Making a cryptocurrency wallet is one of your initial steps into the non-fungible token trading realm. Therefore, mastering the art of creating a cryptocurrency wallet is essential!
As the name implies, a crypto wallet is essentially just a wallet for carrying your cryptocurrencies and other digital assets! Of course, your NFTs are also included in this. They are comparable to online bank accounts without the middleman. You always have full control over all transactions going in and out of your wallet. You just need to set it up!
So, this is our purpose in being here. You will discover how to create a crypto wallet, how they operate, and which to use in this article. We're going to give you a thorough yet simple tutorial to get your cryptocurrency journey started.
Setting Up a Crypto Wallet
There are some fundamentals you should be aware of before we jump straight into how to set up a crypto wallet. In other words, there are a few things to think about when selecting a wallet. This comprises:
🔘 What kind of wallet are you planning on using?
🔘 Which digital assets and cryptocurrencies you want to store on this wallet.
🔘 Which platforms would you like to connect this wallet to?
🔘 Which blockchain do these platforms use, and is that supported by your wallet?🔘 Is there a version for mobile apps?
🔘 How about safety?
🔘 Do you intend to purchase NFTs, or is this only for the exchange of cryptocurrencies?
Before learning how to set up a crypto wallet, there are several considerations and questions to make. We'll presume that you're preparing the wallet for NFT investment in this particular instance. But once you have all of your answers, everything goes much more smoothly.
Wallets: Custodial vs. Non-Custodial
Selecting a custodial or non-custodial wallet is another crucial step in learning how to set up a cryptocurrency wallet. The individual who holds your private keys on your behalf is the primary distinction between these two kinds of wallets.
Custodial Crypto Wallet:
Someone else controls your private keys and your crypto assets when you use a custodial cryptocurrency wallet, also known as a hosted wallet. In other words, you create a bitcoin wallet using sites for cryptocurrency exchange (like Binance). Similar like a bank, they set up the wallet on your behalf.
Advantages: With a custodial wallet, the recovery or seed phrase ensures that your private keys are never lost. For further security, they also provide two-factor authentication (2FA)!
Disadvantages: You need to provide identification and you are not fully in control of your wallet.
Non-Custodial Crypto Wallet:
A non-custodial cryptocurrency wallet is one that you have full control over. It is not hosted on a specific cryptocurrency exchange system. Additionally, you are not required to present any form of identity.
Advantages: You are in complete control of your transactions, and you are not required to show identity.
Disadvantages: If you misplace your wallet, there is no one who can assist you in getting your money back. Additionally, fiat money cannot be used in transactions with custody wallets.
Configuring the Crypto Wallet
The most crucial part is finally here: how do I set up a cryptocurrency wallet? You've likely already made all the necessary decisions and are now prepared to take action. So, here's a quick guide on how to set up a cryptocurrency wallet:
🔘 Locate a platform you can trust (for custody wallets) OR get a browser extension or an app (for non-custodial wallets)
🔘 Create a password and create your account by entering your email address and ID (custodial wallet). Alternately, register and obtain your private key (non-custodial wallet)
🔘 Purchase cryptocurrencies using fiat money to begin adding them to your wallet (custodial wallet). Send money and tokens from another wallet, even a custodial one, to your non-custodial one (for non-custodial wallets).
The Best Wallets for Beginners
Finally, after learning how to create a cryptocurrency wallet, you must select one to begin with. There are a ton of excellent cryptocurrency wallets available. However, if you're just getting started, you should start with dependable and simple to use wallets. Here is a list of the top cryptocurrency wallets that are also user-friendly for beginners: