How to Open Crypto Wallet?

How to Open Crypto Wallet: The cryptocurrency wallet is a place where crypto is being kept safely and securely. You can find various different cryptocurrency wallets, but the most commonly used crypto wallets are hosted wallets, non-custodial wallets, and hardware wallets. Among various options, you can select one and then open a crypto currency wallet.

Though there are some similarities between your Cryptocurrency wallet and your traditional bank accounts, they comprise various different vital aspects. Talking about the same, the rules & regulations for the cryptocurrency are quite opposite of PayPal and your bank’s online portal.

What to Consider for Opening Crypto Wallet?

This the most ambiguous question for the individuals who are going to set up a crypto wallet. Therefore, it is extremely important for the person like you to be clear off such things what should be the features and benefit you want from it. Knowing all things before will help you from potentially heavy loss. However, here are some important points you must consider while you are all set to open a crypto wallet.

1. Location

Your thought must be straight and focus about the wallet use. Talking about the same, you must have gauged the intensity of these questions such as what will you do with your wallet? Do you prefer a hardware wallet for your laptop, a web wallet for your tablet or phone, or a local wallet for your desktop computer? If you get answer of all these questions, you can proceed for further steps.

2. Privacy

If you are person who care about keeping identity a secret, you must consider this point while going to open a crypto wallet. Look for a wallet that offers anonymity.

3. Security

Your one of the main considerations should be security. How safe do you need your wallet to be?

4. Compliance with Government & Financial Regulations

Your consideration must be on this point whether the wallet complying with government & Financial regulations. Essentially, you should be well aware of such kind of things when you are all set to open a crypto wallet.

5. Fees

How much will you be spending from your wallet? You don’t need a wallet with a lot of fees if you just sometimes conduct transactions. However, you require a wallet with a low charge if you intend to conduct a lot of transactions.

Like we have several bank account options, we also have different kind of Cypto wallets. It totally depends upon you which wallet suits your interest and fulfills your purpose. Let’s get to know different kinds of Crypto Wallet and figure out which one is fulfilling your purpose.

Hosted Wallets 

The hosted wallet could be best for the individuals who are new to the field. It is so because, hosted wallets have the most easy features and even easy-to-use wallet. The name suggests the definition of this most popular wallet. The basic idea of hosted wallets is that your wallets will be regulated by third party, similar to how bank keeps your money in a checking or savings account,

Moreover, this kind of wallet will eliminate your worry of losing your key or “losing your USB wallet.” So, if you forget your password, you would definitely not lose your crypto. However, it also comprises certain limitations. There are some features which you can,t avail through this hosted wallet.

How to Open Crypto Wallet (Hosted Wallet)?

The individual while going to open crypto hosted wallet, they can follow these steps for the process:

(a) The individuals must choose a trusted platform for their wallet. While doing so, you must consider security, ease of use, and compliance with government and financial regulations features of the wallet.

(b) Make sure, it must fulfill your needs.

(c) Hosted wallet is a software wallet (online wallet) which is hosted by a third party. This kind of wallet can accessed from any location. For this, you will have to sign in for the wallet.

(d) Next, you’ll need to enter your personal information including your ID, name, email address and other requisite details.

(e) You must carefully create your private key, password, seed words, etc. to set up your wallet.

Hosted wallets can be created for any cryptocurrency wallets such Bitcoin wallet, Ethereum Wallet, and others.

Self-Custody Wallet

This terminology is self explanatory. Individuals owning such kind of non-custodial wallet will be responsible for securing and safeguarding the passwords. If you anyhow forget passwords and seed words, you can’t access your crypto. Moreover, if someone hack your private keys, they will have all control and access of the wallet.

However, this non-custodial crypto wallet offers several other benefits including yield farming, staking, lending, borrowing, and more. It is extremely important for the owner to secure all things about your wallet. Since crypto is digital money, you can lose it all in a heartbeat if you don’t protect it properly.

How to Open a Crypto Wallet (Self-custody Wallet)?

(a) Download a Trusted Wallet App like Coinbase

(b) Then create an account. A self-custody wallet may be created without divulging any personal information (not even a working email), unlike a hosted wallet. 

(c) Ensure meticulous to record your private key on paper. It appears as a 12-word sentence chosen at random. Keep it in a safe place. You won’t be able to access your cryptocurrency if you misplace it or forget this 12-word phrases.

(d) Add cryptocurrency to your wallet. You’ll need to move cryptocurrency into your non-custodial wallet from somewhere else because it’s not always feasible to purchase cryptocurrency using conventional currencies (like US dollars or Euros) with a non-custodial wallet.

Hardware Wallets

A hardware wallet is an offline wallet which is more secure than an online wallet. However, such kind of wallet is more complex and will have to bear extra cost. The most significant benefits, an individual avail will be getting insane security for their crypto. You can open crypto wallet (hardware wallet) by following these steps:

(a) You will have to first buy the hardware equipment. The two most recognisable brands are Trezor and Ledger.

(b) Following step is to install the software. You need specific software from each brand to configure your wallet. To build your wallet, download the software from the official company website, and then follow the on-screen directions.

(c) You can add cryptocurrency to your wallet. Similar to a self-custody wallet, a hardware wallet often prevents you from purchasing cryptocurrency using fiat money (such as US dollars or euros), so you must send cryptocurrency to your wallet instead.


Digital currencies (crypto Currencies) are the rage of modern times. The new generation individuals wish to buy put their hands on such things, but the hurdle that comes on the way is to how to secure their crypto currencies. It is extremely important for the owner of digital currencies (crypto currencies) to have a full control and access of it. And for the individuals need to jump for setting up a Crypto wallet. There are several kinds of crypto wallet one can select. But while choosing the wallets, individuals must consider whether it is fulfilling the needs and purpose or not.

FAQs on How to Open Crypto Wallet

Q Which is best crypto wallet?

Ans- There are various crypto wallets for crypto currencies owner. The best to any wallet could be attributed when it fulfills the need and purpose of the owner. Some of the popular crpto wallets are Coinbase Wallet, Exodus Wallet, Guarda Wallet and others.

Q Do I need a wallet for crypto?

Ans- Yes, if you invest your funds significantly heavy on crypto currency, you must require a crypto wallet. Though, fractions of crypto currency purchasing can be done only custodial

Q What is the easiest crypto wallet to use?

Ans- Hosted wallets are the easy-to-use crypto wallets for the beginner and new comers in the digital currency arena.

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