy Bitcoin from Bitcoin-only exchanges.

Rule 2. Only buy Bitcoin from exchanges that allow you to withdraw BTC to a wallet that you, and only you, control.

With these two rules in mind, the exchange I recommend above all others is Cash App.

Cash App is Bitcoin only, and it allows you to easily withdraw your Bitcoin to a wallet that you control. Thus, it passes both rules for buying Bitcoin.

Other great options for places to buy Bitcoin, which also pass both rules, are Strike, Swan, and River. Or, if you live in Europe, Relai. Or, if you live in Canada, Bull Bitcoin.

The process for buying Bitcoin is easy. You simply download Cash App on your smartphone, link your bank account, debit card, or other payment method, and purchase Bitcoin all at once, or on a regular basis.

There is much debate about whether to “lump sum” into Bitcoin all at once, or whether to “DCA: dollar cost average” into Bitcoin by buying a small amount each day or each week over a long period of time.

Both of these methods work great. If you believe that the fiat banking sector is on the brink of collapse, however, then you may want to buy a large amount of Bitcoin all at once so you can sleep soundly.

However, if you don’t have much cash available at the moment, or if you are only just getting starting to dip your toes into Bitcoin, and aren’t yet ready to commit large sums all at once, then a small daily or weekly allocation to Bitcoin may be the way to go.

Pro Tip: Do not fall into to “unit bias” trap

Some people get stuck on the notion that they can’t afford to buy a whole Bitcoin all at once. This is what’s known as “unit bias.” Do not fall into this trap. It’s perfectly fine to buy $20 of Bitcoin at a time. You don’t have to buy a whole coin. You can, indeed, but a fraction of a Bitcoin. In fact, in the very near future, it will be almost unheard of for someone to own an entire Bitcoin. The math is simple. There are 8 billion people on earth and counting, and there will never be more than 21M Bitcoin for all eternity. Therefore, the typical person will only own around 0.002625 BTC. If you’re able to acquire more than that, you’re doing just fine.

Warning: Avoid “altcoin” exchanges

Last note on buying Bitcoin: Do not buy on Coinbase, Binance, Kraken, or any exchange that also offer other crypto tokens known as “altcoins.”

These altcoin exchanges, aptly called “sh*tcoin casinos” by Bitcoiners, are very likely to collapse, just as FTX collapsed. They are unlikely to be around 10 years from now, as their exposure to scammy tokens, which are printed out of thin air just like fiat currencies, makes them unstable. Plus, the SEC has already declared that every crypto token other than Bitcoin is an unregistered security. Yes, that includes Ethereum, Doge, XRP, Cardano, Avalanche, and every other “altcoin” you can think of. Bitcoin only.

Remember: Buy Bitcoin. Not Altcoins

Just buy Bitcoin. Don’t waste your time, money, and energy “investing” in scammy tokens. Only Bitcoin will still be around 100+ years from now. And only Bitcoin has a hard supply cap of 21M, with no fundamental changes to the protocol rules (aka “hard forks”) in its entire 14 year history.

Now, on to the next step…

Step 2. Store Bitcoin

Remember: If you keep your Bitcoin on an exchange (e.g. Coinbase), you don’t actually own any Bitcoin.

Once you have acquired some Bitcoin, the next step is to store it on a wallet that you, and only you, control. Otherwise, you don’t actually own any Bitcoin. All you own is an “IOU” for Bitcoin. That doesn’t end well. Just ask the people who stored their Bitcoin with FTX, BlockFi, or Mt. Gox. They lost everything once those centralized exchanges went bust. Don’t let it happen to you. Hold real Bitcoin. Not Bitcoin IOUs. How do you know if it’s real? Simple. Because you have the private keys, usually 12 or 24 words, also known as your “seed phrase” or “backup recovery phrase.”

The most secure way to store the keys to your Bitcoin is in “cold-storage,” meaning on a device that is not connected to the internet. In practical terms, this means buying a hardware wallet (AKA a signing device).

Why use a hardware wallet?

