In this tutorial we are going to be covering the basics of getting a Bitcoin wallet up and running, while there are plenty of solutions to use individuals reading this tutorial are likely going to be beginners so for that reason we will be going with Electrum. If you’re using Tails this comes pre-installed.
First we need to Download Electrum (https://electrum.org) (for those who do not have it already), I assume that most users will be capable of downloading a program and installing it across all platforms so we will skip directly to wallet creation. Once installed you can run Electrum, you will now be greeted with the installation wizard;
Click on choose and select the location in which you want to save your wallet file, you can also use external media like a USB drive which is especially good for those who use live operating systems like Tails. Once you’re happy with where your wallet file is saved click on next and then select the standard wallet option;
Click next again and then select create a new seed;
Now we have to select the seed type, most sites will be compatible with segwit wallets but a few are not, for example localbitcoins. This means that if you want to withdraw funds from localbitcoins you will not be able to use a segwit address. You will know which type of seed you have used by the start of your Bitcoin address, legacy addresses start with a 1, segwit addresses start with a 3 or bc1. If you are cashing out your crypto from a site like localbitcoins you will need to cashout to a legacy wallet, then to a segwit wallet, then to the market address (if the vendor uses SegWit). The simple solution to this is to just use Monero.
Copy your wallet generation seed to your clipboard, or write it down on a piece of paper before pressing next. Keep this safe because if you suffer from computer failure you will need this to recover your wallet.
Once you have the phrase noted down, press next and then re-enter the exact phrase. You’re not able to copy and paste this, it has to be entered manually.
Select a secure password if you so desire, again ensure you do not forget this;
After this step, we are almost there. You will now notice your very own Bitcoin wallet open;
We will need to now ensure the wallet is running via the Tor network, if you’re using Tails this is done automatically; remember if you’re using Tails you need to save your wallet password, recovery seed/wallet file either externally or within persistent storage. For this example we will handle both Mac OS and Windows, in the bottom right corner of the Electrum window you will see a green dot, click on it and then select the proxy tab;
You will notice the option to define a proxy, we are simply going to start the Tor browser bundle. Once you have done that you will notice an option appear within the Electrum proxy tab;
Ensure the checkbox next to “Use Tor Proxy” is selected, go ahead and click close and you will notice in the bottom right corner the green circle has now changed to blue. This means you’re successfully routing your Electrum wallet through the Tor network. Your wallet is now ready to go, to recieve Bitcoins click on the recieve tab and use the address displayed. Alternatively if you want to send Bitcoin then click on the send tab, input the recipients address and the amount you wish to send.
You need to understand that just because your Electrum wallet is routing traffic through Tor, your Bitcoin is not “anonymous”.
For a true anonymous private coin please visit our guide on Monero here.