Whenever someone withdraws money from a bank’s ATM, they immediately put it in a physical wallet. This is the same case with Bitcoin. When you buy Bitcoin from a cryptocurrency exchange, you must transfer it to a digital wallet for safekeeping.
However, many novice traders looking for “How to get a Bitcoin wallet” do not always get what they seek. The reason behind this is because there are many cryptocurrency wallets in the market. There is also the issue of the complex process of using crypto wallets.
This guide will walk beginner Bitcoin investors through getting a Bitcoin wallet. We make it easy for them to pick a Bitcoin wallet that will suit their needs while keeping their coins safe from theft and loss.
What is a Bitcoin Wallet?
Before we get started on setting up a Bitcoin wallet, we should first understand what a Bitcoin wallet is and how it works.
A Bitcoin wallet is an app, software, or physical device to send and receive Bitcoins. However, unlike a physical wallet that holds the money, a Bitcoin wallet does not hold Bitcoin. Instead, it contains the private keys to access your Bitcoin.
Think of your Bitcoin wallet as a debit card. A debit card is not money. Instead, you use it to access the funds held in your account.
A Bitcoin wallet will store the cryptographic information that will access Bitcoin addresses and create transactions. Just like you can store different currencies and bank cards in your wallet, you can also store multiple cryptocurrencies in a single crypto wallet.
How Do Bitcoin Wallets Work?
Bitcoin wallets work using cryptographic keys. A key pair comprises a private key and a public key. A private key is like your bank account password and is used to store the coins in your wallet.
On the other hand, the public key is like your bank’s publicly available account number.
After creating a Bitcoin wallet, you will get a seed phrase that you will need to transmit and receive Bitcoin. This seed phrase is like the password you need to access your Bitcoin wallet and coins.
When storing Bitcoin in a wallet, the seed phrase is one of the most critical features. This phrase is like the password to your debit card as without it, you cannot access BTC. Moreover, unlike traditional financial firms, Bitcoin does not have an intermediary, and if you lose the seed phrase, you might never access your coins.
Despite the complex functionality of Bitcoin wallets, you will find that you can learn how it works to use one.
Most wallet providers will give you detailed instructions on using the wallet if you are a beginner.
How to Choose a Bitcoin Wallet
If you are exploring how to get a Bitcoin wallet, you should have several factors in mind that you should consider when picking the wallet that best suits your needs. These factors include the following:
Security
Security is the first factor to consider when choosing a Bitcoin wallet. You should use wallets with robust security attributes like backup and recovery options.
This feature will ensure you can access your private keys in case of loss or damage to your wallet.
Using a wallet with multi-signature and two-factor authentication provides additional security by mandating multiple signatures before finalizing transactions.
User-friendliness
It is also vital to evaluate the user-friendliness of a Bitcoin wallet before using it. If a wallet has a user-friendly interface, sending and receiving Bitcoin will be intuitive and easy.
A good Bitcoin wallet should also have a sleek design, elaborate instructions, and a robust customer support team. It should also contain other features like news updates, price conversion tools, and charts to simplify trading Bitcoin.
Compatibility
The other feature to consider when getting a Bitcoin wallet is compatibility. Different wallets support different digital assets. Therefore, if you want to store Bitcoin, you should get a wallet that supports BTC.
The other factor in compatibility is whether the wallet is portable. Suppose you are looking for a wallet you can use while on the go; use a mobile-compatible wallet. Desktop wallets also work well with a majority of cryptocurrency enthusiasts.
Reputation
The reputation of a wallet provider is also essential to consider when picking a Bitcoin wallet. It is best to go with a wallet that has been around for a long time. Such a wallet has established itself as a trusted player in the cryptocurrency sector.
If you find any negative information about a wallet, it is best that you steer clear. Most wallets are prone to hacking attacks, phishing campaigns, etc., so you should find one with the best reputation.
Cost of the Wallet
The other factor to consider when exploring how to get a Bitcoin wallet is the cost of that wallet. For instance, if you acquire a hardware wallet, you will find that the price will be higher than that of a software or mobile wallet.
While the price is worth considering, you should not compromise on security by getting a cheap wallet, as it will leave your assets vulnerable to hacking attacks.
Trading Behaviour
Trading behavior is the other crucial factor when selecting a cryptocurrency wallet.
For instance, if you want a wallet you can use for trading frequently, it is best that you get a hot wallet that will keep your assets online.
Conversely, you should also use a cold wallet when you want to store Bitcoin for an extended period. Cold wallets are more secure than hot wallets as they keep your assets offline.
How To Set Up A Bitcoin Wallet
Once you have picked the Bitcoin wallet you want to work with, the next step is to set it up so it becomes easy to store Bitcoin and other digital assets.
The process of setting up a Bitcoin wallet varies depending on whether you want a hot wallet or a cold wallet.
How To Set Up a Software Wallet
The software wallet is at the top of our list as it is popular among beginner cryptocurrency investors. Most hot wallets are free to use and come with other services like lending and staking.
