A short guide for beginners in the cryptocurrency world. How to create a bitcoin wallet Sending and receiving bitcoins is a simple process if you have two things

It is impossible to talk about cryptocurrencies without mentioning bitcoin.

Despite rather humble beginnings and the goal of destroying state control over public finances, Bitcoin has grown into a powerful trend in the financial sector.

More and more merchants, businesses, and even governments are starting to use the coin and blockchain technology in a way that the creator of bitcoin could never have imagined.

In this guide, we will take a close look at Bitcoin: what it is, how to use it, and what it will give you.

What is Bitcoin? Short story

Bitcoin started out as a document by Satoshi Nakamoto and titled: “A Peer-to-Peer Electronic Cash System” (Peer-to-Peer Electronic Cash System). This happened in 2008.

In this document, Satoshi, whose real identity remains unknown at the time of writing, details a system for decentralizing the financial sector in order to transfer power to the people through a fully digital transaction system (which would later become known as blockchain).

In January 2009, Satoshi mined the first block for 50 bitcoins. It is said that Satoshi, when he was still directly involved in the development of Bitcoin, mined almost 1 million coins. Today, 8 years later, it is more than 5.8 billion US dollars.

How Bitcoin works

Before you start using Bitcoin, it is important to understand how this technology works and what principles it is based on.

Not only will this save you headaches in the long run, but it will also give you a better understanding of what's going on behind the scenes.

Blockchain

The creation of bitcoin started with a very simple concept: we don't need centralized agencies to control our money (that is, central banks).

To achieve this goal, bitcoin must be maintained by the people using the cryptocurrency, and this is done through a public ledger, better known as a blockchain.

Understanding the essence of the blockchain will help you understand the intricacies of the currency itself.

Imagine three people: Alice, Bob and Charlie.

They often have to pay each other money, but to avoid having to make a payment every time they need something, they decide to start a ledger (registry).

At the end of the month, they look at who owes how much to whom, and make a calculation.

In order not to trust this book to one of the interested parties, they enlist Daryl, an outsider tasked with maintaining the integrity of the registry.

The registry might look something like this

Every transaction made using bitcoin is stored in a digital ledger like this one.

Each line contains the sender's address, the recipient's address, and the number of bitcoins (BTC at the time of writing, but the designation XBT was later adopted).

It also includes Additional Information for security, ensuring that the addresses are correct.

Each set of transactions is stored in “ block“, which can be thought of as a page in the registry. After the block is filled with transactions, the miners find its hash (this will be discussed a little later).

The block is then attached to the previous block to form a chain of such pages or “ blocks“: Blockchain.

Bitcoin wallet public address

To add some sense of anonymity to the blockchain, bitcoin transactions contain no personal information of either the sender or the recipient.

Instead, each user receives a public address (aka wallet address) and these addresses are stored in a transaction record.

When a transaction is added to a block, and a block is added to the blockchain, the information becomes immutable: it cannot be edited or deleted.

To understand why this is necessary, let's consider the issue of decentralization.

Decentralization

The shortcomings of this distributed ledger system become apparent if we introduce some malicious action into the system.

If Daryl agreed with, say, Charlie, and added a new transaction to the list, showing that Alice and Bob owe money to Charlie, then Alice and Bob would be in a difficult situation.

They would either have to pay back the money they owe, trusting Daryl, or abandon the idea of ​​a registry altogether.

To solve this problem, all three participants in our experiment decided to keep a copy of the registry.

If someone wants to fake their copy of the registry, we just need to compare it with the rest and choose the most commonly used options.

This is another important solution offered by the blockchain. This kind of integrity check is built into blockchain technology, albeit in a slightly more sophisticated way.

Every time you log into your copy of the ledger, you see a record of every bitcoin transaction since the blockchain was created, and you become part of the verification process.

This democratization of the verification process is at the heart of bitcoin and the blockchain.

If you can't convince more than 50% of bitcoin users to delete a transaction, then the transaction can essentially be considered irreversible.

Bitcoin mining and block verification

Although there are no central authorities in this scheme that can decide whether a transaction is legitimate or fraudulent, a system is still needed to find out.

In Bitcoin, this is provided through mining.

The miners, who in this case are computer specialists and not people who work with a hack, perform complex tasks of currency mining.

Using powerful processors, called ASICs (Special Purpose Integrated Circuits), miners receive a transaction block and solve a complex mathematical problem for this block.

The details of this puzzle are beyond the scope of the beginner's guide, but suffice it to say that once the puzzle is solved, the transactions on the block are guaranteed to be valid and can be considered verified.

After this process is completed, the miner who solved the puzzle attaches the block to the blockchain and receives a small amount of bitcoins for their work.

The mining industry is very competitive today, and miners have to use the latest application-specific integrated circuits (ASICs), otherwise the cost of energy to solve the puzzle will exceed the reward.

Where can you use bitcoin

Bitcoin is one of the most widely accepted cryptocurrencies on the market at the time of writing.

Many service providers, from online stores to brick-and-mortar outlets, have begun accepting bitcoin alongside fiat currency (i.e. regular money such as USD and EUR).

You can use bitcoin to purchase various products and services such as

• Electronics, software and hardware. For example, Microsoft, Newegg and Dell accept payments using bitcoin.
• Air tickets and travel services. Expedia, one of the largest travel agencies in the world, allows users to pay for their services using Bitcoin.
• Casino. The online casino bitcoin.com, opened in 2016, is completely anonymous and allows you to bet in cryptocurrency.

In addition to these large companies, many smaller merchants and service providers also accept bitcoin.

