In this guide, we’ll explain what Bitcoin is, how crypto wallets work, which Bitcoin wallets you can use, and how you can get started with BTC, Ordinals, and BRC-20 tokens.
Let’s dive in.
What is Bitcoin?
Created in 2009 by an individual (or group) using the pseudonym Satoshi Nakamoto, Bitcoin operates as a form of digital cash.
Key characteristics of Bitcoin include:
- Decentralization: Unlike traditional money controlled by centralized authorities such as governments or banks, Bitcoin operates on a decentralized network which enables peer-to-peer transactions. As no single entity has control over the Bitcoin network, it’s resistant to censorship and interference.
- Security: Transactions on the Bitcoin network are secured through cryptographic algorithms. Each transaction is verified by network nodes and recorded on a publicly-available ledger, ensuring immutability and transparency.
- Limited supply: Bitcoin's protocol dictates a maximum supply of 21 million. This fixed supply, combined with a deflationary issuance model through periodic halving events, contributes to its scarcity and often leads to comparisons with precious metals such as gold.
What is a crypto wallet and how does it work?
A crypto wallet is a software tool for crypto, NFTs, and DeFi. It allows you to access, manage, and store your digital assets and interact with decentralized apps (dApps).
Best Bitcoin wallets
Phantom
Trust and security: Our Phantom wallet has been around for three years and has more than 2.7 million users across Solana, Ethereum, Polygon, and Bitcoin. Through a friendly and easy-to-use browser extension and mobile apps (iOS and Android), we allow you to safely interact with multiple blockchains—all from one single wallet.
User delight: Getting started with Bitcoin can be confusing and frustrating. So, we create educational content to help you learn all about the Bitcoin ecosystem, including how to send and receive BTC, how to buy Ordinals, and even, which projects you should take a look at. Other than content, we’ve also built user-friendly Bitcoin features such as transaction overviews, sat protection, and more.
On-ramps: Phantom supports multiple on-ramps to trade BTC, Ordinals, and BRC-20 tokens within the wallet itself, including Moonpay, Robinhood, and PayPal.
Mycelium
Advanced features: Mycelium is favored by more experienced users due to its advanced features, such as coin control, which allows you to choose the specific tokens you want to use in transactions.
Mobile-centric: Moreover, Mycelium is primarily a mobile wallet, known for its focus on mobile functionality and convenience.
Open-source: Mycelium’s software is open and accessible to the public.
Xverse
Broad Support: Similar to Phantom, Xverse supports BTC, Ordinals, and BRC-20 tokens—in addition to Stacks assets.
Rewards: You can receive up to 10% yield when staking Bitcoin with Xverse.
Open-source: Xverse’s software is open and accessible to the public.
UniSat
Provenance: UniSat, which launched on April 23, 2023, was the earliest BRC-20 wallet.
Marketplace: Similar to Phantom, UniSat provides a decentralized marketplace for purchasing and selling BRC-20 tokens.
Open-source: UniSat’s software is open and accessible to the public.
Exodus
User interface: By crafting a visually-appealing user interface, particularly for newcomers to the crypto space, Exodus follows a similar design philosophy as Phantom.
Multi-asset support: In addition to Bitcoin, Exodus supports a wide range of cryptocurrencies, allowing users to manage multiple assets at once.
Built-in exchange: Exodus also features a built-in exchange that allows users to swap cryptocurrencies directly within the wallet—another trait it shares with Phantom.
How to trade Bitcoin and BRC-20 tokens?
The easiest way to trade Bitcoin and BRC-20 tokens is through your Phantom browser extension or mobile app. After logging in, select a wallet which holds Bitcoin or BRC-20 tokens you’d like to trade. Next, click on the arrow (swap) icon at the bottom of the screen. In the swap widget, select the token pair you’d like to trade. Then, review the order, and submit.
How to trade Bitcoin NFTs (Ordinals)?
Bitcoin Ordinals is a protocol which allows non-fungible tokens (NFTs) to be created natively on the Bitcoin blockchain. Bitcoin NFTs may also be referred to as Ordinal NFTs.
If you’d like to trade Ordinal NFTs on a marketplace, Magic Eden and UniSat are great options. After purchasing an Ordinal NFT, you can always view it in your Phantom wallet incl. live data and KPIs of individual collections.
How to bridge tokens to Solana with Phantom?
If you’ve been in the crypto space for a while, you might have noticed the increasing interest in the Solana ecosystem. In case you’d like to explore NFTs or DeFi on Solana, you can bridge tokens right in your Phantom wallet with our Cross-Chain Swapper.
How to set up a Phantom wallet?
If you’d like a friendly multichain wallet for crypto, NFTs, and DeFi, try us out. We offer browser extensions for Firefox, Chrome, Brave, and Edge, as well as apps for iOS and Android.
First, download Phantom. Then, create a new wallet.
If you’d like to fund, or send funds to, your Phantom wallet, you can do so via the “Buy” button on your asset tab. We offer various funding options, such as MoonPay, PayPal, and Robinhood to make it easy for you to fund your wallet.
Once you do that, you're ready to go!
Disclaimer: This guide is strictly for educational purposes only and doesn’t constitute financial or legal advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.
