How to use Bitcoin Wallet Apps in 2018 – Top Tips for Beginners
- Learning how to use Bitcoin wallet apps, is an essential first step for anyone entering the cryptocurrency space.
- Bitcoin exchange wallets should never be seen as a viable way to store Bitcoin (or any kind of cryptocurrency) long-term.
- The best Bitcoin wallet apps of 2018, are both easy to use and backup but still require users to learn how to use them properly.
80% – 95% of new cryptocurrency traders and investors, make significant losses in their first 2-months of trading. What is more, in many cases, not knowing how to use a Bitcoin wallet, is the chief cause of coins being lost.
Thankfully, investors who educate themselves with regard to how to store Bitcoin and other cryptocurrencies safely can completely avoid the inconvenience of lost coins. The only question is, what do you need to know?
Choosing the Best Bitcoin Wallet for Your Trading & Investing Requirements
The first thing to remember when deciding on a way to store Bitcoin safely is that different Bitcoin wallets serve a variety of different functions.
- Hardware and paper wallets are often most suited for people who plan to hold Bitcoin long-term
- Bitcoin exchange wallets should not be used to store Bitcoin long-term, but are much better suited to the needs of professional traders
- Web-based blockchain wallet apps are for the most part reliable. However, when using a web or app-based wallet, users need to remember that they are trusting a third party with the security of their wallet funds
How to Use a Bitcoin Wallet – Paper & Hardware Wallets
For investors who plan to HODL their Bitcoin, a paper wallet or hardware Bitcoin wallet will always be the safest storage option. This is due to the fact, that these wallets allow users to store Bitcoin safely offline.
- A Bitcoin paper wallet can be created at www.bitaddress.org.
- When using a paper wallet or hardware wallet, Bitcoin users will first need to generate a unique wallet address or in the case of a hardware wallet, 12-24 word security passphrase
- Passphrases and paper wallet addresses (both public and private) need to be backed up and stored safely offline
- To start using a hardware or paper wallet, Bitcoin exchange funds (or funds from an existing wallet) need to be sent to a wallet public key
How to Use Bitcoin Wallet Apps like Electrum
Due to high price tag associated with hardware wallets from the likes of Ledger and Trezor, many Bitcoin users elect to use web and mobile-based wallet apps like Electrum.
In most cases, wallet apps like Electrum have both desktop PC and mobile device clients. Also, in every case, starting to use web or mobile wallet, will necessitate the creation of a 12-24 word recovery passphrase. (Just like when setting up a hardware wallet.)
- After a recovery passphrase has been created, users will be able to upload funds to their Bitcoin public key
- In the case of a device being lost, stolen, or corrupted, a recovery passphrase can be used to completely recover Bitcoin (and other cryptocurrency funds)
- Because of the importance of recovery passphrases, passphrases themselves should be stored offline in a secure location
Sending & Receiving Bitcoin Safely
The most important thing to remember when using any kind of Bitcoin wallet is to never disclose your Bitcoin private key details to anyone. This is due to the fact that if a third party has access to your private key, that party can swipe your wallet balance to their own. Because of this, long-term Bitcoin investors should always consider Bitcoin exchange wallets and mobile app wallets as high-risk. – Specifically, because users are never in full control of their private keys like they are with hardware and paper wallets.