Bitcoin might just be the most flexible cryptocurrency around. Transferring it only takes a few minutes, allowing you to buy products and services quickly. It’s also secure and offers high return potential.
But before you can start trading in this cryptocurrency, you’ll first need to create Bitcoin account. UK citizens and millions of worldwide users rely on it to complete their transactions, and this article will tell you how to set it up.
What Is a Bitcoin Account and How Do You Set It Up?
Bitcoin accounts are better known as wallets. They’re similar to digital bank accounts, enabling you to manage, send, and receive your currency.
Bitcoin wallets also store the encryption material that grants you access to transactions and public addresses. This private key is only meant for you, opening your wallet and enabling you to make transfers.
Now that the basics are out of the way, let’s see how you can create your Bitcoin wallet. There are several types you can use, but mobile wallets may be the simplest to install:
- Go to your Play Store or App store.
- Find and download your desired wallet.
- Install the app on your phone and complete the recovery phase, if necessary.
- Enter a strong password and add some Bitcoin to the wallet.
What Other Types of Bitcoin Wallet Are There?
One of the best things about Bitcoin is that you’re not restricted to just one wallet. Besides mobile solutions, you can also choose from the following types:
Web-Based Bitcoin Wallets
These wallets store your cryptocurrency through online third parties. You can access your funds and complete transactions using any device with an internet connection. Web-based wallets are often associated with crypto exchanges that let you store and trade currency in one place.
While convenient, these solutions can be risky. They require an internet connection, meaning they’re susceptible to hacking. Although this happens rarely, and most victims recover their lost funds through insurance, you should consider whether you can afford this risk.
In addition, crypto exchanges can sometimes shut down, resulting in a loss of coins.
Desktop Bitcoin Wallets
Desktop wallets can be downloaded onto your computer. They enable you to store cryptocurrency on a hard drive, making them more secure than mobile apps and web-based platforms. You don’t need to rely on third parties, but cyberattacks can happen if your PC is connected to the internet.
In a perfect world, storing Bitcoin on a desktop computer shouldn’t be problematic. However, this type of storage may not be ideal for holding a large amount of cryptocurrency.
First, you’ll need to verify that your software is 100% legitimate. There’s also a chance of wallet malfunctioning or corruption. Backup protocols provide some protection against loss of information in these scenarios, so be sure to follow them.
Another thing you should look for in desktop wallets is security add-ons. More specifically, you need multi-signature protocols and two-factor verification to enhance the security of your transactions.
Hardware wallets store your private key in a physical device. They’re more secure than other kinds of wallets since they hold your cryptocurrency in cold storage, away from the main network.
Setting up hardware wallets is as simple as downloading one from a trusted provider. Information about your holdings is stored on your hard drive, including any transactions in the Bitcoin system.
Again, the most significant benefit of hardware wallets is their security. Your private key is inaccessible to digital threats, minimizing the risk of data loss.
For even more peace of mind, be sure to follow recommended safety protocols. For instance, multi-factor authentication helps prevent cybercriminals from switching your recipient codes. You should also verify that the device wasn’t compromised during the installation or production processes.
Paper-based Bitcoin wallets require you to print a key (e.g., QR codes) on paper documents. This prevents hackers from accessing and stealing your password online, but you’ll still need to protect your physical document. Make sure to store it safely, away from moisture and potential fire hazards.
Choose Your Wallet and Launch Your Bitcoin Adventure
You shouldn’t go through a lot of trouble to create Bitcoin account UK users and cryptocurrency fans from other countries refer to it as a wallet, but the process remains the same. Once you’ve selected the preferred type and introduced robust security measures, you’ll be fully equipped for Bitcoin investments.