A Brief History of the Bitcoin Price

Bitcoin has been on the rise since its inception, but 2016-2017 saw a particularly rapid rise. From $997.69 for 1 BTC on January 1, 2017…

… bitcoin is up six times to $6,013.23 in less than 11 months.

Buying cryptocurrencies, even as famous as bitcoin, is not without certain risks.

We could see this in the third quarter of 2017 after China refused to accept bitcoin, which led to a fall in the price of the currency.

However, some expect bitcoin to recover and continue to rise at the same rate.

Bitcoin code: XBT or BTC

When reading articles about bitcoin, you may have noticed that sometimes it is called BTC, and other times XBT. So what notation to use?

At the time of writing (October 2017), the bitcoin community has not yet reached an official agreement on this issue.

Initially, bitcoin had the currency code BTC, but as the coin grew and gained wide recognition, the International Organization for Standardization (ISO) assigned the currency a new code XBT, where “ X” means that the coin is not tied to any government (according to ISO standard 4217).

Many bitcoin users still use the BTC designation, and this is unlikely to change any time soon, even if the XBT code becomes popular among bankers and financial advisors.

Can bitcoin be profitable

Bitcoin, like other cryptocurrencies, is extremely volatile and its value remains unpredictable.

News and seemingly unrelated events strongly influence its price, sometimes positively, and sometimes negatively.

However, if you want to take the plunge and get bitcoins, there are two ways to go about it.

1. Start accepting payments in BTC. Most fast way to increase your wallet - for bitcoin or other currencies - is to introduce payment acceptance using bitcoin. If you have your own online store, add the button " Pay with bitcoin“. If you are an online service provider, you can ask your customers if they want to use bitcoin to pay. If you have a brick and mortar store, you can print out your Bitcoin wallet QR code and stick it next to the checkout so people can scan it and instantly send you bitcoins. And if you are an employee, why not ask your employers if they are interested in paying salaries in bitcoin instead of fiat currency?
2. Buying bitcoin. You can also buy bitcoins and hope your account grows on its own. For example, if you purchased $10,000 worth of BTC on July 26, 2017 (3.92129183 BTC) and sold three months later (October 21, 2017) for $23,579.63, you would have made over $13,500 in profit and more than doubled their investment.

When it comes to buying bitcoin, keep in mind that past performance is not always an indicator of future profitability, and with cryptocurrencies that are still in their infancy, big dips in value are not uncommon.

Comparison of exchanges trading bitcoin

How to get bitcoin

Sending and receiving bitcoins is a simple process if you have two things

1. Account on the digital currency exchange. There are many exchanges online where you can buy bitcoin. Check out our descriptions of cryptocurrency exchanges for information on how to choose the best option for your needs. After you create an account and exchange some fiat currency for bitcoin, the next step is to create a wallet.
2. Bitcoin wallet. Again, there are many wallets you can use for bitcoin. To choose the one that suits your needs from all the variety, you should check out our guide on this topic. Once you install and set up a wallet, you can start paying for goods or services. Just follow the instructions for your chosen wallet and you will be able to trade bitcoins in no time.

What to pay attention to

Bitcoin has its pitfalls, and many of them have to do with its perceived growth and widespread adoption.

Fraudulent exchangers

Since Bitcoin is one of the most traded cryptocurrencies, it attracts a certain number of scammers and phishing sites, mostly masquerading as exchangers.

Before you give your money to online exchangers, make sure that they

• Use HTTPS, not HTTP.
• Requires identity verification.
• Have good feedback from reputable sources.
• They allow payments via credit cards and bank transfers (in this case, you can get help from the bank if the exchanger turns out to be fraudulent).

Huge competition

Despite the fact that it was Bitcoin that paved the way for all other cryptocurrencies available on the market, some coins have significant differences.

As of this writing, Ethereum is implementing innovative features built into the blockchain, including smart contracts and decentralized applications.

What awaits Bitcoin in the future

Bitcoin has been around since 2009, but important changes are still happening.

segwit update

In 2017, the main concern of the Bitcoin community was to improve performance and speed up transactions.

As bitcoin attracts more and more users, the network becomes more and more congested, which leads to transactions being verified for too long - sometimes up to 10 minutes.

At the same time, other altcoins do it in less than a minute.

This software update has been in development for a long time and should bring back the times when bitcoin transaction verification was done at lightning speed and transaction fees should be even lower.

Growing distribution

Every day more and more business people are joining the Bitcoin community. You only need to decide if this will lead to a continued rise in the value of bitcoin.

As a result of the rise in popularity of the coin, there may also be relevant legal regulations from governments around the world, but this is unlikely to be the killing blow that many bitcoin users fear.

Regulation will provide peace of mind to businesses and organizations that are still afraid to enter this area.

FAQ

Who Controls Bitcoin

• Nobody ... and all together. Bitcoin is a decentralized system in which each user must keep a ledger with records of all transactions performed on the network. The development team is constantly working to improve the software, but a consensus is required for the system to function properly.

Why should I trust Bitcoin

• The best quality of Bitcoin is that you don't have to trust anyone. Software has an open source, so you can study it and make sure everything is correct. All transactions since the creation of the coin can be viewed and discussed in real time. No business or person controls bitcoin, so you don't need to trust anyone. Every transaction is secured using the best cryptographic techniques on the market to avoid forgery.

How bitcoins are created

• New bitcoins enter the market through the process of mining. When miners complete a block, they receive a small reward for their work. These coins " created“, that is, they are not transferred from another wallet. Since there can be no more than 21 million BTC in the market, the reward amount is periodically halved until the limit is reached.

