Cryptocurrencies and NFTs are all the rage right now, and if you’re like most people, you want to get in on the action. But where do you start? we show you how to setup crypto wallet.
And how do we keep both NFTs and Cryptocurrencies safe? That’s where Crypto wallets come into the picture.
A Crypto wallet is an essential part of owning the digital currency.
Fortunately, setting up a crypto wallet is not as difficult as it may seem. In this guide, we’ll walk you through the process step-by-step.
So let’s get started!
What Is A Crypto Wallet, And Why Do You Need One
A cryptocurrency wallet is a software program that stores private and public keys and interacts with different blockchains to enable users to send and receive digital currency and monitor their balance. If you want to use Bitcoin or any other cryptocurrency, you must have a digital wallet.
The same case is with NFTs. To own or use an NFT, you will need a digital wallet that supports the storage and management of NFTs.
How do crypto wallets work?
Crypto wallets use a combination of public and private keys to authenticate transactions. A public key is like your cryptocurrency wallet address and is what you give to someone so they can send you cryptocurrency.
A private key is like a password that allows you to spend or transfer your funds.
When you set up a cryptocurrency wallet, you are usually given a seed phrase or mnemonic recovery phrase that can be used to regenerate your private keys if you lose access to your wallet.
Types of Crypto wallets
There are several types of cryptocurrency wallets, each with its own set of features and benefits. The three most popular types of wallets are
- Hardware wallets,
- Software/own custody wallets, and
- Mobile wallets.
Hardware wallets are physical devices that store your private keys. They are the most secure type of wallet, but they are also the most expensive.
Software wallets are programs that you can download and install on your computer or phone. Mobile wallets are apps that you can download and use on your smartphone.
Hardware Wallets:
Hardware wallets are physical devices that store your private keys. They are the most secure type of wallet, but they are also the most expensive.
Some of the pros of hardware wallets are:
- they are very secure
- safe from hackers
Some of the cons of hardware wallets are:
- they can be expensive
- they can be difficult to access
Some popular hardware wallets are the Ledger Nano S and the Trezor.
–> BUY A LEDGER FOR THE ULTIMATE SECURITY!
Software/Own Custody wallets:
Software/own custody wallets are programs that you can download and install on your computer or phone. Software wallets are usually free but are not as secure as hardware wallets.
Some of the pros of software wallets are:
- they are usually free, and they are easy to setup
- they are good if you want to trade through your own computer
- they are easy to access
Some of the cons of software wallets are:
- they are not as secure as hardware wallets
- and can not be used on the go like mobile wallets.
- they are more prone to hackers.
Some popular software wallets are the Exodus wallet, the Jaxx wallet, and the ZenGo.
Mobile Wallets:
Mobile wallets are apps that you can download and use on your smartphone. Mobile wallets are usually free but are not as secure as hardware wallets.
Some of the pros of mobile wallets are:
- they are usually free
- they are easy to setup
- they can be used on the go making it perfect for those who want to trade or use cryptocurrency while on the move.
Some of the cons of mobile wallets are:
- they are not as secure as hardware wallets,
- and can not hold as much cryptocurrency as software wallets.
- Also, they are more prone to hackers.
Some popular mobile wallets are the Gemini wallet, the Coinbase Wallet, and the Mycelium wallet.
How To Choose The Right Crypto Wallet For You
The first step in setting up a cryptocurrency wallet is choosing the type of wallet you want. If you want the most secure type of wallet, you should choose a hardware wallet.
If you want a less expensive option, you can choose software or a mobile wallet.
Many different types of crypto wallets are available on the market today, so it can be difficult to know which one is right for you.
Here are some things to consider when choosing a crypto wallet:
- What type of cryptocurrencies or NFTs do you want to use it on?
- How important is security to you?
- How easy is it to use?
If you’re looking for a wallet that you can use on your mobile device, then Trustwallet or Metamask might be a good option for you. If security is your main concern, you might consider a hardware wallet like the Ledger Nano S.
Whichever wallet you choose, make sure to do your research and understand how it works before storing any crypto coins in it.
How To Setup Metamask
Metamask is a popular cryptocurrency wallet that can be used as an extension on Google Chrome, Firefox, and brave web browsers. It allows you to store ETH and other ERC20 tokens and sign transactions with your private keys.
If you’re new to Metamask, here’s a quick guide on how to setup Metamask:
1. Go to the Metamask website, click download, and then click the “Get Chrome Extension” button.
2. Once the extension has been added to your browser, click on the Metamask icon in the top-right corner and click “Create a Wallet”.
3. Enter your personal information, such as your name and email address, and click “Create a New Wallet”.
4. Metamask will now generate a seed phrase for you. This is a 12-word phrase that you can use to restore your wallet if you ever lose access to it. Make sure to write it down somewhere safe and secure.
5. Once you’ve written down your seed phrase, click “I’ve Copied It Somewhere Safe.”
6. You will now be asked to set a password for your wallet. Choose a strong password that you won’t forget, and click “Create Password”.
7. Congratulations, you have now successfully set up your Metamask wallet!
How To Setup Trustwallet
Trustwallet is a mobile wallet that supports Ethereum and other ERC20 tokens. It is good for both cryptocurrency and NFTs. It is available for both iOS and Android devices.
If you’re new to Trustwallet, here’s a quick guide on how to setup Trustwallet:
1. Go to the Trustwallet website and download the app for your iOS or Android device.
2. Once the app has been installed, open it and click on “Create a New Wallet”.
3. Enter your personal information, such as your name and email address, and click “Create Wallet”.
4. Trustwallet will now generate a seed phrase for you. This is a 12-word phrase that you can use to restore your wallet if you ever lose access to it. Make sure to write it down somewhere safe and secure.
5. Once you’ve written down your seed phrase, click “I’ve Copied It Somewhere Safe”.
6. You will now be asked to set a password for your wallet. Choose a strong password that you won’t forget, and click “Create Password”.
7. Congratulations, you have now successfully set up your Trustwallet!
8. Trustwallet is now ready to use. To add ETH or ERC20 tokens to your wallet, click the “Add Tokens” button and search for the token you want to add. Once you’ve found the token, click on “Add Token” and it will be added to your wallet.
Tips For Keeping Your Crypto Wallet Safe
By following these simple tips, you can help keep your crypto coins or NFTs safe and secure.
1. Never store your seed phrase or private keys online or on a computer. If someone were to hack into your account, they would be able to access your funds.
2. Always double-check the address you’re sending crypto coins or digital goods to. If you make a mistake and send them to the wrong address, there’s no way to get them back.
3. Use a strong password for your wallet; never reuse passwords from other accounts.
4. Keep your software and antivirus up to date to help protect against malware and hacking attempts.
5. Never share your private keys with anyone, even if they claim to be from a reputable exchange or wallet provider.
Set Up Your Crypto Wallet Now
Although the crypto market is in a slump, that doesn’t mean you should stop investing. In fact, now may be the perfect time to start!
And one of the most important things you need to do before investing is set up a crypto wallet.
Either choose hardware wallets, software wallets, or mobile wallets. Each wallet has its pros and cons, so be sure to research before deciding which one is right for you.
By following the simple tips in this guide, you can help keep your crypto coins safe and secure.
So what are you waiting for?
Setup your crypto wallet today!
Moritz Pindorek (Moritzpindorek.com)
Social Media, Marketing & Blockchain
Crypto/Web 3 Advisor, Top 10 Crypto Influencer 2022(Forbes Monaco) & Top 10 Entrepreneur 2022 (Forbes Monaco)
Owner and writer for Cryptouserguide.com
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