Satoshi Nakamoto once created the first wallet for working with Bitcoin – Bitcoin-Qt. A little time has passed, the popularity of cryptographic currency has grown, but, as before, you can use the wallet from the creator of Bitcoin. After the updates, the wallet gained new options and is now known as Bitcoin Core, still remaining the main wallet.
Later in the article we will look at how to use Bitcoin Core and what settings you need to change.
Bitcoin Core wallet security level
This service is known for providing users with an increased level of privacy and security.
Also, each user has the right to choose additional security measures to protect their funds as much as possible.
The wallet is highly confidential for accepting transactions. Since the terminal uploads the entire transaction history to the network, the software can find through the data the necessary information regarding the amount of the payment. Working with this wallet, the user receives complete confidentiality of incoming transactions.
When sending Bitcoin, you need to provide information on the public blockchain. The program transmits data through a large peer-to-peer network, thereby complicating the tracking process.
Compatible with Thor . The wallet works with an anonymous service that is used to hide the IP address. As a result, the level of difficulty in finding the real username with cryptocurrency transactions increases.
Decentralized peer-to-peer network . When a user launches a wallet, he is connected to a large network of other users who work with him. A decentralized process does not require verification by a centralized entity to obtain information about who is connected to the network.
What is Bitcoin?
If you've been in a coma for the last 10 years, here's a quick recap: Bitcoin is a digital currency used to make transactions online. It is decentralized, does not depend on banks and, roughly speaking, belongs to the Internet community, allowing you to make any kind of money transfers, in any volume and throughout the planet.
Pros of currency
The monetary assets are yours, without any “buts”. No one can track your transactions and understand exactly how you use your money. No one can freeze your account or complain about over-holding your finances. Everything is extremely anonymous and safe. Transactions are controlled automatically by the global mechanisms of the blockchain network (a large-scale data storage and processing system).
Flaws
Cryptocurrency exchange is subject to commission, and it is still difficult to buy anything with it. And although money is protected from cunning banks and equally cunning scammers, it is not yet protected from hackers. Stealing a crypto wallet is very different from hacking a bank account. You won’t be able to contact the police, and they won’t help. But, to be honest, it doesn’t often help with stealing money from a bank account either.
Register Bitcoin Core
How to create a Bitcoin Core wallet? First you need to register. Go to the official website https://bitcoin.org/ru/download, after which you can download the wallet and install it on your PC.
Before you start downloading, you will need to select an OS.
Downloading Bitcoin Core is quite simple, but the issue regarding installation via Ubuntu deserves special attention.
You need to use the official PPA portal, where the user adds a repository: $ sudo add-apt-repository ppa:bitcoin/bitcoin $ sudo apt update
After this you will need to install the package: $ sudo apt install bitcoin-qt
Upon completion of the client installation, the main menu will open in front of the user, from it you will need to launch the program and you can begin registering the wallet.
13 MB is the size of the installation file, it will download in a couple of seconds, then a simple process of installing the program is carried out. You need to click on Next.
How to run Bitcoin Core? After the installation has been completed, you will need to select the hard drive and folder where exactly the entire blockchain will be downloaded. It is recommended to choose a disk with enough space, since the blocks are quite impressive in size. You also need to remember that they will increase in size.
Now comes the moment of synchronization. So, this process is considered the most terrible, since it lasts quite a long time.
Users on the network quite often ask the question, how to speed up Bitcoin Core synchronization? The answer is no. Indeed, it is impossible to avoid the first long synchronization, but it only needs to be experienced once. Next everything will be much faster.
At the start, the system may provide information that you need to wait up to 2 weeks, months or even a year, but gradually the speed will increase, and after half an hour the blockchain load will decrease to 1-3 days. The download speed is slow and does not use all the capabilities of your Internet. This results in a long loading time.
At the time of synchronization, the computer does not need to be running without interruption. You can close the program, synchronization will resume at the moment it was turned on where it stopped. But, during this process or when working with the client, the PC cannot be turned off; the authors of the program indicate that this may cause data damage.
Installation on PC
Installation of bitcoin core is carried out only on a computer with the appropriate functionality. The requirements are:
- The hard drive must have 200 GB of consolidated space. Don’t forget that you will also need disk space for free blocks of the chain, and this is at least another 100-200 MB per day.
- Installation is possible on one of the following OS: Linux, ARM, Windows (7,8,10), Mac OS X.
- The amount of RAM is above 1 GB.
If your Internet connection speed is low, downloading the software may take more than 3 days. Be prepared to download large amounts of information.
To download, select the desired OS and download the installation file. The procedure is available in Russian and free of charge; we advise you not to use third-party resources. Download the BTC core wallet only from the official website.
The file is approximately 15 MB. After downloading, the installation process will begin, all you need to do is click the “ NEXT ” button.
Then specify the hard drive to load the chain links. You need to choose the one with more space, otherwise there will be problems with data transfer.
Then the bitcoine core synchronization will begin. This is the process of uploading data and adding your computer to the general registry. The process is long (about 2-3 days), so be patient. Synchronization does not require constant PC operation. The process resumes automatically when you open the program. Downloaded data is not lost.