You could use a regular phone or computer to store your Bitcoin, but if you do this, you open yourself up to multiple attack vectors. The reason is simple: you use your phone and computer for other things besides just storing Bitcoin. You download files. You browse the web. You click on links. Every time you do so, you are potentially allowing a virus to infect your phone or computer. Bitcoin hardware wallets, by comparison, are designed solely for storing Bitcoin, nothing else. Plus, they are not connected to the internet at all. They do one thing, and one thing well, store your Bitcoin private keys in the most secure way possible.

Hardware wallets also require physical access in order to use. In this way, they are similar to storing a solid gold brick, or a pile of cash, with the added benefit of being able to transport it across the internet when you need to. So long as your hardware wallet is in a secure location, such as a safe, all the world’s computing power would not be enough to hack into your hardware wallet. You could go into a coma for 20+ years, wake up, and still have access to your Bitcoin as if nothing happened at all. That is not true with any “altcoin,” as altcoins routinely undergo hard forks.

In short, Bitcoin hardware wallets vastly reduce your risk of losing Bitcoin due to a cyber attack or a computer viruses. They are the gold standard of securing Bitcoin private keys in a self-sovereign fashion. If you hold more than a couple hundred dollars worth of BTC, it’s worth it to get a hardware wallet to secure your Bitcoin and sleep soundly.

Which hardware wallet should you choose?

When considering which hardware wallet to choose, be aware that the more fully open source, the better. Also, the simpler the better. For these reasons, do not buy a hardware wallet that supports “altcoins.” Go with a Bitcoin-only hardware wallet such as Coldcard, SeedSigner, or Blockstream Jade. My personal favorite of these is Coldcard, followed by Blockstream Jade, and then SeedSigner.

How do you set up a Bitcoin hardware wallet?

It’s easy to set up a Bitcoin hardware wallet. Here are the general steps to set up any Bitcoin hardware wallet:

  1. Unbox your hardware wallet and make sure that all accessories are included, and that the box has not been tampered with or opened.

  2. Power up your hardware wallet by connecting it to a computer or USB charger.

  3. Follow the on-screen instructions to set up a PIN code for your hardware wallet. This is the PIN you will use to send/receive Bitcoin.

  4. Once you have set up your PIN code, the hardware wallet will generate a 12 or 24-word seed phrase. This is the seed phrase that you will use to recovery your Bitcoin, should anything happen to your physical hardware device. This is the single most important step in your entire Bitcoin journey. So take your time, and do it the right way: Write down the seed phrase on the provided paper backup and store it in a safe and secure location. IMPORTANT: Do not share the seed phrase with anyone. Do not take a photo of it. Do not store it in a notes app, on your computer, on your phone, or anywhere online. ONLY store the seed phrase in “meat-space” (i.e. on a physical piece of paper, or better yet, on a steel plate that you engrave with a stylus yourself). Don’t even ever say your seed words out loud, as your phone may be listening.

  5. Verify that you have correctly written down the seed phrase by entering it on the hardware wallet and checking that it matches the one displayed during setup. This is key. Make sure there are no typos.

  6. Depending on the hardware wallet you chose, you’ll need to install a compatible software application in order to interface with your hardware wallet. If you are using a Coldcard or SeedSigner, I recommend downloading Sparrow Wallet or Electrum as your software interface. If you are using a Blockstream Jade, I recommend using Blockstream Green as your software interface. My personal favorite combination is Coldcard + Sparrow Wallet.

  7. Once you have installed the software application, connect your hardware wallet to your device using the USB cable.

  8. Follow the instructions in the software application to set up your hardware wallet so that you can start receiving Bitcoin.

  9. Send Bitcoin to your hardware wallet by following the instructions. Typically, you will simply hit “send” within Cash App, or wherever you purchased the Bitcoin, and then simply copy and paste the receive address from your hardware wallet interface.

  10. Once your Bitcoin has been transferred, disconnect the hardware wallet from your computer and store it in a secure location. Remember to store your seed phrase safely and securely.

That’s it. Now you have a secure Bitcoin storage solution with no single point of failure. You’re doing great.

