How To Open a Bitcoin Account Or Wallet?

If you got here then you are probably wondering: how to open a bitcoin account? However, we need to clarify something. Bitcoin is not stored in an account, but in a so-called digital wallet - just like other cryptocurrencies, by the way. In today's article we'll explain everything in detail for you! Check out how to open a Bitcoin account and which wallet to choose!

Bitcoin Account, or Actually Wallet 

A bitcoin account, or actually a wallet, is a tool for managing cryptocurrencies. It stores private and public keys that allow access to cryptocurrencies. The private key is secret and is used to authorize transactions (something like a password). The public key is public and allows others to send cryptocurrencies to our address (something like a bank account number).

We divide crypto wallets into different types: 

• Best for beginners: Exchange-based (e.g. Binance.com), 
• The most secure: Hardware-based (e.g Ledger or Trezor)
• Easy to use: Software-based (e.g. Metamask). 

An exchange wallet is simply a bitcoin account on a crypto exchange. It is convenient as you can start trading quickly. A hardware wallet, on the other hand, is a physical device that stores keys offline, increasing security. A software wallet is an app for a computer or smartphone. More about wallet types later in this article.

Wallets do not store cryptocurrencies physically. The funds are stored in the blockchain, and the wallet simply gives access to them. So the user has to take care of the security of the private keys himself. If not, he may lose his crypto forever,

A cryptocurrency wallet is a key component of the cryptocurrency market. After all, it provides secure management of funds and allows transactions to take place.

How To Create a Bitcoin Account For Beginners?

Almost every beginner starts with a cryptocurrency exchange. Such platforms, after all, allow you to immediately store, trade and use many other services at the same time. How to set up an account for Bitcoin on an exchange step by step? Let me explain with the example of Binance.com

Step 1: Go to the official website of the Binance.com exchange and click on the “Sign Up” button. Remember to get your Binance Referral ID bonus.

Step 2: Proceed through the account signing up process by confirming your phone number or email. Then go through account verification by sending Binance your documents scan.

Step 3: Once your account is verified, log in and go to the wallet tab. Here you will see all your assets – from this tab you can also deposit crypto or withdraw it to another Bitcoin account.

The Best Crypto Wallet – Which One To Choose?

So, which crypto wallet is the best? Where and how to open a bitcoin account? We take a closer look at the types of different crypto wallets!

Exchange Wallets

Exchange wallets are simply accounts at cryptocurrency exchanges. They are convenient for active traders who frequently trade cryptocurrencies. An example of an exchange wallet is the world’s largest cryptocurrency platform: Binance.com

Exchange wallets are less secure than other types of wallets. Exchanges can be the target of hacking attacks. What’s more, by creating an exchange Bitcoin account, you don’t get full control over your funds, as you don’t have private keys. So let’s summarise the advantages and disadvantages of this type of wallet.

Advantages:

• Ease of use
• Quick access to trading
• Technical support

Disadvantages:

• Low security
• Risk of hacking attacks
• Lack of full control over funds

An example of a Bitcoin account on the Binance exchange:

Hardware Wallets

Hardware wallets are physical devices similar to a flash drive. They are ideal for long-term investors. Examples of hardware wallets include Ledger Nano S, Trezor and KeepKey. Hardware wallets are very secure. Keys are stored offline, which minimises the risk of hacking attacks.

Advantages:

• High security
• Protection against online attacks
• Full control over funds

Disadvantages:

• Higher cost
• Need to have a physical device
• Need for additional management software

Software Wallets

Software wallets are apps for a computer or smartphone. They are suitable for everyday users. Examples of software wallets include Metamask, Electrum, Exodus and Mycelium. Software wallets are more secure than exchange wallets, but less secure than hardware wallets. This is because private keys are stored on the user’s device, which is connected to the Internet.

Advantages:

• Ease of use
• Quick access to funds
• Many additional features

Disadvantages:

• Average security
• Risk of malware attacks
• Dependence on device security

Each type of wallet has its own specific features. Choosing the right wallet depends on the needs of the investor and the level of security that is acceptable.

Bitcoin And Crypto Wallet – What To Watch Out For?

When using a crypto wallet, there are several things to watch out for. Here is a list of the most important tips for operating a Bitcoin account:

• Never keep too much money in an exchange wallet. Store only as much as you need at any given time there.
• Take care of your private key or seed phrase, if you lose it you will never get your funds back.
• When sending and receiving funds, always carefully check the address and network where you are sending funds. If you make a mistake, the transaction cannot be undone.

It’s also a good idea to use all available security features at the same time. We are talking about 2FA, setting a strong password, etc.

Remember!

If you have reached this point then you already know how to open a Bitcoin account. You also know that it is not really an account, but a wallet. Remember, when investing in cryptocurrencies you are your own bank. It is on you to take full responsibility for your investments!

FAQ – Bitcoin Account

What is a bitcoin wallet?

A bitcoin wallet is a special wallet that allows you to store, send and receive cryptocurrency.

How to set up a bitcoin account?

To set up a bitcoin account, you simply need to register on an exchange or follow step-by-step instructions in another hardware or software wallet.

Is an account for bitcoin free?

Yes, a wallet for bitcoin is free. However, we will have to pay network fees to miners or validators of the blockchain in question for sending cryptocurrencies.

This article is sponsored content and does not reflect the opinion of the CryptoDnes team. The material does not constitute investment advice and is provided by the respective company.

Alexander Stefanov