I’m new to Bitcoin and have looked into wallets, exchanges, and payment gateways. I’ve settled on what I want but need some clarity on wallets:
When I buy Bitcoin on an exchange, it seems like I need that exchange’s wallet. So do I need a different wallet for each exchange I use, or can I simply use my own wallet across any exchange?
Also, when I see places to buy things, they reference certain payment gateways. Does that mean I need wallets for those payment gateways too?
I’m really hoping to stick with just one wallet for everything, but maybe I’ll need several wallets and transfer between them.
It’s best to use your own wallet that is open source and not tied to any exchange. Stay away from exchange wallets.
Generally, payment gateways work with most wallets. Bitpay is one you might want to avoid. It’s better to spend with merchants that accept Bitcoin Lightning transactions since they’re more private and have low fees.
You can find some recommended wallets in the pinned FAQ.
Here are some directories of businesses that accept Bitcoin:
I’m really hoping to stick with just one wallet for everything,
Then try installing this wallet:
Check out this video for help:
In the settings, enable Lightning, and you can manage both on-chain and Lightning transactions from the same wallet. Just choose single sig when signing up.
@Lior
Thank you for your help, I really appreciate it. I’ll check out your links. I was considering Electrum or Sparrow for a non custodial open source wallet. I need something that works on Linux and possibly Android. I’d also like two-factor authentication. I’m not interested in DeFi. What do you think about that? Is it as safe as using an exchange?
For exchanges, I want one that lets me buy Bitcoin with PayPal. I believe LocalCoinSwap offers that. I want to avoid the hassle of KYC because I intend to use Bitcoin for small purchases rather than for investments.
I specifically need a wallet that works with Plisio and Coinbase.
@Clive
Any wallet listed in the pinned FAQ should work fine. Just make sure that if a merchant doesn’t accept BTC over Lightning, you should use a regular wallet instead.
It’s easy to tell the difference. BTC on-chain addresses begin with (bc1… or 3…), while Lightning invoices start with lnurl…
Just to clarify, exchanges have an account for each user. They call it a wallet, but it isn’t the same as your personal wallet.
Your bank account and your real wallet are different, right? The same goes for exchange accounts and a self-hosted Bitcoin wallet.
With Bitcoin, there are no actual payment gateways. You just give someone an address and send whatever amount of BTC to that address. Once I receive it, it’s mine now.
@Akira
That’s an interesting point, thanks for the clarification. Maybe I was using the wrong terms. Should I be saying Payment Service Provider instead of exchange gateway? I want to use Plisio and Coinbase. Check my response to u/bitusher about the wallets I’m considering and why. Do you think they are good picks or is there something better I should look into?
@Clive
I mainly use Sparrow, but Electrum is a solid second option. Both are Linux compatible. Forget about two-factor authentication; that is mainly for less secure accounts. Also, skip Android; it’s not very secure.
Get a cheap, dedicated laptop, wipe it clean, and install your preferred Linux version. Use that device solely for Bitcoin. Ideally, you should get a ColdCard hardware wallet to keep your keys safe from the internet.
Create an account on Coinbase or any other exchange, buy your sats, and immediately transfer them to your ColdCard. That’s the safest way to go.
@Akira
Awesome, thanks for your advice. I was considering Sparrow over Electrum. I run Linux at home, so setting something up won’t be an issue. I agree about ditching Android.
Since I’m not using Bitcoin for investments, the chances of someone compromising my wallet are quite slim. For example, I’d buy some coins and spend them quickly. Even if I got hacked in that short time, I wouldn’t lose much since I am not making large purchases, so I’m not really thinking about a ColdCard setup. If I were looking at investing in Bitcoin, I definitely would go for a ColdCard.
No one answered his question, which is also my concern: can I send Bitcoin from CashApp, Kraken, MoonPay, and Binance to one wallet like the Jade? I ended up buying from these platforms separately over time, and I want to consolidate everything in one hard wallet.
Be careful! There are a lot of scammers on this forum. They often send private messages and chat. If you get any strange private messages, be cautious. Use the report link to let the moderators know about any suspicious messages.
