How to setup a crypto wallet

Nowadays, having a crypto wallet has become essential for many people. Not only for the fact of investing in cryptocurrencies, but these are already working to pay for services or other things in some countries. That’s why knowing how to set up one of these wallets is always necessary.

In recent years, the use of cryptocurrencies around the world has increased considerably. Although many people are still wary of this type of economy, entire countries have begun to accept them in different areas. Sooner or later it will end up becoming a medium used by everyone. 

That is why we have taken care of bringing this information that will be very helpful. With this post, you will be able to know a little more about crypto wallets and their configuration. Don’t miss it and take note so you can open yours whenever you want with an easy-to-follow process. 

What is a crypto wallet?

Before you know how to set up a crypto wallet, it’s important to understand it well. These cryptocurrency wallets are a space in which a unique digital code is stored. In this way, you will be able to access the cryptocurrencies with the key that unlocks the blockchain.

These can be found hosted on an Exchange, which is the platform where you can make coin exchanges, buy and sell. It is said to be hosted because it is being stored on a third-party platform, something similar to a bank. Among some of the most popular and secure are Binance, Coinbase, and eToro. However, there are many others. 

Tips to keep in mind

Before setting up your crypto wallet, you must have some necessary tips. So we’ve put together a list of some tips to follow, Exchanges aren’t solely responsible for security. That is why we must avoid as many mistakes as possible so that transactions and investments are kept safe. 

  • You must protect your account in the right way. Not only will a password suffice, two-factor authentications, SMS verification and even fingerprint use in an app must be enabled.  All methods will become layers of security that will completely protect your funds.
  • The wallet and cryptocurrency must always match. If you have a Bitcoin wallet, you should only send Bitcoin to it, if it is Ethereum, just send Ethereum. On the contrary, there will be irreversible losses, so always check that they are correct at the time of starting.
  • In case you are setting up a Bitcoin wallet, keep in mind that many wallets use this brand. There are other cryptocurrencies such as Bitcoin Cash or Bitcoin Gold that are totally different coins. If you send an amount to these wallets, you will have a total loss of the amount sent. 
  • It is important that you use two wallets for cryptocurrencies. One of the software for which you store or in which you invest for the long term and that is followed. The other will be within the Exchanges, this one you will use only at the times when you want to buy and sell. This way you can protect yourself from hackers who are constantly looking for wallets in the middle of transactions.

Time to set up the crypto wallet

Being clear about what a crypto wallet is and some tips to use it, it is time to start the configuration.  Those who are more adept at this know the ease of this process and that many Exchanges create wallets automatically. However, for beginners, this is the way you should start your setup process. 

  • The first thing is to have an account in an Exchange. This may vary in some cases depending on the verification methods they may request. In some only photos of the documentation will be requested and in others, you will have to add a selfie with them. 
  • Once this is completed, you will only need to log in to this platform. Remember to turn on two-step settings for more security.
  • Within the menu of the platform, you can find the option of “Funds”. That’s where you’ll find more options, including “Balance.”
  • In the balances, you can find the different cryptocurrencies that are available on the platform. This is useful for users who do not use the most recognized cryptocurrencies, but the other alternative that exists.  So, you can use the one that suits you according to the type of transactions to be made, remember that they must be the same cryptocurrency.
  • By clipping on the deposit button on the cryptocurrency you want, you will be redirected to the wallet of it. 
  • Once inside the wallet, you can add the money you want as part of your investment. Below this investment, you can also find the address of the portfolio which is the way in which you are deposited. Through it, they will be able to send your cryptocurrencies from the wallet you have chosen to create.

This way you can have the complete configuration to be able to use your new wallet. Remember that they must be of the same cryptocurrency and with it, you can do different actions. Buy, sell, exchange for other currencies, and trade, all according to the Exchange you have chosen. 

Configuration in other types of crypto-wallets

There are other wallets for users who want to invest in cryptocurrencies. These are the non-custodial ones and those that are hardware or software for privacy. Now we will show you a little about these types of wallets that are an alternative to the ones used in the Exchanges.

Non-custodial wallet

These are those wallets in which the user has full control of the cryptography. It is not used as a banking unit that allows the fact of making transactions and changes. The functions of these wallets are similar to those we usually carry with us in our pockets, where you have full control.

To set them up, you just need to download the app from these wallets, where MetaMask and Coinbase Wallet are the best known. In these cases, you only need to create the account without personal data, write down the security keys that are 12 words. 

After having this under guard you can save your cryptocurrencies without problems, they are usually used to save and not to make operations. 

Software or hardware wallets

These are physical devices that are very similar to USB and that have their keys outside the network. They usually have higher costs, so it is not one of the favorite options of users with cryptocurrencies. The main brands are Ledger and Trezor, where their configuration depends on the download of a software.

Once you have this software, you can store cryptocurrencies in a similar way to non-custodial wallets which are used privately with full control in your hands. 

It’s time to program your crypto wallet

You already have all the information in your hands to be able to configure your crypto wallet. Remember to follow the steps and tips that we have mentioned so that you can configure it correctly. Once you have completed it you will be able to transfer your cryptocurrencies without any problem.