How to create bitcoin wallets

How to create bitcoin wallets

The Bitcoin.com Wallet is a feature packed, non-custodial wallet application for Bitcoin Cash (BCH) and Bitcoin (BTC) cryptocurrencies. One of the most useful features of the app is that it supports something known as a ‘shared wallet’. Also known as aВ multi-signatureВ (or multisig) wallet, a shared wallet is accessible by a two or more persons and requires at least oneВ of these ‘cosigners’ to authorize the spending of BCH from the shared wallet.

Table of Contents

1. Create a shared Bitcoin wallet by following these 5 steps:
2. Why use a shared wallet?
3. Remember!

Create a shared Bitcoin wallet by following these 5 steps:

1. Download the Bitcoin.com Wallet app for iOS, Android, Windows, Linux, or Mac
2. From the Home screen, tap the «+» in the Bitcoin Cash Wallets Menu to create a new wallet.
3. From the «Add Wallet» menu, select «Create shared wallet»
4. Set the ‘wallet name’, ‘your name’, ‘total number of copayers’ and the ‘required number of signatures’ needed to send BCH from the shared wallet.В Note: ‘Total number of copayers’ is the number of people or devices that will have access to this wallet. ‘Required number of signers’ is how many of these people or devices will have to manually authorize a transaction before it can be sent.
5. Create the wallet and then share the invite code with the other people who you want to join the wallet. This codeВ can also be scanned or the block of text copied and pasted

Why use a shared wallet?

• Security:В A single user with multiple devices can use a shared wallet to increase security of transaction capabilities. This way, even if your smartphone is stolen, the thief would be unable to spend from the shared wallet without authorization from the additional cosigners (i.e. one of your other devices).
• **Accounting:В **A shared wallet gives all cosigners access to the transaction history of a single wallet.
• **Third party escrow or mediation:В **For making a bet or buying something online.
• Voting on use of funds:В An organization can be set up to only be able to send a payment after reaching a required threshold of authorizations.

To understand how shared wallets can work, consider this common use-case: Jasmine wants to setup a shared wallet at her company for payroll purposes. She wants 3 managers and herself to have access to the same wallet. This wallet sends salary payments to employees each month. She creates a new shared wallet, sets the name as «Payroll Wallet». She then adds her name and sets the total number of copayers to 4 (herself and the 3 managers). Lastly, she sets the required number of signers to 3. This means any of the 4 cosigners can submit a payment request but the payment will not be completed until 3 of the 4 cosigners give their authorization within the app.

Remember!

Multisig wallets are just like normal wallets—no exception: each cosigner within a shared wallet has a unique private key which grants them (partial) access to the wallet. It is very important to have all cosigners createВ backup to their shared wallet(s)! Warning: If you create a wallet where 3-of-3 cosigners are required, then if one cosigner loses his or her device (and doesn’t have the backup), or refuses to sign a transaction, then the funds within that wallet will be inaccessible to all participants! For this reason, it is not recommended to create shared wallets that require the signatures of all participants. В As you can see, multi-signature wallets are useful for a number of reasons. To create your own shared wallet download the Bitcoin.com Wallet app today!

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How to create bitcoin wallets

Creating a Bitcoin wallet is as easy as installing software on your mobile device or laptop/desktop.

When you install the app, your Bitcoin wallet is automatically created. You can then receive bitcoin to your wallet immediately, store it safely, and use it as you please.

Table of Contents

1. Which Bitcoin wallet should I choose?
2. Software wallets: convenient buying, selling, storing, trading, and using
3. Hardware wallets: long-term storage for larger amounts of bitcoin
4. Web wallets (AKA cryptocurrency exchanges): convenient buying, selling, and trading
5. Paper wallets: alternative to hardware wallets, unique method for gifting bitcoin

Which Bitcoin wallet should I choose?

There are a number of wallet apps on the market from a variety of vendors and with different features to choose from. We welcome you to try the Bitcoin.com Wallet, the fully non-custodial crypto wallet trusted by millions.

The Bitcoin.com Wallet is what’s known as a ‘software wallet‘. It provides an excellent combination of security and ease-of-use. Depending on how you’re using your bitcoin though, you may want to consider another wallet type. Here’s a rundown on the different types of Bitcoin wallets and their respective pros & cons:

Software wallets: convenient buying, selling, storing, trading, and using

• Software wallets take the form of an app which is downloaded for free to your phone or desktop. You simply open up the app and can make Bitcoin transactions in an instant.
• Since software wallets are connected to the Internet, there’s a small risk of hacking. Therefore, it is recommended to not store large amounts of bitcoin in your software wallet.
• While there have been a few isolated cases of software wallets being hacked, by far the greater risk is that you lose your ‘private key,’ which is like the password to your wallet. Therefore, it’s critical to backup your wallet and adhere to password management best practices.

Tip: Make sure the software wallet you’re using is fully non-custodial like the Bitcoin.com Wallet, meaning only you can access your coins — not the wallet provider. This protects you from the risk of fraud or bankruptcy by the wallet provider.

Hardware wallets: long-term storage for larger amounts of bitcoin

• Hardware wallets, also known as cold wallets, are physical devices created specifically for the purpose of storing cryptocurrencies. They offer the best security for your digital assets because they insulate you from the Internet, making it effectively impossible for hackers to infiltrate your wallet.
• Since they take more time to access, hardware wallets aren’t ideal for making frequent Bitcoin transactions. Use them for long-term storage instead.
• As with software wallets, you need to back up your private key and adhere to password management best practices.

Tip:В Hardware wallets are well worth the money — especially if you own a lot of bitcoin. To make sure the device isn’t compromised, only buy one from a company you can trust.

