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how to get a bitcoin wallet

Wallets like Electrum allow you to consolidate UTXOs to reduce fees when you transact. In the next step, we’ll discuss ways to secure your seed phrase. Let’s walk through how to create a Bitcoin wallet and how to set up a Bitcoin wallet once you’ve chosen the right wallet app for your needs. Alternatively, the DeFi Wallet is a popular option as a non-custodial Bitcoin wallet. Remember to generate a new address for each transaction to enhance privacy and security. Merchants often deposit and display prices in their local currency.

How to Get a Bitcoin Wallet: A Step-by Step Guide (With Screenshots)

Centralized exchanges (CEXs) such as Coinbase, Binance, and Kraken, allow you to buy Bitcoin with fiat currencies, such as dollars or euros, a.k.a. on-ramping. Due to this feature, exchanges are popular with beginners looking to start buying and using BTC. Creating a Bitcoin wallet mainly consists of generating a private and public key pair and storing it somewhere; either physically or digitally.

  1. A bitcoin wallet is a place where you store, send, and receive bitcoin.
  2. Answer the following questions to create a list of wallets that meet your needs.
  3. To get appropriate guidance regarding tax compliance for your own jurisdiction, you should contact a qualified accountant.
  4. Hardware wallets bring higher security, whereas software wallets are more convenient to use.


Trust Wallet and BRD are two popular examples of such mobile Bitcoin wallets. These wallets allow you to pay, trade, and within the phone. They can also easily scan QR codes and remain accessible notes to monetary statements definition and which means on the go. Self-custody wallets offer more security compared to using an exchange to hold your crypto, but there are some additional steps you can take to secure your wallet.

Bitcoin Hardware Wallets

While these aren’t the safest way to store your bitcoins they are a good way for beginners to get started. There are many different wallets to choose from for managing bitcoin. Still other wallets are physical hardware wallets that you can carry around with you. Software wallets, which are downloaded on mobile or computer, are usually free but come with centralization risks.

You start by purchasing the device most suitable for you. Ledger devices stand out for its industry-leading security research lab the Ledger Donjon, and for making use of a Secure Element chip for keeping private keys offline. The strength of Ledger’s security model means Ledger devices have never been hacked!

Many Bitcoin holders use both, keeping smaller amounts of Bitcoin in a software wallet for convenience while protecting larger balances offline. Create regular backups of the wallet and store them securely. This ensures that even if a holder’s device is lost, stolen, or damaged, they can still recover their funds. Encrypt the backup files and keep them in multiple secure locations.

Fees decide how long your transaction takes to get processed by the Bitcoin network. Once you have bought the Ledger device, install its software, Ledger Live, on your computer or mobile. These wallets, installed as browser extensions on your computer or laptop, allow you to access the Bitcoin blockchain directly in your web browser.

The security features of each platform vary greatly, so make sure you look into which types of attacks your software wallet may be vulnerable to. A software Bitcoin wallet, also known as a hot wallet, is a piece of software installed on your computer, smartphone, laptop, or tablet. Typically, software Bitcoin wallets are non-custodial, meaning they allow you to manage your private keys yourself. This is great; you are the only person who can manage your Bitcoin wallet, giving you true ownership of your BTC. They also tend to use the HD model; so you can also restore software bitcoin wallets with ease on other interfaces too. A Bitcoin wallet holds the private keys that control your crypto assets on the blockchain.

how to get a bitcoin wallet

Like all software, Bitcoin wallets get improvements and bug fixes regularly. Bugs can range from display issues to more serious concerns, such as security flaws. Electrum, for example, offers this option at installation. Wallets with 2FA offer more security but also generate additional fees for each transaction that uses 2FA. Use a trusted search engine to find the correct download URL and confirm the URL in your browser before downloading anything. Many wallet apps use open-source code, making it trivial to create a malicious app hosted on a similar-sounding domain.

Custodial wallets, such as crypto exchange wallets, offer a convenient way to store your Bitcoin but can bring additional risks. In 2021, a flaw in Coinbase’s SMS two-factor authentication allowed hackers to access 6,000 wallets. By contrast, self-custody wallets ensure that you hold the private keys rather than a third party. The DeFi Wallet is free to download and allows users to store Bitcoin.