A couple of questions for new Bitcoiner

[camaxide]

So I've downloaded and run the Bitcoin Core client and synced it, set up a passphrase and backed up my empty wallet and written down my privatekey.
Do I need to anything more before buying bitcoins?

I've looked at Localbitcoins for buying bitcoins - but I know they have a fee. As soon as I make a user at their site I assume I get a new wallet and new privatekey through them? And if so, can I then transfer those bitcoins to the wallet I have in Bitcoin Core without having to pay a fee over again? after all those are both my own wallets.

And last - I don't have an offline computer - but want to keep my wallet stored and backed up safely. As I dont intend to use it all the time but store it I'm thinking if I can simply compress the wallet.dat with a strong password, and store it at two locations thus meaning I both have a backup of it and also keep it away from access to others - will this work? There is no need for the wallet or so to be connected to the grid? If I later 5 years from now uncompress the wallet.dat onto a brand new computer I will still be able to access the bitcoins in the wallet provided I have both my private-key and my passphrase ? Do I need a second thype of key or address?

Hope those are questions easily understood - please reply if you know the answer, or ask away if there are some of my questions that are hard to understand

[1714057849]

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[1714057849]

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[AdolfinWolf]

So I've downloaded and run the Bitcoin Core client and synced it, set up a passphrase and backed up my empty wallet and written down my privatekey.
Do I need to anything more before buying bitcoins?

I've looked at Localbitcoins for buying bitcoins - but I know they have a fee. As soon as I make a user at their site I assume I get a new wallet and new privatekey through them? And if so, can I then transfer those bitcoins to the wallet I have in Bitcoin Core without having to pay a fee over again? after all those are both my own wallets.

And last - I don't have an offline computer - but want to keep my wallet stored and backed up safely. As I dont intend to use it all the time but store it I'm thinking if I can simply compress the wallet.dat with a strong password, and store it at two locations thus meaning I both have a backup of it and also keep it away from access to others - will this work? There is no need for the wallet or so to be connected to the grid? If I later 5 years from now uncompress the wallet.dat onto a brand new computer I will still be able to access the bitcoins in the wallet provided I have both my private-key and my passphrase ? Do I need a second thype of key or address?

Hope those are questions easily understood - please reply if you know the answer, or ask away if there are some of my questions that are hard to understand

Not really, just make sure the environment of bitcoin core is clean and secured against any viruses etcetera. ( although this still shouldn't matter if you encrypted it )

You should indeed be fine, although i wouldn't really recommend compressing it, because there's really not that much space to gain --, and it might become a bit of a hassle.

And if so, can I then transfer those bitcoins to the wallet I have in Bitcoin Core without having to pay a fee over again? after all those are both my own wallets.

If you buy them from say, Coinbase, you will need to pay a network fee above the fees you already paid for your purchase, if you want to transfer them to a wallet outside their ""Network""

[camaxide]

I wanted to compress it in order to give it encryption with a password, so it can't be stolen

[DogaMKD]

I wanted to compress it in order to give it encryption with a password, so it can't be stolen

I have a question, if u got few wallets for different coins, if u use same password is it possible some problems to occur ?

[camaxide]

I don't see how that could be an issue - as I talk about making a zip, rar or such compressed archive with a password.
By also but encryption noone can see what files or content is inside the compressed folder without first getting into it, thus making the compressed folder no interest to someone who would otherwise have an interest in hacking it

[camaxide]

I wanted to compress it in order to give it encryption with a password, so it can't be stolen

Does this also apply to Kraken and or Bitstamp? do they all take a fee? and which is lower if so..?

[legend018]

I wanted to compress it in order to give it encryption with a password, so it can't be stolen

Does this also apply to Kraken and or Bitstamp? do they all take a fee? and which is lower if so..?

This looks helpful: https://en.bitcoin.it/wiki/Comparison_of_exchanges

[odolvlobo]

So I've downloaded and run the Bitcoin Core client and synced it, set up a passphrase and backed up my empty wallet and written down my privatekey.

First, some terminology. You (probably) did not write down your "private key". If anything, you wrote down the wallet's "seed". The seed is the random list of words that is used by the wallet to generate private keys. The reason for writing it down is that if your wallet is lost or destroyed, it can be recovered using the seed. Note that the seed must be protected because anyone that has it can take all of your bitcoins.

If you are not using the HD mode, then I don't know what you wrote down, but backing up the wallet is important.

Do I need to anything more before buying bitcoins?
I've looked at Localbitcoins for buying bitcoins - but I know they have a fee. As soon as I make a user at their site I assume I get a new wallet and new privatekey through them? And if so, can I then transfer those bitcoins to the wallet I have in Bitcoin Core without having to pay a fee over again? after all those are both my own wallets.

Localbitcoins (like all other exchanges and custodial sites) has a wallet, but you do not. You have an account that keeps track of how many bitcoins they owe you. You do not get a private key because it is not your wallet.

When you trade on Localbitcoins using their escrow system (this is strongly recommended), the bitcoins are just moved between accounts. The seller's account is debited and the buyer's account is credited. They never leave Localbitcoins until you withdraw them to your own wallet.

The sender pays the mining fee, so when you send bitcoins to LocalBitcoins (or an address in any other wallet) you must pay a mining fee. It doesn't matter who owns the wallet or the addresses. Localbitcoins may also charge you a fee when you deposit bitcoins, but I don't know.

