How To Open A Crypto Wallet?
Crypto wallets are a necessity when you want to invest in Crypto. You will find several types of Crypto wallets. However, they do not physically store Cryptos. Instead, they record the respective transactions in the Blockchain network. So, you can consider them to be software that keeps a record of your private Crypto keys.
You can use these apps to track your balance and send Cryptos from one person to another. However, if you lose your private key, you may lose all ownership of your holdings. Since the network is decentralized, no other individual is aware of your holdings and keys.
- Hosted Wallet
It is the most commonly used Crypto wallet because it is extremely easy to open. As the name suggests, a third party (your chosen exchange) hosts the Crypto that you hold in your wallet. The main benefit that this wallet offers is that you do not lose all your coins if you forget your private key. Here’s how to set up a Hosted wallet.
Step 1- You Find An Exchange Of Your Choice
Analyze the benefits of the exchanges very carefully. The transaction fees, the security, Government regulations and options of deposits and withdrawals all deserve thorough attention.
Step 2- Create An Account
Put in your personal information along with a secure password. After that, you will be required to conduct 2-step factor authentication for better security.
- Hardware Wallet
It is a physical device that is the size of your thumb. It is used to store all your private keys offline. Software is installed in the wallet that facilitates this. It seems to be complicated and costly, but it offers the benefit of keeping your Crypto safe even if your computer is hacked. Here’s how to set up a Hardware wallet.
Step 1- Buy The Hardware And Install The Software
Purchase a hardware wallet and download the same company’s software as your Hardware wallet. Follow the instructions given to create your account.
Step 2- Transfer All Your Crypto
A Hardware wallet does not allow buying Crypto using fiat currency. This is why you need to transfer your Crypto to the wallet. With the transferred Crypto, you can start trading.
- Self-Custody Wallets
This wallet gives you complete control of your Cryptos. It does not have any third party that will be responsible for keeping your Cryptos secure. However, if you forget your private key, you will lose all your Crypto holdings. Here’s how to set up a Self-custody wallet.
Step 1- Download The App
Choose a good app that is well-reputed and has a high level of security.
Step 2- Create Your Account
It does not require any personal information. Create your account and set up your private key. Write it down somewhere so that there is no chance of losing it.
Step 3- Transfer All Your Crypto
Like Hardware wallets, you can not purchase Crypto using fiat currency here. So, you have to transfer your Crypto to this wallet.
Using a Crypto wallet is just like storing your money in a bank account where you get control of your own holdings. However, it is your responsibility to keep your wallet completely secure.
