Information of Bitcoin Wallets - Software Wallets

Discussion in 'Cryptocurrency' started by Naruto6pathsbro, Jun 23, 2017.




  1. Naruto6pathsbro

    Naruto6pathsbro New Member

    If you are Ready to start using Bitcoin then Let’s go over the necessary steps under the assumption that you have a basic understanding of what Bitcoin is and how it works.

    The first step is getting a Bitcoin wallet so you can receive and send bitcoins.

    If you don’t know what a wallet is yet, get to know about it in the possible questions topic by @Asadullah here - http://eyefakeid.com/threads/possible-questions-regarding-bitcoin-btc.9/ -

    Types of Wallet

    There 3 main types of Bitcoin wallets available, each with their own advantages and disadvantages:

    • Software Wallets store your bitcoins on your device and allow for easy spending and receiving, but can be susceptible to loss if your wallet is not backed up or your device is compromised by hackers.
    • Hosted Wallets are run by 3rd party companies, and while their browser and mobile app based wallets are easy to use, you must trust both the company and their platform to keep your bitcoins safe.
    • Physical Wallets keep funds protected by storing them offline on a physical medium like paper. It’s easy to receive bitcoins with a physical wallet, but to spend them, you must import them into a software or hosted wallet connected to the internet.

    Now its upto you what type of wallet you choose. what type of wallet you think is usefull for you.. Your choice! In this topic, you are going to learn about software wallets only.


    You are not limited to a single type of wallet. you are free to have as many wallets as you want. A practical approach that balances convenience and security is to have 2 separate wallets, similar to a checking account and a savings account. The checking account functions as an online “hot” wallet for spending and receiving, and would typically be either a software wallet or hosted wallet The savings account wallet would be kept offline as a “cold” wallet and used for mostly receiving (but sometime spending) bitcoins.

    Important: keep in mind if your wallet is ever lost or stolen, your bitcoins are gone forever. So keep your wallet secret and safe.

    Software Wallets

    Electrum - Lightweight Bitcoin Client


    Website: https://electrum.org

    Download: https://electrum.org/#download

    Install guide: http://bitzuma.com/posts/a-beginners-guide-to-the-electrum-bitcoin-wallet/

    Platforms: Desktop, mobile.

    Information: A thin client featuring deterministic addresses, cold storage, and wallet recovery from a seed passphrase.

    Advantages:
    • Quick install and setup time, good for beginners.
    • No need to ever backup wallet file, can restore wallet from seed passphrase.
    • Multiple advanced features such as deterministic addresses and cold storage.

    Disadvantages:
    • Interface is focused on utility, not aesthetics.

    Type: Thin Client

    Setup Time: 5 minutes.


    MultiBit - Secure, lightweight, international bitcoin wallet

    Website: https://multibit.org/

    Download: https://multibit.org/download.html

    Install Guide:
    http://blog.quickbitcoin.co.uk/sett...ith-multibit/#step1downloadandinstallmultibit

    Platforms: Desktop

    Information: MultiBit is a secure, lightweight, international Bitcoin wallet for Windows, MacOS and Linux — multibit.org

    Advantages:
    • Quick install and setup time, good for beginners.
    • Support for multiple wallets.
    • Displays balance in national currency based on exchange rates

    Disadvantages:
    • Interface is focused on utility, not aesthetics.
    • Wallet file must be periodically backed up as new receiving addresses are created.
    • Automatic wallet file backups need to be configured to exist on a separate medium or device.

    Type: thin client

    Setup Time: 5 minutes

    Bitcoin Core - The Original Desktop Client

    Website: https://bitcoin.org/en/

    Download: https://bitcoin.org/en/download

    Install Guide: https://en.bitcoin.it/wiki/Help:Installing_Bitcoin_Core

    Platforms: Desktop

    Information: The original desktop client maintained by the core Bitcoin Developers

    Advantages:
    • Downloads full block chain, no need to trust 3rd party SPV servers.
    • Original Bitcoin client software maintained by full-time Bitcoin core developers.
    Disadvantages:
    • Can take a few days to initially download and sync the blockchain.
    • Requires at least 16GB of free space for blockchain storage, with this requirement growing significantly over time.
    • Compared to thin clients, takes longer to synchronize incoming transactions.
    • Wallet file must be periodically backed up (at least every 100 transactions).
    Type: full client

    Setup Time: 1-3 days (to download the blockchain)

    Armony - Taking Bitcoin Security and Usability to the next level

    Website: https://www.bitcoinarmory.com/

    Download: https://www.bitcoinarmory.com/download/

    Install Guide:

    Platforms: Desktop

    Information: A full client providing a high level of security via offline wallets and many advanced features.

