Create an electronic wallet for digital currencies
An e-wallet is a place where you can keep your digital currencies securely. You can create an e-wallet for cryptocurrency of all kinds, but the most popular ones are hosted wallets, non-custodial wallets, and hardware wallets. The right wallet for you depends on what you want to do with your cryptocurrency and what kind of safety net you’re looking for.
Hosted wallets
The most popular and easy to use e-wallet is the hosted wallet. When you buy digital currency using an app like Coinbase, it is automatically held in a hosted wallet. It’s called hosted because it involves a third party holding your digital currencies for you, similar to how a bank holds your money in a checking or savings account. You may have heard of people “losing their keys” or “losing their USB wallet” but with a hosted wallet you don’t have to worry about any of that.
The main benefit of keeping cryptocurrencies in a hosted wallet is that if you forget your password, you don’t have to worry about losing your assets. But the downside is that it limits your access to what the stored digital currency has to offer.
Create a hosted e-wallet for digital currencies:
Choose a platform that you trust, your main considerations should be security, ease of use, and compliance with government and financial regulations.
Create your account by entering your personal information and choosing a secure password. It is also recommended to use 2-step verification for an extra layer of security.
Buy or transfer digital currencies
Most cryptocurrency exchanges allow you to buy with a bank account or credit card. If you already own some coins, you can also transfer them to your new hosted wallet for safe keeping.
Dishonest wallets
A non-custodial wallet like Coinbase Wallet gives you complete control over your cryptocurrency, as it does not depend on a third party to maintain it.
While this wallet provides you with the software to store your cryptocurrencies, the responsibility to remember and protect the password rests entirely with you if you lose or forget your password, there is no way to access your assets.
One of the main advantages of non-custodial wallets is access to more advanced activities such as storing, lending, borrowing, and more. But if all you want to do is buy and sell cryptocurrencies, then a hosted wallet is perfect for you.
Create a non-custodial electronic wallet for digital currencies
Download the wallet app
Create your account, and remember that you won’t need to share any personal information, unlike a hosted wallet.
Make sure you write down your private key, which is presented as a random 12-word phrase, and keep it in a safe place.
Transfer cryptocurrencies to your wallet.
Hardware wallets
This wallet is a physical device, about the size of a thumb drive, that stores the private keys of your digital currencies offline. Most people refrain from using hardware wallets due to their complexity and high cost, which can exceed $100. But that doesn’t negate its many benefits like keeping your assets safe even if your computer is hacked
Create an electronic hardware wallet for digital currencies
Buy the device
Download the program from the company’s official website and follow the instructions to create your wallet
Transfer digital currencies to your wallet
Just as there are many ways to store cash in a bank account, in a safe, or even under a bed, there are many ways to store cryptocurrency. You can keep things easy and simple by using a hosted wallet, or take extra security precautions by storing your coins in a hardware wallet, or you can even have multiple types of wallets, the final decision is up to you.
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