If bitcoin is not regulated by the government, what determines its value

• Supply and Demand: As demand increases, so does the price of bitcoin. There is a limited amount of bitcoins in circulation, so the price can sometimes fluctuate greatly depending on demand or lack of it.

Is it possible to make money by mining cryptocurrency

• Yes, but high mining costs and competition from large mining pools make it difficult for amateurs to profit from bitcoin mining.
• However, you can earn money by joining a pool of miners. Due to the high mining costs of some of the most popular cryptocurrencies such as Bitcoin, many miners join pools that pool resources and share the block reward.

Are cryptocurrencies allowed in my country?

• Yes, holding and spending cryptocurrencies is legal in most countries of the world, except for India and China.

One of the most profitable investment instruments today is cryptocurrency. How to earn on cryptocurrency? Where to begin? Questions that arise for every newbie who wants to break into the crypto world and make money. We have prepared brief instructions with the main theses, which will help you take the first steps in working with digital assets.

At the first stage, you will have to study the world of cryptocurrencies. No, this does not mean that you can earn money only when you thoroughly know all the mechanisms, codes, mining processes and become a cryptography genius. Cryptography and cryptocurrencies are still young, even a young field, so it will be enough basic knowledge and skills.

Moreover, the most The best way learn something - start making money on it.

Education. What you need to know about digital assets?

This is the mysterious word "cryptocurrency", where to start learning? It all depends on which field of activity you choose - mining, crypto trading or investing in ICO. But the ruscoins website in the "" section has all important information: , And much more.

How to start earning?

To really earn a lot on cryptocurrency, you have to invest. The size of investments, as in any other business, is commensurate with profit. Which method is more profitable, it is impossible to determine. It all depends on knowledge and skills. The possibility of profit and risks are approximately on the same level.

Private mining and cloud mining

It all started with mining. The pioneers in the cryptocurrency world just mined their fortune. They mined bitcoin, but if you are a private person, then you are already late with bitcoin mining. It will not be cost-effective and risky due to high competition (Bitcoin is now mined on an industrial scale with the help of large farms) and because of the ever-increasing complexity of the network.

But you can mine other, less popular cryptocurrencies, which, thanks to innovative consensus algorithms, do not require such power costs.

With cloud mining, everything is easier. It's like investing and receiving dividends. You rent power from special services and receive a constant percentage (the percentage is usually dynamic, not guaranteed).

Crypto trading or ICO?

Digital assets can be - crypto-exchanges. They are also built by analogy with traditional exchanges, almost the same rules work here, technical analysis is used. Most often there are several options for orders.

There is only one difference between traditional trading and cryptocurrencies – cryptocurrencies have more volatility and less liquidity. Therefore, traditional trading strategies here cannot always be worked out with the same efficiency.

But the rules of trading are the same: buy on the rise, sell on the fall.

ICO is an investment in crypto startups. In return, investors receive tokens that are sold at presales and crowdsales. Each ICO independently sets the rules for buying tokens. You can select projects and learn more about them in our ICO section. It regularly publishes only interesting and proven projects.

The asset of the future is cryptocurrency. Where to start is up to you. Start earning now, because the world of digital money and projects is developing exponentially.

Bitcoin Core is a popular virtual currency wallet. To use the program, you do not need an Internet connection, but you need to download and install the software on your PC. On this wallet, storage is possible exclusively.

The Bitcoin Core wallet is designed for offline storage of BTC, positioned as a direct "descendant" of the original Bitcoin created by . Other cryptocurrencies are not supported. The software is open source and anyone can make changes. The GitHub website provides full list authors of code that will help you better understand what Bitcoin Core is.

The software is based on full-node software designed to fully validate the blockchain and wallet. Bitcoin Core supports most cryptographic programs (crypto library libsecp256k1, etc.).

There is no browser version of the Bitcoin Core wallet - software installation on a PC is required. Software installation algorithm:

1. On the official website of the bitcoincore.org company, the “Download” section is selected.
2. On new page you need to click on the blue Download Bitcoin Core button in the center.
3. The downloaded file is launched: the program is installed on the PC after clicking on the Install button.

The installation procedure is no more complicated than installing any application or game on a PC. You can download the program via torrent or directly by clicking on the main button. The following versions are available:

• Windows (32 and 64 bits);
• Linux;
• ARM Linux;
• MacOS X;
• Ubuntu (PPA).

By clicking on the Show version history button, you can see older versions of Bitcoin Core. The software on the PC hard drive will take up 210 GB. Additionally, every month you will need another 5-10 GB of memory for the full functioning of the software. To prevent the program from taking up most of the disk space on your computer, you need to select Enable pruning in the settings, which will reduce the amount of memory occupied to 6 GB without affecting the network.

After a fairly simple installation of Bitcoin Core, you can proceed to create a personal account. The program can be installed free of charge in Russian. Tip: you can download software only from the official project portal.

How to use

You do not need to create a Bitcoin Core wallet separately, just run the program. The account will appear automatically.

Interface

The user interface can be divided into several parts:

1. Menu. Situated at the top. Parameters are set, a wallet backup is created, wallet addresses are entered for sending and receiving, etc.
2. Panel with Overview, Send, Receive, and Transactions pages.
3. Working window. Here enter the data for the implementation of operations.
4. The status board, which indicates the basic information on the balance and transactions in Bitcoin Core.

In general, the program interface is simple and intuitive. A big advantage is the presence of a Russian-language version.

