User Guide

How to use Bitcoin Wallet?

July 2, 2019

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How to use Bitcoin Wallet?

The main types of wallets for storing and using Bitcoin.

Every person who wants to start working with Bitcoin must understand how bitcoins can be safely and conveniently stored. Different Bitcoin wallet types have various advantages and disadvantages, the level of importance of which depends on how many BTC you have, what kind of computer/internet you have and how often you plan to perform transactions on the Bitcoin network. There are three main types of Bitcoin wallets:  

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Software Bitcoin wallets on centralized exchanges or websites like blockchain.com or coincola.com.

This is the easiest way to create a Bitcoin wallet because it does not require even a basic understanding of blockchain technology. You may not even know what a private key is, you can just use your login and password. If you lose control of your mail or just forget your mail or your password, you can restore wallet access by confirming your identity. The main disadvantage is that the private key is not under your direct control, and in the case of a successful hacker attack on the website, fraudulent actions from the website or the imposition of arrest on the website, your funds will not be available for you. In reality, this is very rare, if you use the exchanges with a good reputation.

Software Bitcoin wallets in which you manage yourself using a private key.

These wallets have an undeniable advantage because all bitcoins are solely under your control since you need to enter your private key transfer bitcoins. But it also causes a disadvantage – if the same hacker will take control of your software, the private key you entered can be intercepted and bitcoins stole. The most popular and reliable Software Bitcoin wallet is Bitcoin Core, which is developed by Bitcoin network core developers. The big disadvantage of this wallet is that to synchronize with the Bitcoin network you need to download the entire blockchain into your computer, Depending on the speed of your Internet, it may take several days or even weeks. And in the future, you have to constantly upload new blockchain data. When choosing such a wallet, you need to make sure that you have hundreds of gigabytes of free space on your hard disk drive.

Hardware Bitcoin wallets.

Hardware wallets are the most reliable option for storing bitcoins, because, firstly, only you have the private key, and secondly, this key is stored in a special device that an attacker cannot get into. For the entire existence of hardware wallets, there was only one case when a white hat hacker managed to get access to the wallet screen, but nobody never stole bitcoins from top hardware wallets like Trezor or Ledger. The only disadvantage of such wallets is that you have to pay for them. The cheapest Hardware Bitcoin wallet from reliable manufacturers costs about 60-70 USD plus a delivery fee.

How to get a Bitcoin wallet at CoinCola.

A Bitcoin wallet at CoinCola belongs to the first of the three wallet types mentioned above. It is really easy to get a wallet, you need only to register at CoinCola.com and your Bitcoin address will be generated automatically. You do not even need to memorize this address or write it down – when you enter CoinCola.com you will always see your Bitcoin address. However, you need to know that hackers often access accounts on various websites. It happens usually through your email, which can be hacked in various ways, for example, through your data on social networks. Therefore, before storing essential funds in Bitcoins on CoinCola or any other exchange you should do two things to make your money save: 1) register at CoinCola.com using an email that you have not used in other places, for example, on Facebook or Instagram 2) activate 2FA (Google Authenticator for example) and even in the case of hacking your mail or a password to an account on CoinCola.com, attackers could not withdraw your bitcoins.

Bitcoin OTC wallet on CoinCola.

When you register at CoinCola.com you will have two Bitcoin wallets: Bitcoin OTC wallet and Bitcoin exchange wallet. Bitcoin OTC wallet is used for OTC transactions. If you bought bitcoins OTC, they will be credited to this wallet. And if you sell bitcoins OTC, then with the start of the deal amount of bitcoins corresponding to the deal will be blocked in escrow from this wallet and then removed when you confirm receipt of funds for the sold bitcoins.

Bitcoin exchange wallet on CoinCola.

Bitcoins that you store on a Bitcoin exchange wallet can be used to create orders on the CoinCola exchange. All bitcoins purchased at the exchange will be stored in this wallet. For example, if you have only three bitcoins: one bitcoin on a Bitcoin OTC wallet and two bitcoins on a Bitcoin exchange wallet, then you can only sell two bitcoins on the stock exchange. If you want to sell all three bitcoins on the CoinCola `exchange, then you need to transfer one bitcoin from a Bitcoin OTC wallet to a Bitcoin exchange wallet and then sell all of your BTC. Transfers between Bitcoin OTC wallet and Bitcoin exchange wallet are executed instantly and without fees. If you want to keep your bitcoins at the hardware wallet, you can always deposit needed amount of bitcoins from it to the CoinCola Bitcoin exchange wallet or Bitcoin OTC wallet without any from CoinCola’s side.

 

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