How To Set Up a Crypto Wallet?
The world of crypto can be quite overwhelming, with complicated words, diverse principles, unique applications, multiple know-how, and technical processes that can quickly lead to frustration and loss if you are not careful in your navigation of the space.
The crypto wallet, which stores the private keys used to access your cryptocurrencies and authorize transactions, is a critical component of any crypto-led endeavor by individual investors.
Types of Crypto Wallets
Wallets used to house cryptocurrencies are broadly categorized into two types: a software wallet and a hardware wallet.
A software wallet is an online-based wallet that you can access via browser extensions, and desktop and mobile applications. It is currently the most popular wallet option for crypto holders due to its accessibility and ease of use. Software wallets can be secured through a seed phrase, two-factor authentication, biometric signature, and password.
A hardware wallet, on the other hand, is a physical plug-in device used to securely store cryptocurrency offline. This wallet option is more secure and recommended for storing larger amounts of crypto and digital assets.
Best Crypto Wallets
There are numerous crypto wallet providers offering a diverse range of wallets. As an investor, collector, or trader, choosing the right crypto wallet is critical to ensuring a smooth and hitch-free web3 experience.
To get you started, here are some of the best cryptocurrency wallets.
1. Coinbase Wallet
Coinbase wallet is a noncustodial wallet developed by Coinbase, a trading company, and exchange. The wallet supports over 500 digital assets (cryptocurrencies and NFTs) and includes a web3 dApps browser.
Coinbase is known for having very low transaction fees, but it has also received negative customer service reviews in the past.
How To Set Up Coinbase Wallet
Step 1: Download and install Coinbase
Download the Coinbase application on your iOS or Android device and install it to start the process.
Download the iOS Coinbase Wallet here
Download the Android Coinbase Wallet here
You can also access the wallet on the web by installing the Coinbase Chrome extension.
Step 2: Create a new wallet
Select “Agree” to accept the terms and continue the process.
Step 3: Create a username
The next step would be to create a username that will be used to identify your wallet when trading with other users. Ensure that your username is easy to recall
After deciding on your username, set your privacy preference by selecting either “Public” or “Private”. This option determines whether or not other users can find you by looking up your username within the wallet.
Step 4: Secure and Backup Wallet
You will be asked to “add an extra layer of security” by selecting a passcode and configuring device security features such as face ID and biometrics.
Finally, a secret recovery phrase will pop up, which will be used to back up your wallet.
The phrase is the only way for you to access your wallet if your device crashes or is stolen, so make sure that it is stored safely, preferably in an offline location.
2. MetaMask wallet
Metamask is another popular cryptocurrency wallet for storing and trading digital assets on the Ethereum blockchain. The wallet is available as a mobile app and browser extension, and it includes a dApps browser that connects to web3 platforms.
The wallet is also a top NFT investment wallet, with a separate column for cryptocurrencies and NFTs and the ability to connect with most NFT marketplaces.
How To Set Up MetaMask Wallet
Step 1: Download and install MetaMask
Download the MetaMask application from the Metamask website and install it on your iOS or Android device.
The wallet also supports browser extensions for Firefox, Brave, and Edge browsers.
Click on “Get Started” after installing or opening the browser extension.
Step 2: Create a new Metamask wallet
Once in the app, you will see the “New to Metamask” section with two options: “import wallet” and “create a wallet for new users.”
Select “create a wallet” then click on “I agree” to help improve MetaMask.
Step 3: Set your password
The app will prompt you to create and confirm a unique password of 8 or more characters. Ensure your password is not predictable or basic.
Step 4: Store your seed phrase
Select “CLICK HERE TO REVEAL SECRET WORDS” to reveal a 12-word phrase that will display on your screen.
Your phrase is the most important wallet information to keep safe and in the order that it is displayed. The phrase is unique to you, and it is the only way to recover your wallet if your device is lost or damaged, or if your browser crashes.
Step 5: Confirmation your seed phrase
Click on each word in the order they previously appeared to confirm that you backed up your seed phrase.
Click on “Confirm.”
As soon as the wallet has been successfully set up, a congratulations window will appear.
3. Ledger Wallet
Ledger wallet is a popular multi-currency hardware wallet due to its high security and offline asset storage. The wallet can store cryptocurrencies and trade NFTs by connecting to marketplaces via Ledger Live.
Ledger features products such as Ledger Nano A Plus and Ledger Nano X which are compatible with a wide range of Android and iOS mobile apps.
How To Set Up a Ledger Wallet
Step 1: Place an order
Order a hardware wallet from the company’s website and it will be delivered to your home or office address within 2 months, or 7-21 business days if you choose the USP express delivery option.
Click on “Get your device” and carefully and accurately fill in your details.
Step 2: Download and open Ledger Live
Upon starting the device, you will be prompted to download Ledger Live, which is available on Windows, Mac, Linux, App Store, and Play Store.
You can also access Ledger Live via your browser.
Step 3: Create a new account
Accept the Terms & Conditions and important information about the recovery phrase by clicking “Get started.”
You will be shown two options; “New account” and “Recover previous wallet.” Select “New account.”
Instructions on how to set up the wallet will be displayed as well as button commands to operate the hardware wallet using the left and right buttons.
Step 4: Set up device
The following step is to “Set up new device.” By clicking both buttons, you can confirm.
Then, using the left and right buttons to decrease and increase numbers, create a new pin of 4 or more digits.
The wallet will prompt you to “write down recovery phrase,” which is a 24-word phrase that must be stored safely in the correct order and spelling.
Step 5: Connect device to Ledger Live
Return to Ledger Live and click “Connect nano” to have the system verify that your nano is genuine.
“Allow Ledger Manager on your device” once your nano has been verified as genuine.
The screen will show “All done,” indicating that the Ledger wallet is now ready for use.
You can proceed to install apps with Ledger Live on the device, after which coins can be added.
Disclaimer: This is not financial advice. This article was written solely for educational purposes only. The crypto market is still highly volatile so invest only what you can afford to lose and keep your sensitive information safe.