Taking custody of your bitcoin is how bitcoin is designed to be used, if you’re not using a wallet where you have your keys then you don’t own any bitcoin. All you own is a promise of a third party and in times like these promises mean very little. The excuse to not take custody of assets makes sense for monetary assets like fiat and precious metals but since bitcoin is completely digital the barrier and cost to custody is near zero.
To take control of your bitcoin, you’ll find several free and open and closed source software that provides you free access to broadcast to the chain. There is no right or wrong way to interact with the bitcoin network, but there are specific security measures you should be aware of before using any open source or closed source software wallet.
Be warned, there are fake wallet providers out there, so please make sure you’re downloading a software wallet from a reputable source. If not, there will be very little you can do, should your funds be nicked.
Taking custody of bitcoin is far easier when compared to years gone by, and 2022 offers bitcoin users a buffet of wallet options; some are simplified to keep the experience streamlined others can give you access to a wide range of features. It depends on the level of control and expertise you have managing wallets.
One of the more popular or rather marketed wallets is the Jaxx Wallet, which was founded by Decentral in October 2016 and hails from Canada. The ability to manage assets across chains has seen many users opt for these wallets to it, especially speculators and those who want to manage stablecoin balances.
Note: Using Jaxx Wallet can be a bitcoin-only experience if you choose to use it this way, but the UI is very much centred around multiple asset management. You will be venturing into shitcoin and highly speculative assets as it overlaps with some of the services the wallet provides, so be aware that not all bitcoin (such as Bitcoin Cash (BCH)) on Jaxx wallet is backed by the security of the bitcoin base chain.
How to set up a Jaxx wallet?
Search for Jaxx Wallet or Jaxx Liberty in your preffered app store or visit the app’s webpage here. Select the device option you prefer from the download list. Jaxx Wallet does have a desktop app, mobile app and even a browser extension for chromium-based browsers like Google Chome and Brave Browser.
What devices support Jaxx Wallet?
Jaxx wallet is available for both desktop and mobile devices and you can link both your desktop and mobile wallet to manage the same wallet from multiple devices.
Jaxx Wallet Desktop supports:
- Windows
- macOS
- Linus
Jaxx Wallet Mobile supports:
- iOS
- Android
- Chrome Web Extension
How to set up Jaxx Wallet?
Install the Jaxx Wallet software on your preferred desktop or mobile device and boot up the app, you will be asked to either create a wallet or restore a wallet. If you already have a bitcoin wallet and want to migrate over to Jaxx Wallet, then select the restore option and follow the prompts to add your private key.
If not, you will need to start a wallet creation process from scratch with a new seed phrase/private key.
Remember: Jaxx Wallet is a hot wallet and your keys are stored on the device, so be sure not to store too many sats in a software wallet and rather move to cold storage if you’re feeling uncomfortable. A hot wallet should be for day to day transactions and not hold a large amount of funds as the wallet can be compromised through insecure internet connections or other apps having access to your device.
Backing up your wallet with a Jaxx wallet?
Once you’ve agreed to the wallet creation process, you’ll be given a set of private keys which you need to document. Write down the words “Jaxx Wallet” shows to you on a piece of paper and click “Next” until you’ve written all 12 words down.
Note: Please, do not keep a digital copy of these words on your computer as anyone access to these 12 words can access your bitcoin; it is much safer to keep these offline on paper and preferably in a safe. If you’re looking for ideas on how to store your seed phrase, check out our guide here.
After you’ve written down the 12 words on a piece of paper you click “Next” on the last page. Now it’s time to verify your wallet; you will be asked for a few random words out of your 12-word selection. Please make sure once again that you wrote down all 12 words correctly in the order it was provided, or you won’t be able to verify your wallet.
Now that you verified the backup phrase, you can use it to recover your bitcoin in case of emergency.
Adding an access pin with your Jaxx wallet
Now that you’ve created and verified the wallet, you want to restrict access to the software by creating a pin. It is recommended that you configure a passcode. The passcode is used when you open the app to access the wallet and as a confirmation, once you want to send a payment.