The account is replenished from another bitcoin wallet. The sender needs to know the account address in the Bitcoin Core system. On the main panel personal account there is a tab "Get" Bitcoins.

All fields in the transfer request are optional. The form can be left completely empty. After creating the transaction, click the "Request payment" button. A new window will pop up with the account address and additional information on the operation. In the line "Label" the purpose of the payment is indicated, and in the "Message" a comment or explanation is entered, if required.

The user can copy the account address or send the QR code to the sender.

To make a transfer, you need:

1. Open the "Submit" page on the main panel.
2. Enter the recipient's bitcoin address and amount.
3. Additionally, you can enter a message about the purpose of the payment.
4. After filling out the form, click on the Send button.

The commission plays an important role in sending funds. The higher the fee, the faster the transaction is processed. The minimum commission amount is 0.00001 BTC. You can set the indicator yourself or choose the one recommended by the system. A transaction is opened without a commission, but there is no guarantee that the operation will go through: the fee goes to the miners for the transfer.

There are three options for commission fees in the system:

• system » 0.0002 BTC;
• custom value (payment is indicated for the amount of data in kilobytes);
• minimum.

It is possible to check the box Replace-by-fee. The function allows you to adjust the size of the commission in an already open transaction, which advances an application that remains unconfirmed for a long time.

At the bottom of the window, the amount of the commission for the operation is indicated. It is possible to send money to several wallets at once. To add another address, you need to click on the "Add recipient" button.

Encryption

To increase the security of the account, an encryption function is provided. Action algorithm:

1. In the "Settings" menu, the "Encrypt Wallet" action is selected.
2. In the window that opens, enter a new password that meets the requirements of the program.

The more complex the password, the higher the protection against possible hacks and hacker attacks. It is recommended to write down the resulting combination of characters in order to eliminate the human factor.

After entering a new password, a warning will pop up that if the password is lost, access to the wallet and Bitcoins is impossible. Then a window with a description of further actions will appear.

After restarting the program, the wallet will become safer, and access will open only after entering the password.

You can use Bitcoin Core exclusively with the help of keys and addresses stored on the user's PC. The data is updated with each transaction, so for security it is recommended to always create backup.

It is better to store an additional version of the program on a separate storage medium ( external drive, USB stick). To use the function, in the "File" tab, select the action "Back up wallet".

The fallback version contains information about the user's account. In case of loss of access to the main version, the copy will become a full-fledged replacement. The function is optional if the account holder is confident in the safety of data and access to the wallet.

The Bitcoin Core wallet is in demand due to its simplicity, functionality and security. The downside of the wallet, some users consider the large amount of memory occupied and the lack of a browser version. The wallet is suitable for storing and using any amount of cryptocurrency. Even beginners will be able to understand how the program works.

Bitcoin is on the rise again! So the issue of creating a bitcoin wallet is now relevant for many, and today we will understand it. Very, very carefully. Moreover, wallets for all other cryptocurrencies work in the same way. Why - read here!

How to register a Bitcoin wallet and replenish its balance. See video instruction.

• Wallet registration link: https://www.blockchain.com
• Link to the electronic exchanger: https://www.bestchange.net/?p=20887

What are Bitcoin wallets and how do they work (in simple terms)

In fact, the wallet is just a mechanism for storing the private key to your bitcoin address.(this is how an analogue of an account is called in the blockchain).

• The fact is that the private key is, roughly speaking, "password", which allows you to manage the funds in your bitcoin address. The loss of a private key means the loss of funds in the address, without any hope of restoring access to them.
• The private key is used to generate a public key (there can be many of them for each address), which is attached to the transaction as confirmation of the right to own the transferred funds. At the same time, the reverse operation - calculating the private key from the public one - is impossible even theoretically.
• So the task of the wallet is to securely and conveniently store the private key and provide access to it, as well as generate public keys.

Types of Bitcoin wallets

IMPORTANT! Today, the market offers a huge variety of different BTC wallets for every taste. It is very useful to know what the year is. The most important thing, however, that a beginner needs to learn is the difference between "cold" And hot wallets.

1. “Hot” wallets require a constant (if possible), of course, an Internet connection. Most wallets: desktop programs, smartphone apps, and web versions are hot wallets. These wallets are convenient and allow you to quickly make a transaction at any time, but they are less secure than cold wallets, since infecting your device with viruses can give attackers access to your funds.
2. “Cold” wallets do not have an Internet connection and are connected only when it becomes necessary to conduct a transaction. Most often they refer to the so-called hardware wallets - devices specially designed for storing keys - but there are also more “exotic” solutions: from a piece of paper with a printed QR code of a key to a computer disconnected from the Internet with a “regular” wallet installed. “Cold” wallets are much more secure (they do not have a physical connection to the Internet), but are less convenient than “hot” ones.

How to open any of the most popular bitcoin wallet options:

• paper wallet
• Hardware Wallet
• BTC wallet online
• Mobile app
• Desktop Wallet

We will not cover “creating a wallet” on one of the . What the owners don't say trading floors, an account on the exchange is not a bitcoin wallet - you do not receive either a private or a public key, and all the coins on your balance de facto belong to the exchange.

Creating a paper bitcoin wallet (instruction)

Despite all the “archaism” of paper media in the digital age, creating a paper bitcoin wallet is almost easier than any other. For this you need;

1. Go to the website of one of the services offering a program for creating paper wallets. For example, walletgenerator.net.
2. Download the archive offered by the service. Online generation, despite its convenience, is better not to use for security reasons.
3. Disconnect from the Internet, unzip the archive and run the html file from it.
4. Click on the “Get New Address” button and randomly move the mouse around the screen while the random number generator is running.
5. Print the received document with two QR codes. On the left is the public key, on the right is the private key.

