This guide will walk you through creating a free desktop wallet to store your Bitcoin in.

What is a Bitcoin Desktop Wallet?

In essence, a Bitcoin wallet (sometimes called a digital wallet) is simply a software program located on a computer where Bitcoin is stored and where users can send and receive Bitcoin the most securely. Think of your digital Bitcoin wallet as the physical wallet you have today. You have full control of your physical wallet in that you can exchange money with others, make purchases, and store money in your wallet. There are potential vulnerabilities to your physical wallet though. If you lose your wallet, you may not get the cash back that was located there.

Luckily, many Bitcoin digital wallets have taken security measures to make it very difficult to access your wallet, even if your computer were to get hacked or stolen. These wallets come with a private key that is needed to access the wallet, and many users recommend storing this key somewhere besides on your desktop. Bitcoin desktop wallets differ from wallets such as those provided on websites like Coinbase and Binance, in that desktop wallets are stored directly on your computer. A wallet provided by Coinbase, for example, is stored on their servers on the internet. Typically, these wallets are fairly safe, but these wallets are certainly not immune to hacks and security breaches. Just do some simple research and you will find plenty of exchanges who have been hacked and had millions of dollars stolen recently.

Setting Up a Bitcoin Desktop Wallet

For this tutorial, we’ll use Electrum. There are many Bitcoin desktop wallets available, so it’s important to research the most secure and what works for your personal needs.

Go to the Electrum Website

Go to the Electrum website and click on “Download” in the navigation menu.

Install Your Wallet

Find the operating system that your computer uses.

If you are more technical, yo can use the “Installation from Python Sources” otherwise just do “Easy Installation”

Choose your download preference and download the installer to your desktop or your location of choice

Choose a destination folder for your installation. Usually the C: drive works fine.

When the installation completes, hit “Close.” The wallet should now be on your desktop. If not, find it in your C: drive or the location you installed it to.

Setting Up Your Wallet

Open the wallet and select “Random Servers” unless you have a manual server you would like to connect to

In the next step, name your wallet (this can be anything) and then choose the type of wallet you’d like to create. Two Factor Authentication – this type of wallet adds additional level of security in the case your computer is compromised. Multi-signature – This type of wallet will create 2 separate wallets that are typically controlled on 2 separate computers, by 2 separate people. Both of these wallets will have the same wallet address.

On the “create or restore” screen, choose if you’d like to create a new seed or use an existing seed. For this tutorial, we will create a new seed.

You’ll find a set of 12 randomized words displays. NEVER disclose these words with anyone. Store them somewhere safe off of your computer.

Write down your seed, and then verify it.

Create your password

If you’re using 2 factor authentication, you’ll need the Google authentication mobile app to scan the QR code or enter the key provided.

Congrats! You’ve set up your wallet. Refer to the Electrum documentation, or comment here if you have any questions!

Looking to buy Bitcoin? Read our guide on How to Buy Bitcoin.