Why a Bitcoin Node
"Below, you'll see why running your own Bitcoin node is essential for self-custody."
Privacy and Security Risks​
When your wallet checks your balance, it asks a random public Bitcoin node for the balance of your addresses. Even addresses you haven’t used yet get queried. Some of these nodes may be run by surveillance companies.
By connecting to a random node, you’re revealing your IP address (which can identify you), the fact that you have a Bitcoin wallet, and all your Bitcoin addresses and their balances, both current and future. This exposes you to potential privacy risks, especially if you're unknowingly sharing this information with surveillance companies.
Risk of Counterfeit Bitcoin​
When you make a transaction, a technically skilled buyer might try to manipulate which node your wallet connects to. They could send you counterfeit Bitcoin, and your wallet might mistakenly think it’s real because the malicious node sent false data.
While this is unlikely, it’s still a risk. If this happens, your wallet could record a fake transaction. Later, when you connect to a legitimate Bitcoin node, your wallet will show that you never received the Bitcoin you thought you did. Your balance will be lower than expected because the fake transaction was never recorded on the real blockchain.
You can avoid this by connecting your wallet to a trusted node—ideally, your own. The Bitcoin mantra is "Don’t trust, verify."
Not running your own node is like accepting gold as payment, but asking a random person to check the gold with an XRF analyzer. You don’t know if they’re being honest or working in favor of the buyer.
You might ask, "Aren’t I trusting Bitcoin Core when I download it?" Yes, but there are ways to verify the software. And yes, you are trusting the developers to some degree, but the idea is to minimize trust as much as possible. Hundreds of developers review the code, so the risk of a hidden flaw is small, but not nonexistent. It’s like trusting that the XRF analyzer works without needing to build one yourself from scratch.
Protection Against Forks​
If a group of people tries to change the rules of Bitcoin—like increasing the block size—you can choose not to upgrade your node. If enough people agree with you, you’ll form a separate group that keeps using the original Bitcoin protocol. This is how Bitcoin Cash was created in 2017.
If you don’t run your own node, your wallet might connect to a Bitcoin Cash node instead of a Bitcoin node. You could end up receiving Bitcoin Cash, not Bitcoin, which doesn’t follow the same monetary policy. By running your own node, you can make sure you’re always connected to the version of Bitcoin you want.
Supporting the Network​
Running your own node 24/7 helps the Bitcoin network. The more nodes there are, the faster transactions can propagate, and the harder it becomes to shut down Bitcoin. If someone wanted to destroy Bitcoin, they’d have to destroy every copy of the blockchain.
Empowering Others​
Learning to run your own node means you can help others run theirs too. In the future, it might be difficult for everyone to run a node, so trusted technical people may become key in helping others connect their wallets to secure, private nodes. This is a small but important trade-off to avoid relying on random, public Bitcoin nodes.
The Cool Factor​
Finally, running your own node is just plain cool! It gives you a deeper appreciation of Bitcoin’s power and decentralization. Plus, once you experience it, you might find yourself even more committed to the network and maybe even buy more Bitcoin.