Bitcoin School Kenya Diploma English Version 2024
  • PREFACE
  • Table of Content
  • Chapter 1: Why Do We Need Money?
    • 1.0 Introduction
    • 1.1 Why We Need Money
  • Chapter 2: What is Money?
    • 2.0 Introduction
    • 2.1 Definition of Money
    • 2.2 Why is Money Important?
    • 2.3 Functions of Money
    • 2.4 Properties of Money
    • 2.5 Types of Money
    • 2.6 The Psychology of Money
  • Chapter 3: The History of Money
    • 3.0 Introduction
    • 3.1 Evolution from Barter to Modern Currency
    • 3.2 Digital Currency Revolution
  • Chapter 4: What is Fiat Money and Who Controls it?
    • 4.0 Introduction
    • 4.1 Brief History of Fiat Money
    • 4.2 Advantages of Fiat Money
    • 4.3 Disadvantages of Fiat Money
    • 4.4 Commodity vs Fiat money
    • 4.5 Fractional Reserve Banking: A System Fueled by Debt
    • 4.6 Mechanism of Fractional Reserve Banking
    • 4.7 Impact on Money Supply and Debt
    • 4.8 Role of Central Banks
    • 4.9 Who Controls the Fiat System and Their Benefits
  • Chapter 5: How Fiat Problems Lead to Bitcoin
    • 5.0 Introduction
    • 5.1 Inflation
    • 5.2 Causes of Inflation
    • 5.3 Effects of inflation on purchasing power
    • 5.4 Global Debt Burden and Social Inequality
    • 5.5 Consequences of global debt
    • 5.6 Consequences of social inequality
    • 5.7 The Cypherpunks and Decentralization
    • 5.8 Key Cypherpunks
    • 5.9 Motivation for Decentralization
    • 5.10 An Orwellian Future
    • 5.11 Key Innovations by Cypherpunks
    • 5.12 Centralized vs Decentralized Systems
    • 5.13 Advantages of CBDCs
    • 5.14 Disadvantages of CBDCs
  • Chapter 6: An Introduction to Bitcoin
    • 6.0 Introduction
    • 6.1 How Does Bitcoin Work? A simplified overview
    • 6.2 Why Bitcoin Matters
    • 6.3 The Players of the Game in the Bitcoin Ecosystem
    • 6.4 Key Characteristics of Bitcoin
    • 6.5 Advantages of Bitcoin
    • 6.6 Bitcoin as Sound Money
    • 6.7 Bitcoin Self Custody
  • Chapter 7: How to Use Bitcoin
    • 7.0 Introduction
    • 7.1 Acquiring and Exchanging Bitcoin
    • 7.2 Peer-to-Peer In Person
    • 7.3 Peer-to-Peer Online
    • 7.4 Centralized Exchanges
    • 7.5 Introduction to Bitcoin Wallets
    • 7.6 Self-Custodial vs Custodial Wallets
    • 7.7 Different Types of Bitcoin Wallets
    • 7.8 Open Source vs. Closed Source
    • 7.9 Key Considerations When Choosing a Bitcoin Wallet
  • 7.10 Setting up a Mobile Bitcoin Wallet
  • 7.11 Receiving and Sending Transactions
  • 7.12 How a Bitcoin Transaction Works
  • 7.13 Saving in Bitcoin
  • 7.14 DYOR Don’t Trust, Verify
  • Chapter 8: Lightning Network and Advanced Usage
    • 8.0 Introduction
  • 8.1 The Lightning Network
  • 8.2 Different Types of Lightning Wallets
  • 8.3 Setting Up a Bitcoin Lightning Wallet
  • Chapter 9: An Introduction to the Technical Side of Bitcoin
    • 9.0 Introduction
  • 9.1 Characteristics of the Bitcoin Ledger
  • 9.2 Public and Private Keys: Security through Cryptography
  • 9.3 Sending a Bitcoin Transaction
  • 9.4 Key Concepts in Bitcoin's Technology
  • 9.5 Hashing Explanation
  • 9.6 The UTXO Model
  • 9.7 Acloser look at Bitcoin Nodes and Miners
  • Chapter 10: Why Bitcoin?
    • 10.1 Introduction
  • 10.2 Circular Economies and Bitcoin as a Medium of Exchange
  • 10.3 Bitcoin Circular Economy
  • THE END
    • Recommended Learning Resources on Bitcoin
  • Group 1
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7.10 Setting up a Mobile Bitcoin Wallet

Now that we have a better understanding of Bitcoin wallets and the differences between them, we’ll see how to use one in practice. For this example, we’ll create a mobile wallet directly on our smartphone. Follow these steps:

Step 1: Choose a Mobile Wallet App

There are many mobile Bitcoin wallet apps available. Some popular options include:

  • Electrum

  • Mycelium

  • BRD

  • Trust Wallet

  • Coinomi

Step 2: Download and Install the Wallet App

Go to the App Store (iOS) or Google Play Store (Android) on your smartphone and search for the wallet app you have chosen. Download and install the app.

Step 3: Create a New Wallet

Open the wallet app and follow the on-screen instructions to create a new wallet. This usually involves:

  • Setting a strong password: Make sure to choose a strong, unique password that you don’t use anywhere else.

  • Writing down your recovery phrase: The app will generate a recovery phrase (usually 12-24 words) that you must write down and keep in a secure place. This phrase is crucial for recovering your wallet if you lose access to your phone.

Step 4: Secure Your Wallet

Enable any additional security features offered by the wallet app, such as:

  • Two-factor authentication (2FA)

  • Biometric security (fingerprint or facial recognition)

Step 5: Add Bitcoin to Your Wallet

To start using your wallet, you need to add some Bitcoin. You can do this by:

  • Receiving Bitcoin from another wallet: Share your wallet’s public address (or QR code) with the sender.

  • Buying Bitcoin on an exchange: Transfer Bitcoin from a cryptocurrency exchange to your mobile wallet’s public address.

Step 6: Making a Transaction

To send Bitcoin from your wallet:

  1. Open the wallet app and go to the send/transfer section.

  2. Enter the recipient’s address: You can manually enter the address or scan the recipient’s QR code.

  3. Enter the amount to send: Specify the amount of Bitcoin you want to send.

  4. Review the transaction details: Double-check the recipient address and the amount to ensure accuracy.

  5. Confirm and send: Approve the transaction by entering your password or using biometric authentication.

Step 7: Backup Your Wallet Regularly

Regularly backup your wallet to ensure you can recover it in case of loss or theft. Use the recovery phrase and store it securely.

By following these steps, you’ll have a functional and secure mobile Bitcoin wallet ready for transactions.

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Last updated 8 months ago