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How to set up a wallet

A crypto wallet is a place where you can securely keep your crypto. There are many different types of crypto wallets, but the most popular ones are hosted wallets, non-custodial wallets, and hardware wallets.


Which one is right for you? depends on what you want to do with your crypto and what kind of safety net you want to have.



A crypto wallet is a place where you can securely keep your crypto. There are many different types of crypto wallets, but the most popular ones are hosted wallets, non-custodial wallets, and hardware wallets.


Which one is right for you? depends on what you want to do with your crypto and what kind of safety net you want to have.


The main benefit of keeping your crypto in a hosted wallet is if you forget your password, you won’t lose your crypto. A drawback to a hosted wallet is you can’t access everything crypto has to offer.


How to set up a hosted wallet:


Choose a platform you trust. Your main considerations should be security, ease of use, and compliance with government and financial regulations.


Create your account. Enter your personal info and choose a secure password.


Most crypto platforms and exchanges allow you to buy crypto using a bank account or credit card.


Be sure to write down your bean phrase. It’s presented as a random 12-word phrase. Keep it in a secure location. If you lose or forget this 12-word phrase you won’t be able to access your crypto.


Transfer crypto to your wallet. It’s not always possible to buy crypto using traditional currencies (like US dollars or Euros) with a non-custodial wallet, so you’ll need to transfer crypto into your non-custodial wallet from elsewhere.


If you’re an exchage app customer, you have your choice of a hosted wallet or a self-custody wallet. The apps, where you buy and sell crypto, is a hosted wallet.


Hardware wallets


A hardware wallet is a physical device, about the size of a thumb drive, that stores the private keys to your crypto offline.


How to set up a hardware wallet:


Buy the hardware. The two most well-known brands are Ledger and Trezor.


Install the software. Each brand has their own software that’s needed to set up your wallet.


Download the software from the official company website and follow the instructions to create your wallet.


Transfer crypto to your wallet. Similar to a non-custodial wallet, a hardware wallet typically doesn’t allow you to buy crypto using traditional currencies (like US dollars or Euros), so you’ll need to transfer crypto to your wallet.


Just as there are many ways to store cash (in a bank account, in a safe, under the bed), there are many ways to store crypto.


Good luck.

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