Using a hardware wallet

The first step, of course, purchasing the hardware wallet itself. There are a great many of them on the market today, but all of them, in general, outwardly resemble the usual “flash drive”, albeit with a small screen. The interface of all wallets is also similar and the differences are purely cosmetic.

As an example, we are using one of the most popular hardware wallets on the market, the Trezor Model T. Here it is:

1. 1. To create a wallet, you need to connect it with a USB cable to a computer or smartphone and go to the web page trezor.io/start.
   2. Next, you need to select your wallet model.
   3. And your operating system - the site will offer you to download a driver that provides work with the wallet.
   4. After that, the wallet will download from the site latest version firmware. This ensures that you are the first user of the wallet and that the wallet itself is running the most advanced and authentic version of the software.
   5. After installing the firmware, you will be prompted to restore the old wallet from the seed phrase or create a new one. Of course, we are interested in the second option. Next, you need to create a backup copy (backup) of the wallet.
   6. A backup is a randomly generated mnemonic phrase (aka seed phrase) of 12 words, in which a 128-bit number is encrypted, used to generate all private keys for all currencies in a given wallet. With this phrase, you can “transfer” all your funds to any other wallet that supports the BIP39 standard.
   7. The phrase will be shown on the wallet screen in 3 “chunks” of 4 words. Write it down (the wallet comes with special cards made of waterproof paper, but you can use anything) and keep it in a safe place. This phrase will be shown only once and there is no way to restore it. However, to make sure that you wrote down the seed phrase correctly, immediately after generating it, the device will ask you to enter 2 random words from it (for example, the third and seventh).
   8. After that, all that remains is to give your wallet a name and protect it with a PIN code from outsiders. The maximum length of the code is 9 digits, and keep in mind that the buttons with numbers are randomly shuffled each time so that no one can see what you are entering:

BTC wallet online

Web versions of bitcoin wallets are perhaps the most popular of all the others combined due to their convenience. At the same time, an online wallet is the least secure of all options. Strictly speaking, in most cases you will receive only the public key, and the private key will remain with the service. However, if you need a wallet for a one-time transaction or using small amounts, why not?

In RuNet, the most popular web wallet is blockchain.info.

• To create a new wallet, just go to this page and click the "Register" button.
• Next, you need to enter your address Email and password.
• This box will receive a link that you need to follow in order to confirm the registration, as well as your ID, which you need to save in a safe place - it is used to enter the wallet.
• After that, the wallet, in general, is ready for work, but it would be better to go to the security center in your personal account and use it.
• At a minimum, it is worth generating a seed phrase and enabling two-factor authentication.

The seed phrase is created similarly to hardware wallets, even though the words are displayed directly on the browser screen. Upon completion of the generation, you will be asked to enter four randomly selected words for confirmation.

• For two-factor authentication, you need to link your mobile number to your wallet by selecting the appropriate item in your personal account:
• This number will receive an SMS with a code that you need to enter for confirmation. Then you can go to the next item - "Activate two-step verification" and select the option "Use number mobile phone". After that, each time you log into your account, you will receive an SMS with a code that will need to be entered in addition to the password.

Alternative option - google app Authenticator or Yubikey, which must be installed on your smartphone. The wallet will generate a QR code for the app, which you can scan for a 6-digit verification code.

After these manipulations, the wallet can be safely considered ready for work.

Mobile applications

The vast majority of mobile wallets completely duplicate their web versions in terms of interface. For example, the registration procedure in the Blockchain.info apps for iOS and Android does not differ from the web version. Except that the empty fields at the edges of the form are much smaller. So you can safely use the instructions for the bitcoin wallet online.

Desktop Wallet

The most “classic” option - it all started with desktop wallets. We will not consider the “full client” of Bitcoin Core with synchronization and downloading hundreds of gigabytes of the bitcoin blockchain. After all, we just want to have a BTC wallet, so the functionality of Bitcoin Core will be redundant. It is much more reasonable to use another popular wallet - Electrum.

• To install, go to Electrum website and download the required distribution. In our case - setup file for Windows.
• The wallet is installed in the same way as any other program. Everything interesting begins when you first start the program:
• Here we give the wallet a name and click “Next”, since we need to create a wallet. After that, the program will offer us 4 options for creating a wallet.
• Standard is the best option for the first wallet.

1. Wallet with two-factor authentication - it would be good if it were not for the mandatory use of the TrustedCoin service, which does not allow changing the number to which the wallet is linked, and also charges an additional commission on each transaction.
2. Multi-signature wallet - a wallet with multi-signatures is relevant primarily in a situation where there is collective money on the wallet (for example, company funds).
3. “Watch bitcoin addresses” does not allow you to fully manage coins, so it is not interesting for us.
4. On the next screen, select “Create a new seed”:
5. We write down the 12-word phrase shown to us. Copying does not work, so we take a piece of paper and write it down “manually”. As usual, the mnemonic phrase is shown only once and is not restored if it is lost. On the next screen, we will be asked to enter a seed phrase to make sure it is written correctly. Again, you need to do this manually - the "Paste" function does not work.

After that, it remains only to come up with a password that will protect and encrypt the wallet file on the computer. Minimum requirement- 13 characters.This password can be lost (but not necessary) - you can restore access to the wallet using a mnemonic phrase.After confirming the password in the next window, the wallet will close. We launch it again, go to your account using the name of the wallet and password and use it.

