Skip to content

Air Gap

What Is An Air Gap?

What Is An Air-Gapped Bitcoin Wallet?

In today’s digital landscape, where even refrigerators can connect to the internet, cybersecurity is of utmost importance. While connecting online offers convenience and accessibility to the world, unfortunately this also means that bad actors can enjoy those same luxuries.

Ever since hackers learned how to attack victims through online software, cybersecurity has become increasingly relevant to the lives of everyday people.

To avoid these online attacks, we developed “air gapping” technology, which enables offline devices to securely store digital data.

What Is An Air Gap?

First of all, what even is an “air gap”?

Essentially, an air gap refers to the practice of keeping a computer or device that holds your Bitcoin completely offline and separate from the internet-connected devices that you use for everyday use. This is an important security measure that can help protect your Bitcoin from hacks or cyberattacks. Think of it as keeping your valuable jewelry locked in a safe rather than out on display for anyone to access. By having an air gap between your Bitcoin and the internet, you can greatly reduce the risk of unauthorized access. So, if you are serious about securing your Bitcoin, an air gap is definitely something to consider!

This physical air gap thus serves as a protective barrier between your bitcoin and the internet.

How Air Gaps Work With Bitcoin

Much like your drinking water, you don’t want any pollutants infecting your Bitcoin stack.

Air gapping your bitcoin simply means storing it in a hardware wallet that is entirely isolated from the internet and other online communication channels, like WiFi, Bluetooth, near-field communication (NFC), and USB connection. By storing your bitcoin in an air-gapped wallet, you cut off your wallet from these online attack vectors that plague hot wallets or partially air-gapped hardware devices.

Unlike most hardware devices, which can be considered partially air-gapped, fully air-gapped Bitcoin wallets go the extra mile to secure your holdings.

Rather than traditional, more convenient communication channels, air-gapped wallets typically use QR codes or microSD cards to store transaction data.

Setting Up Your Air-Gapped Bitcoin Wallet

To set up an air-gapped Bitcoin wallet, it all starts with choosing the right device. If you’re wanting complete isolation from online connection, you have a few different options. Besides a standard hardware wallet, you can use a dedicated computer, tablet, or smartphone as a device for Bitcoin storage.

Some prefer new, untampered devices, but even years old computers with wiped memory — bought with cash — make for a great air-gapped wallet. Ideally, the device you choose to use is either brand new or has never been connected to the internet before, which ensures that it’s not carrying any existing malware. You can also factory reset an old device to start with a clean slate.

Once you’ve chosen your device, you’ll need to install the necessary operating system and wallet software. A standard air-gapped wallet typically utilizes a software application that supports Partially Signed Bitcoin Transactions (PSBTs), such as desktop wallets like Electrum or Sparrow Wallet, or mobile wallet options like Nunchuk or BlueWallet.

You can check desktop programs like Electrum or Sparrow to ensure your download is authentic and contains no malware by verifying with third party programs like GPG Suite.

Now it’s time to create your keys. In the air-gapped environment you’ve created, you can use your new wallet to generate a pair of public and private keys. Like all other Bitcoin wallets, be extremely careful and mindful of storing your seed phrase in a safe location.

Transacting With An Air-Gapped Wallet

To send bitcoin with an air-gapped wallet:

  1. Generate and export your hardware device’s xpub to the wallet software of your choice.
  2. From your wallet software, draft a PSBT that’s embedded into a QR code, or store it as a microSD-readable file.
  3. Since your online device doesn’t store your private key, you need to use the QR code or microSD card to transfer the PSBT to your air-gapped device for signing.
  4. Use your air-gapped wallet, which holds the private key, to sign the transaction, and display it to the online device with the QR or microSD for it to broadcast to the Bitcoin network.

Receiving bitcoin is straightforward. You can freely share your air-gapped wallet’s public address to receive payments, just like any other wallet.

The Importance Of Air Gapping

At its core, air gapping enables true sovereignty.

It offers a tangible solution to the intangible threats of the digital world. By adding this physical security dimension to your wallet, air gapping ensures your bitcoin is truly “unplugged” and more protected from potential online attacks.

Instead of just hiding the key to open the digital vault door to your Bitcoin stash, air gapping removes that door entirely so there’s not even a lock to pick.

While it’s not foolproof protection, the physical buffer between thieves and your Bitcoin certainly creates more friction, and adds another layer of complexity to maximize the security of your bitcoin.

Pros And Cons Of Air-Gapped Bitcoin Wallets

Just because an air-gapped Bitcoin wallet may add an additional level of security, that doesn’t mean it’s the best choice for everyone.

If you’re considering setting up your own air-gapped wallet, you’ll enjoy having:

  • Sovereignty over funds: Air gapping frees you from any sort of online counterparty risk, giving you full autonomy over your money.
  • Secure long-term storage: Since air-gapped wallets live untampered by software updates and changes, air gapping is ideal for a “set it and forget it” approach to your long-term Bitcoin savings.
  • Flexibility: You can set up an air-gapped wallet on all kinds of different devices, whether it be a computer, mobile phone, tablet, or something else. As long as your device can download the necessary software, you can store your bitcoin just about anywhere you want to.

