Guest Post

How to Get a Cryptocurrency Wallet?

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The benefits of using cryptocurrency are undeniable:

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  • Fast peer-to-peer transactions
  • Worldwide payments
  • Low processing fees

But now that you have it, how can you keep it safe from hackers?

The most effective answer is a crypto wallet. You can store several cryptocurrencies in it and still make transactions. 

However, there are so many crypto wallet options out there; it can be hard to decide. Luckily for you, we’ve chosen the most popular cryptocurrency wallets for you. And don’t worry, they’re popular for very good reasons.

We’re going to look over the pros and cons of the following crypto wallets: hosted wallets, non-custodial wallets, and hardware wallets. 

We hope that you’ll know how to create a digital wallet for cryptocurrency by the end of this article.

Let’s begin with:

Hosted Wallets

PROSCONS
easy-to-set-upyou can’t do yield farming, staking, lending, borrowing, and other advanced crypto activities
popular 
you won’t lose your crypto if you forget your password

If you want to create a crypto wallet because you want to buy, sell, send, and receive crypto, then we recommend the hosted wallet.

Not only is it straightforward to use, but you don’t have to worry about passwords. Even if you forget your security key, you won’t lose your crypto. A third party controls the entire process, and you can enjoy your transactions safely.

That’s actually why the wallet is called ‘hosted’ because, just like a bank, it holds the crypto into an account. For example, the crypto purchased from Coinbase is automatically stored in a hosted wallet.

How to set up a crypto wallet:

  1. Choose a trusted platform. Look for security, ease of use, and compliance with government and financial regulations. The most popular one is Coinbase.
  2. Make your account. Enter your information and choose a secure password. Make sure you use a 2-step verification (2FA) for extra security. 
  3. Buy or transfer crypto. 

The only drawback to the hosted wallet is that you can’t yield farm, stake, lend, borrow, or do other advanced crypto activities. However, the future of hosted wallets looks pretty bright. If you want to have more power over your wallet, then we recommend the next one:

Non-Custodial Wallets

PROSCONS
You’re in complete control of your security.You can lose access to your crypto if you forget your password.
You can enjoy more advanced crypto activities like yield farming, staking, lending, borrowing, and more.

If you want to control your security fully, you should try the non-custodial wallet. Just like the name suggests, there’s no ‘custodian’ or, in other words, a third party in charge of your wallet. That means that you’re in complete control of your crypto!

When it comes to security, you’ve got to be careful and keep your ‘private key’ safe from praying hands. Sadly, if you forget it or lose it and someone else finds it, you won’t be able to get your crypto back.

However, if you’re a pro at keeping your assets safe, then a non-custodial wallet gives you access to advanced crypto activities like:

  • yield farming
  • staking
  • lending
  • borrowing
  • and more

If all these sounds get, here’s how to set up a cryptocurrency wallet:

  1. Download a wallet app like Coinbase Wallet or MetaMask.
  2. Create your account. You don’t need to share personal info, not even the email address.
  3. Write down your private key and keep it in a safe place. If you lose or forget it, you won’t be able to access your crypto.
  4. Transfer crypto to your wallet

 You also have the option of using both Coinbase wallets: the hosted wallet + non-custodial wallet. It’s free to set them up, and you could enjoy the best of both worlds!

Crypto Hardware Wallet

PROSCONS
Your crypto is safe even if your computer is hacked.High cost
They are complex, and inconvenient to use compared to a software wallet.

If you want to keep your crypto safe from hackers, then the best wallet for that is the hardware wallet. This cryptocurrency wallet looks like a thumb drive and is used to store the keys to your crypto offline.

The drawback to this type of wallet crypto is that they are increasingly complex and can cost upwards of $100 to buy. However, that can also ensure that your keys are safe and away from harm. 

Here’s how to make a cryptocurrency wallet:

  1. Buy the hardware.
  2. Install the software from the official company website and follow the instructions to create your wallet.
  3. Transfer crypto to your wallet. 

How To Use a Crypto Wallet?

Now that you know how to get a bitcoin wallet (and not only), it’s time to use it!

There are plenty of products and services you can buy using crypto-wallets. You can buy clothes, ticket events, and even play on crypto gambling sites!

Plus, no one can tell you what type or how many cryptocurrency wallets you can own. Use several to take full advantage of everything cryptocurrencies have to offer.

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Disclaimer : The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of Coinpedia. Every investment and trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Delma Wilson

Delma is a B2B Content Marketer, Consultant, Blogger in the field of Blockchain, and Cryptocurrency. In her spare time, she loves to blog, play badminton and watch out ted talks. She likes pets and shares her free time with NGO.

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