# How to SetUp BTC account - Create Bitcoin wallet
## What is a bitcoin wallet?
Now it's easier than ever to buy, sell and trade Bitcoin (BTC). After acquiring BTC, the next step is to ensure that it is stored in a safe place. Perhaps you are wondering how to store Bitcoin?

BTC is a digital currency that is stored in an electronic wallet that is accessed using a private key. However, you don't have to do this directly. A wallet app automatically uses a private key to sign outgoing transactions and generate wallet addresses for you.


* A bitcoin wallet is a digital wallet that allows you to send and receive bitcoins. It's like having a physical wallet. So what is a bitcoin wallet good for? Rather than holding physical money, the wallet stores the cryptographic information needed to access Bitcoin addresses and send transactions. Other cryptocurrencies may be stored in some bitcoin wallets.
* The device containing your bitcoin wallet stores the private key, not the coins themselves. Your coins are stored on the Bitcoin blockchain and your private key is needed to authorize transfers of those coins to someone else's wallet.
* Several different forms of bitcoin wallets meet different requirements and vary in terms of security, convenience, accessibility and more. So how do you choose a bitcoin wallet?
* There are two crucial steps to choosing the best bitcoin wallet for you. First you need to decide what type of crypto wallet you need and consider the individual wallets to find out which is best for you.
* For example, full-node wallets cater to decentralization and support the BTC network, and there are Bitcoin mobile wallets that offer built-in cryptocurrency exchanges and convenient Quick Response (QR) code scanners, among other types of functionality, depending on the wallet you use.
* It's important to make sure the wallet you choose is compatible with the currencies you store and meets your specific security and usability needs. This article aims to guide its readers in the acquisition and use of bitcoin wallets as well as the secure storage of bitcoin.

## How does a bitcoin wallet work?
To send and receive Bitcoin, cryptographic key pairs are used. A key pair is made up of a private key and a corresponding public key. Sending Bitcoin requires the use of private keys which must be kept secret. Receiving Bitcoin requires public keys which can be shared with anyone. Public keys are created by deriving a private key.
* A seed is generated when you create your bitcoin wallet. Mnemonic phrases are used to display seeds as a succession of words. This seed will be used to generate every bitcoin key you will need to transmit and receive bitcoin.
* This design is called a hierarchical deterministic (HD) framework and it is an industry standard for creating and administering Bitcoin keys. When you want to accept Bitcoin, most wallets automatically generate new public keys.
* The issue of public key or address reuse is no longer an issue. Anyone could easily track your entire payment history if you use the same public key every time you receive Bitcoin. Treating keys as one-time tokens greatly increases a user's privacy. A user can always restore their wallet as long as they know their recovery seed, which is often a 12 or 24 word list initialized with their wallet.
* So how much does a bitcoin wallet cost? If you only store Bitcoins in the wallet, it costs nothing to use a Bitcoin wallet. If you try to make a transaction, however, the owner of the exchange or device that hosts your wallet will charge you different fees, depending on what you're trying to do.
* A wallet can cost anything to $200 or more. You will most likely pay a flat fee of a few dollars or a percentage of the total transaction value if you use a wallet as part of an exchange.

## How to set up a bitcoin wallet?
* To set up a software wallet for Bitcoin, install a free software wallet client or application. For example, download desktop software wallets from their websites and follow the on-screen instructions to install them.
* Additionally, you can sign up for a Coinbase account to set up your Bitcoin web wallet. On the other hand, if you do not want to give your BTC wallet to a third party, buy a hardware wallet from its manufacturer. Because each wallet is unique, fitting them requires following the manufacturer's instructions.

### Physical Bitcoin
Bitcoin physical coins tend to be preloaded with a fixed amount of BTC with the intention that its value cannot be spent while the private key remains hidden. This is usually achieved by using a tamper evident seal.

* The first of its kind, Bitbill, was shaped like a credit card, but most of the alternatives that followed were shaped like round medals. Mike Cadwell, a cryptocurrency enthusiast nicknamed "Casascius", created the first popular physical Bitcoin Casascius in 2011.
* The private keys were hidden under a peelable hologram and when removed left a tamper-evident mark. Once redeemed, the coin lost its numerical value. Since then, there have been several new coin makers and some companies are offering preloaded cards that contain a specified amount of crypto.
* Physical bitcoin is now primarily used as a collectible due to the inherent limitations of physical currency. One of Bitcoin's main value propositions is to provide seamless transfers anywhere in the world – physical coins make this impractical.

### Bank
Many banks stifle Bitcoin-related activities, including but not limited to wire transfers to cryptocurrency exchanges. Banks generally cite money laundering as the reason for choosing not to offer this service, although they are encouraged to remove it to protect their business model. This is because Bitcoin is designed to reduce or eliminate the need for custodians such as banks.
* In recent years, conventional financial institutions, such as banks, have begun to express interest in not only developing their cryptocurrencies, but also providing custodial services for existing cryptocurrencies such as Bitcoin. Regulators are also taking steps to allow banks to provide cryptocurrency custody services.
* Banking for cryptocurrency could be considered redundant because Bitcoin stores coins and wallet information securely on its blockchain. Bitcoin also offers the ability to transact internationally without the need for bank approval or minimum balance fees. Nonetheless, banks have tried to stay relevant as cryptocurrency grows.
* There are also regulated cryptocurrency banks that can hold Bitcoin. They offer bank-like protections such as account monitoring and can intervene if suspicious activity is detected. These services also offer the ability to sell your cryptocurrency and withdraw to a conventional bank account.
* These services are useful, especially if you are not holding cryptocurrency long term. Their similarities to banks don't end there, however, they can freeze your account or your funds could be seized. You would also be subject to withdrawal limits, know-your-customer (KYC) requirements, and monitoring, even though the overall experience of crypto native banks is more decentralized than that of the traditional banking system. Furthermore, there are only a handful of these banks that operate in a fully regulated manner.