On the other hand, the benefits of air gapping may not be best for your own situation. Despite its advantages, air gapping also introduces:

  • Complexity: Especially for someone new to Bitcoin, air gapping could be a daunting technical task. It requires careful execution and a certain level of technical knowledge that newcomers likely don’t have.
  • Friction: Since your bitcoin has no connection online, broadcasting transactions takes a bit more time and effort. And beyond transactions, the goal of air gapping your bitcoin is to make it less accessible, so naturally it becomes more burdensome to manage your stack.
  • Time: Deciding to air gap your Bitcoin wallet means that it will take more time to send transactions, as it requires downloading PSBTs, uploading them to the air gapped device, signing them, and sending the file back for software to broadcast. While not ideal for your average coffee shop purchase, it’s great for protection.

The Best Air-Gapped Bitcoin Wallets On The Market

Some of the best hardware devices designed with air gapping technology include:

ColdCard

ColdCard is one of the best-selling air-gapped Bitcoin wallets out there. Along with its numerous other security benefits, ColdCard comes with a microSD slot so you can interact with computer software without ever having to plug it in. Check out ColdCard’s wallet setup guide to learn how.

Blockstream Jade

The Blockstream Jade is another heavy hitter on the market. Thanks to its built-in camera, this hardware device enables air gapping with its QR scanner rather than microSD. You can embed your xpub into a QR for wallet software to read and manage your device while keeping your Jade entirely disconnected

SeedSigner

SeedSigner truly removes any third-party interference by allowing you to build your own Bitcoin wallet from scratch. By providing you the materials and DIY guides to build it yourself, you can set up your wallet with greater flexibility to create an air-gapped wallet that works for you.

Best Security Practices For Air-Gapped Bitcoin Wallets

In addition to air gapping your Bitcoin wallet, here are seven key security tips to keep in mind:

  1. Always use a clean device for air gapping: You undermine the value of air gapping by setting it up on a hardware device that’s been previously connected to the internet or other online communication channels.
  2. Buy non-KYC sats: To avoid leaving a trail on the blockchain leading to proof of the existence of your air-gapped wallet, consider buying bitcoin anonymously to truly stay off the grid.
  3. Avoid key management in public spaces: As a general rule of thumb, it’s probably not a great idea to set up your air-gapped wallet or interact with your hardware device at all in a Starbucks. Be mindful of not only what devices you’re setting up your air gap with, but also where you’re working with it.
  4. Ensure that your backups are safe: Be sure to backup your private keys and store them somewhere safe. Whether you have the confidence to memorize your seed phrase or write it down securely, just make sure that it’s not stored on something that’s not durable (paper) or vulnerable.
  5. Regularly update (with caution): Periodically, hardware and software wallets may need updates for performance or security enhancements. Before updating, ensure that the update is legitimate and from the original vendor.
  6. Protect your privacy with burner wallets: If you have an old hardware device lying around, consider setting it up as a burner wallet to misdirect potential attackers. Of course, buying a new wallet dedicated to serving that purpose also works.
  7. Test your recovery process: After all is said and done, test out the recovery process for your air-gapped Bitcoin wallet to make sure it’s all working properly. This extra verification brings the peace of mind needed to ensure that your funds are accessible no matter what happens to your device.

Final Thoughts

Air gapping your Bitcoin wallet is an important but crucial security measure to take if you’re looking for maximum security of your bitcoin. It further reduces potential attack vectors and empowers you to take responsibility over your own funds.

As we grow more reliant on online services for everyday interaction, air gapping serves as just another layer of protection against the myriad of novel cyberattacks emerging today.

Beyond an air-gapped setup, consider what other security measures you can take to protect your bitcoin.

Set up a multi-sig configuration to eliminate potential single points of failure. Run your own Bitcoin node to avoid interacting with public servers.

If you take Bitcoin security seriously, there’s plenty you can do beyond air gapping to safeguard your assets from the outside and online world.

FAQs About Air-Gapped Bitcoin Wallets

Q: How do I recover my air-gapped wallet?
A: If you’ve lost access to your air-gapped wallet, you can always restore access by importing your seed phrase into a new device, so be sure to never lose your seed phrase. While you’ll have to set up your air-gapped configuration again on the new device, it’s necessary to keep your bitcoin accessible and safely isolated from online connection.

Q: How often should I check my air-gapped wallet?
A: It’s recommended that you check in with your security system periodically to make sure that everything is still working properly and that no recent hardware or software updates have interfered with your air gap setup. How often you check is up to you, however, every six months or so strikes a good balance of staying on top of things while not wasting too much time.

Q: Should I air gap my Bitcoin wallet as a beginner?
A: Air gapping your hardware device does involve more technical knowledge, however, plenty of online resources exist to assist you in air gapping your Bitcoin wallet. No matter your experience level, air gapping is a great idea for those wanting to prioritize security over convenience. If you don’t transact with Bitcoin often, it’s well worth the additional effort to air gap your hardware device.

Q: When should I not air gap my Bitcoin wallet?
A: If you’re actively transacting with Bitcoin on a regular basis, air gapping your primary spending device could make your life more difficult rather than easy. To achieve the optimal balance, air gap your long-term holdings separately, while keeping a smaller balance of bitcoin loaded into a hot wallet to make spending easier. While less secure, hot wallets are a great option for keeping small amounts of bitcoin liquid and accessible at a moment’s notice – like cash in your fiat wallet.