How To Set Up A Bitcoin Wallet

In this article, I am going to walk you through step by step how to set up a bitcoin wallet from starting out selecting the right bitcoin wallet, to installing the wallet on your computer, creating an account, connecting to the network and finally sending and receiving bitcoin.

First I will go through some of the basics for those that are not familiar with it all.

What is a Bitcoin?

Bitcoin is an alternative form of currency that was developed in 2009 by a figure going by the name of Satoshi Nakamoto and has since gathered a lot of mainstream popularity thanks to the features it provides.

Bitcoin works on a decentralized system, meaning there is no “bank” that prints it, but instead every user can download a Bitcoin blockchain, which contains all the Bitcoin transactions carried out in the history of its existence.

Bitcoin mining essentially refers to using your computer’s processing power to help validate and add transaction records to the blockchain, which is in return gets rewarded with small pieces of Bitcoin.

Since Bitcoin is a strictly electronic currency, there is specialized software which is used for storing them for later use. This is called Bitcoin Wallet, and there are numerous different wallets all made with a specific goal in mind.

Since we are looking for the most privacy and anonymity oriented wallet, there are several different options to choose from, all of which have some common features making their creation process somewhat similar.

Bitcoin Wallets to Choose From

As stated before there are numerous Bitcoin Wallets to choose from, but we will focus on the few that offer the most privacy.

It is important to note that if you plan to use Bitcoin for purchases over the Darknet, it is highly advisable that you create at least two separate wallets.

One to put your freshly bought Bitcoin in, which should never be accessed through Tor, and one for your Darknet interests, which will receive the coins once we tumble them, and should never be accessed WITHOUT Tor.

The first step to set up a Bitcoin wallet…

Bitcoin Wallets to Choose From

As stated before there are numerous Bitcoin Wallets to choose from, but we will focus on the few that offer the most privacy. It is important to note that if you plan to use Bitcoin for purchases over the Darknet, it is highly advisable that you create at least two separate wallets.

A Bitcoin Wallet to put your freshly bought Bitcoin in, which should never be accessed through Tor, and one for your Darknetmarket purchases, which will receive the coins once we tumble them, and should never be accessed WITHOUT Tor.

Bitcoin Core

Bitcoin Core is not just a Bitcoin Wallet; it is actually a complete Bitcoin client that makes up a major part of the network.

This being said it is significantly larger and more resource consuming than other Bitcoin Wallet which is used only for storing.

To set up Bitcoin Core one will have to download the entire Bitcoin transaction history, which at this point has close to 50GB of data.

Mycelium Bitcoin Wallet

Mycelium is one of the most popular Bitcoin Wallets for both Clearnet and Darknet use.

It is a Hierarchical Deterministic Bitcoin Wallet, which means that it uses a “master” seed to derive all future Bitcoin addresses. It also has a really easy-to-use system for creating backups of your Bitcoin Wallet and restoring data from said backups.

On top of that, you can even queue transactions without an internet connection which will be carried out once you connect to the internet.

While Mycelium is not the best choice for a DarknetBitcoin Wallet, it certainly beats other Clearnet alternatives by constantly staying up to date and providing new features.

mSIGNABitcoin Wallet

This is another popular Bitcoin Wallet which offers some unique features to its users. One of the main features that make mSIGNA stand out is the use of “Vault” files.

Vault files are encrypted files which use the extension .vault and are exclusively created and used by mSIGNA.

They contain all the data on accounts, keychains and transaction history which allows for an easy and hassle-free access to it.

The downside to this approach is the fact that all the data is stored in the same place which makes it somewhat susceptible to theft.

The downside to this approach is the fact that all the data is stored in the same place which makes it somewhat susceptible to theft.

Electrum Bitcoin Wallet with Tails OS

Electrum Bitcoin Wallet comes as a part of Tails OS which is widely considered the best option for a Darknet Bitcoin Wallet.

Using Electrum without Tails is not advisable since it shares our personal transaction data with a centralized server, if used over Tails OS, there is no issue even if transaction data is shared, as long as we do not connect to it without the use of Tor and Tails.

How to Create a Bitcoin Wallet

For this tutorial, we will use mSIGNA Bitcoin Wallet as an example.

mSIGNA website

    • The first thing we need to do is download mSIGNA by visiting this link: https://ciphrex.com/ and choosing the appropriate version from the menu located on the bottom right of the website based on our current OS.

instalation prompt

    • By clicking on the downloaded file, an installation wizard will start up which will guide you through the process of installation.

wizard

terms of use

instalation1

instalation2

instalation3

instalation4

    • After the installation is complete, the application should start up and prompt you to accept the terms of use. By clicking on “Yes,” you will gain access to the application.

terms of use2

    • After starting up for the first time, you will first need to create a .vault file.
    • This is done by choosing “New Vault” from the “File” menu.

new vault

      • You will then be asked to designate the location of your .vault file on your HDD. Any location will suffice as long as you know where it is.

