Did you know that the user index for 2021 showed 97% confidence in cryptocurrencies? This means a lot of people around the country are excited about the future of crypto and want to keep investing in it.
Before you can start buying and selling cryptocurrencies, you need to have a digital wallet.
Not sure how to get a digital wallet? This guide is for you! Keep reading to find out more.
Choose a Type of Wallet
The first step to how to get a digital wallet is to choose one that is right for your needs. Consider what crypto you want to invest in.
For example, there are plenty of wallets for traditional cryptos and others for NFTs.
These wallet types fall under the hot or cold wallet category:
- Hardware wallet
- Paper wallet
- Desktop wallet
- Mobile wallet
- Web wallet
Mobile app versions are important for a lot of users. If this is important to you, a hosted wallet on the best crypto exchange is a good idea.
If you are concerned with security, a hardware crypto wallet is a good idea. Cold wallets typically provide the best security because they are not digital.
Set Up Your Wallet
Once you’ve chosen a wallet, you can install it and set it up. Some wallets can be downloaded as an app, while others are specifically on a website or on a hardware device similar to a flash drive.
Setting up a wallet involves putting a password together and generating a seed phrase. This is a string of words that you can use to recover your wallet if you don’t remember your password.
If you forget this phrase, you likely won’t be able to recover your wallet. All of the funds you stored in your wallet will be lost. Keep your password and seed phrase safe so this doesn’t happen to you.
Your wallet will have a unique blockchain address for each currency you use. For example, an Ethereum address will be different from a Bitcoin address. It all depends on the currency you buy and sell.
Keep Your Wallet Safe
You can create a second cryptocurrency wallet to keep your funds safer. This is a temporary wallet you create for a single transaction.
You won’t have to risk all of the funds in your primary wallet.
You can also use this method to spread your crypto across different wallets. When you invest in crypto, you don’t have to have all of your eggs in one basket.
If you do use this method, it’s important to keep track of each wallet and use the right safety methods.
How to Get a Digital Wallet Explained
Learning how to get a digital wallet is easy. Putting what you learned into practice is a little more difficult.
You’ll need to research which wallet is best for you based on the type of currency you want to invest in. After deciding, set up your wallet and keep it safe.
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