The synchronization process does not depend on the speed of the Internet connection, so it cannot be adjusted. This is a one-time procedure that you need to wait out. The time remaining until the end of synchronization will be displayed at the bottom of the window. At the very beginning it will be too much (weeks, months), so don’t be alarmed.
A weak PC will slow down when working with other applications during synchronization. The hard drive takes on the main load, so working with “heavy” programs will be almost impossible.
How to reduce the size of your Bitcoin Core wallet (instructions)
So, it was previously said that the blockchain database takes up a lot of space on a PC. Therefore, the question arises, is it possible to reduce the size of the Bitcoin Core wallet? Yes it is possible.
But, despite this, all block synchronization has to be completed. Because the volume of downloaded data is not reduced, but only the amount of required disk space is reduced.
How to install Bitcoin Core on an external drive in compressed form? To do this, you need to follow the instructions below:
- Right-click on the “Bitcoin Core” desktop shortcut, then go to properties.
- In the “Object” field, you need to add -prune=551 to the end and click on “apply”.
As a result, it turned out to reduce the space from 145 GB to 3 GB.
FAQ
What is Bitcoin Core?
This is the first wallet for storing, receiving, sending Bitcoin cryptocurrency.
Is Bitcoin Core secure?
The wallet is considered the most secure of all software storages. But the safety of funds also depends on how well the user follows key security rules.
Is it possible to regulate the commission when sending BTC?
Yes.
Who controls the service?
This is a free project with open source code.
What measures are in place to control confidentiality?
Connection via the Tor network, a complete autonomous Bitcoin node.
Does Bitcoin Core support additional features such as purchasing with fiat?
No, just classic Bitcoin features.
What platforms does the application work on?
On computers running Windows, macOS, Linux. Distributed free of charge.
Preparing for work
Installing Bitcoin Core will not take much time and there are no difficulties in this process. In general, working with the wallet is also quite simple, since it contains all the necessary functions.
Next, we will look at how to use Bitcoin Core, and what nuances should be kept in mind when setting up the program.
Pay attention to the screenshot above, under No. 1 the settings section is marked. The user does not need all the settings; first, you can try to enable input management, as well as set the block explorer domain used to display ongoing transactions.
Read more about the available functions in more detail:
- Input management. Each time a transfer is made, a new address will be created for the user. This option allows you to choose yourself from which address the transfers will be made. You can also see the balance for each address.
- Having considered the wallet, you should take care of security; for this you need to come up with a password.
- Encryption. This is done in the “Settings” section, where you need to select the “Encrypt wallet” option. In the open window you need to enter a password. Don't forget that it should be challenging, but at the same time it is important to remember it.
It is impossible to recover your password if you lose it! In this case, access to finance will be lost.
- Backup copy. The password is of no use if the wallet files are lost. Therefore, you need to save a backup copy of Bitcoin Core wallet.dat - this is the name of this file located in the folder with the basic data. To quickly find the desired item, you will need to go to the “File” tab, and then click on “Back up your wallet.”
A window opens in front of the user where he needs to specify the file and the location where exactly it will be saved. More on this below.
Where and how to store digital money?
Although cryptocurrency differs in many aspects from the dollars and rubles we are used to, it also needs to be stored somewhere. The difference will be that traditional currencies will be in the bank (some in a five-liter box, others in Sberbank), while crypto lives in specialized software wallets. Such wallets allow you to make transfers, store money, transfer them from device to device, etc. In general, everything is just like in “life”. Except that the interface of such a wallet will be less attractive than the interface of modern fintech applications, and you will often have to work with it using only a PC.
Bitcoin Core Backup
It is important that the user creates a backup copy of the wallet; the optimal solution is to make up to 2-3 copies at once. You can choose different storage locations, it could be a flash drive or a portable hard drive.
It must be said that after installation and once the wallet synchronization is complete, you do not need to do this. It is recommended to create a backup copy, only then will active use of the wallet begin.
Backup is a way to protect your funds from system failures of the PC itself, from non-working hard drives, thanks to which you can easily restore Bitcoin Core.
To do this, you just need to copy the wallet backup to the folder with the database. Such copies must be made consistently so that all corrections are present in them.
The optimal solution is to make a copy of the database itself from time to time if it is possible to store more than 122 GB. This will allow you to work without problems on another PC if the previously working computer does not function or there is no access to it. This will be a lifesaver if the OS has been reinstalled or all disks are formatted.
Safety
You've figured out a few settings, what next? Of course, before you start, you need to take care of security and first of all, be sure to set a wallet password.
Encryption
This is done in the “ Settings ” section, where you should select the “ Encrypt wallet ” function. In the window that opens, you will be asked to enter your password and repeat it. This can be any set of characters longer than 10 characters or a set of words (at least 8).
It goes without saying that if you want to store bitcoins on your computer and have access to them, then the password should be set as complex as possible and stored securely, preferably in several different places at once.
Attention! Losing the specified password will result in you losing access to your money and it is impossible to recover it .
Bitcoin Cold Storage
Let's consider a function that allows you to store bitcoins in a place that does not require a network connection. This is very easy to do, and as a result, the user increases the level of reliability and security of the cryptocurrency storage.
