Parman’s ZeroTrust Storage: Level-2 Exercise

Link back to ZeroTrust Overview

1. Download BlueWallet on your phone and create a new Bitcoin Wallet. Write down the seed. Keep it secure.

2. Send 50,000 sats from your exchange to BlueWallet

3. Send 25,000 sats back to the exchange

4. Download Electrum Desktop Wallet (or Sparrow Bitcoin Wallet) on your computer.

5. Restore BlueWallet seed into Electrum, and make sure the 25,000 sats are there. (It’s the same wallet, after all). A lightbulb should light up in your head.

6. Create a new wallet with BlueWallet and write down the seed.

7. Send the remaining 15,000 sats from Electrum to the 2nd BlueWallet. You should see 10,000 sats sent to a new address in Electrum. This is a change address and is highlighted yellow. Repeat and send the change 10,000 sats to Blue Wallet in a second transaction. Your Electrum Wallet will be empty, and BlueWallet will hold the 25,000 sats in two different coins (two “UTXOs“). It wil be almost 25,000 sats because some sats have been paid to miners.

8. Download the Wallet of Satoshi (custodial Bitcoin and Lightning Wallet).

9. Back up WoS account with email (not seed words).

10. Send the BlueWallet balance to WoS on-chain (note the 0.3% fee, this is not a miner fee but WoS’s business model)

11. Create a lightning wallet on BlueWallet. (No need for a new seed. Back up URI text and save it to a file. It’s for small amounts so don’t stress about security.)

12. Create a receiving invoice with BlueWallet lightning for 10,000 sats.

13. Send the payment using WoS by scanning the QR code. If you use the two wallets on the same phone, copy and paste the text version of the invoice instead.

14. Create an invoice with WoS to reclaim the BlueWallet balance and send it back.

15. Leave the sats in WoS for demonstrations with newcoiner friends.

Link back to ZeroTrust Overview

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