Web wallets (AKA cryptocurrency exchanges): convenient buying, selling, and trading

• Centralized cryptocurrency exchanges are a popular place for many newcomers to buy their first bitcoin because they make the buying process very simple. It’s like opening a trading account.
• However, the cryptocurrency exchange itself retains control over the funds in your account. Not only does this expose you to the risk of the exchange getting hacked or going bankrupt, it also means you have to ask for permission to withdraw your bitcoin, wait longer to withdraw, and usually pay higher transaction fees for withdrawals.
• We recommend using cryptocurrency exchanges only for trading (not for storing your bitcoin).

Tip:В Cryptocurrency exchanges are not a secure place to store digital assets. Once you’ve bought your bitcoin, you’re advised to move it to your software or hardware wallet if you don’t plan on trading it immediately.

You can start your trading journey today with the Bitcoin.com Exchange.

Paper wallets: alternative to hardware wallets, unique method for gifting bitcoin

Paper wallets are created by downloading a software package, then running the software (for security, preferably in an offline environment) to generate a public/private key pair which you print out on a piece of paper. Having created a paper wallet, you can send any amount of bitcoin to the wallet address. To spend it, you use the private key written on the paper to sign the spend transaction.

Like hardware wallets, paper wallets allow you to store bitcoin completely offline. This makes them a lower-cost alternative to hardware wallets.

Since the public/private key pair is written on the paper, handing over the paper to another person is similar to handing over a cash note. This makes paper wallets a novel way to exchange bitcoin face-to-face.

You can create your own Bitcoin Cash paper wallets at Paperwallet.bitcoin.com.

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How to create a Bitcoin wallet

A bitcoin wallet is like a safe that keeps your Bitcoin just like the traditional fiat currency and a bank account, making it compulsory for every individual looking to invest in Bitcoin to know how to create a Bitcoin wallet. With the wallet, you can transfer, receive, and manage your Bitcoin.

The Bitcoin wallet is a software program that holds the “keys” and a bitcoin wallet address that enables you to send and receive bitcoin. Technically, Bitcoins are not stored anywhere. There is a private key (secret number) unique to the Bitcoin address of that wallet for every Bitcoin wallet. It is not stored in a wallet like cash is stored in your physical wallet. They only exist on the blockchain, which implies that you don’t have the physical currency. Rather, you own the combination of the keys that allows you to access the crypto and make transactions with it.

In simple terms, a Bitcoin wallet gives ownership of the Bitcoin address to the user and enables allows the user to transfer and receive funds. Your crypto is safe as long as you keep your keys safe. However, the Bitcoin wallet comes in many forms. Below are some forms of Bitcoin wallets and how to create a Bitcoin wallet.

Web/Online Bitcoin Wallets
The web wallet is a kind of wallet that stores your private keys on a server. It is always online and managed by a third party. Web wallets allow users to access their funds from anywhere, on any browser or mobile device.

Choosing your web wallet should be done carefully since it stores your private keys online. If not properly secured, the third party might gain access to your private keys, thus gaining total control of your funds. They are the most used wallet and the easiest to create and are referred to as one of the least secure wallet options. Therefore it is advisable not to store huge sums of Bitcoin on them. However, they are easier for sending, receiving, and saving small amounts of bitcoin. Some web wallet clients use a multi-signature process that allows you to have total control over your crypto, making them more secure. Coinbase and Remitano are just a few of many web wallet providers.

How to create a Bitcoin wallet online (Online wallet)

Mobile Wallets

As the name implies, this type of wallet stores your private key on your mobile. Just like other applications, the mobile wallet can be downloaded from the App Store or Google play store. It might seem like the crypto are on your mobile, but it’s not. It will be stored on the blockchain. Your wallet is a kind of keychain that holds the keys that give you access to your coins. For constant Bitcoin users, a mobile BTC wallet will be very useful as it is just an app on your smartphone, storing your private keys and allowing you to pay for things directly from your phone. Mobile wallets are not recommended for a huge number of bitcoin because of mobile safety and their connection to the web. Mobile wallets are susceptible to hacker attacks; however, you can protect your wallet by setting a strong password, multi-factor login, and securing your private key. Notwithstanding, this type of wallet isn’t totally secure since it’s easy to break or lose your phone.

Do you want to know how to Bitcoin wallet on your mobile (Mobile Bitcoin Wallet)? Follow the steps below.

Creating a Mobile Bitcoin Wallet

A hardware wallet is a unique type of Bitcoin wallet that stores the user’s private keys in a secure hardware device. It is the most secure way of storing Bitcoin, even in large amounts. These devices keep your private key secure, even when they are connected to the web. They can be connected to the manufacturer’s website, allowing you to make transactions, but they remain offline. You always need the device to authorize your transactions. It serves as a form of authentication before your bitcoin can be transferred to another wallet. They aren’t affected by computer viruses, and there have been no confirmed incidents of funds being stolen from a hardware wallet. Therefore, as long as you purchase your hardware device from a trustworthy and competent manufacturer, your funds will be safe and secure. Hardware wallets are the most secure type of Bitcoin wallet. Stay away from third-parties to prevent potential hacking.

Desktop wallets are downloaded and installed on your computer and allow you to have total control of the wallet because private keys are stored locally on a hard drive. They are safer than online and mobile wallets, as they don’t need third parties for their data. However, because they are still connected to the internet, they might be prone to cyber-attacks and other potential risks. Bitcoin Core and Electrum are examples of desktop wallets.

Each bitcoin wallet has a unique alphanumeric bitcoin address. You can share this bitcoin wallet address with others to allow them to send coins to your wallet. For every newly created wallet, there will always be a unique, automatically generated bitcoin wallet address. Before you can buy bitcoin, you need to create bitcoin wallet and use the wallet to receive your first BTC.

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