If you’re a newcomer or an inspiring investor looking to make some financial gains in the crypto market, your first concern should be protecting your investments. For this, creating a cryptocurrency wallet is imperative.
Luckily, you have stopped by the right place as we will briefly discuss how to set up one. Let’s begin our cryptocurrency wallet crash course!
Mobile wallets & desktop wallets
Both desktop and mobile wallets involve installing an application. These two types of wallets differ mostly in the type of the platform they run on. Mobile wallets have additional security levels, including a security pin option. However, desktop wallets are considered the safer option of the two types, since they’re installed locally on your Mac or PC, without interference of any third parties.
Keep in mind, though, if the original device is lost or damaged — you might lose access to your crypto funds forever. The installation of a desktop wallet begins by selecting and downloading an application, and the process is complete once the software presents options for additional security and backup. Thus, this process is very simple as it just calls users to follow a series of prompted steps. To make sure you can later transfer your desktop wallet to another device, make a backup.
Hardware & paper wallets
Hardware wallets — the alternative of paper wallets — require users to purchase a USB-like device that safely records all crypto transactions. Like mobile and desktop wallets, this wallet also requires a user to download software via the supplier’s website.
Once a transaction is carried out, the software will require users to confirm their private key. And because this private key never leaves the device and cannot be hacked, it is the safest and most secure wallet in the market.
The process of creating a hardware wallet begins by purchasing a USB-like device and setting up all the necessary configurations on it. Next, a user must download the application from the selected company’s website. After the download is completed, the application will send a confirmation and compliance email to verify creation of a hardware wallet.
Paper wallets are created by using a program that randomly generates public and private keys, which are recorded as QR codes. To set up a paper wallet, first make sure that your computer is absolutely free of malicious software, then go to https://walletgenerator.net/, and follow the prompts. The system will randomly generate the keys for you, and you will then print a piece of paper, which would become your paper wallet. Just make sure your computer isn’t connected to Wi-Fi at that point!
Online wallets
Setting up an online wallet involve choosing a login and a password, and providing an email address. More specifically, users are required to provide their security code upon logging in with an email, and confirming authorization. After your login and password information is set up, sign in and provide a security code via the provided link. After these steps are complete, your online wallet is ready to begin storing digital coins.
A quick tip
If you’re still confused about what wallet to choose, keep in mind that desktop, online, and mobile wallets allow for a quick transfer of small amounts of cryptocurrency, while hardware and paper wallets offer higher security and allow for the storage of larger amounts of crypto. If you’re looking for more information on the pros and cons for different types of crypto wallets, check out our previous article.