HOW TO SET UP A CRYPTO WALLET FOR BEGINNERS

A crypto wallet is a location where you may store your crypto in a safe place. Hosted wallets, non-custodial wallets, and hardware wallets are the three most prevalent forms of crypto wallets, while there are many more. This is a personal choice based on your crypto-related plans and the level of security you want. This guide aims to provide assistance in setting up a crypto wallet for beginners. So let’s get started..

 

A. HOSTED WALLETS

A hosted wallet is the most widely used and easiest to set up a cryptocurrency wallet. You may purchase cryptocurrency from an app and have it stored in a hosted wallet. As with bank accounts that keep your wealth in a checking or savings account, your crypto is hosted by a third party. Some users worry about “losing their keys,” or more specifically, a “loss of their USB wallet,” however this isn’t an issue with a hosted wallet.

In the event that you forget the password to your hosted wallet, your crypto will not be lost. One disadvantage of using a hosted wallet is that you can’t make use of all the features that cryptocurrency has to offer. However, this may change in the future if hosted wallets begin to provide additional functions.

How to set up a hosted crypto wallet for beginners:

    1. Decide on a platform that you can put your faith in. Your primary concerns should be safety, usability, and adherence to all applicable laws and regulations.
    2. Next, create a user account. Choose a strong password and enter your personal information. An additional degree of protection is provided by two-step verification, often known as two-factor authentication (2FA).
    3. Purchase or transfer a cryptocurrency. It is possible to buy cryptocurrency using a bank account or credit card on the vast majority of crypto platforms and exchanges. For those who currently hold cryptocurrency, you may also move it to a new hosted wallet for better security.

 

B. SELF-CUSTODY WALLETS

A self-custody or non-custodial wallet gives you full control over your cryptocurrency. Cryptocurrency stored in non-custodial wallets isn’t guarded by a third party (a “custodian”). Despite the fact that non-custodial wallets offer the software required to store your crypto, you are alone responsible for keeping your password confidential. If you lose or forget your “private key” or “seed phrase,” there is no way to get into your crypto. Someone who finds your private key will have complete access to all of your assets.

The reason why you might want to have a self-custody/non-custodial wallet is that you can access more complex crypto activities like yield farming, staking, lending, and borrowing, all while maintaining complete control over the security of your coin. When it comes to simple transactions such as buying and selling crypto, as well as sending and receiving it, a hosted wallet is the way to go.

How to set up a self-custody crypto wallet for beginners:

    1. Firstly, download a wallet app. Create a user account. It is possible to construct a non-custodial wallet without revealing any personal information.
    2. Jot down your private key somewhere safe. It usually comes as a 12-word phrase. In case this 12-word phrase is forgotten, you will not be able to access your cryptocurrency. So make sure you don’t lose it.
    3. Transfer crypto into your non-custodial wallet. Traditional currencies (such as the US dollar or the euro) cannot always be used to purchase crypto using a non-custodial wallet, which means you must move crypto from another wallet into your non-custodial wallet.

 

C. HARDWARE WALLETS

A hardware wallet allows you to store your private keys on a physical device, similar in size to a thumb drive. If your computer gets hacked, your crypto will still be safe in a hardware wallet since it is complex and expensive to set up and operate. In comparison to software wallets, handling hardware wallets may require an advanced level of understanding due to their higher level of protection.

How to set up a hardware crypto wallet for beginners:

    1. Buying the hardware is the first step in setting up a hardware wallet. Ledger is one of the best-known names in the industry.
    2. Next, the software should be installed. There may be different software for each brand. To set up your hardware wallet, go to the maker’s official website and download the software.
    3. Make a crypto transfer into your hardware wallet using digital currency. Like a non-custodial wallet, you can’t buy crypto using conventional currencies like US dollars or Euro, therefore you will have to take the crypto transferring route.

 

What makes ledger the best hardware wallet?

Ledger is an affordable, easy to use and highly secure hardware wallet that supports a continuously growing range of coins. All ledger wallets include a 24-word backup recovery phrase that the user may use to access their cryptocurrency if their device carrying the private key is lost or stolen. Trusted by 4 million customers worldwide, Ledger offers a wide range of devices for you to choose from, based on your needs. 

Click here to keep your crypto safe and accessible with Ledger

 

 

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