You need to do the following:
- Open the “Receive” tab, then you need to generate a couple of addresses on your PC and write them down.
- Backup copies of the dat file are made and transferred to a flash drive or external hard drive.
- dat is deleted from the PC.
Create or download a wallet
If you have not yet had a Bitcoin Core wallet, then you must create a new one. Otherwise, it is possible to download the data using the wallet.dat .
Click “Create a new wallet”, come up with any name.
What do the checkmarks in this window mean:
- Encrypt the wallet. You will need to set a password. If the wallet is encrypted, you must first decrypt it before exporting the private keys.
- Disable private keys. This means creating a “view-only” wallet. It is impossible to sign a transaction in it, since there is nothing to do this with. Thus, stealing coins is impossible. You can track transaction history or create unsigned payments.
- Create an empty wallet. Create a wallet without keys and addresses. For example, if you plan to use it exclusively as a node.
- Wallet handle. New feature from January 2022. Allows you to create a wallet that uses scripts that increase server-side flexibility. Scripts may contain private keys, but are not limited to them. From a user point of view, this has little effect.
Interface after creating a wallet:
Bitcoin Core Wallet Interface
When using Bitcoin Core, you must regularly back up your wallet file, which stores all balance and transaction data. If you bought a new computer or reinstalled the system, then by opening your wallet again, you can import your data file and continue working calmly. A backup copy is created through the item of the same name in the “File” section.
Another option is to export private keys . This is done using commands in the console. Instructions:
- Help -> Debug Window -> Console.
- Enter the command dumpprivkey *wallet address*. For example, dumpprivkey 1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa.
- The console will display a set of letters and numbers, which is the private key. Copy or write it down on a piece of paper.
To later restore the wallet from the private key, go to the console again and enter the command importprivkey *private key*.
Interface and use of the wallet
After synchronization has completed, the password has been set, the settings have been changed, you can begin to study the nuances of use.
The Bitcoin Core wallet is quite simple to use, so no complications should arise:
- Review tab. This is the basic tab where the current account status is presented. You can study how much digital currency is in the wallet, how many coins were sent, etc.
- "Send" tab. Here you can view outgoing transactions. In this tab, enter the address of the Bitcoin wallet, the receiving and sending parties. Here the user selects the technology for writing off the commission. Don’t forget, the more commission the user sets, the faster the operation is included in the block.
- The “Recipient” column contains saved addresses to which transfers were previously made.
- "Receive" tab. Here you can specify the Bitcoin address to which funds will be sent to the user personally. To increase security, the best option would be to generate a personal address for each transaction.
- Transactions. Information about all operations performed by the user is presented here. If desired, you can sort transactions by date, type, amount, etc.
Now you know how to use Bitcoin Core, but the issue of replenishing your wallet requires special attention.
conclusions
In this article, we looked at how to use Bitcoin Core, one of the most popular wallets for the Bitcoin cryptocurrency. If you understand the basic principles of how cryptocurrency works, you will not have any difficulty understanding the wallet. I hope this information was useful to you.
The film "A Revolution in Trust" based on the book by Porter N. - Digital Gold:
How to use Bitcoin wallet:
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Transferring currency to Bitcoin Core
You need to go to the “File” tab, then select “Reserve Addresses”, and then copy the address to which the user wants to receive bitcoins.
If the currency was purchased on an exchange, you can send funds stored in the exchange wallet to a new wallet. To do this, you will need to enter the recipient's address in the sending form on the exchange.
If a user sends currency to you, you need to use a personal address.
Once the download process is completed and funds are credited to your wallet, payments will be made quite simply. The first thing you need to do is go to the “Forward” menu and specify the transaction information.
The recipient's wallet address is indicated in the Pay to line. It is important to check the data so that the funds go where needed, because the transfer process cannot be canceled.
Please remember that the user is responsible for setting transaction fees. Payment is issued by the miner supporting the blockchain. It has already been said before that the larger the commission, the faster the transaction will be completed:
After checking the specified information, you can click on confirmation. Please note that you may be asked for a password - you will need to enter it.
Bitcoin Core Reviews
The online reviews are mostly positive.
The screenshot shown above suggests that users are resorting to backup wallet storage.
In particular, most of the comments are devoted to the process of compressing the amount of space occupied on a PC.
Positive characteristics
- Increased level of security for funds.
- The Bitcoin Core private key is stored locally.
- There is no need to make changes to special settings for working with the wallet.
- Basic functions for working with digital currency are available.
- All popular operating systems are supported.
- Instant update.
- Cold storage of coins.
- Emphasis is placed on user control of outgoing transactions.
Advantages and disadvantages
pros
- The highest security and privacy of any software wallet option available.
- Maximum user control over fund management.
- Compatible with anonymity software (Tor).
- Help support network decentralization.
- Ability to customize commissions.
- Replace-by-Fee function.
- Support for Bech32 addresses.
- Multiplatform.
Minuses
- Can be challenging for a beginner.
- Requires downloading the entire blockchain to your computer (350+ GB).
- There is no Russian interface language.
- No mobile version.
