Nowadays the demand for covert communications and digital copyright protections has played an increasingly important role in telecommunication era. Regarding such a phenomenon, this study deals with data hiding within images. It is aimed at designing the Discrete Wavelet based data-embedding algorithm, which covertly encodes hidden data within host images. Also, it is expected to find a better signature images and to select an appropriate wavelet for data hiding. With the employment of discrete wavelet transform, the results are outlined into two. Those are (1) the signature images in bitmap file with a black background performed the better retrieved images and (2) compared to other wavelet, Biorthogonal wavelet provides better robustness. Based on the results, it is concluded that Wavelets are more useful in image processing on the grounds that they are able to represent functions that contain localized features.