Purchasing cryptocurrency has never been this easy. However, learning how to store your cryptocurrency can be a challenging task. The crypto wallet is just like an online bank account. You can conveniently save your cryptocurrency inside this wallet. Many people refer to the cryptocurrency wallet as non-custodial. These crypto wallets are not backed by any of the deposit schemes made by the Government. You are the entire controller of your funds. Some popular crypto wallets include MetaMask, Rainbow wallet, and Trust Wallet. Find out how to use a crypto wallet.
Why do you need a cryptocurrency wallet, and how to choose one?
Crypto wallets will help you keep your crypto safe, secure, and accessible. These wallets will help store your private keys conveniently. The private key holds a password that gives access to your cryptocurrencies. It allows the user to send and receive cryptocurrencies, including Bitcoin and Ethereum. It would help if you kept your password secure and didn’t share it with anyone. In case you lose the private key, you are in big trouble.
Different cryptocurrencies and blockchains require different types of wallets. MetaMask happens to be one of the most popular wallets. However, it may support only a few networks, including Ethereum and Binance Smart Chan. Other options include Trust Wallet, but it may not support Bitcoin. Many wallets easily support Ethereum and Bitcoin.
If we talk about the Rainbow Wallet, it features NFTs within the same app. When choosing a crypto wallet, it is essential to check which wallets are recommended by experts. Even a cake wallet is quite a popular choice among people. The official website of Bitcoin recommends that users with a Bitcoin Wallet.
How to set up a crypto wallet?
You don’t need to worry, as setting up a crypto wallet doesn’t take much time to set up. It will take just a couple of minutes, and you are good to go. Whether you start with MetaMask, download the app directly onto your phone. The user can also install the browser extension quite easily. You can set up a password for the app and give a name to your wallet. Choosing a password that will help you secure your cryptocurrency is essential. The wallet is used to receive and send funds as it helps with easy transactions. Many other wallets have nearly the same setup process.
What is a hardware wallet?
Hardware Wallets are popularly known as cold wallets. They are like a physical device that resembles a USB stick. It would help if you plugged it directly into your computer while connecting it with the internet. The best thing is that a hardware wallet happens to be a safe choice. However, it may be a little challenging to use it.
You need to purchase the hardware wallet from the official manufacturers. Some famous brands that offer a hardware wallet include Trezor and Ledger. Many people purchase a secondhand hardware wallet, but it can be hazardous for the user. Such devices can be non-functional and may even contain malware.
Cold wallets are considered a safe choice to store your crypto without putting in much effort. A hardware wallet is entirely offline, and no one can hack it. However, you need to keep your private key safe, as it holds the password. If you lose it, you will not access your crypto.
Steps to using a hardware Wallet
Here is how you can use a hardware wallet:
- Purchase a hardware wallet from a reliable supplier. You can buy it from Amazon.
- You need to plug in the Nano S with a USB cable and connect it to the internet
- The user has an option to create a new wallet or import one
- Next step will be to choose a PIN Code. Make sure that the PIN is secure and not easy to guess.
- It is crucial to back up the phase of recovery
- Install the Ledger App on any device and connect it with a wallet.
What is a Soft Wallet, and how to use it?
A soft wallet is a perfect alternative to a hardware wallet. The best thing is that it doesn’t rely on a physical token. It relies on software. There are three different types of soft wallets: desktop, mobile and online wallets.
The desktop wallet is easy to access with the help of custom software. This software helps store coins. You will be happy to know that a desktop wallet offers a safe choice for storing your coins. It may be as secure as a hardware wallet. In some cases, hackers can attack this desktop wallet. It would help if you kept an antivirus to get rid of malware and other attacks.
Steps to using a desktop wallet
- You need to check if the desktop wallet has the option to store the kind of coin you want.
- Start downloading the desktop wallet from a reliable source
- Install this software but make sure that all desktop wallets are different
- You need to copy your password and keep the private keys secure.
The online wallet will help you visit all the blockchain websites. It helps you decrypt your private key with plenty of options. However, the user needs to use a secure website like MEW. The interface of this site is easy and will help you get in touch with the features conveniently. This process of creating an online wallet is easy. It would help if you were careful, as hackers may get your personal information.
The mobile wallet will run like an app on your phone. It allows the user to have easy transactions. Most of the mobile wallets are easy to sync with the hardware wallet. You just need to install this on your phone and start using it.
If you are interested in purchasing some cryptocurrency, knowing how to secure it is essential. We have discussed a few wallet options that you can use to store your crypto. Now that you can use a secure wallet don’t get lazy when it comes to security. Enjoy and be safe in your banking style!
Also find out what the different types of cryptocurrencies are.