How to set up crypto wallet? Well, this is the most common question for almost every cryptocurrency buyer or investor. If you are stuck in this problem too, then you are at the right place. We are going to help you set up your crypto wallet with this blog.
From the word crypto wallet, we can conclude the meaning that a wallet that used to store cryptocurrencies securely. Bitcoin wallets and traditional online bank accounts have certain similarities. However bitcoin protocols operate very differently from PayPal and your bank’s site.
For instance, cryptocurrency transactions are irreversible, considerably stricter standards for the safety of the virtual currency kept in a wallet. There are many different types of crypto wallet available in the market but very of them are popular ones (mostly used).
All right, it’s enough to make you understand what is crypto wallets. Now, it’s time to decide which wallet type is best suited for you as per your requirements, since there are many one in the market.
So, before choosing any crypto wallet, first of all ask yourself: what you want to do with your crypto and what kind of safety net you want to have.
The first time you use a bitcoin wallet, you must go through these five essential steps to use crypto wallet:
- Choose the type of wallet you want to use (Hardware, desktop or mobile).
- Purchase or download a wallet.
- Install the software.
- Configure your account’s security settings.
- Deposite your crypto
How to set up Crypto Wallet?
The next step is to install your preferred cryptocurrency wallet and create an account. The most well-liked ones include hardware wallets, hosted wallets, and non-custodial wallets.
This is the most popular, widely used and easy-to-set-up wallet.Your cryptocurrency is immediately stored in a hosted wallet when you purchase it through a third-party app like Coinbase.
Hosted cryptocurrency refers to digital assets that are kept for you by a third party, much like a bank would do with funds in a checking or savings account.
Although, hosted wallets are not secure as much as a hardware wallet but it also provides some advantages. If your crypto is stored in hosted wallet and by chance you forget your password, you won’t lose your crypto.
You may have heard stories of people “dropping their keys” or “missing their USB wallet,” but none of that is a concern if you use a hosted wallet.The only drawback of this wallet is you don’t have full access.
How to set up Hosted Crypto Wallet:
Pick a website that you can trust– Security, usability, and compliance with governmental and financial rules ought to be your top priorities.
Set up an account– Specify your personal information and pick a strong password. Utilizing 2-step verification, also known as 2FA, adds an additional degree of protection and is advised.
Usually, it is the most time consuming to set up a hardware crypto wallet. But it is worth, because of the security level it provides. The private keys to your cryptocurrency are kept offline on a physical device called a hardware wallet that is roughly the size of a thumb drive.
Due to their increased complexity and cost, hardware wallets aren’t used by the majority of consumers. But, in case of security no other wallet can compete it. It is so much secure that even if your computer is hacked, your crypto will be safe.
They can cost upwards of $100 to purchase, and their superior security makes them less easy to use than a software wallet.
Here are the steps to set up your Hardware Crypto Wallet
- Buy the hardware– The two most recognizable brands are Trezor and Ledger.
- Install the application– You need specific software from each brand to configure your wallet.
- Add cryptocurrency to your wallet
Custodial vs. Non-Custodial Wallets
In contrast to non-custodial wallets, custody wallets store your private keys on your behalf. A third party is essentially keeping your cryptocurrency in this scenario.
People must therefore be sure they select reputable, regulated suppliers like Coinbase. Simply by giving their coins to the wrong people, many people have lost their Bitcoin throughout the years.
Non-custodial wallets don’t entrust the security of your cryptocurrency to a third party, sometimes known as a “custodian”. While they supply the software required to store your crypto, it is entirely your duty to remember it and keep it secure.
There is no way to access your crypto if you lose or forget your password, which is also known as a “private key” or “seed phrase”. Additionally, if a third party finds your private key, they will have complete access to your assets. Cryptocurrency can be kept in a variety of places, just like cash. If you want to keep things simple then go with hosted wallet. For complete control over your cryptocurrency, go with a non-custodial wallet. To take further security measures go with a hardware wallet.
FAQs on How to Set Up Crypto Wallet:
Q. Do you have to pay to set up a crypto wallet?
Ans: It depends on your wallet type. For hardware wallet, you’ll have to buy a hardware to store your crypto, it can cost upwards of $100 to purchase.
Q. What crypto wallet is the best?
Ans: All crypto wallets are best. Your uses of cryptocurrency will decide what type is best for you.
Q. Which crypto wallet is safest?
Ans: The safest crypto wallet is Hardware wallet.
Q. Does my crypto still grow in a wallet?
Ans: Yes, it will continue to grow.
Q. Is Coinbase wallet free?
Ans: It is free to hold your cash and supported cryptocurrencies with Coinbase thanks to its cash and hosted cryptocurrency balance service.