The media attention to crypto payments and the driving force of the cryptocurrency industry — Bitcoin — has decreased significantly in 2019. However, the issue of cryptocurrencies hasn’t lost its importance for the economy and the future of payment methods. Not without reason large banks and financial institutions deal with the crypto topic. They are about to switch to the digital motto.
In this article, the basics of Bitcoin will be explained in detail. The main idea is to focus on the so-called wallet, one of the basic prerequisites for entering the crypto world. How to get a bitcoin wallet? How does it work? Let’s find out!
How to Get a Bitcoin Wallet Address: What Are the Key Types of Bitcoin Addresses
Bitcoin is based on technology, which was created especially for the financial market. It’s based on a credit book — called a ledger — that contains all transactions made with Bitcoin to date.
It can be saved locally for every user of the platform. Continuous updating of this ledger ensures that any attempt to attack the service is almost impossible.
How to get a bitcoin wallet address? And what is it? The data stored in the ledger such as a recipient address is transparent and available for everyone. However, Bitcoin, and the blockchain are largely pseudo-anonymous.
This is due to the means of individual user IDs or recipient addresses, which the users hide behind a long series of numbers. In theory, anyone can determine the number of bitcoins owned by a single user. However, this is possible only if the personal ID of the accounts is known.
Private & Public Bitcoin Addresses
While the public address, like the Bitcoin ID, can be known to everyone, the private address as well as the security key are only accessible to an owner of a Bitcoin account. This private address authorizes outgoing payments and corresponds to the security key for a Bitcoin locker.
This means that the private address must be kept secret, while theoretically everyone can know a public address of accounts. Bitcoins can be received via the public Bitcoin address as well as via the recipient address.
Definition: What is a Bitcoin Wallet?
This is the moment when the Bitcoin wallet enters the battlefield. The cryptocurrency wallet is necessary for safekeeping. In the crypto community, a wallet is an equivalent for an account, which represents an available amount of cryptocurrencies.
It has an ID (public address) and can be understood as a kind of address for transactions. Now it’s clear that to get yourself a bitcoin wallet is a necessary step!
Note: A wallet ID or public Bitcoin address consists of 27 to 34 digits. For example, 35hK24tcLEWcgNA4JxpvbkNkoAcJGqQPsP. Private Bitcoin addresses are a 256-bit number that can be displayed in different ways. It’s significantly longer than the wallet ID or recipient address and should be kept secret.
In summary, a Bitcoin wallet is a wallet where bitcoins are stored. If you want to receive Bitcoin, you need a Bitcoin wallet. If you want to send bitcoins, you must also get a bitcoin wallet first.
How to Get a Bitcoin Wallet Anonymously: Everything You Should Know
When choosing the right bitcoin wallet, it’s difficult to give a clear recommendation. A lot of users usually wonder how to get a bitcoin wallet anonymously.
You have to decide which provider to choose to carry out crypto transactions. In many cases, the step of creating an account takes place directly with one single provider.
Then you have to identify yourself to the provider and confirm you security of everyone involved. A complete anonymity is accordingly today in the context of identity — a technical term, KYC ‘know your customer’. As with opening an account at a bank, this is a step that guarantees the security of everyone involved. Today, in the context of Bitcoin, a complete anonymity is almost impossible.
The individual differences in the users’ expectations for adequate service around bitcoins are too great. The recommendations for choosing the right provider or the right wallet option are just as different as the goals of the individual investors. That is, it makes sense to use the three aspects of security, flexibility, and availability described above as a benchmark.
Security Comes First
How to get a personal bitcoin wallet which will suit your needs best? Anyone who is interested in Bitcoin and primarily looking for a value-enhancing investment in Bitcoin should primarily choose a long-term investment strategy. Here it comes to a hardware wallet in which Bitcoin can be stored for years before it’s sold.
Availability Vs Flexibility
Newbies are often looking for a provider that will be able to do most of the work for them. Such investors should choose a desktop, smartphone, or online wallet. That is, many processes are shown in simplified form and complex processes run in the background. In such a case, fast & up-to-the-minute trading isn’t necessary, these wallets are well suited for this target group.
Flexibility as the Basis of a Wallet
Experienced investors who want to get the maximum value for their Bitcoin wallet can also use an online or a smartphone wallet. You will be able to find the biggest flexibility there. A hardware wallet is the right choice in terms of security. Such users of a Bitcoin wallet are particularly demanding ones and expect fast trading from anywhere.
Where to Get a Bitcoin Wallet: Step-by-Step Ways & Different Approaches
Setting up a Bitcoin wallet has become user-friendly over the years. The procedure differs depending on the type of wallet you choose, the individual aspects remain similar. Where to get a bitcoin wallet? First of all, you need a Bitcoin address in order to conduct future transactions. In most cases, this requires a provider.
Anyone can quickly create an account. This requires a generator that sets a valid combination of numbers and letters that meets the general requirements for Bitcoin addresses. They must contain about 27 and 34 characters and start with 1 or 3. Any characters that can create confusion when reading cannot be used. These include 0, O, I, +, / and |.
Different Approaches
With an online, smartphone, or desktop wallet, an account is created directly with the respective provider. For the wallets on different devices, this takes place in the software.
Hardware wallets usually contain a mechanism with which the so-called seed is created. This is often done by specifying up to 24 words and a so-called passphrase. This combination is determined individually and typed into the hardware. Alternatively, the devices also create the seeds randomly so that the user doesn’t have to do this. Based on the seed, the private key is created. Which the public Bitcoin address is calculated from.
If you want to get a safe bitcoin wallet and try a paper one for your bitcoins, you have to create the private key by hand. This process requires mathematical skills and has a high error probability. Only prominent experts should create paper wallet independently.
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