The access pin will not be set up automatically you will need to head over to settings and then select Setup Security PIN and enable app lock. You can then set your pin and when logging in or signing transactions have the pin be another line of defence.
How to receive bitcoin with my Jaxx wallet?
Now that you’ve set up your bitcoin wallet, it’s time to receive funds. Select the wallet type you need, and select “Receive”. After you click “Receive”, you will be shown the first address in your wallet. The wallet will provide you with a string of text or a QR code, and you can use either method.
You may share this freely with the world or use it on an exchange as this is kind of like your bank account number.
BTC support on Jaxx wallet
Once you’ve set up your wallet, you’ll need to enable the assets you want to manage using the wallet. You can enable or disable wallets by clicking the options icon in the top right-hand corner and toggling the assets you want to manage. This is where the forewarning regarding shitcoining comes into play.
Jaxx Wallet offers native bitcoin support, but it also supports a range of stable coin options on Ethereum, namely:
- TrueUSD (TUSD) – ERC-20 (Etherem based)
- USD Coin (USDC) – ERC-20 (Etherem based)
- Gemini Dollar (GUSD) – ERC-20 (Etherem based)
- USDK (USDK) – ERC-20 (Etherem based)
- Tether (USDT) – ERC-20 (Etherem based)
- Pax Dollar (USDP) – ERC-20 (Etherem based)
- Binance USD (BUSD) – ERC-20 (Etherem based)
Swapping assets in Jaxx wallet
Jaxx Wallet has in-app support for swapping assets into bitcoin, such as wrapped bitcoin or stable coins. If you receive funds such as stablecoin, you can swap it directly in the wallet to a BTC native address.
Where I think Jaxx Wallet excels is if you are someone who uses or receives payment in stable coins based on Ethereum, as it has support for various stable coins on different chains. You can then do swaps in the app or create an exchange sale through the app.
Swaps and order book transactions are processed through an exchange it can include maker or taker fees and will include chain fees depending on the asset you are swapping. The swap service may be handy but there is a cost involved so be sure to review the cost of on-chain transfers before making your decision.
Note: Stablecoins are chain agnostic and can live on different chains, Jaxx only supports Ethereum, so if you are going to send stablecoins to your wallet, make sure they live on the ETH network and not other chains. If your stable coin balance is not on ETH, you will need to do a swap to another chain before moving it to your Jaxx wallet.
Buying Bitcoin directly in Jaxx Wallet
Jaxx Wallet also allows users to purchase Bitcoin directly inside the wallet, all you need to do is select the buy option in your wallet and you will be redirected to a screen to set the amount you want to buy.
All fiat to bitcoin transactions are conducted via Simplex, you can place your purchase in USD or several other fiat currencies.
Select the option you like and you will be transferred to their website via the in-app browser where you will complete the process. Once the purchase is complete you will receive on-chain bitcoin to your wallet as per any normal bitcoin transaction, you will need to wait for at least 1 confirmation to see the funds reflect in your wallet.
Note: These fiat to Bitcoin service providers do require KYC to complete a purchase
When to use a Jaxx wallet?
I would not recommend Jaxx Wallet for total beginners due to the level of complexity involved in managing multiple assets and the UI of the app can be a little clunky at times. I do appreciate some of the features like the in-app block explorer and the news feed which makes for a nice add on and a reason to open the app other than checking your funds.
The Jaxx wallet is ideal for those situations where you do not want to keep your funds on an exchange but doesn’t want to use a cold storage solution because you want instant access to your funds.
The Jaxx wallet allows you flexibility since you can manage multiple assets or stable coins and can access swaps between them pretty easily. If you are the type to deal in stable coins this wallet may be the answer to your needs.
You can always store your bitcoin on the base chain by swapping any assets you hold for native bitcoin once you’re ready to move over.
It’s important to note that the Jaxx wallet is still a hot wallet, and the keys are hot on the device you’re using. Adding your Jaxx wallet on multiple devices also means more devices now hold your keys which creates attack vectors for your keys to be compromised.
Never keep large amounts in any hot wallet, and always use this as a stop-gap towards cold storage.
