In this step we’ll do the following:
- Learn the types of BTC wallets
- Create your own BTC wallet
- Put BitCoins to our wallet
- Cold wallets – disconnected from Internet
- Hot wallets – connected to Internet
It will take 5 minutes to read the step and about 15 minutes to do it. If you already have your BTC wallet with BTC in it, you can skip and jump to Step2
Types of BitCoin wallets
Basically there are two main types of BitCoin wallets:
Cold wallets have a very powerful advantage: your coins are stored on device that’s not connected to Internet. No one can steal your funds.
Any system can be hacked by a simple brute force attack (tries to guess your password) or using spyware software (that steals your password).
But when your wallet is lying in your safe it simply can’t be affected by anonymous malefactor.
If you’re going to invest serious amount in cryptocurrencies, I highly recommend to spend $100 on a cold wallet. Personally I’m using Trezor wallet: it has lots of positive reviews and costs $99.97. Also numerous members of my team are using Ledger Nano S that costs $84.86 – this one is also reliable and popular.
How to set up Trezor:
- Connect Trezor to your computer via USB
- Visit Trezor official website and install the extension for your browser. (For example I’m using a Chrome Extension
- Enter the security PIN that will be shown on your Trezor’s display
- Trezor will show you 12 random words – your wallet recovery phrase. Write down these words or just make a photo.
- Now go to receive tab in your browser. You will see an address similar to 1BoatSLRHtKNngkdXEeobR76b53LETtpyT. We’ll use this address to receive BitCoins to your wallet.
Hot wallets are connected to Internet what makes them more vulnerable to external attacks. But their advantage is that they are free. You can create your wallet in 1 minute after you decided you want to have one. If you want to test BitConnect lending with a small amount – I suggest you to start with a hot wallet.
There’re wallets for desktop, browser-based wallets and smartphone apps. I advice using apps because it’s handy: you basically have your wallet always in your pocket. I’m using Bread Wallet that’s available both for iOS and Android
iOS interface (newer design)
Android interface (a little older design)
Advantages of Bread Wallet:
- Very user friendly
- 360+ positive reviews on AppStore
- 260+ positive reviews on Google Play
How to set up:
- Download Bread app from AppStore or Android
- Set your security PIN – 6 digit number to unlock your wallet. Example – 123456.
- Write down 12 random words application shows you. This is your recovery phrase required to restore your wallet on another device.
- After this you’ll receive your unique address, smth like 1BoatSLRHtKNngkdXEeobR76b53LETtpyT. We’ll use it to receive BTC to your wallet.
- *Bonus step. Go to Security center. Add touch ID. This will increase the security level of your wallet.
So we’ve created our first BitCoin wallet. Good! Now let’s put BitCoins to it!
Put BitCoins to your BTC wallet
There is a number of ways to buy BitCoins. I prefer using LocalBitcoins, so let’s find out how it works.
How LocalBitcoins works?
LocalBitcoins.com is a platform, where you can exchange your Bitcoins for cash or another cryptocurrency safely and anonymously.
It functions in more than 8000 cities in 224 countries of the world.
It is an international system, that is ideal for you if you want to buy Bitcoins for fiat money with good exchange rate.
Here you will communicate with sellers. All the exchanges are trust-based. It is not a problem, because there is a rating system for buyers and sellers on LocalBitcoins!
After registration (2-factor authentication required), you’ll go to the quick buy page:
- Amount – put the amount of money you want to exchange for Bitcoins here.
- Currency – enter the currency (RUB, USD, UAH…) for which you want to buy Bitcoins here.
- Country – enter the name of the country you’re located in
- Payment method – Here you need to choose the way of payment for Bitcoins.
- Search. Click this button and system will find all the suitable variants for you. They will be sorted out from the most to less profitable ones.
- Buy. Click this button if you’re satisfied with the seller (his exchange rate, ranking and reviews).
Be careful, because the system guarantees nothing. Everything is based on the feedback and rating system. Green circle shows if the seller is online. It is important because you have to chat before the deal.
Here’s an example of seller you can trust:
This user has made 3000+ trades, has 100% feedback, he is online and he verified his account using 3 methods including ID scan and phone number
Every seller is also afraid of fraud. That’s why everybody has strict instructions , which should be followed.
The main advantage of this service is quick transfer of BTC. Bitcoins are already funded into service and you don’t need to wait.
You’ll see the money on your balance immediately.
After money’s on your balance, you can transfer it to your Bitcoin Wallet (one we’ve created earlier).
Copy the number of your wallet and paste it into recipient field.
Enter the amount in BitCoin, that you want to transfer (mind yourself it has a small commission).
Double check you pasted your BTC wallet number and click the continue button. 2-factor authentication is also required here. Open Google Authenticator app, enter your secret number and click send from wallet.
Now depending on blockchain workload it will take 2-24 hours until you receive BTC to your BTC wallet.
Congrats! Soon you’ll receive BTC to your wallet!
Now let’s jump to Step 2 to create our BitConnect account!