This post is a detailed overview of the Bitcoin Core wallet. With the Bitcoin Core software, users are able to hold Bitcoin funds and make Bitcoin transactions, including cross-border payments. This is an official Bitcoin wallet developed especially for the Bitcoin network. The key developer is Bitcoin Foundation, a non-profit organization that unites developers and regulates interactions with government institutions and corporations. Today, Bitcoin Foundation has functioning offices in the largest cities all across the world.
Bitcoin Core Wallet is the best option for a beginner in cryptocurrencies. This wallet is popular because:
- it is an official Bitcoin client;
- it is an open-source code software available for collective development.
When preparing for a Bitcoin transaction via the Bitcoin wallet, the entire Blockchain is loaded to synchronize with the wallet. Once the process is completed, the synchronization will stay intact during transactions. The user is guaranteed to receive Bitcoin or send Bitcoin with no risks of exposing personal information or their bitcoin address compromising their funds.
Read the whole article below to fund out more about the following:
- What a Bitcoin Core wallet exactly is
- How to use a Bitcoin wallet
- How to pay with a Bitcoin wallet
- What the Bitcoin Core security services are
- Bitcoin wallet perspectives and plans
- The Pros and Cons of Bitcoin wallet
We also added an FAQ section in the final part of this guide that consists of the most frequent questions asked about the Bitcoin Core wallet service.
1. What is Bitcoin Core?
Bitcoin Core is a piece of software that allows a user to operate within the Bitcoin network. The software includes a digital wallet that serves fund storage and a transaction tool. With a Bitcoin wallet, a user can send or receive payment and store purchased bitcoin assets. The Bitcoin Core wallet is highly secure, and there are no risks of losing personal data, exposing bitcoin addresses, or a private key.
If you choose to store your BTC funds using a Bitcoin Core wallet, then you are able to take part in developing a decentralized blockchain by validating transactions and storing a copy of the network.
To use the Bitcoin Core wallet, you will need to download it, install it and run a setup procedure. We will cover all of these steps in the sections below.
What is Bitcoin Core’s compatibility?
You can use Bitcoin Core with a number of operating systems:
- Windows (7,8,10)
- Mac OSx
- Linux
- a limited number of ARM chipsets (such as Raspberry Pi V.1 and V.2)
Is Bitcoin Core expensive?
Downloading and using Bitcoin Core will cost you zero expenses – the program is free of charge. However, it will require a certain amount of hard-drive space, bandwidth, and time to install and set up the software. Plus, you must keep in mind that while the service is free to use, there are transaction fees that you will have to pay to be able to send/receive Bitcoin assets. You can use a sliding scale to make transaction fee regulations choosing how much fees you will pay according to transaction priority.
What currencies does the Bitcoin Core store?
Currently, you can only store Bitcoin (BTC) digital currency, which is one of the downsides of the service.
2. Getting Started with the Bitcoin Core
Perform a system checkup
Before you proceed with the Bitcoin Core downloading, you first will need to run your system checkup to make sure that your computer meets the hardware requirements.
These are the minimum recommendations:
Hard-drive space
- 145GB
Internet connection
- 500MB/day (15GB/month)
- A one-time 140GB download required for the first time launch of the software
- 5GB/day of upload speed (150GB/month)
RAM
- 1GB
System specs & OS
- A desktop/laptop computer or compatible ARM chipset
- Windows 7/8.x/10, Mac OS X, or Linux
Downloading the software
- To download the software, please visit www.bitcoin.org/en/bitcoin-core
- When the software is downloaded, run the file. Launching the installation process may take some time. So please be patient.
- When you first open Bitcoin Core, your new Bitcoin wallet will download the entire blockchain – The download will contain all the previous transaction history. The total amount of downloaded data will equal more than 100GB, so keep that in mind. The download time may take up to a day to complete, depending on your internet connection speed.
Can you do with the blockchain synchronization?
This is a frequent question among Bitcoin users since not all of them are fond of downloading hundreds of GB to be able to work with the Bitcoin wallet. So is there a way to avoid the blockchain sync? Yes, there is.
To be able to restore funds from the Bitcoin Core account without the mandatory blockchain sync, you will need to perform the following steps:
- Install a new crypto wallet (choose of the several wallets out there like BitPay, Etherum, etc.)
- Run Bitcoin Core
- Open the debug console window inside the software
- Gather a set of certain data
- Create a raw transaction
- Sign the raw transaction with a private key
- Broadcast the raw transaction
IMPORTANT:
- This method is for advanced users only. That is why we will not go deeper into the details. If you are interested in restoring access to your BTC funds, NOT using Bitcoin Core, please do your own research on the topic.
The interface
Here is what the Bitcoin Core looks like:
Menu
- Menu lets you set up a wallet and perform key operations.
Tab bar
- This element gives you fast access to the wallet review and payments and receives sections.
Work area
- In the Work area, you can see the balance of funds and the latest transaction history.
Status Bar
- This area shows the sync process.
- You can also set the units of measure for the account balance.
The developer team attempted to create wallet software that would be extremely user-friendly so that even a beginner would understand how to use it.
Setting up a password
When the software has downloaded all the necessary data, proceed with the creation of your personal password. Without this security measure, you will not be able to use Bitcoin Core.
To create a password, do one of the following actions:
- Use Bitcoin Core’s GUI
- Use the command line
This will lead you to the Settings tab, where you will need to hit the Encrypt Wallet option. After that, think of a password. We highly recommend putting down your password on a piece of paper and keep it somewhere safe. If you happen to lose your password, you will not be able to use your wallet and lose access to your BTC funds.
