Bitcoin is the first and most popular cryptocurrency in the world. However, the person to whom cryptocurrencies are a new has a simple question where and how to safely keep Bitcoin. The answer is short – you need a Bitcoin wallet which is similar to an electronic bank account. In this article, we will review how to create such a complete wallet not only for your Bitcoin but also for the entire blockchain.
Types of wallets
Like in the case of many other currencies, the Bitcoin wallets are also divided into two main types – mobile and full-size (commonly referred to as “core”). The difference between these types of money is distinctive as you are solely responsible for the full-size wallet, and in the opposite case there appears an intermediary who provides the wallet. It would remind of a bank for the real/ FIAT money, however, in this case the money kept with the intermediary (deposited) are not insured by the Deposit and Investment Insurance.
Software recording for the wallet
First of all you need to download the Bitcoin Core program (the latest version is available at bitcoin.org). When downloading this programme, you will have to wait as when you connect to the network, all blockchain needs to be synchronized including all the transactions that have occurred in relation to this currency. The further the more transactions are performed between the wallets so this action is not a one-time, and synchronization will occur continuously. Initial synchronization will take a long time, a week may be not enough. Currently, the blockchain is already around 130 GB and continues to grow. We need to mention that each transaction performed in its history is not only downloaded on your computer but also minimally processed. Without deeper analysis of the technical features – you may notice that one of your computer processor kernels is fully busy, and it is a completely normal phenomenon that will end after the initial synchronization with the network. Also this is one of the reasons why even if you have a fiber optic internet capable of sending such amount of data (~ 130GB) per hour or a few, it will not be possible.
Bitcoin Wallet Encryption and Backup
It is important to encrypt the wallet that the thief who found your money could not use it. Create a really secure password. 8 symbols are safe but at this place they do not guarantee the highest level of security, and it concerns money. Probably quite big due to the tendency of this currency to “grow”!
The encryption process is really simple. You just need to select the item on the top of menu – “Settings” -> “Encrypt Wallet”.
This password will be used each time you send this cryptocurrency.
Caution! This password of the wallet cannot be restored, and if you forget the password there will be no possibility to remove, hack or in any way to delete or restore it.
Once the wallet is encrypted, you can make a copy of it. The copy that you can restore at any time is created by selecting the item in the menu – “File” -> “Backup Wallet”. Select the desired name and save the file (in “.wallet format”). Do not forget to make multiple copies of the wallet. If a hard drive is damaged or this backup file accidentally deleted, your entire currency asset will be lost! It is advisable to regularly make backups of this wallet.
After completing these steps you will already have your own Bitcoin wallet. Do not forget to routinely run this program so that your blockchain is always synchronized.
Have a good experience!