I want to begin my journey

[knowngunman]

Learning is continuous process and I am ready to learn and begin my bitcoin journey. Don't mind my rank concerning what I am about to learn please. First of all, I want to know how to create a non custodian wallet (I want to own one) and does it require payment to create or maintain? All this while, I have been using, storing and transacting with exchanges like Binance, kucoin and others.

Secondly, what is the purpose of sign message that I use to hear and see? How do I sign a message? Is the sign use to approve transaction? I don't know how to sign a message and the exchanges have never require me to sign a message before.

Don't be surprised seeing this coming from me. I think it's high time I desist from trusting my coins with exchanges. I don't like what I'm hearing in the news this days about exchanges change users deposit address or delisting. I don't want to regret in the end. One who asks can never lost, please enlighten me.

[Zaguru12]

First of all, I want to know how to create a non custodian wallet (I want to own one) and does it require payment to create or maintain? All this while, I have been using, storing and transacting with exchanges like Binance, kucoin and others.

Non-Custodian wallet simply are those wallets that you hold on to your keys and recovery seeds and not entrusting them on any third party like the exchanges you listed above.
Self custodian wallet is actually of two which are cold wallet and also the hot wallets. Just like the names, the could wallet are those that are not online example is the hardware wallets, while the hot ones are online example is wallets like electrum and blue wallets.

The hardware wallets are a little bit expensive for small holders(price of one is like $50)  but they actually provide the best security. The only electrum wallet or blue wallet are free. All you need is to download the app and verify it. If you’re using a desktop to set it up the electrum wallet is the best. The blue wallet is mostly used by mobile users since it has many features on mobile than electrum. Here is a thread on how to verify an electrum wallet

Secondly, what is the purpose of sign message that I use to hear and see? How do I sign a message? Is the sign use to approve transaction? I don't know how to sign a message and the exchanges have never require me to sign a message before.

Sign a message or transaction signing actually proves that you hold the keys to that wallet which signifies it owners authenticity. Here is a thread on how to sign a message

[o_e_l_e_o]

You don't need to apologize for taking the first steps towards self custody!

First of all, I want to know how to create a non custodian wallet (I want to own one) and does it require payment to create or maintain?

No payment required. The most straightforward way is to download a verify a reputable wallet such as Electrum (https://electrum.org/) or Sparrow (https://sparrowwallet.com/). A more secure method is to purchase a good quality hardware wallet such as a Passport.

All this while, I have been using, storing and transacting with exchanges like Binance, kucoin and others.

Given how many centralized exchanges have been going bankrupt or outright scamming their users, it's certainly a good idea to start looking in to self custody.

Secondly, what is the purpose of sign message that I use to hear and see? How do I sign a message? Is the sign use to approve transaction? I don't know how to sign a message and the exchanges have never require me to sign a message before.

Signing a message from an address allows you to prove ownership of that address. Some exchanges are starting to require signed messages so they know you are only withdrawing coins to your own addresses and not sending them somewhere else. This is just yet another way they want to control you and monitor everything you do.

Signing a transaction uses almost the exact same process as signing an arbitrary message. Both Electrum and Sparrow as I've suggested above allow you to sign messages.

[HeRetiK]

Secondly, what is the purpose of sign message that I use to hear and see? How do I sign a message? Is the sign use to approve transaction? I don't know how to sign a message and the exchanges have never require me to sign a message before.

The purpose of signing a message is so that you can prove that a certain address belongs to you (or at least that you have access to its private keys). This is useful for e.g. proving that you hold a specific amount of coins (e.g. when promising payment or run a business where you store customers' coins) or to verify that you are the same person (e.g. when updating a payout address or when you forget your password). How to sign a message depends on the wallet you are using. With Electrum for example you can find the option to sign a message either under "Tools" or when right clicking on an address in your list of addresses (you might have to enable this tab under "View" first).

The hardware wallets are a little bit expensive for small holders(price of one is like $50)  but they actually provide the best security.

Generally yes, but it's worth mentioning that Ledger is to be considered compromised at this point:
https://bitcointalk.org/index.php?topic=5452900.0

[Charles-Tim]

In addition to what Zaguru12 and o_e_l_e_o posted, both Electrum and Sparrow wallet have good desktop versions. I still prefer Electrum mobile version but you can not use it to sign a message too, unlike the desktop version. If you need a wallet for mobile where you can have small amount of bitcoin, you can go for Bluewallet. With Bluewallet, you can sign message with your bitcoin address, you can as well verify message on Bluewallet. It also have other features like replace-by-fee and coin control.

For a hardware wallets I will recommend Passport which o_e_l_e_o posted above, but it only support bitcoin, no altcoin support. For bitcoin hardware wallet that also support altcoins, Trezor supposed to be the best, until the wallet support coinjoin with the help of Wasabi that works with chain analytic company to sensor transactions. Passport is only bitcoin wallet and it is open source and the best bitcoin hardware wallet for now in my opinion.