Conclusion

As you can see, everyone can create a Bitcoin wallet - no special knowledge and skills are required for this. Just care and attention.

Of course, since the number of wallets on the market is uncountable, the interfaces may vary slightly for different products, but the instructions provided give you a good “base”, based on which you can handle any BTC wallet.

There are many descriptions of the principles of operation of bitcoin mixers on the network, but most of them are designed for cryptomasons no lower than the second degree. In this text, we will try to explain as simply as possible what bitcoin mixers are, why they are needed, how they work and where to find them.

1. Introduction

Let me warn you right away: the world of bitcoin mixing is changeable and fickle, so some of the links provided in the article may not work a couple of months after publication.

Some of the links lead directly to the .onion domain zone. To use them, you will need the Tor browser, or its equivalent to enter the Tor anonymous network.

1.1. To start

This guide is short but detailed guide through the amazing world where bitcoins are mixed. By reading it you will know:

• How bitcoin mixers work and what they are
• How to use mixers
• How to Minimize Risks When Using a Bitcoin Mixer

1.2. What is a bitcoin mixer?

A bitcoin mixer is a service where a certain amount of your bitcoins is mixed with the bitcoins of other owners, after which the origin of the coins becomes untraceable. Simply put, this is a way to confuse the traces during transactions. Even simpler: this is a way to make it so that no one can understand where the bitcoins in the wallet came from, who owns it, where the funds come from and where they go.

1.3. Why mix your coins?

There is an opinion that only criminals need bitcoin mixers. Of course, for criminal activity, mixing coins is simply necessary. But there are a number of other reasons why law-abiding citizens might want to mix their digital assets.

To begin with, bitcoin is a great tool for making purchases and making p2p payments. Using it, your operation does not appear in the registers of banks and other fiscal institutions. This makes bitcoin a great anonymous (sort of) means of payment. But all the movements of funds in the Bitcoin network are recorded in open registry- this open database stores information about all transactions ever made in BTC. So, using bitcoin to pay for goods and services, you cannot be sure of complete anonymity. A third party can track and analyze your online activities. Anyone who has ever entered into a smart contract with you will know the address of your wallet and will be able to monitor its balance and the movement of funds in the account. And this is a breach in protecting your security and a chance for intruders to hurt you.

The Bitcoin Mixer is a great way to obfuscate the trail and prevent those who stick their noses in their own business from watching your bitcoins. It does not matter for what purposes you use your cryptocurrency: for illegal activities or legal ones. The less people know your wallet address, how much money is stored on it and what transactions you made, the better you will sleep.

1.4. Is it legal to mix coins?

Legal. If this is the only question that concerns you, skip to the next section.

In general, the legal status of bitcoin is an interesting topic. Each country has its own rules, but so far in most states digital assets are quite legal. Although their use and try to limit and regulate. On the legal status of bitcoin in different countries the world can be read.

If you live in a country where transactions in cryptocurrency are not welcome, be sure to use mixers to hide the history of your transactions.

2. Bitcoin Mixer

2.1. How to mix bitcoins?

Bitcoin mixing is easy. The simplest way mix your coins - pass them through one of the mixing services. Some of them can be found on the open web, but there are others that only work on the dark web.

Let's look at a specific example (Editor's note: Such actions are illegal in most countries of the world).

You want to buy a ketamine pain reliever, which has been banned in your country for some time now, for your sick dog. You need to send your BTC to one of the darknet markets. Let's also assume that after buying on the market in the darknet, you still have an amount in cue balls that you need to withdraw back.

Your actions:

1. Buy BTC (if you don't have them yet).
2. Pass them through the mixer.
3. Pour coins on one of the platforms in the dark web.
4. Pay for your purchase.
5. You collect the balance after the transaction by transferring the amount to a new wallet, or by sending it directly to the account of one of the bitcoin mixers.
6. Mixing coins.
7. Sell ​​coins.

This is the most primitive example. There are many other mixing options as well. Most importantly, choose and compare bitcoin mixers carefully. Remember that you are giving your money to third parties. And that can be risky.

More information about anonymization services in the fifth chapter: Bitcoin mixers.

2.2. When should you mix bitcoins?

You need to mix coins every time you are going to send or receive them from a new source. This will increase your chances of remaining anonymous.

For example, when buying cryptocurrency for the first time with fiat money, mix them before conducting further transactions with them. This will make it harder to trace the connection between you and your crypto asset. The same applies to the sale of digital currency for fiat. Mix the bitcoins so that the buyer cannot trace where the crypto came from.

If you do not use mixers, then anyone with the right skills and abilities will be able to find out where you bought your bitcoins and to whom you transferred them. This information can be used to identify you and, accordingly, against you.

3. Blockchain analysis

3.1. What is blockchain analysis?

All transactions on the Bitcoin network are public. This is one of basic principles blockchain work. On the one hand, this is good. However, it is the open access to information about wallets and the movement of funds that can harm you.

Simply put, blockchain analysis is the process of collecting and processing data from transaction histories in the public blocks of the Bitcoin network. For example, a person analyzing records on a blockchain is interested in knowing who you are and where you are sending your coins. If he has your "start" address, then all your activity will be very easy to track.

Blockchain analysis is serious business, not just watching transactions. Applying an integrated approach to analysis, it is possible to tag certain groups of addresses of bitcoin holders, and in some cases even identify who they belong to and for what purpose they are used.

3.2. Who needs me?

There are many people in the world who might be interested in you and your money.

