How to Protect Your Bitcoin: A Practical Guide to Physical Security

In the wake of the recent Coinbase hack, we’ve received an uptick in inbound calls from customers asking a sobering question: How do I keep myself safe if someone comes looking for my Bitcoin?

At AnchorWatch, we build insured Bitcoin custody solutions designed to protect both your safety and your funds against loss. But even with the strongest tools in place, you are still part of your own security model. This guide outlines clear, real-world steps to make yourself a harder target.

AnchorWatch insurance policies protect you against a successful theft that takes place while under physical duress, but the best outcome is where you are not targeted by thieves in the first place.

TLDR: When it comes to protecting your Bitcoin, you're the first line of defense. AnchorWatch is the last.

The $5 Wrench Attack Is Real. Prepare Accordingly.

It started as a meme. A sophisticated hack isn’t necessary when threatening to attack a victim or a victim’s family with a $5 wrench (or a gun) could get the job done.

The meme isn’t so funny when the scenario takes place. Thieves will look for the weakest link when planning a heist, and that’s often the human holding the bitcoin private keys. That’s why your physical security plan matters.

The goal isn’t to live in fear. It’s to make your Bitcoin difficult to move under duress, which disincentivizes criminals from targeting you. When the path is long and complicated, the risk of arrest for the attacker goes up. A strong physical security protocol reduces the risk of being targeted in the first place.

Remain Private: Your First Line of Defense

The strongest vault setup in the world can’t protect you if the wrong person knows you have Bitcoin in the first place.

• Don’t talk about your bitcoin or crypto holdings publicly.
• Avoid posting travel plans or real-time location updates.
• Use encrypted messaging when discussing sensitive information.
• Remove any visual signals like bumper stickers, conference badges, or novelty hardware wallets on your desk.

You don’t need to disappear. You just need to blend in.

Make Your Home Hard to Hit

A few well-placed upgrades can make a big difference in how your home is perceived. Reinforced doors, quality locks, and shatter-resistant windows add real protection, while motion-activated lights and visible security cameras suggest the home is actively watched. Physical features like fences or dense shrubs near windows can subtly discourage access without feeling aggressive. 

These kinds of improvements don’t just increase safety. They also signal that your home is prepared, which makes it less attractive to anyone looking for an easy opportunity.

Redundancy Beats Bravery

A good multisig setup with geographically separated private keys makes it impossible for you to immediately move funds, even under threat.

An AnchorWatch vault goes farther: AnchorWatch is also required to sign transactions before your Bitcoin can move. It’s a shield. You can truthfully say, “I can’t move the Bitcoin right now, even if I wanted to.” 

That’s peace of mind you can’t get from a hardware wallet sitting in your sock drawer.

Stay Sharp. Stay Private. Stay Insured.

Security isn’t a one-time setup. It’s a mindset. When you combine strong operational habits with institutional-grade custody and insurance, you don’t just hold Bitcoin. You defend it.

If you’re looking to improve the resiliency of your Bitcoin storage or are helping a client do the same, get in touch with our team at AnchorWatch. We’ll walk you through the next step.