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Learn how to get started with a crypto wallet in this guide.
So you’ve finally decided to get into cryptocurrency.
Congratulations!
There’s many advantages that await you — if you utilize cryptocurrency the right way, and that includes choosing the best crypto wallet for your investment needs.
That’s right, a crypto wallet!
Unlike the wallet in your back pocket or your purse right now, a crypto wallet isn’t actually tangible… it’s something you utilize digitally.
Whether you’re a crypto noob or a seasoned investor looking to move your crypto off-exchange and into cold storage, we’ve got the information you need to get around your crypto wallet easily and safely.
There’s a lot to cover, so let’s dig in!
First thing’s first: you need to know what a crypto wallet is, and what it’s even used for, right?
Well, while it works like a traditional wallet in some aspects, it also has some functionality that is only available with cryptocurrencies and crypto tokens.
It’s a digital wallet, but it also functions as a high-tech safe where you can keep your crypto assets stored safely and long-term.
The main thing to remember is that your crypto wallet doesn’t really “store” your crypto, it keeps your digital keys safe.
Your digital keys – like your private Bitcoin key – are the unique codes that allow you to access, manage, and spend your digital currency.
Your wallet will act almost like a bridge between you and the wide world of blockchain technology.
With a crypto wallet, you aren’t simply holding your digital assets … you’re holding the power to interact with countless blockchain networks!
There are two types of crypto wallets: hot and cold.
Hot wallets are usually the ones that people use daily or even carry with them on their phones.
They are easy and convenient to use, but with great convenience comes great risk.
Since they are always connected to the internet — hence the term hot — they are vulnerable to a wider range of cyber threats like phishing attacks.
Cold wallets, on the other hand, are more similar to a safety deposit box, or even a bank vault.
They are unbelievably secure but also relatively inconvenient for small purchases.
Since they are not online, they offer increased resistance to hacking but can be a hassle for a quick transaction.
Which one you choose is ultimately your choice, and depends significantly on your personal needs and desired functionality.
If you’ll be making frequent trades or sends, definitely get a hot wallet, but on the other hand, if you plan to do a lot of long-term HODLing, getting a cold wallet is going to be safer and more secure in the long run.
Setting up a crypto wallet isn’t rocket science, but it’s also not a quick task that you can do without a little preparation.
Here’s what setting one up will typically involve the following steps:
Now we’re getting down to business!
You’ve installed your wallet, set it up, funded it, and backed it up, so now you need to learn how to use it.
You did this when you funded your wallet initially.
Receive funds by either sharing your address or your address’s QR code.
Just enter the recipient’s wallet address, specify the amount, and hit send.
Voilà!
Your digital coins are on their way.
Make sure you take transaction fees into account!
Most wallets will show your balance right on the dashboard.
It’s a good practice to keep an eye on it, just like you would with a traditional bank account.
Whether buying, selling, or trading, your wallet will keep a ledger of your transactions, so you have a solid historical reference.
Let’s take a look at a few examples of crypto wallets — hot and cold — that you can utilize today.
The default Coinbase wallet is a hot wallet go-to for countless crypto enthusiasts, particularly those just getting started.
It’s simple, has lots of features, and has built-in access to the Coinbase exchange.
If you’re looking for a cold wallet, the Ledger Nano X is a top pick.
It’s a hardware wallet that offers top-notch security and supports a wide range of cryptocurrencies.
Another well-respected cold wallet option is just about any Trezor model.
They’re known for robust security and intuitive interfaces, making them very user-friendly.
MetaMask is a hot wallet that’s become a staple for interacting with crypto tokens.
It can be found both as a browser extension and a mobile app and is known for its simplicity and native Ethereum compatibility.
Exodus is a versatile hot wallet available on desktop and mobile.
It:
Alrighty, now that you’re all set with your crypto wallet, let’s talk safety.
Here are some of the best ways to keep your coins safe:
Well, there you have it!
Everything you need to know about a crypto wallet, along with a handful of tips to help you keep control of your coins.
So, what’s the next step?
There’s nothing left to do but jump in, try a few crypto wallets, and learn which one you vibe with the best.
Make sure you stay safe and secure, and enjoy the crypto roller coaster!
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