If you want to set up a software wallet, below are the steps that you need to follow:
- Select a wallet app
Explore the different software wallets available in the market and settle for the one that best meets your needs. Once you have picked a wallet, download it on a mobile or desktop device.
In most cases, you will find that software wallets will come as a mobile application, a browser extension, or both.
- Create an account
Creating a wallet account is more straightforward than creating an exchange account. You only need to set up a password and name your wallet. Remember to create a secure password that one cannot crack.
- Note down your recovery phrase
After creating your account, the app will generate a secret phrase, the password to your private key. You should take extra caution when writing this secret phrase and store it where it will be recovered and protected.
You can access your Bitcoin with the private key if you need to remember your wallet’s login details. The private key is also required when accessing your wallet from another device.
- Transfer Bitcoin to your wallet
Now that you have set up your wallet account transfer your tokens from a cryptocurrency exchange or another wallet. You can link your exchange through the app’s settings. You will have to complete additional verification to transfer tokens.
How to Setup a Hardware Wallet
If you are storing a sizable amount of Bitcoin or looking to store your assets for a long time, consider getting a hardware wallet. Hardware wallets are non-custodial and will store keys on a physical device.
To access the coins stored in your hardware wallet, you must plug them into your computer or phone using a USB plugin, QR code, or WiFi.
Hardware wallets are not free and might be complex for a beginner. However, they are more secure than software wallets.
The process of setting up a hardware wallet varies. However, below are the steps that work with most wallets:
- Purchase the wallet
The first step is to buy the hardware wallet device from the manufacturer’s website. It is not advisable to buy a second-hand wallet, as it might contain malware.
- Set up the wallet
After getting the hardware device, you have to power it on. You might be prompted to enter a PIN code before doing anything else.
After powering on your wallet device, follow the instructions on the manufacturer’s website. You have to download software that is compatible with the hardware wallet you are using.
When creating your wallet, you must always write down the recovery seed phrase and keep it safe.
- Connect your device
The next step is to connect your hardware wallet to online software, allowing you to transfer tokens. You can plug the device into your computer if it is in the form of a USB drive. Otherwise, you can connect through WiFi or a QR code.
- Transfer crypto to your wallet
Lastly, you have to transfer Bitcoin to your wallet. You can use your wallet address to transfer tokens from an exchange or an existing cryptocurrency wallet.
Bitcoin Wallets and Security
Bitcoin wallets are prone to security vulnerabilities. Over the years, people have lost much of their crypto holdings to hacking attacks.
One of the security risks linked with Bitcoin wallets includes malicious software. A hacker can use malicious software to scan your wallet and steal private keys.
A hacker can also encrypt your wallet and demand a certain amount of funds to decrypt your hard drive.
The other significant security risk from Bitcoin wallets is losing your laptop, phone, or hard drive containing the private keys. Such cases have happened before, the most prominent being the loss of over 7,500 Bitcoin by one of the early miners.
While there are instances where people have recovered Bitcoin from lost crypto wallets, this is not always the case, which creates the need to keep wallets safe.
How To Protect Your Bitcoin Wallet
Given the heightened security risks around Bitcoin, one must always find ways to protect their coins from thieves. The following best practices could help keep your Bitcoin safe:
- Avoid using a crypto wallet that keeps your coins online, especially if you store a sizable amount of Bitcoin. Such wallets are more susceptible to hacking attacks.
- Look out for malicious emails. One of the leading hacking attacks against hardware wallet owners is phishing campaigns. Hackers mimic a genuine email address to send malicious links and messages in such campaigns.
- Avoid unknown websites. You should also avoid using your wallet on unknown websites, which could leave your coins vulnerable to hackers.
- Do not share your private keys. You should also keep your private keys safe. Your private keys will enable anyone to steal all your coins.
In Summary
If you want to store Bitcoin securely, the best way is to use a cryptocurrency wallet. This wallet contains private keys and public keys that can be used to transact and present unauthorized access to your coins.
If you are researching how to get a Bitcoin wallet address, you must consider several factors to ensure it is the right pick. These factors include security, user-friendliness, compatibility, and reputation.
The most common types of wallets are software wallets and hardware wallets. Software wallets, also known as hot wallets, are best suited for beginners due to their ease of use. However, they are less secure than hardware wallets, which store your coins offline.
FAQs
- Where can I get a Bitcoin wallet?
You can get a Bitcoin wallet from software or hardware wallet providers. Some of the most popular software providers include MetaMask and Trust Wallet. Ledger and Trezor also dominate the hardware wallet industry.
- Can I get a Bitcoin wallet on CashApp?
If you are asking how to get a Bitcoin wallet on CashApp, you should know that you first need to verify your identity. You must confirm your identity before using CashApp for Bitcoin transactions.
- How do I create a Bitcoin wallet?
It is easy to create a Bitcoin as you only need to set up the wallet’s password, and a seed phrase will be generated. In the case of a hardware wallet, you also need to download software that is compatible with that wallet.
- What do I need to create a Bitcoin wallet?
When creating a Bitcoin wallet, all you need is the app or the software of that wallet. In the case of a hardware wallet, you have to purchase the device from the manufacturer.