Here are some of them:

• Law enforcement agencies.
  Even if you are not doing anything illegal now, there is no guarantee that perfectly legal actions today will not be declared illegal tomorrow.
• Cybercriminals.
  They keep track of wallets with a decent amount of coins. And they will try to figure you out, hack into your computer and steal bitcoins. Both law enforcement agencies and cybercriminals use blockchain analysis and social engineering methods in their work. It's just that they have different goals.
• Analysts.
  These are the people who analyze general processes in the blockchain network. In most cases, their goal is to improve the algorithm of the network. In itself, this is a harmless exercise, but the more methods of analysis appear, the more difficult it will be for you to cover your tracks.

Here is a list of blockchain analysis companies. Some of them post data in the public domain. There are also those who work directly with law enforcement agencies and payment systems. Perhaps some of them are leaking information to the villains.

4. How do mixers work?

There are several ways to mix bitcoins. Here are the two most popular:

1. Centralized bitcoin mixers (also known as tumblers).
2. CoinJoin.

4.1. Centralized bitcoin mixers

Most mixers have a certain supply of bitcoins on their balance sheet, which they mix with their clients' coins. The system works as follows: the user transfers the coins to the anonymization service of his choice, after which the coins are placed in a common “cauldron”, where they are mixed with the stock available on the service. After that, new, "clean" coins are sent to the user's address.

Many mixers tend to offer additional functions protecting the anonymity of its users. They are not required, but preferred. This will help get rid of all possible "electronic traces". Here are some of them.

• Random commission for services.
  Suppose someone really wants to understand where the money from account A ended up going through mixer B. He knows that mixer B charges 2% for his services. So he should search the blockchain for a transaction to account C in the amount of the incoming amount minus 2%. Easily. But the task becomes more complicated if the service charge is generated randomly and fluctuates within a certain range. Let's say from 2 to 3.5%.
• Delayed transaction feature.
  This feature also makes it harder to find your translation in the registry. With instant sending, someone who wants to calculate you can logically track the desired transaction on the network, simply by waiting for a transfer of the same amount to be written into the block. If you choose the delayed transaction feature, then the pursuer will have to wait several hours, and sometimes days, before your transaction is written to the block. During this time, several transactions for the same amount as yours may appear in the registry.
• Multitransactions. Some mixers send their "clean" coins to the customer in several transactions through several addresses. This method also makes the job of the pursuers more difficult.

4.2. CoinJoin

CoinJoin is another way of mixing coins. But this species bitcoin mixer does not completely remove the digital footprint. CoinJoin combines several user transactions into one pool, paying out conditionally “clean” coins to recipients

Consider an example:

• Vova wants to send Yulia 0.5 BTC.
• Peter wants to send 0.2 BTC to Paul.
• Gena wants to send 0.6 BTC to Rajesh.
• Vova, Peter and Gena send their coins via CoinJoin.
• CoinJoin connects all transactions, combining them into one pool from which it pays Yulia, Paul and Rajesh their 0.5, 0.2 and 0.6 BTC.

In this scenario, it is difficult to figure out who sent the coins to whom. Many users use both CoinJoin and centralized mixing services, which increases the degree of anonymity.

5. Services for mixing

Now that you understand the basics of how mixers work, as well as what they are for, let's look at a few specific options.

5.1. Tor or open internet?

There are many coin mixing services, both on the dark web and on the open web. They have their own advantages and disadvantages.

You can safely use mixers on the open internet, as long as you don't use bitcoin for illegal transactions. Your goal is simply to close a loophole that can be exploited by criminals who track the movement of coins on hodlers' wallets. Mixers on the open internet can be both reliable and safe, especially if registered as a legitimate business. These bitcoin mixers take on the legal responsibility to protect your personal information, which means you (in theory) will be less likely to fall victim to scammers. But working with bitcoin mixers on the open web has its drawbacks. Anyone who has the appropriate skills and powers will still be able to figure you out. In particular, law enforcement agencies. Legitimate online businesses can get a court order to release information about their customers. This means that at the slightest hint of shady deals, the service will be forced to provide the authorities with all available data. If you want to make sure you don't leave any traces, it's best to choose a bitcoin mixer on the dark web and connect to it via Tor.

Tor encrypts requests and forwards them through multiple addresses on the network, making it difficult to trace. Even if the service you have chosen is hacked and the information is decrypted, your IP address will be hidden. In the worst case scenario, the one who hacked the server will only be able to track the addresses where the coins went. But most dark web mixers don't store transaction history, so they're easier to obfuscate than with open web mixers. However, it is worth remembering that the vast majority of services using onion routing are not registered as legal businesses.

Bottom line: if you intend to use services on the open Internet, connect via Tor or VPN. For maximum anonymity, find a service on the dark web that you can trust.

5.2. Top mixers on the Tor network

This list is by no means a recommendation. This is nothing more than an overview. If you decide to use the services of one of them, you will need to study them yourself and think carefully before using their service. Phishing links are everywhere! Of course, you can only open the addresses below from the Tor browser.

Bitcoin mixer with advanced features. Works since January 2014. You can mix coins either by creating an account or using the Quick Mix feature, which does not require registration in the system. In terms of functionality, they are no different, but with an account you have better control over the process and receive bonuses according to the loyalty system.

Service features:
— random commission (1-3%);
- configurable pending transaction function (optional, up to 99 hours);

- two-factor authentication.

There are bonus and referral programs. If the deposit exceeds 10 BTC, then in the next 7 days the commission will be reduced by 0.5% (0.5-2.5%).

