Bitcoin wallet: types and methods of creation

Wallet for bitcoin (or bitcoin wallet) is a special program for storing private keys, which allows you to store and use at your own discretion the coins accumulated in the wallet. More often, you can keep different types of cryptocurrencies in wallets, which expands the scope of its operation. There are several types of wallets, each of which differs in functionality, usage and access. How to choose and open a bitcoin wallet that meets your goals? Let’s figure it out together.

Wallet features for bitcoin

Each cryptocurrency wallet has keys and codes that allow them to manage or regain control. These include:

• public key. This is the wallet address, which consists of a certain set of characters. It can be seen by every user interacting with the wallet in some way (for example, when sending funds to this address).
• private key. It is a cryptographic number generation (can be presented in different formats) and is not available for viewing by other users. It is used during any transaction to confirm it.
• Seed phrase. This is an automatically generated set of English words that must be entered when restoring access to crypto assets using the current or another crypto wallet.

Bitcoin wallet: types

To use cryptocurrency without restrictions, you must select the appropriate device or program. You need to understand that a wallet for storing: bitcoin, ethereum, ripple and other currencies most often needs only one. Next, we will describe the existing types of crypto wallets.

Desktop

A desktop, or software, wallet is software downloaded to a computer that stores all data isolated on a hard drive. This allows you to avoid leaks and hacks by scammers (although not all of them), since the user is responsible for security and can both increase and decrease it.

Programs for installing a wallet are “thick” and “thin”. Their fundamental difference is that in the first case, the entire blockchain chain is loaded, in the second, only the necessary blocks are loaded. To perform a full download, your computer must have enough free space, as the program is heavy. But in this case, complete security will be ensured. You also need to take into account the installed operating system – each wallet is designed for its own OS. “Thin” wallets load blocks at the moment, referring to third-party applications. Their work is faster, but security is reduced.

It should be noted that it is impossible to use such programs outside the home. For such cases, there are many other bitcoin wallets.

Mobile

These wallets work on a smartphone and are presented as an application that can be downloaded on Android or iOS. They can be used for transfers using special QR codes when the user needs it. Mobile wallets do not take up much memory, because only those blocks that are needed at a given moment are loaded for their work. Their authenticity is verified using third-party resources.

Mobile wallets are hot – they require an internet connection to work. However, there is a risk of data leakage.

Hardware

A hardware BTC wallet is a small device (usually in the form of a flash drive) that stores cryptocurrency savings. Such a tool is considered one of the most reliable, since all keys are stored on it offline without access to the Internet. To access the wallet directly, you need to enter a PIN code. To restore access, they use a seed phrase – it is generated during the first setup. All passwords and keys should be kept offline to minimize risks. For a step-by-step process of using a hardware device, read our article.

On a hardware wallet, you can store a large amount of savings and not worry about their safety. It is completely owned by the user, and no one else can use it. However, it should be remembered that the theft / loss / breakdown of the device can lead to the loss of savings if the owner did not save the seed phrase.

Web wallet

It is a virtual cell with a unique digital identifier for storing cryptocurrency. The user gets access to it anywhere in the world with the Internet. Depositing or transferring money is almost instantaneous. Also, no payment is required to use it, only commissions are charged for each transaction (each wallet has its own fee level).

The security of such wallets is relative, so it is not recommended to store all your digital money on them. To increase the level of protection, you should use all the possibilities: two-factor authentication, SMS confirmation, multi-signatures, etc.

Paper

There are also paper crypto wallets, which are relatively reliable in terms of storing currency, but they are inconvenient to use. They are a paper medium with information on access to digital assets recorded on it. At the same time, the risk of losing the private key and seed phrase data printed on a piece of paper is quite high. To protect your savings, you should store your data in a safe place. It should also be remembered that the paper carrier must be protected from moisture, fire and other external influences. Also on the market are stainless steel mnemonic tablets for storing seed phrases: they are practically not subject to physical influences (temperature, humidity, etc.).

How to create a bitcoin wallet yourself?

Many users are interested in how to open an account with bitcoins safely and securely. The implementation path will depend on the chosen method of storing digital gold coins. Next, we list the most popular bitcoin wallets in Russian and how to register with them. The sample was compiled based on user search queries.

bitcoin core

It is considered the most popular desktop wallet, as it is the original client of the BTC coin. However, it should be understood that it needs to be downloaded to a computer, and it takes up a lot of gigabytes. How to create a bitcoin wallet using this client step by step:

• Monitor your computer and make sure you have enough disk space. Also check the channel width.
• Download the program package to your device, after selecting the one you need based on the OS: for Windows, Linux, macOS.
• Run the program installer.

