How do I start building a Bitcoin wallet service?
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Surely you have heard of cryptocurrencies.
Names like Bitcoin or Ethereum are present in many conversations and in countless articles, publications and messages on social networks.
Everyone wants to know more about it, to know what they consist of and, why not, try their luck with it.
But to get started, you'll need a cryptocurrency wallet, the blockchain equivalent of your physical wallet where you keep coins and bills.
And Coinbase Wallet is one of the most popular.
Build a token bridge A cryptocurrency wallet is software or an application that stores cryptocurrencies and other cryptographic items.
They can be virtual, accessible from the Internet or from a mobile application.
And they can also be stored on a physical device similar to a flash drive.
They are also known as a wallet, crypto wallet, purse or cryptocurrency wallet.
A simple online search will show us endless wallets to store your crypto, such as MetaMask, Token Pocket, Coinbase Wallet, Exodus, Electrum, etc.
Even browsers like Brave or Opera offer their own crypto wallet built into the browser itself.
In this article we are going to create a cryptocurrency wallet with Coinbase, although the steps are practically identical in any other platform or virtual wallet.
This service provider allows you to create a crypto wallet in a few minutes and in two different ways.
Depending on what you want to do with cryptocurrencies.
In addition, it allows you to buy and sell cryptocurrencies from your application.
And, of course, with a crypto wallet or wallet you can also send and receive cryptocurrencies safely.
Are all wallets the same?
We said that cryptocurrency wallets are software, applications.
They are virtual, not physical.
They are available from a connected browser, from a mobile application or from a USB device or pen drive.
Its job is to store private keys to synchronize your wallet with others on different devices.
Without those keys, you cannot perform crypto transactions.
The public key of the wallet or wallet is the blockchain equivalent to the bank account.
It can be shared without putting its content at risk.
You can receive cryptocurrencies with it.
The private key is what allows you to recover your cryptocurrencies, so you should not share it with anyone.
As for the type of portfolio, technically there are three types.
Hosted (in English Hosted), without custody or self-custodial (Self-custody in English) and physical (Hardware).
The most popular are the first, since cryptocurrencies are monitored by a third party, a company dedicated to this work.
For their part, self-custodial portfolios do not have intermediaries.
You are in charge of remembering the keys or passwords to recover your cryptocurrencies.
Create a wallet hosted with Coinbase or others
If you are just starting out, the simplest way to get into the world of cryptocurrencies is with a wallet or hosted wallet.
It has its limitations, but as a newcomer, they won't affect you.
In addition, if you forget your passwords, you can recover them.
Creating such a cryptocurrency wallet is as simple as choosing a platform, such as Coinbase or similar, and creating a user account.
As simple as that.
You will be asked for some personal information and a password.
To improve security, it is recommended to use two-step verification or 2FA.
Once the wallet is created, you can buy or sell cryptocurrencies.
For the first, you will need to provide a bank account or a credit card.
For certain operations, you can also use Apple Pay or PayPal.
Create a non-custodial wallet with Coinbase Wallet or others
It is possible that over time, the hosted portfolio will fall short.
And that you prefer to have a self-custodial cryptocurrency portfolio that you can control in detail yourself.
In that case, the procedure to create said portfolio is somewhat more elaborate but also simple.
First, you must download an application that will act as a virtual wallet.
For example, Coinbase Wallet.
Then you must create an account, from the browser or from the application itself.
In this case, it is not necessary to provide personal data.
Then you must indicate the generated private key, which is usually a random phrase of 12 words.
Keep it safe, since without this key you will not be able to access your purse or wallet.
Last but not least.
It should be remembered that a cryptocurrency is purchased using real money.
But it is a highly fickle item subject to changing value in a trading market.
In other words, buying cryptocurrencies is something that must be done with knowledge and knowing what it is about.