Helix was also launched in 2014. This is a mixer search engine for Grams darknet. Using the Helix service requires creating account, but the Helix Lite version allows you to mix coins without registration.

Service features:
— fixed commission (2.5%);
- configurable delayed transaction function (optional, up to 24 hours);
— mailing from different addresses (optional);
— two-factor authentication (optional).

Bitcoin Fog was launched in 2011 and is the oldest bitcoin mixer on the dark web. The crypto community warns against working with it, claiming that the service "selectively cheats" with users' coins. You need to create an account to use it.

Service features:
— random commission (1-3%);
- configurable delayed transaction function (optional, up to 48 hours);
— mailing from different addresses (optional);

Launched in 2015. Registration is not required to use it.

Service features:
— random commission (~2%).

5.3. Top mixers on the open web

Once again, we draw your attention to the fact that the services from this list can in no way be considered as recommended for use. Study them, check and remember - if you decide to use them, you will do it at your own peril and risk.

Pay attention to the size of the commission, registration features (if required), the presence of a pending transaction function and multi-transactions.

Mixers from this list have versions in the .onion domain zone, so you always have the opportunity to go to the dark side.

Tor: chipmixerwzxtzbw.onion.
Commission: PWYW (pay what you want + network commission 0.001).

Tor: bestmixer7o57mba.onion.
Commission: (from 0.5%, discounts are possible + network commission 0.001).

Tor: bitmixbizymuphkc.onion.
Commission: from 0.4% to 4% (+ network commission 0.001).

Tor: bitblendervrfkzr.onion.
Commission: from 1% to 3% (+ network commission 0.001).

Tor: bitcloak43blmhmn.onion.
Commission: varies, ~2% (+ network commission 0.001).

Tor: mixermikevpntu2o.onion.
Commission: From 1% to 5% (depending on the method) (+ network commission 0.001).

Remember: most coin mixing services on the regular internet do not ask for personal data, but they may store information about your IP address. So again: use Tor or VPN.

5.4. What to Look for When Choosing a Bitcoin Mixer

Bitcoin mixers have disadvantages. Each service has its own. For example, one does not have the ability to set up a pending transaction function, while the other does not allow mailing from different addresses.

Below is what you should pay attention to in the first place.

1. Reputation.
   Get to know the mixer you are going to use better so as not to be left without coins. Read reviews online, on dark web forums like The Hub. And be careful when using CoinJoin services.
2. Identification by blockchain analysis.
   Some bitcoin mixing services are "tagged". This allows analysts to link users' wallets to services. If you make an effort, you can be hunted down. To check if the service you want to use has been “flagged”, go to .
3. Small pools of coins.
   This is the problem with new mixing services - they have a small reserve of BTC. If the bitcoin mixer reserve is less than the amount you deposit, then after mixing, you will receive “clean” coins in parts.

5.5. DIY method

If you do not have a deep understanding of the principles of the blockchain, it is better not to try mixing bitcoins yourself.

Some people feel that by sending their bitcoins through LocalBitcoins.com or online casinos, they covered their tracks. However, these services will not keep information about your transactions secret if they receive an official request from law enforcement - they will tell you everything about you, like law-abiding owners of a registered business.

If the work of centralized services does not suit you, then as possible alternative It is worth considering the CoinJoin method described in Chapter 4.

6. Diagnosing Problems in the Bitcoin Mixer

Sending your coins to some online service is scary. Will you see them again? How to protect yourself from losing funds?

A few tips:

1. Check the progress of the transaction in the blockchain explorer.
   If you have sent coins to the mixer address and they have not yet appeared there, the first thing you need to do is check the status of the transaction in a bitcoin client, or through a blockchain explorer, for example. Check the details of the transaction - if there have been no confirmations yet or only one or two have been received, then just wait. The Bitcoin blockchain can sometimes be very clumsy.
2. Check the address you sent the coins to.
   If your transaction was confirmed several times, but the coins did not appear on the account you specified, check the address of the service. If it made a mistake, then most likely you got it.
3. Say goodbye to coins.
   One of the reasons why your coins were not credited to your account is that they were stolen and you ended up on a phishing site. This is a website that looks exactly like the service you wanted to use, but its address is slightly different, just one character, from the address of the original service. The only thing that can be advised in this situation is to control yourself and learn from mistakes.
4. Contact support.
   If the address turned out to be accurate, the transaction is confirmed, the service URL is correct, but there are still no coins, then this may be a problem with the service itself. Contact support (if available) and see if they can help you.

7. Additional precautions for maximum protection

We've covered the basics of bitcoin mixing. But measures to protect anonymity are few and far between.

7.1. Increasing the status of anonymity

Here are a few more useful tips, which will help hide your data during transactions:

1. Make sure your wallet is configured to work through Tor. This will prevent anyone from associating transactions with your IP address.
2. Use anonymous OS, such as Tails or Qubes + Whonix.

7.2. How to make sure that the service covered all traces

Another way to protect your anonymity and improve your security is to test the mixing service of your choice. Blindly believing that the mixer has completely washed your coins is not a good idea.

1. Go to or
2. Enter the address where you received the new coins.
3. In the "Tools" section, go to "Taint Analysis".

Here you will see a complete list of addresses associated with your new coins. If you can find the address to which the old coins were sent, then this means that the new bitcoins are not completely cleared. The number next to the address will tell you in percentage terms how much "dirt" is left on them - the higher the number, the clearer the connection between the old and new addresses.

Using the new service, it is worth checking your coins several times to make sure that the chosen bitcoin mixer is stable and of high quality. And do not relax, such checks should be carried out regularly.