    Advantages:
    • 1 time paper backups and fragmented paper backups.
    • Spend funds kept in cold storage.
    • Deterministic addresses: good for merchants that need to automate address creation.
    Disadvantages:
    • Requires Bitcoin-Qt as a dependency.
    • May require up to 6GB of RAM to operate.
    Type: full client

    Setup Time: 1-3 days
    (to download block chain)

    Mycelium - ad-hoc economy

    Website: https://mycelium.com/

    Download: https://wallet.mycelium.com/contact.html

    Install Guide: https://wemovecoins.com/mycelium-tutorial/

    Platforms: Mobile

    Information: Thin client for Android with many features such as encrypted PDF backups and the ability to import and spend from paper wallets.

    Advantages:
    • Attractive UI with a focus on ease-of-use.
    • Multiple advanced features like encrypted private key export.
    • Watch only addresses and private key import for spending funds in cold storage.
    • Ability to find other people to trade bitcoins with.
    Disadvantages:
    • Wallet file must be periodically backed up as new receiving addresses are created.
    Type: thin client

    Setup Time: 5 minutes

    Bitcoin Wallet For Android - Bitcoin Wallet App for your Android device


    Website: https://github.com/bitcoin-wallet/bitcoin-wallet

    Download: https://github.com/bitcoin-wallet/bitcoin-wallet

    Install Guide:

    Platforms: Mobile

    Information: “Bitcoin Wallet is the first mobile Bitcoin app, and arguably also the most secure!” — Bitcoin Wallet on Google Play Store

    Advantages:
    • Displays balance in national currency based on exchange rates.
    Disadvantages:
    • Unable to disconnect from network when app is not in use, which can drain battery.
    • Wallet file must be periodically backed up as new receiving addresses are created.
    • Lacks ability to import/export private keys.
    Type: thin client

    Setup Time: 5 minutes

    Things to know about sofwarea wallet

    Software wallets store your funds directly on your device in the form of a wallet file (usually named wallet.dat). It contains the private keys that allow you to prove ownership of your bitcoins, and spend them. If your wallet file is ever lost, corrupted, inaccessible to you, or obtained by a thief, your bitcoins will be gone forever.

    If you’ve installed any of the software above, follow the recommended tips below to protect any bitcoins you currently have, or will receive in the future.

    1. Make backups of your wallet file: software wallets also allow you to backup or export your wallet file/private keys. This is essential: backing up your wallet file to another device or a paper wallet protects against the event of a hard drive failure or loss of your device. It’s best to make multiple backups and store them in different places; for example, backing up your wallet file to multiple USB drives and putting one in a safe deposit box, sending another to a trusted friend or family member, and so on. Backups can also be encrypted for an additional layer of security.

      Note: if you’re using Electrum, you do not need to manually backup your wallet file since you can restore it using your seed phrase. Just make sure to keep your seed phrase safe and secure.

      Note: if you’re using Multibit or Bitcoin-Qt, you’ll need to backup your wallet file after every 100 spend or receive transactions. These wallets pre-generate 100 hidden change addresses that are used to send remainder amounts. If not backed up periodically, the private keys for those change addresses might not be available when you restore from your backup.

    2. Encrypt your wallet file: all of the software wallets above have the ability to securely encrypt your wallet file (a.k.a. private keys) with a passphrase. Encrypting your wallet file adds an extra layer of protection. In the event your computer is hacked, stolen, or confiscated, your bitcoins cannot be spent without your passphrase. Make sure to choose a sufficiently strong passphrase that you won’t forget. If you choose to write down your passphrase, store it in a safe location. But be warned: if the passphrase is ever lost or forgotten, you will lose all of your bitcoins in the wallet (this has happened to many people in the past).

     
  2. wob4j539689l2

    wob4j539689l2 New Member

    thanks alot for such a detailed guide regarding bitcoins wallet. It guided me to the right start. Easy to understand with isntallation guide and all the required things to know! How sweet of you.

    I would also like to know about physical as well as hosted wallets, will you help me explaining this ?
     
  3. tony_t

    tony_t New Member

    Pretty much neatly and clearly explained guide towards wallets. I was to create one but you made it already. Good work, Waiting for your next guide to physical and hosted wallets. ;)
     
  4. Naruto6pathsbro

    Naruto6pathsbro New Member

    TY.

    I would come up with them also for sure. I'll be updating my topic time to time. Will let you know when i post about hosted and physical wallets.

    you are free to contribute.
     
  5. Zaroon

    Zaroon New Member

    I can make a guess that how much would have it taken collecting that much information about wallets. Nice effort. So you are going to put a guide of physical and hosted wallets also right ? waiting for their release.
     
  6. Naruto6pathsbro

    Naruto6pathsbro New Member

    you have guessed right. I'll be posting about physical and hosted wallets soon.
     
  7. SheraTheBobm

    SheraTheBobm New Member

    I am usinng Electrum since the beginning. I have also got one hosted wallet and one physical wallet. though to have them both also as they are free. I noticed that you have written about all the software wallets. Do you work in any software wallet provding company ? or have you made you own wallet by case?
     
  8. wob4j539689l2

    wob4j539689l2 New Member

    oh wow. I am waiting for the next guide!! thanks!!
     

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