Do you want Run a Full Node of Bitcoin? or Want to Manage Bitcoin Blockchain data on your local Computer? Then I will Guide you on How to Set up Bitcoin Core Wallet in a step-by-step way in this article.
This is a Complete Guide for the Bitcoin Core Client, I have tried to explain & covered every detail in simple words. So, you can learn easily & understand how it works.
I have been using the Bitcoin Core Wallet for quite a long time, for creating & developing Blockchain apps. As it is the only Bitcoin wallet that can download the full Bitcoin blockchain transactions data on your system.
Once the Blockchain data is downloaded to your system, You can query any Bitcoin transactions history directly from it. Also, it offers RPC APIs so you can do a lot more things using the Bitcoin Blockchain data.
First, I will start with a quick intro on What is Bitcoin Core wallet and Why to use it?
So, make sure to read & follow all the steps below.
What is a Bitcoin Core Wallet?
Bitcoin Core Wallet is Open-source software for managing your bitcoins on your system. It connects to the Bitcoin Network and specializes in maintaining a replica of Bitcoin Blockchain data on your computer.
The Wallet offers top security & privacy for your Bitcoins with the ability to Run a Full Node. It’s Free to Download & is available for Windows, macOS & Linux operating systems.
Now, take a quick read on why you should use the Bitcoin Core client.
Why should you use Bitcoin Core Client?
Bitcoin Core Client is one of the oldest running & most trusted Bitcoin wallets among the crypto community. They release regular updates & patches so you stay ahead of top security.
You could use features like the Tor network to route & maintain your privacy for sending & receiving transactions. You can use bitcoin Core for various project developments because it has built-in CLI & APIs to fulfill your needs.
Now, have a look at what Benefits & features Bitcoin Core provides in the next section.
What are the benefits of using a Bitcoin Core wallet?
The benefits & features of using a Bitcoin Core Wallet are listed below:
- Direct access to Bitcoin Peer Network.
- Ability to download Bitcoin Blockchain Data.
- Validating transactions with own Bitcoin blockchain data.
- Running a Bitcoin Full Node.
- No need to rely on third-party services or have limited API calls.
- Re-use the same Bitcoin Blockchain data for other projects.
One thing you should know before downloading Bitcoin Core is that downloading the whole Bitcoin Blockchain may take up storage & internet bandwidth. The size of the Bitcoin Blockchain is over 900 GB & keeps on increasing day by day.
As an alternative to the Bitcoin Core Client, you can prefer Electrum Bitcoin Wallet. Make sure to check out once after you complete this tutorial.
Next, you learn How to set up Bitcoin Core on your PC or Laptop in simple steps.
How to Set up Bitcoin Core Wallet on your Computer?
To Install & Set up Bitcoin Core Wallet on your Computer, follow the steps below.
Step 1. Firstly, Download the Bitcoin Core Client from the official website.
Step 2. Run the Bitcoin Core Installer file and continue next with the pre-defined settings set by the installation wizard.
Step 3. Click the Install button to start the process & wait for it to complete.
Step 4. If successful, Click Next > Finish and you will be presented with a welcome screen.
Step 5. On the welcome screen, Set the Data Directory path for storing Bitcoin Blockchain data. So set a directory that has over 900 GB of space left on your system.
That’s it, you will now have Bitcoin Core start & running on your computer. It will display the status of downloading Blockchain data by default.
In the next topic below, you will learn how to Stop or Pause the downloading of Bitcoin Blockchain data.
How to Stop or Pause the Bitcoin Core Blockchain Download?
When you need your internet speed back for some other work, it’s worth stopping the download of Blockchain synchronizing data temporarily.
To stop or pause the Bitcoin Blockchain download, do the following.
- From Bitcoin Core Dashboard, Right-click the Chain Icon at the bottom right corner.
- Next, select the Disable Network activity option.
- Synchronizing will be stopped & you can minimize or close the Bitcoin Core Wallet App safely.
Now, let’s move on to the next topic How you can create a new wallet on Bitcoin Core App if you need a separate account for personal or business use?
