The crypto market is a source of huge profits for investors, and there are many different currencies available in the wallet. However, the most prominent one, Bitcoin, is of such immense value that the recent decades are often referred to like this platform by investors.
Crypto wallets are used to store cryptocurrency and are of several types. Out of all the ones available, the most famous ones belong to a few categories, such as hosted wallets, hardware, and non-custodial wallets. Let us talk about how you can find out which one suits you the best, and how you can set one up.
Setting up a hosted crypto wallet
A hosted crypto wallet refers to a third party storing your crypto for you. It is similar to a bank that stores your money and is the easiest one to set up. It has several benefits and drawbacks. However, it stands as the best choice for beginners in the crypto market. The steps that involve setting up a crypto wallet include:
a. Choosing a trusted platform
There are several third-party applications available in the market that can store your cryptocurrency for you. Some examples of crypto wallets include CoinDCX, Coinbase, Coinbase Pro, and Bitcoin . However, you must carefully analyze every option to see which platform is the most secure and charges the least for crypto transactions.
b. Account creation
Once you have chosen a platform, create an account by entering your personal information and setting a strong password to protect your portfolio. You should also enable the 2-step verification so that your wallet can be protected from hackers.
Setting up a self-custody wallet
A self-custody wallet is a relatively more secure one and puts you in complete control of your cryptocurrency. A self-custody wallet does not depend on a third party for its security. A third party is only responsible for providing software that can store cryptocurrency. However, the clients themselves are responsible for the security of their wallets. Here is how you can set one up:
a. Choose a wallet app
To get started with a self-custody wallet, you must select a wallet app that is trusted in the industry. It must also be secure enough for you to store all your cryptocurrency within it. Some of the most popular ones include Coinbase Wallet and MetaMask.
b. Account Creation
After choosing a secure crypto wallet, you must create an account. Account creation in a self-custody wallet does not require you to provide private information. It can be done without an email id, as well.
c. Secure your Private Key
You will be provided with a private key, which comes as a random 12-word phrase. It is up to you to secure this private key. You should write it down and keep it in a secure place. Once this private key is lost or forgotten, you will not be able to access your crypto wallet.
d. Transfer your cryptocurrency into the wallet
A self-custody wallet does not allow you to buy cryptocurrency with conventional currency. Then you should transfer your currency to this wallet from somewhere else.
Setting up a hardware wallet
A hardware wallet is probably the most secure one out of all, and it is the size of a thumb drive. A hardware wallet stores the private keys to your wallet offline, and it can protect your wallet even if your computer has been hacked. Here is how to set up a hardware wallet:
a. Purchase the hardware
To get started with a hardware wallet, purchase the hardware from a trusted dealer. Two of the most trusted brands of hardware wallets are Ledger and Trezor.
b. Installation of the software
Every brand has its software, which needs to be installed on a computer for the wallet to become functional. You can download the required software from the official website of the brand. Following this, you should proceed according to the instructions provided by the software to create a wallet.
c. Transfer your cryptocurrency
Similar to a self-custody wallet, a hardware wallet does not allow you to buy cryptocurrency with conventional currency. Thus, you are required to transfer your crypto to this wallet from somewhere else.
You can choose any or multiple options to store your cryptocurrency. Out of all the ones that exist, you must choose the ones that match your requirement and provide you with the level of security you desire. During this Bitcoin prime app, you should keep your portfolio secure, or you might face losses of extreme extents. Happy trading!