BITCOIN / WALLETS / PLAIN ENGLISH
A Bitcoin wallet is how Bitcoin can be accessed, controlled, sent and received. There is no need to understand cryptography first — start with one simple question: who controls the keys?
START HERE / 01
A wallet does not contain digital coins. It reads Bitcoin network data and identifies spendable outputs controlled by the wallet's keys.
PHYSICAL WALLET VS BITCOIN WALLET →Private keys provide the cryptographic authority needed to sign a valid spend. Recovery information can recreate wallet key material and must remain secret.
KEYS, ADDRESSES & RECOVERY →Follow a Bitcoin payment through transaction construction, local signing, broadcast to the network and confirmation in a block.
FOLLOW A BITCOIN TRANSACTION →CUSTODY / 02
Revolut holds the legal title to cryptoassets as nominee while the customer remains the beneficial owner. Revolut may appoint sub-custodians as part of its custody arrangements.
Neil Hamson can instruct Revolut to buy, sell, transfer and, where supported, withdraw Bitcoin, but does not directly control the private keys while it remains within that custodial arrangement.
Revolut supports withdrawals of Bitcoin to compatible external Bitcoin addresses. That allows BTC to be moved from the custodial service to a self-custody wallet.
In self-custody, control of the keys moves to the wallet owner. That provides greater direct control, but also transfers responsibility for protecting the wallet and its recovery information.
SECURITY / 03
A private key is secret information used by the wallet to authorise Bitcoin transactions.
Many modern wallets provide a recovery phrase that can restore access if the original device is lost, stolen or damaged.
Anyone who obtains a recovery phrase may be able to control the corresponding Bitcoin. A legitimate support service should never need that phrase to be revealed.
RECEIVE / 04
Choose the receive function in the Bitcoin wallet.
The wallet displays a Bitcoin receiving address, often alongside a QR code.
Give the receiving address or QR code to the person sending the Bitcoin.
The wallet detects the transaction and shows its progress as the Bitcoin network processes it.
SEND / 05
Obtain the Bitcoin address or QR code supplied by the recipient.
Choose how much Bitcoin or how many satoshis should be sent.
Verify the destination, amount and network fee before authorising the payment.
The wallet signs and broadcasts the transaction to the Bitcoin network.
RECOVERY / 06
If the wallet was properly backed up, a replacement device can often restore access.
Recovery information should be stored securely and separately from the device it protects.
In self-custody, losing the required recovery information can make the Bitcoin permanently inaccessible.
WALLET TYPES / 07
Convenient for everyday use, QR codes and smaller payments while away from a computer.
Runs on a desktop or laptop and can provide more advanced control and features.
Designed to keep private keys isolated from an ordinary internet-connected computer or phone.
A provider manages the keys on behalf of the customer, trading direct key control for convenience.
USE BITCOIN / 08
A Bitcoin address allows another person or business to send Bitcoin directly to a wallet.
Bitcoin can be used with merchants and service providers that accept it as a method of payment.
Neil Hamson accepts Bitcoin for eligible software engineering and development services.
NEXT / 09
Review Bitcoin in plain English from a UK and GBP perspective.
BITCOIN OVERVIEW →See how pounds, Bitcoin and satoshis relate using the working BTC/GBP conversion system.
OPEN BTC / GBP →Continue into mining, proof of work and the physical machines involved in Bitcoin mining.
OPEN MINING →hamson.tech does not sell Bitcoin, take Bitcoin orders or hold customer Bitcoin. Neil Hamson owns and uses Bitcoin, accepts Bitcoin for eligible software and development services, and supports wider voluntary adoption of Bitcoin in the United Kingdom, including its use as a means of payment alongside sterling. Bitcoin prices can rise or fall substantially.
