Category: 7.Beginner’s Guide to Bitcoin Wallets

What does it actually mean to “store crypto”? A popular misconception about crypto wallets is that they contain or actually store actual crypto. In Bitcoin’s case, this means that some people believe that Bitcoin wallets actually contain bitcoins. But this is false. Unlike a physical wallet in the real world which holds cash, a Bitcoin wallet does NOT actually hold your…

How do you receive bitcoins? In the previous lesson, you learned how to send bitcoins, now it’s time to learn how to receive them. Receiving bitcoin is an even simpler process than sending. (Just like receiving selfies is even simpler than sending them.) To receive bitcoin, you don’t have to do much. Most of the work is done by the sender.…

How do you send bitcoins? Fortunately, just like sending NSFW selfies, sending bitcoin is a pretty simple process. In order to send or receive bitcoins, you need a “wallet”. The exact process for sending bitcoins will depend on the type of Bitcoin wallet that you’re using, but the main thing you’ll need is the “‘address“‘…

What type of Bitcoin wallet should you use? Should you use a hot wallet or cold storage? A mobile wallet or a hardware wallet? It depends. The best Bitcoin wallet for you will depend on your preferences across three dimensions: Depending on your preferences, there are trade-offs. You can’t have it all. In general, a hot wallet is the most…

What is the purpose of using a Bitcoin wallet? Why is a crypto wallet needed anyway? In order to understand why Bitcoin wallets are needed, we need to look at the traditional approach of moving money between two people using….bank accounts. To keep track of each of their client’s money, a bank creates a ledger that keeps…

What is a seed phrase? In the early days of Bitcoin, a wallet only generated one private key, which meant there was also only one public key and one address. Nowadays, crypto wallets now give you the ability to generate an almost unlimited number of private keys from a “master private key“. This type of wallet is known as a “Hierarchical Deterministic wallet”,…

In order to send or receive bitcoins, you need to use a Bitcoin “wallet“. But unlike a wallet in the real world that actually holds your cash (and debit and credit cards), a Bitcoin wallet does NOT actually “hold” your bitcoins. Instead, a Bitcoin wallet is a hardware device or software program that interacts with Bitcoin’s blockchain by providing…