See how’s it done in the next topic below.
How to Create New Wallet in Bitcoin Core?
Bitcoin Core Client has been designed to manage Bitcoin wallets safely and efficiently. So, you can send & receive bitcoins easily while maintaining different wallets for various purposes.
To Create a New Wallet on Bitcoin Core App, follow the steps below.
- Open the Bitcoin Core App, Then Navigate to the File menu> Create Wallet Option.
- Type a New PassPhrase twice, like a long random string password of your choice.
- Confirm the New Wallet encryption by Clicking the Yes button.
- On the next screen, click the Ok button & your new bitcoin wallet is ready.
Tips:- To know how many wallets you own. Go to File Menu > Open Wallet option. Also, make sure to keep a note of the PassPhrase, it is the only access to your wallet.
The last topic you should learn is “Backup Bitcoin Blockchain data“. Because downloading over 900GB of data again & again is not an easy task.
Read on to see how it’s done correctly below.
How to Backup Blockchain Data on Bitcoin Core?
Backing up the Bitcoin Blockchain data is a good practice when you need to Set up Bitcoin Core Wallet App on another new device.
This saves time and internet bandwidth as the Bitcoin blockchain is over 900GB in size & increasing rapidly fast.
To back up Bitcoin Blockchain data, replicate the steps below.
- Navigate to Bitcoin Core Window > Information. To know the exact folder location of your system.
- Visit the Datadir location and Copy the Whole Bitcoin Folder to an external hard drive.
So, whenever you need to do a full setup of the Bitcoin Core App on a New Device. You just have to copy-paste the whole Bitcoin Blockchain data to the “Data directory” location.
Also, do take a backup or Copy of the current version of the Bitcoin Core Installer File that you have downloaded. In case, to safeguard from a compatibility issue on a new device.
Next, check how to send & receive Bitcoin on the Bitcore Core wallet App below.
How to Send & Receive Bitcoins on the Bitcoin Core App?
To Send Bitcoins to other users via desktop Bitcoin Core Wallet, do the following.
- First, Open Bitcoin Core Wallet Dashboard and choose the Wallet name from which you have to send bitcoins.
- Next, Navigate to Send tab & input the Bitcoin Address, Label & Amount.
- Check if every detail is correct and click on the Send button.
- Lastly, Input the Passphrase of the Current Wallet to confirm sending.
To Receive Bitcoins from another user via desktop Bitcoin Core Wallet, do the following.
- From the Bitcoin Core Dashboard, navigate to Receive tab.
- Next, input a Label name, Amount & a short message.
- Finally, click on Create new receiving address button & share the bitcoin URI or the bitcoin address.
Now that you learned how to send & receive bitcoins on Bitcoin Core Wallet. Let’s see how you can Bitcoin Core’s in-built Console APIs for quick queries.
How to use Bitcoin Core RPC Console?
Bitcoin Core’s RPC Console is useful for querying your Wallets information directly from Blockchain data you have downloaded. This is well used if you are a bitcoin developer or a miner in the profession.
To use Bitcoin Core RPC Console, follow the steps below.
Step a. From the Bitcoin Core dashboard, Navigate to Window option > Console.
Step b. Select the wallet name you want to query its details(If you have multiple account wallets) or continue to the next step.
Step c. Type in Help & press Enter. A whole list of Bitcoin Core RPC commands will be displayed.
Step d. Pick the query command you are interested in & then type it in the console input and press Enter.
Lastly, before ending this tutorial. Take a step further to read the Summary.
Bitcoin Core Wallet App is the only app that offers the highest security, privacy features, and a simplified way to download Blockchain data in your system. It is a community-driven free project software & updates are regularly published on the official site at bitcoincore.org.
The only drawback is that you have to maintain the full blockchain ledger up to date. So, the latest transactions & balances show up correctly.
If you are a Bitcoin Developer, then you can navigate to advanced options on Bitcoin Core App. To get more functionalities and access to the Bitcoin Core RPC APIs.