The main disadvantage of this wallet is its heavy weight, so get ready for a long download time. After that, time will also be spent synchronizing the client with the blockchain network. The process can take three to four days, since during this time the entire blockchain of the Bitcoin network will be downloaded. You can speed up the process by disabling other complex programs at this moment – graphic or video.

After installing the program and creating a wallet for the bitcoin cryptocurrency, you need to perform a series of actions.

• Find the button to create a wallet.
• Enter the address where it will be located.
• Specify the name of the wallet.
• Think of and enter a strong password. To do this, go to the “File” tab and go to “Add Password”.
• Come up with a login key and copy it several times to save.

It is recommended that you create a backup copy of your bitcoin (BTC) wallet in order to restore it in case of damage. If this still happens, replace the file with a backup. To do this, you need to open the latter, synchronize in the data directory where wallet.dat is stored, and replace the file. Nothing else can be touched. After that, you can start the program again.

Blockchain Wallet

This is the most popular online bitcoin wallet in Russian. It is supported in more than two hundred countries. Creating an online bitcoin wallet on this resource is quite simple. After going to the official site, you need to follow these steps:

• In the upper right corner, find the “Register” button and click on it.
• Enter your email address and create a password. The latter must be securely fixed, since its restoration is impossible.
• Confirm your email using the link that will be sent. From the letter you should write out the ID and delete it.
• Log in to your account on the site using your email or ID.

After creating a bitcoin wallet, it is possible to personalize your personal account and send/receive coins.

Trezor

This wallet is a cold hardware wallet. This means the highest possible level of reliability. Creating a cold bitcoin wallet and using it primarily involves acquiring a device in physical form. Trezor offers several models from which the user can choose the one that suits him. Only after that should the registration of a bitcoin wallet. The client needs to do the following:

• Go to the official website trezor.io.
• Open the menu and select the Wallet section, and then download Trezor Bridge to your computer.
• Install the downloaded program and restart your computer.
• Open the Wallet section after reboot.
• Click on the “Connect your Trezor” button and connect the gadget to the computer.
• To set up a new device, you need to set and confirm the PIN code, write down the seed phrase.

After that, the wallet can be used as you wish. However, such devices are most often suitable for storing large amounts of cryptocurrency in the long term and minimal interaction with it.

matbea

Another popular online wallet offering low transaction fees, an accessible interface and reliability. How to register a bitcoin wallet on the service?

• Go to the official resource of the wallet.
• Fill in all the fields offered in the registration form.
• Confirm your actions.

Bitcoin wallet will be created immediately after registration – automatically. In addition to the first cryptocurrency, the user can start Monero, Ethereum, Litecoin, Dash. A separate wallet is formed for each currency.

The security of the wallet is ensured by several levels of protection:

• PIN code;
• code sent to the email address;
• message code.

A convenient interface allows you to easily transfer bitcoin to your wallet or send it to another addressee.

Crypto.com

A mobile wallet for storing not only bitcoins, but also other currencies. You can download it for Android and iOS. Client verification is required. By opening a bitcoin wallet, you can fully manage the digital currency: send, store, receive, sell.

The wallet becomes available immediately after downloading the application, so you do not need to perform any extra steps to use it.

TrustWallet

This is the official cryptocurrency wallet of the Binance exchange, presented in a mobile form. It allows you to deposit various coins (litecoine, ripple, dash, btc) to your wallet and use them as you wish. You can also buy NFTs. The service is quite simple and reliable to use. The app can be downloaded for Android and iOS.

Conclusion

Thus, there are many wallets for storing bitcoins. The choice must be made depending on the number of different cryptocurrencies, the planned frequency of using the wallet, as well as financial capabilities. For example, hardware wallets are not free at all, but involve spending a certain amount of money. Other wallets sometimes charge too high transaction fees. After analyzing the properties of popular wallets, you can choose the perfect one for yourself.

Disclaimer. Investing in any financial asset carries the risk of losing capital. Nothing in this text can be considered an investment recommendation or an offer to buy/sell any financial instruments. For all their actions in the stock market, each investor bears full responsibility independently.