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Setting up a cryptocurrency wallet can be relatively complex for someone new to the crypto space. One of the reasons behind that is the availability of numerous options. There are different types of wallets that further have sub-types. If you are new to the crypto space, you must take a look at the different types of wallets and what they have to offer before you choose.
Getting to know the pros and cons of different types of wallets can help you make an informed decision.
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What Kind of Crypto Wallet Do You Want to Use?
Crypto wallets are like traditional wallets that are designed to protect the digital currencies and funds you own. While crypto wallets are meant to offer security to the users’ funds, they are of more than one type.
The crypto wallets differ based on their connectivity to the internet. This results in two types of wallets, namely:
- Hot wallets
- Cold wallets
Both these types of crypto wallets further have sub-types that vary according to their accessibility and the level of security offered.
In short, there are several options available for you as a new crypto enthusiast. If you are looking to set up a wallet you first need to choose the type of crypto wallet that is most suitable for you. To learn more about crypto wallets and their different types you can read through our guide here.
Purchase or Download the Wallet
Depending on the type of crypto wallet you choose, you will either have to purchase it or download it. While downloading a wallet you need to be careful in terms of fees paid. Make sure the wallet you opt for can be downloaded without having to pay any charges.
It is crucial to carefully choose a crypto wallet that works for you but also the one that is known to be the safest.
When choosing a wallet you should not opt for the one that is popular or chosen by other users and crypto investors or traders. Instead, you should take your time and opt for the one that suits your needs the most. This can help you settle with such a wallet where you can safely store your funds without any worries.
Install the Software
Depending on the crypto wallet you settle for, you will have to install a software as well. This is usually a step you will have to take for desktop or mobile wallets. There are advanced mobile wallets as well that are easily accessible. As a user of such a wallet, you will only have to download the application. However, for desktop wallets, the need to download the software may be inevitable.
This is yet another reason why you need to be careful while opting for a crypto wallet. Every exchange specifies the steps you need to take to set up the wallet but as a new user, you need to have all the basic information beforehand.
Setting up Account and Security
Once you choose a crypto wallet, the next most important step is to set up your account and the security systems as well.
As a novice party, you may be familiar that there are several risks posed by the crypto space and new crypto investors and traders have to deal with them. The security risks are because of the volatility associated with the crypto space. Therefore, you need to be careful and prioritize your safety above all else, whether you want to buy or trade crypto.
Similarly, if you choose a crypto wallet you need to set up your account by following the steps specified by the wallet. Along with setting up your account, you should also set up security features for your wallet.
Deposit your Crypto
Once everything is set up and running, the only thing left to do is deposit your crypto. Different crypto wallets will require you to follow different steps while depositing crypto in your wallet.
The basic step would be to choose the “deposit” option and then select the crypto asset that you want to deposit.
If the crypto wallet prioritizes your security, then you can deposit and store as much crypto as you want for however long you want.
Some of the Best Crypto Exchanges to Know About
New crypto investors need to know a few aspects if they want to invest in Bitcoin or any other crypto asset. Apart from choosing the right crypto wallet, beginners also need to know which crypto exchange is the best for them to choose.
This can be easier to achieve if the interested parties are familiar with some of the top options they have.
Here are some of the top cryptocurrency exchanges of 2022.
Final Verdict!
Whether you want to buy crypto assets or trade any of them you will eventually need to store them somewhere. Just like physical wallets are used for traditional money, there are crypto wallets used for digital assets. However, choosing a crypto wallet to store your funds is not as easy as you might think because there are different types and sub-types to choose from. Therefore, if you want to know how you can set up a basic crypto wallet then you need to be familiar with the information mentioned above first.
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