Format the External SSD:
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Format an external hard drive on a separate computer.
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Open your disk management program again and delete all volumes & partitions on your external drive so it is completely blank.
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Now eject your SSD. Do not format it to any file system type. Do not create a new volume. This will be done on the Raspberry Pi later.
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This will be the storage media for your Bitcoin blockchain; as of this writing, Bitcoin blockchain = ~240GB.
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Do not connect your external drive to the Rasperry Pi yet.