## Bitcoin wallets and security
**The various security risks associated with Bitcoin wallets are:**

Now the key question arises: is the bitcoin wallet safe? The most obvious answer is yes. But it all depends on the security approach chosen by the user. Since cryptocurrencies are high-value targets for hackers, wallet security is critical and users should be aware of the following key points:

## Ways to protect your Bitcoin from thieves

## How to withdraw your bitcoin wallet?
* You cannot convert Bitcoin to cash whenever you want, but you can sell your BTC anonymously on the blockchain for fiat currency of your choice. A cryptocurrency exchange can handle the transaction and find a buyer on your behalf, allowing you to quickly turn the value of your Bitcoin into cash.
* Restrictions and timelines for transferring your fiat currency to your bank account vary by wallet, but most can be completed within one to three days after the Bitcoin sale ends.

## What is the best way to store Bitcoin?
There are many ways to store Bitcoin, but the best way is up to your discretion. A flash drive wallet is ideal for casual investors who want to protect their Bitcoin or cryptocurrencies from theft.

* You can also store BTC on a MetaMask wallet by downloading the Ethereum Mist wallet from the MetaMask website using the Open browser. After clicking "Connect with Metamask", select "Use ETH Wallet". Then under "ETH Wallets" you can access your BTC.
* Trezor and Ledger wallets (Bitcoin cold wallets) also support Bitcoin and keep it offline on real USB type devices. Binance and Coinbase wallets are alternatives to the choices mentioned above if you want to allow third parties to hold your private keys.

## How to set up a bitcoin wallet?
There are many bitcoin wallets, and all of them differ in their features. Mobile software wallets are great for everyday use, while desktop software wallets strike an excellent balance between convenience and security. Lightweight web wallets are the best choice for fast online transactions. Cold crypto hardware wallets like Ledger or Trezor are best for long-term bitcoin storage. However, unlike other options, hardware wallets are not free and cost $50 or more.

Let's take a closer look at these three ways to set up a Bitcoin wallet.

**How to set up a bitcoin wallet on your mobile phone? Source: Pixabay.**
### 1.Set up a Bitcoin software wallet
The easiest way to get a bitcoin wallet is to download and install a free software wallet app or client. A software wallet is a program that stores private and public keys and interacts with the blockchain to allow users to send and receive digital currency and monitor their balance. There are two types of software wallets - mobile and desktop.

Mobile software wallets are lightweight bitcoin clients that allow you to carry your bitcoins anywhere. This can be extremely handy at times. To set it up, you need to download a Bitcoin wallet of your choice. There are plenty of them in the App Store, but here are a few you can trust:

* Mycellium
* Bread Wallet (BRD)
* bitcoin wallet
* Electrum
* Samurai
Mobile bitcoin wallet. Source: Pixabay, Cryptonews.

Desktop software wallets have more functions and are generally considered more secure than mobile wallets, but they are also heavier and more difficult to use.

**The most popular desktop wallets include:**

* bitcoin heart
* Arsenal
* Electrum
* Wasabi
* Green address

Download them from their respective websites and install them following the instructions provided - each wallet is slightly different from the others.

However, it is not recommended to keep all your bitcoin holdings in software wallets only, unless you really trust your cybersecurity skills and are 100% sure that no one can break into your devices.

Desktop bitcoin wallet. Source: Wikipedia Commons.

### 2. Set up a bitcoin web wallet
Another easy way to open a bitcoin wallet is to use a web service. Web wallets store your private keys online on a server controlled by a group of administrators. Some bitcoin web wallets, like Coinbase, easily link your mobile and software wallets. You can access this wallet anywhere you have an internet connection, making it a popular and convenient choice.

However, be aware that the website is responsible for your private keys and can take your bitcoin out of your control at any time, which is why web wallets are good for storing only limited amounts of bitcoin. Although there are only a few instances where web wallet service providers had malicious intent, web wallet service providers are very attractive to hackers, which greatly increases the risk of security breaches.

**Popular bitcoin web wallets include:**

* Coinbase
* Blockchain.info
* BTC.com
* Rahakott
* BitGo

### 3. Set up a bitcoin hardware wallet
Finally, we have bitcoin hardware wallets, which are considered the safest way to store your bitcoins for the long term.

* Bitcoin Nano Ledger S hardware wallet. Source: Marko Verch / Flickr.
* Hardware wallets are physical devices that hold private keys electronically and facilitate transactions. These wallets can be taken with you and are not dependent on keeping funds in the hands of a third party. However, you have to buy them. They start from $50, so in most cases it only makes sense to buy one if you plan to store $1,000 or more in bitcoins.