Restart the software
When the password is set, the software will automatically go offline. Run it again to proceed with investment operations.
Linux installation tips
While the installation processes for Windows and Mac are quite the same, the Linux OS will require a slightly different set of actions:
- Unpack the archive and run the installation file in a new folder
Ubuntu tips:
- Via the official PPA site, add a repository
- $ sudo add-apt-repository ppa: bitcoin / bitcoin
- $ sudo apt update;
- Then install the package $ sudo apt install bitcoin-qt;
The program will be in the main menu when the installation is completed, where you can immediately register your new wallet.
Finding a private key
In different operating systems, you can look up your private key in the following folders:
Windows
- %appdata%\bitcoin
Mac OS
- $HOME /Library/Application Support/Bitcoin
Linux
- $ HOME/.bitcoin/
3. Making your first Bitcoin transaction
When you’ve rerun the Core software, you can add some previously purchased coins to your new Bitcoin wallet:
- Go to the File option and then click the Receiving Addresses button;
- Click the Copy Address button to copy the destination address;
- In case you’ve bought BTC from an exchange, you can send coins to your new wallet by pasting a destination address into the send from of the exchange platform;
- If you need to receive BTC assets from an individual, provide them with your receiving address.
4. Sending Coins with Bitcoin Core
Using Bitcoin Core for payments is very easy:
- Run the software.
- Go to the Send tab and insert the transaction information.
- Insert the receiving address (i.e., where you will send your payment to). Make sure that you’ve entered the receiving address correctly – you will not be able to cancel or reverse a transaction. IMPORTANT: ofter, the receiving party would send you a QR code with all the necessary information about the upcoming transaction.
- Your next step is setting a transaction fee since Bitcoin Core lets users decide how much money they want to pay for transaction services. The fees go to miners who provide transaction validation services and maintain the network’s nodes. If you choose to pay higher fees, your transactions will get approved more quickly. With a fee that is too low, there’s a high risk of getting your transaction canceled by the blockchain. If that happens, your bitcoin assets will be returned to your wallet.
- When you have double-checked all the information about the transaction, you will need to hit the Send button.
- The system may ask you to enter your personal password – do this and click OK.
- Now, the transaction is created and waits for approval.
5. The Security Aspects
Purchasing and selling cryptocurrencies requires a high level of privacy and security. And that is what Bitcoin Core offers its clients.
With this software, you get access to extra security options such as:
- Perfect privacy for incoming transactions – this means that the software will carefully store and categorize your payment history, letting you see all the information about the receiving transactions.
- A high-level outcoming transactions privacy – your P2P-payment records become almost untrackable compared to the services with less protection.
- Tor browser compatibility – the software is 100% compatible with Tor, a browser that hides your IP address which makes it very hard to relate your real-life identity to your bitcoin operations.
- A decentralized P2P system – when using the Core software, you are basically acting within the network of many other Bitcoin Core clients. The method of finding new peers in this peer-to-peer system is decentralized, which means that there is no central authority that would serve as a mandatory filter for new peers.
6. Upgrades
This is the list of features that are already available within the system:
- An increased download speed – a very anticipated new feature that will make downloads faster for many clients.
- Multi-wallet support – now, you can use multiple wallets within the Core software. However, the feature is not yet functioning through the GUI.
- Fee transparency – this feature makes gauging a more favorable transaction fee much easier.
7. The Pros and Cons of Bitcoin Core
Pros
- Bitcoin Core has a legal status as the official wallet for the Bitcoin digital money;
- The software offers maximum security;
- The wallet is very quickly set up (this is an added plus for new customers);
- The software is designed to store private keys in the local database;
- Bitcoin Core is compatible with Linux, Windows, and Mac operating systems;
- The software is compatible with the Tor anonymizer;
- It has a fee regulating tool.
Cons
- Requires a very long synchronization of the wallet;
- Bitcoin Core has special requirements for computer hardware;
- A completely loaded Bitcoin Core client weighs about 100 GB, so you’ll need a lot of free space on your hard drive;
- High internet connection speed is mandatory.
Final thoughts
Bitcoin Core is a great tool for managing your BTC assets. With this software, you can engage in peer-to-peer transactions, buy/sell BTC on various exchanges, store BTC funds, and use them to make online payments. Bitcoin Core is indeed one of the best wallets, for that matter. However, as with many other crypto wallets, it has some downsides that might make you want to look for alternative choices.
FAQs
What is a Core wallet?
Bitcoin Core is one of the crypto wallets that allow customers to buy/sell, store and exchange cryptocurrencies. The Core wallet is an official Bitcoin wallet that only works with the BTC currency. The software is highly secure and is deemed to be one of the best choices for managing bitcoin funds.
Is Bitcoin Core a good wallet?
While having certain drawbacks such as high hardware and Internet connection requirements, Bitcoin Core is one of the best digital wallets today. The software offers high-standard security measures and is very easy to use.
Is Bitcoin Core the same as Bitcoin?
Bitcoin Core is indeed the same as Bitcoin. Bitcoin Core is one of the namings for the Bitcoin digital currency.
How to update BTC address?
You can’t update your existing bitcoin address since it’s related to your private key, which cannot be changed. However, you can create a new receiving address if your wallet supports this option (this may vary for different wallets).
