With the advent of Bitcoin Ordinals, the Bitcoin ecosystem has evolved to give individual satoshis (SATs) a unique identity. Rodarmor's protocol has shifted the perception of Bitcoin from being merely fungible to something more unique. In this article, we guide you on how to navigate this new world without accidentally losing your prized inscriptions or rare sats.
The world of Bitcoin Ordinals
In the past, every Bitcoin was interchangeable, but that's no longer the case. With Ordinals, every satoshi (or "sat") carries a unique historical significance, and some have become highly coveted as rare sats in the Ordinals ecosystem.
Choosing the right wallet
If you're dealing with Bitcoin Ordinals, selecting the right wallet is paramount. The wallet should differentiate between the Ordinals address and regular payment address for transactions. This distinction ensures that decentralised applications built on Bitcoin can protect your rare sats and inscriptions.
Recommended wallets
Below you can see examples of wallets which differentiate between the payment and Ordinals Bitcoin addresses.
Xverse wallet
Hiro (Leather) wallet:
Both Xverse and Hiro (Leather) wallets can be connected to Magic Eden, offering seamless integration and added protection.
Transferring rare sats to your Ordinals wallet
Why you should transfer
While your rare sats are in a regular wallet, there's a risk of accidentally spending them on typical Bitcoin transactions. Transferring them to a designated Ordinals wallet safeguards against such unintended expenses. Both the Xverse and Hiro (Leather) wallets are optimized to support Ordinals, making them an excellent choice. It's highly recommended to obtain one of these wallets and use the 'Safe Send' feature to transfer any rare sats you have. Moreover, once your rare sats are in an Ordinals wallet, you can conveniently list them for sale without incurring any fees.
Steps to transfer
Navigate to the ‘Rare Sats’ tab on your Magic Eden profile.
View the rare sats associated with both your Ordinals wallet and Payments wallet. If you discover rare sats in your payments wallet, transfer them immediately to your Ordinals Wallet.
To initiate the transfer, click the 'Transfer' button. A modal then ask you to input your Bitcoin address to transfer to.
Finding your Ordinals address
To find your Ordinals wallet address, open up your profile located at the top right-hand corner of the screen. You will see three wallet options; click the 'copy' button corresponding to the Ordinals wallet. This will copy your Ordinals wallet address, which you can then input into the transfer modal.
After the transaction has been confirmed, revisit your profile and verify the rare sats under the "Ordinals Wallet" section.
Important note:
Avoid transferring rare sats back to your payments wallet. Doing so increases the risk of unintentionally spending the sats on Bitcoin transactions.
Unisat and OKX wallet
For wallets, like Unisat or OKX wallet, that do not distinguish between the payments and Ordinals wallets, the transfer function operates slightly differently. However, in principle, it mirrors the transfer option mentioned above.
You will notice the 'Transfer' button. When clicked, it will open the same modal, you'll need to input an address manually. Ensure you send the rare sats to an Ordinals wallet address. You can obtain one using either the Hiro (Leather) or Xverse wallet.
The benefits of using Magic Eden with PSBTs
Magic Eden champions secure transactions in the Bitcoin ecosystem through its adept use of Partially Signed Bitcoin Transactions (PSBTs). This ensures trades are both decentralized and shielded from potential errors like unintended miner fees. The platform's innovative "dummy UTXOs" in the buyer's wallet further elevate transaction security. For a detailed exploration of PSBT security on Magic Eden, read the full article here.
How Magic Eden protects your rare sats
When working with rare sats, Magic Eden is a valuable platform to help you manage them. While the platform takes multiple measures to differentiate between the Ordinals Wallet and the Payments wallet on the profile page, it's crucial for users to understand the inherent risks:
Ordinals wallet: Rare sats stored in your Ordinals wallet are generally safeguarded from accidental spending on standard transactions. This is the recommended location for storing rare sats to minimize risks.
Payments wallet: If rare sats are left in the Payments wallet and you're interacting with other Ordinals-related activities, there's a potential risk of accidental spending. Magic Eden doesn't guarantee full protection for rare sats in the Payments wallet during such interactions.
Magic Eden's design simplifies the process of securely sending rare sats to your Ordinals wallet. It's always advised to be vigilant and proactive in ensuring your sats are in the right wallets.
Palindrome spending update
In response to user feedback and to streamline the platform experience, Magic Eden has made an adjustment regarding Palindrome sats. Previously, there was a restriction on spending Palindrome sats for payments. However, recognizing that many users don't place significant value on Palindrome sats, and considering their relatively low market worth, we have decided to remove this spending restriction.
The unique nature of rare sats and inscriptions within the Bitcoin Ordinals ecosystem mandates added vigilance. By choosing a compatible wallet and following best practices for transferring and storing your sats, you ensure their safety while transacting on the Bitcoin Network.
Stay informed, stay safe!