Step 3. Spend/Sell Bitcoin

First, let’s discuss how to spend Bitcoin; then, how to sell Bitcoin.

How to spend your Bitcoin

For security reasons, it’s not recommended to spend directly from your cold storage hardware wallet. That would be like taking money out of your savings account every time you want to buy a cup of coffee. Instead, download a mobile phone wallet, keep a small amount of Bitcoin there, and then spend Bitcoin online, or in person, just as you would spend cash, without having to worry about the majority of your Bitcoin savings.

Which phone wallet should you use?

There are many phone wallets to choose from, and the best ones today may not always be the best ones tomorrow. However, these are the phone wallets that are considered the best in class today:

Options 1 and 2: Cash App and Strike

In my opinion, Cash App is the best all-in-one Bitcoin app. You can buy Bitcoin directly on Cash App. You can send Bitcoin on-chain and via the Layer 2 Lightning Network via Cash App. And you can spend Bitcoin by using their “Cash Card,” which offers Bitcoin rewards. The downside of Cash App is that it is custodial. Cash App also requires KYC (“know your customer”) info that is not ideal for privacy. Still, if you are already using Cash App to purchase Bitcoin, you may find it easiest to keep a small amount of BTC in Cash App for daily spending, while sending 99% of your Bitcoin to your cold storage hardware wallet.

Strike is another great, all-in-one, Bitcoin-only app. You can buy Bitcoin on Strike, send and receive Bitcoin on Strike, and spend Bitcoin via their Strike Credit Card. I used to recommend Strike over Cash App, as they do not charge any fees for Bitcoin purchases. However, Strike does charge a wider “spread” between the current Bitcoin price and the price at which they let you buy Bitcoin. For this reason, I’ve recently found that you get more satoshis (1 BTC = 100M satoshis) per dollar on Cash App than Strike. However, these are both excellent options, and their relative offerings may change over time.

Options 3 and 4: Breez Wallet and Phoenix Wallet

Breez and Phoenix are both self-custodial Bitcoin phone wallets. That means you are the only one who holds the keys to the Bitcoin that you keep on there. For this reason, it’s a good idea to keep a backup of your seed phrase for these phone wallets, just as you would with your hardware wallet. However, since you’re keeping a smaller amount of BTC on your phone wallet, it’s not as big of a deal if you lose access to those funds. But why risk losing any satoshis? It’s best to keep a backup of your 12 or 24 word seed phrase whenever possible, including for phone wallets.

Since Breez and Phoenix are self-custodial, they are considered more secure than the first centralized phone wallets we discussed (Cash App, and Strike). That’s because you can always restore your funds by entering your seed phrase in another wallet. In this way, you can’t be rug pulled as you can with a centralized wallet. However, self-custodial phone wallets are still “hot wallets,” meaning they are connected to the internet, so they are not as secure as “cold storage” hardware wallets, which are not connected to the internet. I’ve never heard of someone losing their funds while using a self-custodial Bitcoin phone wallet like Phoenix or Breez, but it could happen. For this reason, make sure that you only keep small amounts on any phone wallet, even if it is a self-custodial wallet, and always keep a seed phrase backup.

While the main upside of self-custodial phone wallets is security, the main downside is ease of use. Centralized phone wallets are easier to use because they are always active, always up and running, and seldom ever have connectivity issues. Plus, you can send and receive just 1 satoshi no problem. With self-custodial phone wallets like Phoenix and Breez, however, you do need to fund your wallet with at least ~10K satoshis in order to start using it. That’s because your phone will be operating as a Bitcoin Lightning Node, and needs liquidity in order to connect to other nodes to send and receive Bitcoin. You also have the potential issue of your node being down temporarily, rendering your wallet unable to send or receive funds until it is resolved. Still, using a self-custodial phone wallet is far easier than trying to send and receive dollars with final settlement using the traditional ACH banking system.

Personally, I prefer self-custodial phone wallets like Breez and Phoenix over custodial wallets like Cash App and Strike, because I like having the security assurances, having sole access to my funds, and also learning how to operate a node and maintain liquidity in a sovereign way. But, if you are just getting started on your Bitcoin journey, you may be better off starting with something super simple and easy, such as CashApp.