Secondly, what is the purpose of sign message that I use to hear and see? How do I sign a message? Is the sign use to approve transaction? I don't know how to sign a message and the exchanges have never require me to sign a message before.

In addition, you prove the ownership of your bitcoin address with your wallet's private key. Without you having the private key, you can not prove you are the owner because you can not sign a message with the address. Assuming you stake an address on this forum, do not lost the wallet seed phrase or master private key or the private key of the address.

Self custodian wallet is actually of two which are cold wallet and also the hot wallets. Just like the names, the could wallet are those that are not online example is the hardware wallets, while the hot ones are online example is wallets like electrum and blue wallets.

You are correct. But if OP can do what is required, he can still use wallet like Electrum offline. https://electrum.readthedocs.io/en/latest/coldstorage.html

[tranthidung]

Secondly, what is the purpose of sign message that I use to hear and see? How do I sign a message?

Signing a Bitcoin message to show that you own the private key. The message you sign can be proof for your account in the forum. I guess this is your question.

• How to sign a message?!
• Signing a message and you will need to Stake your Bitcoin address here

I don't know how to sign a message and the exchanges have never require me to sign a message before.

Because they don't care where is your bitcoin comes from. They just need you to create an account at their centralized exchange, make a deposit, trade there and even don't trade, if you withdraw your bitcoin, they charge you very expensive withdrawal fee.

Is the sign use to approve transaction?

This one is different. Signing a transaction with your Bitcoin private key.

How to spend from an offline paper wallet using Electrum

[Synchronice]

First of all, I want to know how to create a non custodian wallet (I want to own one) and does it require payment to create or maintain?

No payment required. The most straightforward way is to download a verify a reputable wallet such as Electrum (https://electrum.org/) or Sparrow (https://sparrowwallet.com/). A more secure method is to purchase a good quality hardware wallet such as a Passport.

There is a very high probability that Electrum Nodes log your IP when you broadcast transaction and it makes it very easy to be tracked. Isn't it better to run your own Electrum Server? I mean to run your own Node and connect Electrum to that one.
And how safe is it to use Bitcoin Core in pruned mode? In this case, you have to download only 6GB of data. Bitcoin Core website says that you aren't sacrificing any security by enabling pruning. So, if I enable pruning and create a bitcoin transaction, will my IP be revealed to other nodes?

By the way, I know, connecting Electrum to Tor is a good idea but I think it's still better if your fake IP doesn't get revealed anywhere too, as much as possible.

[knowngunman]

In addition to what Zaguru12 and o_e_l_e_o posted, both Electrum and Sparrow wallet have good desktop versions, but I do not really like their mobile versions, especially sparrow wallet. I still prefer Electrum mobile version but you can not use it to also sign a message too, unlike the desktop version. If you need a wallet for mobile where you can have small amount of bitcoin, you can go for Bluewallet. Wit Bluewallet. You can sign message with your bitcoin address, you can as well verify message on Bluewallet. It also have other features like replace-by-fee and coin control.

I really appreciate the explanation, suggestions and recommendations received so far. Unfortunately, I have no desktop and I downloaded the blue wallet using the link provided aboved and set up the wallet. Although there are some things I don't understand yet.




In the second image, I can see series of address with zero balance while I have not perform any transaction yet. I don't know where they are coming from. Secondly, I can't find the private keys. It only issue mnemonic words which I copied and save already. Thirdly, no security question before one can sign message. And finally, I attempt to create the wallet without having internet connection but it shows error message until I allow access to internet. I hope there won't be any problem later from cyber hack.

After going through the link @Zaguru12 provided concerning the sign message, though it is very complicated but here is my attempt. I don't know if I do it the right way.

Code:

-----BEGIN BITCOIN SIGNED MESSAGE-----
<this is knowngunman testing how to sign a message>
-----BEGIN SIGNATURE-----
<bc1q8uk5mu99ewzpnmhlw5ymklt2hyvh4vqrsdrrj4>
<KG3C6jqzVyeKG69bh/ST85ca4plLFl+9p1msCzAkCCCkEs3vHLkTASsaMtgqV2dk1t5tSFSn8CSdyM/gkjlXyaw=>
-----END BITCOIN SIGNED MESSAGE-----

It shows verification failed when I click on verify button thou. Any further explanation will be appreciated.

[LoyceV]

And how safe is it to use Bitcoin Core in pruned mode? In this case, you have to download only 6GB of data. Bitcoin Core website says that you aren't sacrificing any security by enabling pruning.

Pruning without sacrificing security means you'll have to download about 500 GB, it just takes only 6GB on disk. And indeed, as far as I know that is as safe as running a full node.

