How to create a Cryptocurrency wallet?
Cryptocurrencies can simply be understood as digital money and cryptocurrency wallet is a digital wallet to store the cryptocurrency. You will need these wallets to buy, trade and sell cryptocurrency. Well! how to create a cryptocurrency wallet?
If you are a beginner i would suggest you to first use online applications to store your crypto and learn how to create a Cryptocurrency wallet when you feel comfortable and understand all the basics. It’s just a suggestion though, because crypto online platforms are not as secure as crypto wallets. So, the main question, how to create a cryptocurrency wallet?
Everything you read from here is just my opinion and what i have learnt. Nothing here is financial advice. I am taking Coinbase just as an example and not sponsored in any way. Similar application for beginners can be Crypto.com
Types of cryptocurrency wallet
Due to the increasing number of cryptocurrencies the number of crypto wallets have also significantly increased. They are generally marketed as follows:
- Best for a certain cryptocurrency, like, Best wallet for Bitcoin
- Online Wallet
- Offline Wallet
- Best for mobile phones
- Best as a desktop application
Understanding how to create a cryptocurrency wallet
I am sure you have heard about Coinbase. It’s one of the famous platform for buying, selling and trading cryptocurrencies. Further in this article we will be taking Coinbase as an example. As, once you know this you will be able to setup other platforms more easily. Coinbase offers many applications and they are also in the process of releasing many more. Here are some:
- Coinbase ( Basic)
- Coinbase Wallet App
- Coinbase Wallet browser extension
- Coinbase Pro
Since this article is about how to create a cryptocurrency wallet, let’s focus on Coinbase Wallet App. All these sound fancy and difficult but it is not as it sounds. Only one major thing you need to know is ” You need to be very careful” while:
- Buying: Do your research and make sure you don’t get in a SCAM. Due to crypto’s popularity there are thousands of SCAM happening online.
- Selling/Transfer: Make sure you verify the wallet address carefully before sending.
- Security: You will need to implement all the security features provided by the wallet and never share your passwords or account restore phrases to anyone and i mean “ANYONE”.
How to create a cryptocurrency wallet? Here are the steps:
- Download the Wallet ( Here we are taking Coinbase wallet) from iOS or Android store.
- Create your account. You will not need to share any personal information here.
- Once you are in you will receive a 12 word phrase. This is your private Key. Make sure you have it stored in a safe place. This is needed to verify that this wallet belongs to you.
- Now you will be able to receive crytpocurrency in the wallet.
Crypto transactions with crypto wallet
Most wallets do not have the feature to buy crytpocurrency from wallets using fiat currency. So, i suggest you open an account in Coinbase and get it verified. After that, you will be able to buy crypto using fiat currency. You will also be able to send the crytpocurrency to your new crytpocurrency wallet. Follow the steps below:
- Open coinbase wallet
- Go to settings
- Choose connect to coinbase account
- Login to your coinbase account
Conclusion
Great! Now you have a cryptocurrency account and also know how to create a cryptocurrency wallet. While this is all easy to setup, it comes with it’s own set of risks. First, crypto is very volatile and there is a huge number os SCAM’s going on. So, make sure you keep your self safe from all this.
Heard about NFT? Check out how to buy and sell NFT for more information.
If you liked this, please share! Thanks!
Cryptocurrencies can be simply understood as digital money and cryptocurrency wallet is a digital wallet to store the cryptocurrency. You will need these wallets to buy, trade and sell cryptocurrency.
3 Comments