Before you can start investing in and using cryptocurrency, you will need to set up a crypto wallet that holds the private and public keys that are in place to prove that the digital coins are yours. If you’re new to crypto, then setting up a crypto wallet can seem quite daunting at first. But the good news is that it’s simpler than it sounds, and only takes a few minutes.
The Steps to Setting Up a Crypto Wallet
There are four basic steps involved in setting up your crypto wallet. Firstly, choose the type of wallet that will work best for you. Then, sign up for an account and download the software or purchase the device necessary. Set up your security features and make sure that there is a recovery phrase in place.
Finally, when you purchase cryptocurrency, transfer it to your wallet from an exchange or another wallet. You can determine the price of crypto using the OKX.com Cryptocurrency Converter, purchase it, and then transfer it to your wallet.
The Different Crypto Wallet Types
There are three main types of wallets that you can use to store virtual currency. A software wallet or hot wallet is a popular option. This stores the cryptocurrency on a device that you own, which is connected to the internet.
Another option is a cold wallet. This is a specialist piece of hardware that allows you to store your cryptocurrency offline. Finally, you can also sign up for a custodial wallet, which involves leaving your cryptocurrency in the control of a company that you trust, such as a cryptocurrency exchange.
Hot Wallets
To set up a hot wallet or a software wallet, start by choosing a suitable app and downloading it on your mobile or desktop device. Create an account and set up the security method such as a password. Then, make a note of the ‘seed’ or recovery phrase that the app will generate. Finally, transfer cryptocurrency from another wallet, or link the account to the exchange you use to add crypto to the wallet.
Hardware Wallets
A hardware wallet allows you to store your crypto on a physical device. They cost between $50 and $250 and can be a little bit more complicated to use compared to a software wallet. You will need to purchase the device, power it on, and create a pin code if needed. You will usually need to download the software that the device uses, then connect it. This can usually be done through a USB cord or wirelessly through Wi-Fi or a QR code. Then, add crypto to your wallet by migrating the tokens from your exchange.
Custodial Wallet
If you have signed up to a cryptocurrency exchange, then you will usually have access to a custodial wallet, where you can store your funds on the exchange. However, while this can be convenient, it’s important to note that it is often the least secure option due to the risk of hacking.
Whatever cryptocurrency you want to invest in, getting the right wallet for you is important for safely and securely storing your coins.
