Starting your cryptocurrency journey in the year 2023 is very different from what it used to be back at the beginning. Well over a decade has passed since Bitcoin (BTC) appeared on the market and brought about the rise of virtual currencies and the blockchain. There are now thousands of cryptos to choose from, there are places to do business with them, and the general approach and the experience are much more straightforward and available.
Of course, the number of enthusiasts and investors has skyrocketed in the last decade or so as digital currencies and everything they bring along with them have proven effective, useful, and much like what the experts have predicted back at the start. If you are finally ready to join in on the fun and become a crypto entrepreneur yourself, there is a lot you should know about it before you can expect to make any type of profit. Moreover, you have to know how to start things off the right way and where to even do it.
Picking out the cryptocurrency to invest in initially, or more of them is only a small step in the entire endeavor. It is a single cog in the machine, with many other important parts also being there. Perhaps the most crucial thing is having the right place to do your crypto business and keep the balance safe and sound. You have probably heard of electronic wallets before, also known as crypto wallets or e-wallets.
They are used for storing virtual currencies and are used in transactions. But how do you choose one and how are they set up? If you know nothing about this, worry not. Right here and now in this article, we bring you all the info you need about wallets. Read along to learn how to choose the best one for you and how to set it up. Click here to learn more about this.
What to Consider
The first step in choosing the right wallet for your needs is knowing what to consider when distinguishing between the various types available. It is important to pick the best one for your specific case because you do not want to end up losing your balance or having a rough time accessing the wallet every time you need it. There are five steps worth going through when you want to use a wallet for the first time. The first is determining whether you need hardware, a desktop, or a mobile wallet. Next up is the buying or downloading of the wallet, after which you install the software. The fourth step is setting up the account and going through the security features. Finally, you deposit your crypto into it for safekeeping and using it later.
Now, depending on which type you choose the setup process can be quite different. The reason for using crypto in the first place should determine the type of wallet you pick because different ones are made for different uses. Ask yourself if you will only be using BTC or other cryptos too, how much crypto do you plan to store at once, and if you need enhanced privacy and security. All wallets function with the use of private keys that act as passwords for accessing the funds and allow you to control them. Keys should only be known to you and nobody else. Let us now talk about hardware, mobile, and desktop wallet setups.
Mobile Wallet Setup
Mobile wallets are quite easy to set up since it is done through the app store. Simply hop on the Android or Apple store and pick a crypto wallet you like. It can be an app made by a famous cryptocurrency exchange or an independent wallet. The choice is yours. You are able to accept payments almost immediately with most of them.
The keys should not be kept on the phone, however, but rather on a piece of paper. The 12 or 24 letter combinations of letters and digits that act as backup keys also exist and are quite useful as an extra security step. Once you download it, the steps to log in and connect to it are straightforward and simple.
Desktop Wallet Setup
The term desktop implies the use of desktop computers as the wallet, as you get a piece of software that is installed on your PC’s hard drive. Running the software is all you have to do, before which you have to download it of course. Similar to the mobile version, there could be a passphrase backup involved. If you are more serious about your crypto journey, you may want to think about using a desktop wallet because the software comes with many other features that are not available on mobiles.
For example, you will get extensive portfolio tracking in the form of graphs and/or charts. Tracking the value of your assets will make trading much easier. If you prefer working from home and never using your phone for crypto stuff, desktop wallets are for you.
Hardware Wallet Setup
Last but not least, hardware wallets are definitely the most secure but they also take the longest to set up. They are also the least optimal to use quickly because they are, after all, on the device and not tied to the internet. The offline nature of such wallets allows them to be much more secure and less susceptible to hackers or viruses. If the safety of your crypto is your number one concern, definitely invest in a high-quality hardware wallet. When you get one, you should follow the included instructions closely and set the device up accordingly.
There is still software to download for when you are using it, and this is the first step. Writing down recovery keys for your private keys is the next step, after which comes connecting the hardware to your computer. Storing things on separate devices has been popular for as long as media has been around. USB flashes and external hard drives are some of the safest places to store valuable files, provided you do not lose them or have them stolen. The same goes for hardware wallets so keep this in mind.