Setting up a cryptocurrency wallet

December 24, 2020

KaylaTurner
29
A cryptocurrency wallet and a normal bank account are similar in many ways. However, the differences are also significant. The transactions with cryptocurrency are irreversible. Due to this, there is a requirement for a high level of security.
 

Things to consider while choosing a wallet

 
It is very essential to know certain things while choosing a cryptocurrency wallet. Also, it is important to understand the way it works. Below are the steps required to follow while setting up a cryptocurrency wallet.
 
1. Choose the type of wallet – desktop, mobile, or hardware.
 
2. Buying or downloading the wallet.
 
3. Installation of the software.
 
4. Setting up the account
 
5. Storing cryptocurrency.
 
The above steps can ensure the safety and security of the cryptocurrencies of the user.
 

Deciding on the right wallet

 
It is very important to understand the reason behind choosing the wallet. The need for the wallet matters the most. Different types of wallets get used for different purposes. The consideration of a few things is necessary. The storage of bitcoin or cryptocurrency is important. In addition, the duration is also essential. Security is a very crucial aspect. The security of the wallet is obviously the topmost priority.
 

Setting up a hardware wallet

 
This takes a lot of time. This is also the most secure form of wallet. There is added security. Storage in hardware devices makes it more secure. It is much more secure than online wallets. It is offline in nature. So, it is less prone to malware attacks by hackers.
 
After purchasing the hardware wallet, one can follow a few simple instructions to set it up. Majorly, it is a three-step process.
 
1. Download the software on the computer or mobile.
 
2. Write the recovery paraphrase of your private key.
 
3. Connecting the hardware with the software.
 

Setting up a mobile wallet

 
It is very easy to set up a mobile wallet. First of all, one has to choose a mobile cryptocurrency wallet. One needs to download and install it from the app store. It’s important to do a backup of the private keys on a physical device. This comes with a 12 or 24 letter paraphrase. Its usage is for the recovery process. Most mobile wallets provide instant access to cryptocurrency payments. There is only one disadvantage to this wallet. There is no customer care or support available if one loses the password of the wallet. Therefore, there will be no help available in this case and one will lose all his money.
 

Setting up a desktop wallet

 
It is similar to setting up a mobile wallet. First, one has to choose the appropriate wallet. Then one has to download and install the wallet on the desktop. Here also, one has to back up the paraphrase physically and secure it safely. Desktop wallets provide more features than other types of wallets. They give better graphical representation of the usage and tracking. One can track the value of the cryptocurrency in multiple ways.
 

Conclusion

 
To summarize it all, there are different types of wallets available. However, one can choose the wallet based on the requirements and usage.
Kayla Turner
Kayla Turner

Kayla is an adept article writer with vast hands-on experience in cryptocurrency and technology. She is outgoing and always looking for new challenges to conquer. Over the years, she has gain massive traction online for writing stellar content on cryptocurrency and blockchain technology in a crispy and easy to understand style. When she is not writing for the web, she loves spending quality time with friends, colleagues, and her family indoors and outdoors. Be sure to check out his profile online for more invigorating articles.

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