Blockchain wallet (BTC): setup and pitfalls

6 years ago 0 21081

Blockchain wallet (BTC): setup and pitfalls

Blockchain wallet (BTC) is one of the many clients out there but why is it so popular? The number of bitcoin clients popping up time and again might be frustrating even for an ubergeek, let alone all the ordinary mortals. For this reason, the urge to surrender to a super easy solution might be strong. In this piece, we will cover what pitfalls you might slam into while using a straightforward client like Blockchain wallet (BTC) and how you can set it up if you still want to.

Bear in mind that Blockchain wallet is not an official wallet of the Blockchain technology. Even though it’s blessed with the same name. Of course, this is one of the oldest online clients in the niche, yet, it’s one of the manifold solutions.

Online wallets might be unsafe

First things first. You’ve probably heard that all bitcoin storages fall within two categories, cold ones and hot ones. As opposed to the cold wallets AirdropAlert has covered previously, those ones called hot ones touch the Internet on a regular basis and have vulnerability spots associated with the web.

To give you an example, keyloggers can record any information you type in. Later they save it in a log file, usually encrypted, and send it to the specified receiver, which might result in revealing your private key. Then, sniffers. Sniffers can listen to your Wi-Fi and steel all the traffic flowing into and out of your machine, which might result in revealing your private key. Phishers can copy the layout of the well-known platforms where you voluntarily provide them with… right, your private key. Find out why you should never reveal your private keys. But remember that with Blockchain wallet, it is possible to jeopardize them.

Why take a chance on Blockchain wallet (BTC)

If that sounds too pessimistic to you and you don’t understand why create an account with this website, note the following. Set side by side with such online wallets as Bitgo and GreenAddress, Blockchain wallet is the oldest and well-recognized hot client in the niche. Not to mention, it was set up back in 2011, which, by the standards of the ecosystem, sounds like the Palaeolithic. 29 mln people have created wallets on top of the platform. In addition, 11 huge investment firms laid out about $40 mln on the business in 2017. And, most importantly, the wallet is not demanding at all.

The platform is good to spend money from your paper wallet, and it suits you fine if you regularly transact small amounts or want to use a mobile app. It’s a great wallet that deserves its wide adoption and good reputation if you’re new to crypto or looking into trading coins on a daily basis. Still, it is not the killer blockchain app we’re looking forward to arriving. It’s a hot wallet. Keep that in mind and switch to the samurai mode of thinking. What is the sum you can afford to lose? Deposit it or even a smaller one, and let’s go.

1-min installation guide

step 1

The Blockchain wallet starting page

Some of you might remember the previous name of the wallet, blockchain.info. But in July 2018 the wallet migrated to the “com” domain. The team explained they wanted to gather new and old functionalities in one place.

Hence, while accessing Blockchain wallet website, be mindful of phishing platforms that might use this misconception. Watch out for imitations and verify all the links before hitting the “sign up” button.

step 2

Create your Blockchain wallet page

Even though the next step might seem obvious to you, at this stage, you can easily mess up and never notice. Despite any typos you make, the platform gives you an instant access to your new wallet. Thus, be very careful and don’t create an account on top of a wrong e-mail address.

step 3

You’d know that you did the right thing if you received a verifying e-mail from the team. It will look like this.

The Blockchain wallet will send you the verifying e-mail

From now on, to access your wallet, you will need your wallet ID (the one we’ve blurred on the pic up above) and the password you’ve created in the process of setting up your account.

With Blockchain wallet, the point of failure is the individual user. We might forget to put into service the security tab to its fullest extent, or download malware from the Internet, or find ourselves caught in the crossfire between phishers. So the safety of our funds in our hands only.

A strongly recommended set of safety settings

Be mindful of the Blockchain wallet security tab

Blockchain wallet security tab takes care of any potential threats you might face while storing the money in your account. Just click the tab and verify your e-mail address. Then, finish the 2-step verification process (cell phone needed) and write down the backup phrase. This phrase will restore your wallet and help you access the funds, in case you lose your password or the service is unavailable. By the way, the process of securing your funds is fun and easy.

How can I receive funds to my Blockchain wallet?

For safety purposes, your Blockchain wallet will generate a unique bitcoin and Bitcoin Cash address each time you want to receive funds. Yet, as the website states, your ether address will remain the same for every request.

step 1

Push the “Request” button.

How to request funds to your Blockchain wallet

step 2

Copy the link of your public address and forward it to whoever will send you the money.

A string of your Blockchain wallet public address

A few perks to mention

Blockchain wallet is not the only functionality the company provides us with. In summer 2018, it launched BPS (Blockchain Principal Strategies), “a comprehensive institutional offering for digital asset investors”. At its disposal, this new platform has got over-the-counter (OTC) trading desk, a smart Order Management system (OMS), custom portfolio view, risk metrics and the access to a research team managed by experts from Goldman Sachs, JP Morgan and UBS.

For us, wallet holders, that means one thing. Over the years, the company has created the resourceful platform we can benefit from, too.

First, click on “data”, then, on “charts“. You will get the access to the information on the block details in the bitcoin blockchain.

The Blockchain wallet functionality to follow the transaction time

As an illustration, the section “Median Transaction Confirmation Time” shows you the median time for a transaction to be accepted into a mined block and added to the public ledger. If you’re in a hurry, it will help you see if you need to pay a higher or lower commission rate.

At this point, if you click on “markets” you will get the quick access to the latest market information, such as a bitcoin price or bitcoin market capitalisation.

The market figures presented on the Blockchain wallet website

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Last but not least, there is, of course, this nice little option that made the platform so famous. The explorer helps you track your transactions in a very easy way.

step 1

Enter your public address into the bar.

You can look after your transactions with the Blockchain explorer feature

step 2

Monitor your transaction information.

Here you can see the number of confirmations for your transactions

Final thoughts

Online wallet companies store your private keys in a number of different ways. Some of them share control with you, some of them don’t. Always remember, while somebody else is in possession of your private keys, you’re not the one to control your money. Still, if you have to use an online wallet, make a right choice and be safe.

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