Duress Wallet

A duress wallet is a wallet that holds a small amount of bitcoins that you are willing to lose in the worst case. This wallet can be on the same device, accessed via a different PIN.

The simplest approach is to have multiple cold wallets, with the wallet holding the most Bitcoin stored safely outside your home, such as in a safe deposit box. This way, you have a wallet with a smaller amount of Bitcoin, which would be less painful to lose if you had to hand it over. However, if you only have one wallet, make sure it allows you to set up a duress wallet. This usually involves creating a separate PIN to access different wallets on the same device. Check the manufacturer's guide for more details.

If you decide to create a duress wallet with a second PIN, consider how you would enter the duress wallet PIN when under threat. In a high-stress situation, it’s easy to make a mistake and accidentally reveal all your Bitcoin or raise the robber's suspicion by entering the duress PIN. If the robber is savvy enough, they might recognize it as a decoy and press further. The worst-case scenario is losing your life over it—Bitcoin can be replaced over time, but your life cannot. Therefore, it might be wiser to hand over the wallet and save your life. A "lower risk" option is to have a separate wallet that you are "OK" with handing over in the worst-case scenario. Then, keep the rest of your Bitcoin in different wallets securely locked away in safe deposit boxes outside your property in dedicated vaults.

You might feel a bit worried now, and that’s a good thing because being aware of the danger can help you prepare and strengthen your Bitcoin protection. That said, the likelihood of needing a duress wallet for a physical attack is relatively low compared to an online threat, as long as you don’t dox yourself, especially in public places, and avoid making yourself a target. However, this does depend on where you are in the world. Doxing is when you publicly display your Bitcoin holdings in a way that can be linked to you in real life. The more exchanges and services you use, the higher the chance your details could fall into the wrong hands due to a hack and your information getting leaked. Fortunately, there are security tips to help you increase your safety and avoid leaving a trail of breadcrumbs both online and offline. The goal is to make it as difficult as possible for any attacker to access your Bitcoin. This could slow them down enough to get caught, especially if they have to take you to different vaults, particularly if those vaults are only open during business hours. Added complexity in accessing your Bitcoin if the wallets are in different locations also helps. By doing these things, you greatly increase the difficulty for attackers to get your Bitcoin, which could ultimately save them.

A Duress wallet is an additional security measure that can protect you in a critical situation. However, it's important to remember that your life is always more valuable than your digital assets. By taking precautions and planning your actions, you can minimize risks and ensure the safety of your funds. Hopefully, you will take this opportunity to assess your current Bitcoin security situation and keep yourself safe.