To enjoy all the possibilities that the Bitcoin ecosystem has to offer, the best method to open a Bitcoin account is by opening a Bitcoin wallet.
It is as simple as downloading an app on your mobile, on your desktop, or adding an extension to your browser. Then, follow the instructions to create a password and save your private keys. That’s it! You’ll be ready to start interacting with the ecosystem immediately.
You could also open a Bitcoin account through a crypto exchange, but this method is custodial and you wouldn’t have full control over your assets.
What is a Bitcoin Wallet?
A Bitcoin wallet functions similarly to a physical wallet or a bank account, but instead of holding cash, it provides access to digital money, namely satoshis and bitcoins. These are not saved in your wallet, but rather in the Bitcoin network.
Your Bitcoin wallet keeps your unique cryptographic keys, ensuring that your digital money is safe and allowing you to manage and transact it whenever you wish. Unlike traditional banks, when you open a Bitcoin wallet, you become the custodian of your money. This means you are completely liable for whatever happens to it.
How Does a Bitcoin Wallet Work?
Let’s get back to the bank account example and see how your Bitcoin wallet holds your unique cryptographic keys. These keys are divided into public and private keys. To effectively open a Bitcoin account, you must first understand the differences between them.
Your public keys can be compared to your bank account number. You can share this number with anyone, and all they can do with it is send you money.
Your private or secret keys would be similar to your password or coordinate card. If you give anyone access to these, they could use your bank account and spend or steal your money.
It’s extremely important that you keep your private keys secure and that you only share your public keys with third-parties.
How Can I Open a Bitcoin Account?
Opening an account through a Bitcoin wallet:
Go to your selected and trusted Bitcoin wallet website.
Download the mobile or desktop app, or the extension if available.
Select “Create new wallet”.
A message will ask you to “back up your private or secret key”. Do not skip this step if you don’t want to lose access to your wallet!
Set a strong password to protect your private or secret key on the device you’re using. To access your wallet on another device, you'll just need your Secret Key.
And you’re done! You can now enjoy the Bitcoin ecosystem.
Opening an account through a crypto exchange:
Go to your preferred and trusted crypto exchange website.
Download the mobile or desktop app, or simply use their website.
Open a new account.
Set up a strong password.
Verify your identity.
Once your identity has been verified, you can start using your Bitcoin account within the exchange.
What do you need to open a Bitcoin Account?
This is all you need to open a Bitcoin account:
A mobile phone or a computer.
If you open a Bitcoin account through an exchange, you will need to provide a form of ID as required by your country’s laws. This is not required when opening a self-custodial Bitcoin wallet.
A pen and paper or another “offline” method to backup your private keys.
How to Start Using Your Leather Wallet
To fully benefit from the Bitcoin ecosystem, you'll need a Bitcoin wallet that provides not only security, but also ease of use and functionality. Leather combines all of this, allowing you to confidently manage your Bitcoin and explore everything the Bitcoin ecosystem has to offer.
Follow these steps to get started:
Download the Leather browser extension.
Once installed, select "Create New Wallet" and follow the on-screen instructions. Make sure to back up your private keys securely to prevent loss of access.
Strengthen your account with a strong password and activate two-factor authentication (2FA). Leather gives you complete control of your private keys, so securing them is vital for protecting your assets.
After your wallet is created, you can start sending, receiving, and managing your Bitcoin. Leather’s intuitive interface makes it simple to navigate through all your transactions and connect with the entire Bitcoin ecosystem.
Securing Your Bitcoin Account
It is critical to protect your wallet and your private keys, especially when opening a self-custodial Bitcoin account. This is because, if you lose access to them, no one will be able to help you recover them or any assets you may have. Subsequently, if someone gains access to your private keys, you risk losing your assets.
Follow these recommendations to keep your account and digital assets secure:
Choose a trusted wallet provider or crypto exchange.
Use paper or a stainless steel plate to backup your private keys. Make several copies and keep them in separate locations, in case one is compromised or lost.
Save your private keys in a secure, offline location where only you have access to them. Never in your computer, your mobile device or the cloud.
Set a unique and strong password, as well as 2-step-verification when available.
Best Practices for Managing Your Bitcoin Account
In addition to safeguarding your Bitcoin account, it is important to carefully manage it. Here are some of the recommended practices to ensure you don’t get in trouble when using it:
Don’t share your private keys with anyone. Anyone with access to your private keys can access your assets.
When connecting to decentralized apps, make sure they are trusted and validated. Also, ensure that you connect via the official link. Check their verified social media profiles, website, and other trusted media sources.
Create a “burner wallet”. This is a secondary wallet, independent from your primary one, that you can use to make transactions, experiment with or connect to new d’Apps. That way you avoid putting all your assets at risk.
Consider using a hardware wallet storage for maximum security.
Avoid public networks to access your wallet, such as public Wi-Fi.
Regularly monitor your wallet activity and transaction history to detect suspicious or unauthorized activities.
Stay up to date on the Bitcoin ecosystem and its developments. The crypto market evolves very rapidly and staying current can save you a lot of problems.