Blockchain is a fantastic technology that uses the existing infrastructure — cryptography, network, and online ledger.
Many people think the founder of Bitcoin, Satoshi Nakamoto invented the blockchain, but it’s nothing close to it. Blockchain technology was first used in 1991 by two cryptography scientists to secure digital documents.
The purpose of blockchain is to make the system decentralized, and Bitcoin was the first implementation. Knowing how the Bitcoin wallet address works is pretty crucial for anyone using it.
Please read the article further to understand how easy it is to use the whole crypto wallet for sending and receiving.
Three things to know before starting:
- Bitcoin can be stored, exchanged, and transferred by using a crypto wallet.
- You can create your Bitcoin wallet in a few easy steps.
- Crypto wallets have a unique identifier that contains a string of letters and numbers.
How to create a Bitcoin blockchain wallet?
Blockchain wallets allow users to store, manage, convert, and transfer their cryptocurrencies like BTC & ETH. It is a digital account that is available from any platform that supports cryptocurrencies.
Creating a crypto wallet is a straightforward process which we will explain using these five simple steps.
Step 1. Choose a platform
The first thing to do is to find a platform that supports exchanging of cryptocurrencies. There are many such platforms. However, you have to do thorough checks to determine if they are trustworthy.
You have to ensure that the platform uses the best robust security features to protect your funds. Furthermore, you also have to pay attention to the fees that the platform charges.
And finally, the platform’s reputation. The best way is to check sites where users review the platform based on security, service, and fees.
Step 2. Create an account
The platform will provide a login link where you populate your details and a strong password.
The details required are your legal name, an active email address, and a password. It would help if you chose a strong password since you want to avoid being vulnerable to hacking.
Step 3. Verify your identity
The platform will verify your identity when you sign up. To perform this, the platform follows the KYC policy. KYC stands for Know Your Client, a procedure that enables the exchange platform to verify the legal owner of the account.
They will require you to upload proof of identification and other supporting documentation to validate your information. This step is essential since you will be entrusting your money with them.
Once the platform verifies your information, you will log into the dashboard and start using their features like creating crypto wallets.
Step 4. Add payment method
Once your account verification is successful, you now have to add a method of payment. This step involves the payment methods you will use to fund your wallet.
Most crypto exchanges support credit/debit cards, wire transfers, and crypto transfers. Many other payment gateways exist; therefore, you will choose the one that suits you.
If you use credit/debit cards, you will have to upload an image of the front and back of the card, which displays your name on the card.
For wire transfers, you will have to populate your banking details as required by the platform.
Step 5. Create a wallet
Now that you have completed all the above steps, the next is to create the actual wallet. When you create a wallet, you have to choose what type of crypto your wallet will support. You cannot use a Bitcoin wallet to store or transfer Ethereum coins, for example.
The platform will have multiple coins it supports, such as Bitcoin, Ethereum, Ripple, etc., and you can choose the appropriate coin and create the wallet.
Each crypto wallet has its own unique address. We can think of it as a bank account number.
Bitcoin wallet addresses will start with the number 1 or 3, and it contains 26 to 34 characters, a combination of letters and numbers.
A BTC wallet address can look like this: 3XpBppRrCmFYP2zieEXWUJPchsZLXFpMWv
When you transfer crypto from one wallet to another, you will need the address to perform the transaction. To ensure the crypto goes to the rightful owner, you have to check you are using the correct wallet address.
Step 6. Fund your wallet
After creating the wallet, you can fund it by using the available payment methods. However, if you choose to finance with fiat currency (USD, EUR, GBP), you will convert it to cryptocurrency.
Once your funds appear in your wallet, it is now ready to transfer the crypto to another crypto coin. If you are transferring Bitcoin to another wallet, you should obtain the wallet’s BTC address. The same applies to transferring all the other cryptocurrencies.
Pros & cons
Crypto wallets are essential when you transact with cryptocurrencies. However, you need to understand the pros and cons of holding a crypto wallet.
|Worth to use||Worth to getaway|
Quick to set up
Crypto wallets are very quick to create and set up, and most platforms approve verification within a few hours.
Risk of hacking
The crypto industry has been victim to hacking, and if users are not vigilant, their wallets can be at risk.
When you send crypto via a Bitcoin wallet, the transactions occur very fast, making it a preferred payment method.
Transactions are irreversible
If you sent the crypto using the wrong wallet address, chances are you cannot retrieve your money. Crypto transactions are irreversible since the blockchain network is immutable.
On the go
You can use crypto wallets via mobile apps, making them easy to access, and you don’t have to login through the platform from a browser.
High transfer fees
Some platforms charge high transfer fees and require a minimum of crypto to allow you to perform the transaction.
Cryptocurrencies have changed the way we think of transacting today. Many online merchants are starting to accept Bitcoin as a payment method, which makes it so convenient.
Setting up a crypto wallet is not a difficult task. Users should take care of the security features to protect their accounts against malicious activities. Besides the risks involved, it offers convenience and allows for on the go transacting.