If you’ve used Paypal before, then you already know how online wallets work. Paypal is a type of online wallet that you can use to send and receive money from other people. People who want to send you money use your e-mail address to send it to.
Sending and receiving cryptocurrency is similar, but you have many more options for how to store the money, and many different kinds of money (BTC, ETH, ZEC are all different coins with their own blockchains and wallets. Also, it is much easier to create a crypto wallet than it is to create a bank account or Paypal account.
In this guide, we will explain a few options you have in setting up wallets, along with our current recommendations. We will cover Online Wallets / Exchanges as well as installable Local wallets.
Online Wallets / Exchanges
Easy to setup
Stored in cloud
Requires internet connection
Less secure than hosting your own wallet software
Depends on a service provider
A lot of new users prefer to use online wallets. We actually use Coinbase.com as our online PiMP wallet to receive the funds from PiMP orders. Coinbase is located in the USA and has proven to be reliable, easy to use, and secure. You can send/receive Ethereum and Bitcoin using Coinbase as well as connect various Merchant tools and buy/sell BTC to your bank account.
For Monero/XMR: We also have created a Monero XMR wallet using Mymonero.com.
Another method that is common is to use an exchange as your wallet. A good example of an exchange is Bittrex.com. They allow buying/selling/trading of many crypto currencies on the open market. Note: Some people do have issues mining to these wallet addresses. As an example, you cannot use Bittrex XMR wallet to receive XMR mining funds. You should use a different wallet.
You hold the private keys
Can easily mine to it
You are responsible for backup
If you lose the keys you lose the whole wallet
Have to store the blockchain on disk
A few more setup steps than online wallet
Nearly all of the coin developers have their own wallet available that you can download and run. There are also third parties that write more enhanced wallets that are easier to use. For the most part, this is called “Running a full Node” and that means that you are fully participating in the blockchain for that coin. In other words, all blocks and transactions are downloaded to your wallet from the network.
There are also lightweight wallets that allow you to have the security of hosting your own private keys, while not hosting a full node. A great example of this is MultiBit. We have used MultiBit for some time and it works well on Windows, Linux and Mac. See https://multibit.org for details.
As easy as installing and using an App on your phone
QR Codes make transactions quick on the go
Have your wallet ready and with you
You are responsible for backup
If you lose the phone you may lose the whole wallet
Be wary of various Apps reputations!
You can also get various wallet Apps for Tablets and phones to take your crypto on the go! Some Mobile Wallets are cloud-hosted and some are local-hosted on the device. This makes it easier to check out using crypto or send/receive money to others. A great feature of the various wallets, especially on mobile wallets, is the QR Code. This is like a Barcode that has address information in it that you can use to pay in crypto.
Please comment below with some wallets that work well for you!
How to Use the Wallet Addresses
Once you have installed and created the wallet of your choice, the next thing to do is to create an Address that you can use to send money into the wallet. If you are going to start mining Ethereum, for example, you need to create an Ethereum wallet and an Ethereum deposit address. Then you can put that address into the PiMP confs to mine the coins to your wallet.
How to tell what kind of wallet address is which
There are thousands of coins out there with their own naming scheme, but ultimately the wallet addresses conform to some basic pattern:
Bitcoin/BTC: 1JiPutZrDBLW4YwXY5GbwgLJrpAQTMUUir (34 characters starting with a 1)
Ethereum/ETH: 0x6d156c89f75405b2877be9092e006dca55a12cfa (42 chars starting with 0x)
Monero/XMR: 463tWEBn5XZJSxLU6uLQnQ2iY9xuNcDbjLSjkn3XAXHCbLrTTErJrBWYgHJQyrCwkNgYvyV3z8zctJLPCZy24jvb3NiTcTJ (many chars starting with 4)
Zcash/ZEC: t1RhRUVnfomxUWiPjhjADkmGuoBtQSq75Zy (Zcash T-address only, starts with a t)
Fill your wallet faster with PiMP
Now that you know how to make a wallet, fill it up the fastest and easiest way by mining with PiMP!