After buying crypto, it's essential to store cryptocurrencies securely since, even though they have no restrictions from centralized institutions like the government or banks, your data is still at risk in the event of a key loss. The different shells for storing cryptocurrency are also known as Crypto Wallet.
By default, your currency is stored on an exchange, If you are not happy with your exchange, you can transfer the money wallet to ensure high security. There are various types of wallets: hot wallets, cold wallets, and custodial wallets.
How to Get a Crypto Wallet
A Crypto wallet is a shell where you can securely store crypto as well as you can fully own it. Here are step-by-step guides to set up crypto wallets.
1. Hot Wallet
On internet-connected devices like mobile phones, laptops, tablets, and many other gadgets, online wallets keep coins. Due to their online nature, hot wallets have a high rate of cyber assaults. Examples are MetaMask, Coinbase Wallet, and Edge Wallet.
Step 1: Wallet Installation
Go to the app store and search for “Coinbase Wallet” and hit the “Install” button. After installation hit the button “Open” to open it:
Step 2: Account Creation
Create a “New Wallet” and pick your “Username” it must be a mixture of characters and digits like “username123”:
Step 3: Seed Phrase or Account Recovery
After account creation, it will display a text in the message box, enable the visibility icon and read the paragraph, pick the first and last word in the given paragraph, and hit the button “Manual Recovery” in the first view there will be display words pick 1st and the last word of the paragraph that you read in the previous view and hit the button “Continue”:
Step 4: Add Crypto to Wallet
After creation, now you are free to transfer your crypto to the wallet.
2. Cold Wallet
We keep cryptocurrency in USB and hard discs, which is often referred to as offline wallet because they are not linked to the internet. So, there is less likelihood of a cyberattack, but data is still at risk; we could lose our data due to disc corruption or hardware theft; so, we must exercise caution. Examples are Paper wallets, physical bitcoins, and secondary storage devices.
Step 1: Purchase the Device
You can purchase these devices from Walmart or directly from the creators. Like Ledger Nano and Trezor.
Step 2: Download the Software
You need to install a centralized software that would be compatible with your cold wallet, it would provide the bridge to transfer coins from the exchanger to the cold wallet.
Step 3: Connect your Device
To transfer tokens, you can connect your hardware wallet to internet software in a few different methods. Some gadgets use a USB link to connect to your computer, while others connect wirelessly using a QR code or WiFi.
Step 4: Add Crypto to Wallet
It helps you to buy crypto and then load it for offline storage, you can move tokens between wallets or from an exchange using your wallet address.
3. Custodial Wallet
It is managed by a third party and stores crypto directly on the exchange, here the third party manages your private key. Examples are Free Wallet, Binance, BitMex, and Bitgo.
Step 1: Software Installation
Open the app store and search for “Binance” once it appears hit the button “Install”, After installation, open the application.
Step 2: Account Creation
Register and log in to the application.
Step 3: Add Crypto to Wallet
After setup now you can transfer crypto from your bank account to exchange.
Conclusion
Crypto wallets use to store your coin in a secure shell, there are various types of wallets: cold wallets, hot wallets, and custodial wallets. Easy and simple steps were discussed to create these wallets. By default, your currency is stored in custodial wallets but you can transfer coins from custodial to a hot or cold wallet to make it more secure.
