A Bitcoin wallet is a virtual account in the cyptocurrency system where one can send or receive money in the form of bitcoins. It allows one to do business, transfer and invest through bitcoins. Bitcoin was started in the year 2009 by Satoshi Nakamoto and since then it has dominated the cryptocurrency platform. This platform has provided an alternative to flat currencies, gold and silver coins to its users. The main feature that has promoted bitcoins is the fact that it is decentralized and payments are made through a private network of computers without being controlled or synchronized by a any central authority.
Reasons for Bitcoins.
- Bitcoins allows for user independence- Bitcoin wallets allows users to have independence with their bitcoins more than flat currencies do. Any user is allowed to use their money under their own control without an go-between authority like government or banks.
- Bitcoin wallets gives room for discretion- Bitcoin transactions are usually private in nature as one will never know about their transaction apart from the user. The user is the only one who knows unless they decide to publish their Bitcoin transaction to make it public. This is made possible since they are not connected with their personal identity hence cannot be easily traced back to him.
- Bitcoins allows users to send and receive payments from anyone in the network- This system allows peer-to-peer transactions where user send and receive payments from anywhere in the world without consent from any authority.
- It has helped to avoid banking fees- Bitcoins users are not subjected to the charge of fees in crycptocurrency transaction or the ones charged by banks. In bitcoins there is no need for the maintenance or minimum balance fees and other charges made by the bank.
- Bitcoins has incredibly low transaction fees for payments made internationally- Transfers made through bitcoins in foreign purchases usually has small transaction fees compared to banking transaction fees. This usually very advantageous for traveler when they want to purchase products while they are travelling.
- One can also do mobile payments- Bitcoin system allows one to make payments through their internet connected devices anywhere they have internet connection. This helps users as one does not have to go to the bank or a shop for one to buy a product.
- Bitcoin wallets are easily accessible- Bitcoin wallets is very much accessible as one only requires a smart phone or a computer with internet access for them to access their Bitcoins Wallet.
Process of creating a Bitcoin Wallet.
- One should take their internet connected device and open their browser. One should the go to Blockchain.com which is a wallet website.
- One will then be required to fill in their details in order to finish the sign up process. One will then provide the email and also have a strong and unique password.
- One should then click on “Continue” button to go on and one will then receive a mail with a confirmation link.
- One will then be required to keep Back up through the “Security Center”.
- One should then move to the left side on their device and tap on “Backup Phrase”. At this point, one is advised to take a print of their Recovery sheet and put down a 12-word recovery phrase somewhere safe.
- One is then required to link their mobile number and allow the 2FA to give you an additional layer to your security.
- One should then block the IP addresses from the TOR network.
- After completing the above process, one can then request for bitcoins in their account and you will then receive the cryptocurrency from others who already have accounts.
- One can even import a paper wallet to start trading with the account and receive bitcoins in the account.
- To start trading with the account, one needs to go to the dashboard and click the “Request” button to enable you access the address of their Bitcoin address.