How I gain my own Bitcoin Wallet?
So you decided that you will use generally service SEPA to Bitcoin or Bitcoin. How can I start? You have to have your own Bitcoin Wallet before you can gain any bitcoin. It is similar how you can have your bank account for sending or receiving money to others, but in SEPA to BITCOIN you don´t need any bank.
Bitcoin Wallet: What is Crypto Wallet and why do we need it?
If you use online banking, it will be not hard to understand Crypto Wallet. We speak about virtual wallets, which save your financial means. However access is limited by password, which is known by only owner of account. The difference is in the bank, which has a control on your own property and also can freeze it. In Crypto assets you have control on everything. In this case, it makes from Crypto user – “owner Bank”. It is reason, why Crypto currencies request softly different safety devices. For example, in case of theft, nobody can help you gain your stolen property back (its result of decentralized nature of Crypto currencies). There isn´t any central organ, that will be able turn over transactions and give back your financial means. Owners of Wallet are the only ones, who have access to their assets, which means, that nobody can freeze their financial means. On the other side, owners don´t lose their login for their Crypto Wallet. Crypto Wallets are necessary for safe loading of Crypto currencies.
But no fear! Everyone can easily do necessary steps to makes sure, that hers/his digital assets are in safe.
Bitcoin Wallet: detailed description of how Crypto Wallets work?
Bitcoin Wallet (BTC wallet), but also each other Crypto Wallet has always consist of two parts.
First part is public key of wallet (named also public address), which is possible share with the others.
Second part is private key, which can´t be publicly exposed.
Bitcoin Wallet consists of a pair of Cryptographic keys. Public Bitcoin Address can be likened to e-mail address and private key you can imagine as your own password.
Private Key is used on cryptography of transactions and Public Key is used on cryptanalysis of transactions. Private Key must be safe keep. Everybody, who has access to Private Key, is also owner of wallet. Public Key is used for sharing with the third sides and it is used as evidence, that you are owner of Bitcoin address.
Combination of Private and Public Keys creates digital signature. It is special type of digital cryptography, which aim is create safe digital link on identity of holder of Crypto Wallet. Digital signatures prove your property and provide you control your good.
Maybe you will be surprised, but Crypto Wallet can be writing on piece of paper. Easily it will contain Public and Private Key written as simple text and relevant QR codes. It is everything, what you need for safe storage of Crypto currencies. You can´t save Crypto currency (e.g. Bitcoin) on one place, for example the digital file on USB disc. All information about it is saved on decentralized page, which is managed by thousand people in the world. Digital files are not hard copied ad anfinitum. Filmmakers and musicians face this problem from entrance Internet and technologies peer-to-peer. If Crypto currencies worked on the same principle, it would sink very fast, because anyone should be able to create new coins ad anfinitum. The technology blockchain defends its, more about technology you can see in article about Crypto mining.
If you try to send Bitcoin, miners check in blockchain, if it is possible to send required amount.
Other words: miners check the whole history of your transactions, because Bitcoins are not saved on one physical place.
At now, when we better understand how Crypto Wallet work, we can pay attention for different categories and types of Crypto Wallets, which are designed for various needs.
Bitcoin Wallet: different types of Crypto Wallets
Crypto Wallet are divided into two basic categories:
Hot Wallets – are still connected to Internet
Cold Wallets – aren´t still connected to Internet
Four basic subcategories:
Hardware Wallets – public and private keys are saved on separated hardware device and they are written in digital form, however access is locked by password.
Paper Wallets – public and private keys are written on the paper (they can be written on permanent material for long storage).
Online Wallets (including Mobile Wallets) – private keys are often in ownership of provider of wallet.
Software Wallets – public and private keys are saved in computer programme and they are written in digital form, however access is locked by password. Each of listed Crypto Wallets has own advantages and potential disadvantages. We briefly explore in the next chapter.
Crypto Wallet: detailed description of some wallets
• Save Ledger Live, official software for interface with wallet.
• Use USB cable for connections of Ledger to commuter.
• Choose your PIN code (you need for each using) and safely save your master seed!!! If you steal your seed, or if somebody steals it you, you should lose your financial means.
• At now, you have access to your Crypto Wallet and you can send or received bitcoins.
• For more information you can see this instructive video, where you can find out, how set up Ledger Nano S.
• Ledger supports more than 20 popular Crypto currencies!
• Whole setting process takes approximately 20 minutes.
• Save and install Safe extension.
• Connect equipment Safe to computer with USB cable.
• Install software and work according to instructions.
• Choose the PIN code after installation and save your master seed!!!
• Your wallet is prepared for using.
• You can find the next information in this short instructive video.
• Safe supports more than 10 popular Crypto currencies.
• Open new account with your e-mail address and password at home page.
• Choose user name and accept received e-mail.
• When you enter you safe code (you gain it after registration), you can start sending and receiving Crypto currencies from your bitcoin address.