Creating an Account

For the next step in setting up a bitcoin wallet, you will have to create an account, and there are 2 options for doing this.

  • Option #1 is to use the Account Creation Wizard, which is an easier option.account wizard
    • First, choose the name of your account.account creation with account wizard
    • If you want a simple account, leave the policy as 1 of 1.
    • If you wish to create a multi-signature account choose the number of signatures required to sign transactions on the left and the total number of keychains for this account on the right.
    • Next, you will be shown a string of random words, write these down and make sure not to lose or forget them as they are used to recover your account’s data.
    • Next, you will have to enter those words in the correct order.

After this is done successfully, your account will be created.

  • Option #2 is to create an account manually.account menu
    • First, create a new keychain by clicking on “New Keychain.” You will have to give a name to this new keychain.new keychain
    • Next, you will be shown a string of random words, write these down and make sure not to lose or forget them as they are used to recover your keychain.keychain backup
    • Next, you will have to enter those words in the correct order.notice
    • If you wish to use an account that is signed by this keychain on other devices, you will have to export the keychain data by right-clicking the keychain name in the menu and choosing “Export Private Keychain.”
    • After this click on “New Account” to open up manual account creation.
    • Give a name to your account.
    • From the menu chose the keychain you created and tick the box next to it.
    • Choose the minimum amount of signatures to sign a transaction.
    • Click “OK” and the account will be created.

Connecting toBitcoin Node

  • The next thing we will have to look into is connecting to the bitcoin node. This will be done automatically and if we already have an instance of Bitcoin-Qt running, no settings need to be tweaked. Bear in mind that Bitcoin-Qt requires around 80 GB of space on our hard drive and it is actually better to connect to a remote bitcoin node.
  • In case we do not have Bitcoin-Qt running we can manually change the settings so we connect to a remote node. This is done by clicking on the “Network” in the toolbar and selecting “Settings…” from the menu.
  • After this a window will pop out asking us to enter the IP address and the port number of the node we want to connect to. You can find a whole list of working Bitoin Nodes here.
  • After entering the data needed click on the “Connect” button and the icon in the bottom right part of the screen should turn into a rotating arrow in an orange circle. There should also be two numbers with “/” between them.
  • After we click “Connect” the number on the right side of the “/” sign should start to rise, after a while it will stop rising and the other number should start to rise. When both numbers reach the same value and the icon turns into a green circle it means that we have successfully connected to a remote node. In case we have trouble connecting to a remote node we should try turning off our antivirus and firewall and attempting again.

After creating our vault, our account and connecting to a bitcoin node, we are ready to send and receive funds to and from our wallet. Take note to use a small test transaction first to make sure that everything is running smoothly, before opting for a larger transaction.

Sending and Receiving Funds Using mSigna

      • To receive funds, select your account from the Accounts list and click “Receive.”
      • Add the name and the amount of funds and click “New Invoice.”
      • Under “Invoice Details” you will see “Address,” this is the address you need to type in to send funds to this account.
      • To send funds, again select your account from the Accounts list and click “Send.”
      • Add the address of the account you want to send the funds to, the amount of funds and the label for the transaction.request payment
      • Click “Save Unsigned.”send payment
      • The transaction will appear in the Transactions tab, right-click it and select “Signatures.”
      • Right-click the keychain and select “Add signature.”
      • Once the minimum requirement for the amount of signatures is met, you will have the option to send the transaction to the network by clicking “Send Transaction.”

 

Conclusion

There are several things to note when using Bitcoin. First, the fact that, while Bitcoin offers some anonymity there are still numerous ways to track who is using them. Therefore it is advisable to use Bitcoin tumblers in order to hide the trail that leads from the Bitcoins we are using to our personal information. Second, one should always have multiple Bitcoin Wallets used for different things and in case they wish to transfer funds from one Bitcoin Wallet to the other, tumbling Bitcoins is mandatory. One should also keep track of which Bitcoin Wallet they have designated for Darknet use so as

First, the fact that, while Bitcoin offers some anonymity there are still numerous ways to track who is using them. Therefore it is advisable to use Bitcoin tumblers in order to hide the trail that leads from the Bitcoins we are using to our personal information. Second, one should always have multiple Bitcoin Wallets used for different things and in case they wish to transfer funds from one Bitcoin Wallet to the other, tumbling Bitcoins is mandatory. One should also keep track of which Bitcoin Wallet they have designated for Darknet use so as

Second, one should always have multiple Bitcoin Wallets used for different things and in case they wish to transfer funds from one Bitcoin Wallet to the other, tumbling Bitcoins is mandatory. One should also keep track of which Bitcoin Wallet they have designated for Darknet use so as

One should also keep track of which Bitcoin Wallet they have designated for Darknet use so as not to access the darknet without the protection of Tor and a VPN.

These instructions when followed to a tee can help make tracking you down through your Bitcoin transactions very difficult.

We hope this post on how to set up a bitcoin wallet was helpful and hope you share it with others to make it easier for them.

4 / 5 (2 votes)