How do I use a bitcoin wallet

Setting up a Bitcoin Wallet: How to do it correctly

Cryptocurrency and trading

, Munich | Author: Herbert Wieler

Digital wallet for digital money

If you want to trade with Bitcoin, you need a wallet. This is a digital wallet in which the coins can then be stored. Due to the fact that there are different types of wallets, you should get an overview of the supply situation in advance.

The Bitcoin Wallet is a digital wallet for the cryptocurrency Bitcoin. The purchased coins of the digital currency are stored in this wallet, whereby coins from third parties can also be transferred to the wallet or they can then be removed from the wallet and sold. It is a special software, so to speak, in order to subsequently receive (buy) or send (sell) bitcoins.

Each wallet has a unique character code. The credit is then saved in this code. Since no third party is allowed to have access, the wallet is protected with a password. Furthermore, every wallet is anonymous. This means: personal data is not required - only when you register with a trading venue to purchase coins do you have to provide personal data.

Wallet must be compatible with the operating system

Since there are different wallet options, one should deal in advance with the question of which device the digital wallet should be used for. There are wallets for the desktop, tablet or smartphone. There are also hardware variants. It should be noted that the digital wallet must match the installed system. This means that you must pay attention in advance whether it is Windows, Linux or Mac - if you use the wallet on the smartphone, the digital wallet must harmonize with the respective operating system (Android, iOS, Windows Phone or Blackberry).

Offline or online wallet?

There are purely online wallets and so-called hardware wallets. The online wallets are classic web-based wallets that then store the private keys on the server. However, this is managed by an external party. This can be a problem for one or the other saver. Ultimately, security such as control over the Bitcoin balance is entrusted to an external provider.

Another disadvantage: the wallet is always online - this means that there is a constant risk of becoming a victim of a hacker attack.

In addition to the online version, there is also the option of the hardware wallet. This form of the digital wallet is reminiscent of a USB stick. Since the wallet is stored on an external device, it may be a very secure variant. The only problem is the fact that you can lose the wallet.

When a wallet is not required

If you only speculate with the price development, you don't need a wallet. In this case, no coins are bought, only money is put on the development of the market. Anyone interested in this type of crypto trading should get an overview in advance of which providers offer this option. Since there are always reports of black sheep, it is important to clarify in advance whether or not the provider of News Spy is fake. Test and experience reports are of particular help here. So you should never register with the first provider, but always take a look behind the scenes.

The installation

So-called hot wallets, i.e. the hardware variants, are advertised as simple and trustworthy. Above all, the installation is not a big challenge. Simply follow the instructions - you will find the corresponding symbol on the computer after the installation is complete. If you then click on the wallet symbol, two functions are available. You can create a new wallet or import an existing wallet. There is also the option of choosing from different versions. Often there is also a “safety record” - this should be written down and kept in a safe place.

The security set is used so that the wallet can be restored after the computer has crashed.

If you click on the "Receive" tab, you will find your Bitcoin receiving address. If you want to buy cryptocurrency coins, you always have to enter this address, which is the "account number" of the wallet, so to speak.