Opening A Bitcoin Wallet: Coins that you use in the real world are tangible. They are small, round pieces of metal that you can use to buy a product or a service. However, it would help to keep them well protected in a wallet as they are small. The same thing goes for your digital currency. Even though you don’t have the digital coins in hard form, you still can end up losing them. This is because you do not own them technically.
You get them in exchange for something and need to protect them in a wallet. To know more about this and gain information, visit the Official trading Website.
When you get the coin from an exchange, the latter actually works as a bank does! Like a regular bank, it is also a service provider that works as a third party and promises to protect your coins. Nonetheless, just like your traditional bank, the exchange can also be hacked or shut down. In such a case, you may end up losing all your coins!
This is why you need to have complete control of your coins. There is no proper regulatory framework for the exchange. This is owing to the infancy of the crypto industry, which makes it tougher for new investors to have trust in it. Hence, it is always better to own your coins by controlling them through private keys. In your own Wallet, you would have them safe and secure for as long as you want.
Certain key terms that you, as a new crypto user, should be aware of are:
The public keys in the Wallet refer to the public address that you get. This is basically the address of your Wallet on which you will be receiving all your funds. Just like a bank account number, this will be exclusive to your Wallet, and you would be able to make all your transactions using these public keys.
Private keys are the digital signatures that confirm the Wallet to be yours! Just like the PIN number of your account at your regular bank, you need to keep it private and confidential at all costs.
The Keystore file is your private key but in an encrypted manner. It is the conversion of information into a code, which no one would be able to crack. As private keys are sensitive information, keeping them protected at all costs is necessary.
Setting up the Wallet for Bitcoin
The process of setting up your Wallet for bitcoin is simple. It involves a few steps, and if you follow them all properly, you will be able to set the Wallet in a very short time period.
- The process starts with you going to the official webpage of the blockchain. While doing so, make sure that you don’t end up on a phishing site, as it would make it difficult for you to proceed with the further process.
- Next, you need to sign up on the given webpage. For that, you need to create a new wallet with your authorized email address and a password. To keep your Wallet secure, make sure to use a complex password that you can remember later on.
- You will get a confirmation email once you hit ‘continue’. This will help you confirm your identity.
- Now, you need to find out the ‘security center’ on the dashboard and choose the backup space. This will help you secure the Wallet.
- The recovery phrase that you receive is of great importance. Make sure to take a print of it to keep it secure with you.
- Next comes level 2 of security, where you need to enter your phone number to enhance security.
- Blocking the IP addresses from the TOR network will further make your Wallet private.
- Now that you are done, you will get your personal Wallet to manage your coins. Simply hit the ‘request’ tab on the dashboard, and you will start receiving your bitcoin.
Setting up a digital wallet to keep your coins safe is necessary. It will help you keep a tab of all your transactions. Setting it up is easy, and the security it offers is top-notch!