How to spend/sell your Bitcoin

Most people start buying Bitcoin with the goal of earning more dollars. They view it as an investment, similar to investing in Apple or Tesla stocks. If you have this mindset, the obvious approach is to “buy low, sell high.” Meaning, you buy Bitcoin when it is at a low point in it’s 4 year cycle between each halving, known as “epochs,” and sell Bitcoin when it is at a high point in its 4 year “epoch” halving cycle.

However, this is easier said than done. The reality is that the vast majority of newcomers aren’t psychologically ready to buy Bitcoin until it’s already near a new all-time-high price, and then they get scared when the price starts to drop, and thus end up selling it for a loss. A tale as old as time.

How do you avoid this same fate? One approach is to simply hold on to your Bitcoin for a long period of time before selling. Anyone who has ever bought Bitcoin and held on to it for at 5+ years has made a profit.

Better yet, don’t buy all your BTC at once and then sell it all at once. Instead, dollar cost average (DCA) when accumulating Bitcoin, hold on to it for as long as you can, and then when you must start to sell, dollar cost average on the way out too. This minimizes the risk that you will buy at the local top and sell at the local bottom.

Best of all, never sell Bitcoin. This sounds crazy if you are still in the traditional fiat mindset. But, once you realize that the world will eventually move on to a Bitcoin standard, why not just hold on to your Bitcoin until it is officially legal tender? Then, you won’t have to sell. You simply spend Bitcoin on a house, a car, an education, food, movies, whatever you like.

Pro Tip: Spend Bitcoin, don’t sell Bitcoin.

There is no reason to ever sell your Bitcoin, because you can already, in the year 2024, buy pretty much anything you need directly with BTC. You can buy a prepaid debit card with Bitcoin, and use that to spend. Or you can buy gift cards for Amazon, Uber, Instacart, Doordash, Hotels.com, and virtually anything else you would need directly with your BTC. The best tools for this are Bitrefill and The Bitcoin Company. Ask yourself, do you “sell” dollars? No. You spend them. The same is true for Bitcoin. Use it as money, not as an investment property, and you’ll be ahead of the game.

So you still want to sell Bitcoin? Here’s how.

However, you might be forced to sell on the road to hyperbitcoinization, as life has a habit of throwing curve balls in the form of unexpected expenses. So, if you must sell Bitcoin for dollars, here are two options…

Option 1: Sell Bitcoin via a centralized exchange

This is the option most people are familiar with. You buy on Cash App, wait until the price goes up, and sell on Cash App. Simple enough.

There are two major downsides to this approach:

  1. You aren’t getting as many dollars for your Bitcoin as you would if you sold peer-to-peer via a decentralized exchange, and

  2. You aren’t following privacy best practices, because centralized exchanges can be hacked, and your personal information could be leaked online as a result. You’re also trusting your government to be a good custodian of your personal information and transaction history, and yet history is full of breaches of this trust. Even if you trust today’s current government administration, imagine the worst politician coming to power, and then consider whether you are still okay including your personal information as part of the “honey pot” that every KYC-compliant centralized exchange becomes.

For these security and privacy reasons, I do not recommend ever selling your Bitcoin on a centralized exchange. But if you must, at least use a Bitcoin-only exchange, such as Cash App. And logistically, all you need to do is send Bitcoin from your phone or hardware wallet to you Cash App wallet, then click “sell;” and voila, you’ve sold some of your Bitcoin.

Option 2: Sell Bitcoin via a decentralized, peer-to-peer exchange

If you must sell your Bitcoin at any time, and for any reason, I’d recommend selling via a decentralized, peer-to-peer exchange such as RoboSats or Bisq. By selling via a peer-to-peer exchange, you are preserving your privacy in an important way, while also getting more dollars for each satoshi. This is known as the “KYC-free premium” and ranges from 2% to 18% above the current price of Bitcoin that you’ll see on centralized exchanges like Cash App and Coinbase. The only downside is that the process of selling BTC peer-to-peer is a bit less straightforward than selling via a centralized exchange would be.