And last - I don't have an offline computer - but want to keep my wallet stored and backed up safely. As I dont intend to use it all the time but store it I'm thinking if I can simply compress the wallet.dat with a strong password, and store it at two locations thus meaning I both have a backup of it and also keep it away from access to others - will this work? There is no need for the wallet or so to be connected to the grid? If I later 5 years from now uncompress the wallet.dat onto a brand new computer I will still be able to access the bitcoins in the wallet provided I have both my private-key and my passphrase ? Do I need a second thype of key or address?

If you add a passphrase, then your wallet is encrypted and there is no danger of anyone stealing your bitcoins by obtaining the file. The only risk is someone obtaining your password, or somehow controlling or fooling the client when you use it.

[camaxide]

First, some terminology. You (probably) did not write down your "private key". If anything, you wrote down the wallet's "seed". The seed is the random list of words that is used by the wallet to generate private keys. The reason for writing it down is that if your wallet is lost or destroyed, it can be recovered using the seed. Note that the seed must be protected because anyone that has it can take all of your bitcoins.

If you are not using the HD mode, then I don't know what you wrote down, but backing up the wallet is important.

So I never need to actually backup or write down the actual private key? It's the seed (12 - 24 words) that needs to be written down?

After reading and researching I've decided to get a hardware key - instead of running offline ubunto or having an offline computer.. a hardware key is cheaper as well as easier it seems.

With an hardware key I get a 24 word seed with the ability to add a 25'th word (passphrase) of choice - this should mean that I can always recover my seed as long as I have the 24 words - and even if someone else gets a hold on the 24 word seed they cant use it - since they need the 25th word (passphrase) which wont be written down anywhere.

I think this should be a quite bulletproof way of doing it..?

Now the only 'issue' is that I'd anyway have to send coins back and forth between the private account and exchange wallets for trading. as I want to be able to have a system where the exchange "locks" the coins until payment is received to ensure safe and secure trades.

[mayo2u]

First, some terminology. You (probably) did not write down your "private key". If anything, you wrote down the wallet's "seed". The seed is the random list of words that is used by the wallet to generate private keys. The reason for writing it down is that if your wallet is lost or destroyed, it can be recovered using the seed. Note that the seed must be protected because anyone that has it can take all of your bitcoins.

If you are not using the HD mode, then I don't know what you wrote down, but backing up the wallet is important.

So I never need to actually backup or write down the actual private key? It's the seed (12 - 24 words) that needs to be written down?

After reading and researching I've decided to get a hardware key - instead of running offline ubunto or having an offline computer.. a hardware key is cheaper as well as easier it seems.

With an hardware key I get a 24 word seed with the ability to add a 25'th word (passphrase) of choice - this should mean that I can always recover my seed as long as I have the 24 words - and even if someone else gets a hold on the 24 word seed they cant use it - since they need the 25th word (passphrase) which wont be written down anywhere.

I think this should be a quite bulletproof way of doing it..?

Now the only 'issue' is that I'd anyway have to send coins back and forth between the private account and exchange wallets for trading. as I want to be able to have a system where the exchange "locks" the coins until payment is received to ensure safe and secure trades.

You have a good grasp of the basics.  I would recommend that you keep experimenting with wallets. However,  if you want to trade coins frequently then you may need to keep that in the exchange. But your hodl coins should be placed in safe wallets.  

[HappyMod]

I wanted to compress it in order to give it encryption with a password, so it can't be stolen

I have a question, if u got few wallets for different coins, if u use same password is it possible some problems to occur ?

Please dont do this

First, some terminology. You (probably) did not write down your "private key". If anything, you wrote down the wallet's "seed". The seed is the random list of words that is used by the wallet to generate private keys. The reason for writing it down is that if your wallet is lost or destroyed, it can be recovered using the seed. Note that the seed must be protected because anyone that has it can take all of your bitcoins.

If you are not using the HD mode, then I don't know what you wrote down, but backing up the wallet is important.

So I never need to actually backup or write down the actual private key? It's the seed (12 - 24 words) that needs to be written down?

After reading and researching I've decided to get a hardware key - instead of running offline ubunto or having an offline computer.. a hardware key is cheaper as well as easier it seems.

With an hardware key I get a 24 word seed with the ability to add a 25'th word (passphrase) of choice - this should mean that I can always recover my seed as long as I have the 24 words - and even if someone else gets a hold on the 24 word seed they cant use it - since they need the 25th word (passphrase) which wont be written down anywhere.

I think this should be a quite bulletproof way of doing it..?

Now the only 'issue' is that I'd anyway have to send coins back and forth between the private account and exchange wallets for trading. as I want to be able to have a system where the exchange "locks" the coins until payment is received to ensure safe and secure trades.

This is a very good problem to have - especially because my main hang up is that I over trade these kinds of things - So its always good to further separate me from my coins =D

[camaxide]

This is a very good problem to have - especially because my main hang up is that I over trade these kinds of things - So its always good to further separate me from my coins =D

I'm mostly aiming to hold on to the coins for years - so not planning to swap them back and forth a lot.. however, I'm concerned with the fee's that goes with everything..
I thought originally the strong suit of Cryptocurrency was to avoid fees - but it seems they are all over the place.. fee for converting my nkr into eur so I can get money into the exchange, fee from the exchange for putting money onto their system, transaction fees per transaction, then a new transaction fee and additional fee to transfer the coins out of the exchange onto my private wallet. then the same loop again backwards to try to get the bitcoins sold then sent back to my bank account in nkr.

Is there any exchanges that is known to be kind on the fees and not have high % fees on any of these things?  a low set fee per transmission I can live with.
Also - is there a list of which exchanges "locks" the coins until fiat-money payment has been confirmed by the end selling the coins?