In this article, we will be talking about why you should have a Bitcoin wallet and what are the best ones in the market, currently. We will also talk about how you can set up your Bitcoin wallet like a pro. Happy reading!
Do You Really Need a Bitcoin Wallet to Perform Bitcoin Transactions?
The hype around Bitcoin has made people believe in ideas they wouldn’t have otherwise. The involvement of famous personalities has caused drastic changes in the pricing of Bitcoin. The biggest dilemma first timers face in the world of cryptocurrency, in general, is to choose between trading and investing.
Warren Buffet says that one can never lose money if they invest in it for the long term. But you must take up the decision not according to what others say but by being aware of your financial situation. The ball lies in your court.
To answer the question, you do not need a wallet if you only want to sell Bitcoins as soon as you buy them. If you are wishing to invest in Bitcoins, it is obvious to own a Bitcoin wallet.
Best Bitcoin wallets
This company is currently serving more than 70,000 merchants all over the globe. It promises minimal risk and optimal security of your Bitcoins. It provides industry-low processing fees of only 0.5%. The brand has its plugins in 2000 plus websites such as Shopify and Magento. You can also use this platform to buy, convert and purchase gift cards with credit cards. It is also available as a mobile app.
Other online wallets include Exodus, Electrum, Coinbase.
Buy via credit cards through these websites: Paxful, Coinmama, Binance, Crypto, Coingate and Bitfinex.
Unlike the usual online Bitcoin wallets, this one is a physical version of a wallet. It has a sleek and elegant design enabling you to secure and control all your crypto. It is a Bluetooth-enabled hardware wallet in which you can store all sorts of cryptocurrencies. There are currently two versions of the hardware namely, Ledger Nano S and Ledger Nano X, the latter being the latest one. By purchasing the starter pack, you will not only get your Ledger Nano S but also a manual in PDF to start off into the world of cryptocurrency.
Other hardware wallets include Exodus, Electrum, mycelium.
Some websites also allow you to convert your application reward money into Bitcoin. You can also transfer money via IMPS from your bank account into these wallets for further transactions.
How to Set Up Your Bitcoin Wallet (Website)
Let’s get right into it.
1. Open an Account:
Most of the websites require new users to sign up and create an account. There are, but very few, website hostings that offer discounted rates on Bitcoin.
- Local Bitcoin Trading
2. Get an online or hardware wallet:
Remember, it is not essential to purchase a wallet if you’re buying Bitcoins just for the sake of selling them or gambling in casinos. But if you choose to go for long term investing, you need a wallet to store all of your Bitcoins. Online wallets are mostly free. All you need to do is check out the links mentioned in the previous section of this article. After creating an account, the website will ask you for your payment details and other authorization questions.
The wallet will provide you with a public key that you will use for future Bitcoin transactions. You can opt for a hardware wallet which is nothing but a USB memory stick that you can connect to your laptop to check on your crypto portfolio. To know more about how to set a hardware wallet, pace through the end of the article.
3. Transfer money from bank accounts to your Bitcoin wallet:
If you do not have personal possession of your Bitcoin, it will always be at risk. Use your bank money to buy Bitcoins and after a successful purchase, immediately transfer it to your Bitcoin wallet. Leaving your Bitcoin with a third party website could make you have less control over it.
How to Set Up Your Bitcoin Wallet (Hardware)
The best part of using a hardware wallet is the amount of security it provides. Worst case scenario, if you forget your private key, you can refer to your ‘See Phrases’ to restore it. See phrases is nothing but a list of words the wallet provides you with, when you set it up for the first time. Make sure you keep the ‘See Phrases’ in a secure place and never share it with anybody.
Another reason why hardware wallets are so popular is because they have nothing to do with the internet. They are in no way connected to Google or Facebook. The wallet is not exposed to any other platform other than your laptop and this makes it infinitely challenging for hackers to get through your wallet.
Buy your hardware wallet from a well known company to avoid any malpractice in the device. Follow the instructions to set up your hardware wallet.
- After unboxing the wallet, make sure there aren’t any damages on the outside. If you suspect that there is something wrong with the shape or design of the wallet, return it back.
- You will not be provided with any passwords or combinations to unlock the wallet. So, make sure you have a pen and paper handy to write down the see phrases.
- Set a pin or a password for the wallet.
- Plug the wallet to your computer and play around with the interface.
Some Bitcoin wallets (websites) like Coinbase offer extra security with a ‘Vault’ option. Since online wallets have a possibility to get hacked, the vault option, if enabled, slows down the withdrawal process and sends multiple email notifications and text messages if the coins are removed from the wallet.
The final verdict is, buy yourself a crypto wallet if you see yourself as an active citizen of the world of cryptocurrency. Check out the links mentioned above and pick a wallet that is best for you! Check out Bitcoin Digital and start investing in Bitcoins.