There’s not even a single person who knows about the dark web and doesn’t know what Bitcoin is.
In fact, it’s one of the stealthy ways to trade things on the dark web.
Even though everyone knows about Bitcoin, many are still unsure how to put it to good use on the dark web.
No worries, we will explain how you can leverage Bitcoin for trading via the Electrum wallet.
Leverage Electrum Wallet for Darknet Market
Electrum is one of the oldest bitcoin wallets that is still in existence. It’s one of the safest wallets available.
It was created in 2011 by Thomas Voegtlin. If we talk about software security, it’s mostly enhanced from malware through its two- factor authentication feature.
The wallet calculates the transaction fees, offering a handy slider for adjusting the transaction’s urgency.
More importantly, it has a multi-signature feature. While using electrum, you don’t need to download the whole blockchain.
A server feeds the Electrum wallet blockchain data. This means no delays and constantly gets up to date.
Additionally, the server doesn’t keep any user data. Users possess their private keys and hence their Bitcoin.
The Electrum is simple, free to use, and is licensed by MIT.
It can be used on a computer or on any mobile device. It also supports hardware wallets like Trezor, keepkey, and many others.
How to set up the Electrum Wallet
Electrum is already installed in Tails, so there’s no need to download it over and over again. Therefore, you just need to follow these simple steps:
- Get Electrum from its official site. If you already have one, move to the next step.
- Right after the download, an installation wizard will pop up. From there, select a place to save your wallet file. For a safer solution, you may store your wallet information on an external media like a flash drive or hard disk. If you use Tails OS, you must use external media to store such data.
- If you’re okay with the wallet file location, click next and choose a normal wallet.
- Next, choose to generate a new seed.
Now, this is where things may get tricky. You may need to learn about several seed varieties before making your own pick.
Darknet marketplaces and other dark websites often operate using segwit wallets. But, it doesn’t imply we can apply it to all dark sites.
For example, LocalBitcoins is a site that doesn’t operate using segwit. So, you can’t use the segwit address to withdraw money from LocalBitcoins.
So, how can you know each site’s Bitcoin seed?
Simple, examine the Bitcoin address’s beginning. Addresses begin with 1.
The Segwit addresses begin with 3 or Bc1. That may seem odd at first, but bear with me.
To withdraw your cryptocurrency, you can do it using Localbitcoins. Here’s how it’s done:
First, cash out the legacy wallet. And then, cash out using a segwit wallet. Eventually, withdraw to the market address.
You can only do this if your vendor supports SegWit. In this circumstance, you may want to establish more than one wallet.
That’s presumably why many individuals like using Monero.
For this next step, save or write down your wallet generating seed. Remember that this is the only way to reclaim your wallet again.
In case you lose your Bitcoin wallet, you can only depend on this option. Save it to the safest location that only you and the person you trust should know.
Then click next and type the precise sentence again. In most cases the sentence is always typed in, so put down the precise words.
And yes, make a strong password. Ensure to never add personal information to your password, even if it is a small amount.
Always use numbers, letters, caps, and symbols to make it tough to guess.
And again, click Next and your Bitcoin wallet will be nearly ready.
But before you go, save your wallet password, wallet file, recovery seed, etc. in a safe location. Don’t keep all the information in one place.
Being a darknet user, you must be already aware of how to keep a low profile. But just in case you don’t, please utilize the Tor Network along with a good VPN service.
Make sure to also not attempt launching any apps, wallets, or darknet sites before activating your Tor Network and VPN service.
If you’re using Tails OS, you’ll need to provide your proxy information. For a basic solution, you may use the Tor browser package.
Click on Use Tor Proxy and the green circle will turn into blue.
And if this happens, it means you’ve been successful in rooting the Electrum wallet via Tor. On the Receive tab, you can see your Bitcoin address.
If you would like to transfer Bitcoin, you will need to follow a short process.
You can do so by clicking on the Send Tab, entering the matching Bitcoin address, and the Bitcoin amount.