So, if I enable pruning and create a bitcoin transaction, will my IP be revealed to other nodes?

Yes. But your node could just as well be broadcasting someone else's transaction.

[Zaguru12]

Firstly I would advice you edit your image to a proper size, it is too big right now. You can use this code

Code:

[img width=200 height=100]image link[/img]

In the second image, I can see series of address with zero balance while I have not perform any transaction yet. I don't know where they are coming from.

They are your receiving addresses. Since it is advisable to use different addresses to receive your funds for security reasons and since you haven’t received any bitcoin on them then they should be zero.

Secondly, I can't find the private keys. It only issue mnemonic words which I copied and save already.

No need to be scared the 12 mnemonic seed can be use to recover your wallet anytime. Just keep them save

finally, I attempt to create the wallet without having internet connection but it shows error message until I allow access to internet. I hope there won't be any problem later from cyber hack.

This is a hot wallet and it definitely needs an internet connection to create an account (even a cold wallet does). For security advice know the kind of network you connect too and if you’re using that phone to surf the internet always be careful of phishing sites or connecting your wallets to any site online.

It shows verification failed when I click on verify button thou. Any further explanation will be appreciated.

I hope you did it well with an internet connection. Let me explain a bit. Once you open the wallet you want to sign or verify message on blue wallet, go to the receiving addresses and copy the one you want to sign/verify. Then go to sign and verify button and erase the bitcoin address there (because it is usually the first receiving address that is out there) and paste the copied address. Then proceed to write your message with the signature space empty, click on sign and this will generate the signature codes. Then click on verify again I think that should work, because I just tried it on a new wallet and address

[Charles-Tim]

This is a hot wallet and it definitely needs an internet connection to create an account (even a cold wallet does). For security advice know the kind of network you connect too and if you’re using that phone to surf the internet always be careful of phishing sites or connecting your wallets to any site online.

You can use some wallets on an airgapped devices and they can also work offline, despite that they are online wallets. Example is Electrum. On Electrum, you can be able to generate the seed phrase, keys and addresses offline. But if he is using the wallet online, so what is the point? I am asking knowngunman.

@knowngunman
If you are not bothered about signing of message, I will recommend mobile Electrum if that is what you are looking for. But for desktop, Electrum and Sparrow are just perfect.

[o_e_l_e_o]

There is a very high probability that Electrum Nodes log your IP when you broadcast transaction and it makes it very easy to be tracked. Isn't it better to run your own Electrum Server? I mean to run your own Node and connect Electrum to that one.

Almost certainly. But it is also inappropriate to suggest to someone looking for their first self custody wallet that they need to run their own node, then set up their own server, then connect Electrum to that server. Doing so simply risks overloading them with information, making them throw their hands up in defeat, and leave their coins in the hands of Binance.

For new users it needs to be kept simple. Once they are familiar with Electrum, then they can explore running their own node if they desire.

And how safe is it to use Bitcoin Core in pruned mode? In this case, you have to download only 6GB of data. Bitcoin Core website says that you aren't sacrificing any security by enabling pruning. So, if I enable pruning and create a bitcoin transaction, will my IP be revealed to other nodes?

Running a pruned node compared to a full node makes no difference to your safety. What it does mean is that you can't bootstrap new nodes and you can't scan for old transactions. Your IP will always be revealed regardless of the type of node you run. If you don't want that, then use Tor. If you don't want to broadcast your own transactions from your own node even over Tor, then use something like http://mempoolhqx4isw62xs7abwphsq7ldayuidyx2v2oethdhhj6mlo2r6ad.onion/tx/push.

[knowngunman]

@knowngunman
If you are not bothered about signing of message, I will recommend mobile Electrum if that is what you are looking for. But for desktop, Electrum and Sparrow are just perfect.

I am actually not too bothered about signing a message but just in case we don't know what may happen in the future and I might need to sign a message. Anyway, bluewallet is up and running already in my phone. Everything seems to be working perfectly now. Thanks for the recommendations.

[Pmalek]

Just like the names, the could wallet are those that are not online example is the hardware wallets, while the hot ones are online example is wallets like electrum and blue wallets.

Hardware wallets are somewhere in-between cold and hot wallets. I have heard some people refer to them as cold, other as semi-cold (weird term). Maybe the best is to just call them by their name, hardware wallets, and neither put them in the cold or hot group. The only types of hardware wallet we could consider cold are airgapped signing devices that don't connect to the internet. There are only a few of those, like Coldcard or the Passport. A hardware wallet with a secure element that can share your private keys remotely doesn't deserve to have a cold tag next to its name.

The hardware wallets are a little bit expensive for small holders(price of one is like $50)  but they actually provide the best security.

Airgapped computers provide the best security. Some hardware wallets are the next best thing, but not all of them.