What is a crypto wallet? What you need to know and how to set it up

New to the crypto world? Want to invest? It can be overwhelming to figure out how to navigate your way through the blockchain realm. Here you will find some useful tips to help you out.

The first piece of advice you need to follow would be this: always do your research! While there are safer currencies and projects, there are many scams that can exploit newcomers’ lack of knowledge.

Choose your crypto exchange platform and set up your account to trade. There are two types of exchange platforms, decentralized exchanges (DEX) and centralized exchanges (CEX). A decentralized exchange (DEX) is a peer-to-peer platform where users can trade cryptocurrencies directly with other users without relying on any intermediaries and a centralized exchange (CEX) is a type of cryptocurrency exchange that is operated by a company that owns it in a centralized manner. Some of the most popular crypto exchanges include Coinbase, Binance, Gate.io, etc. To trade the crypto you need to have a crypto wallet.

A crypto wallet is a digital, secure place where you store and manage your crypto assets. A crypto wallet holds both private and public keys and information for carrying out transactions and does not physically store any crypto asset. You automatically get a crypto wallet once you successfully create your account. A crypto wallet provides a long string of random characters to create the keys for carrying out transactions. Once your crypto wallet is set up, you can start trading.

Note: Make sure to check the blockchain you are trading within. If you send your crypto currency from one blockchain to another without using a blockchain bridge, the transfer may fail or you may lose the amount.

So far so good. However, it all comes down to safety. You can save all your crypto assets directly on the exchange wallet but when it comes to larger amounts, it is recommended to use the wallet software. Just imagine, what if the particular platform goes down? Or what if your wallet gets hacked? This is where software wallets like MetaMask and Trust Wallet come in handy.

MetaMask

MetaMask provides an essential utility for blockchain newcomers, token traders, crypto gamers, and developers. It allows you to store and manage account keys, broadcast transactions, send and receive cryptocurrencies and tokens, and securely connect to decentralized applications through a compatible web browser or the mobile app’s built-in browser.

MetaMask is compatible with most decentralized applications and decentralized exchanges. For instance, let’s use the example of the Polygon network.

1. Download your MetaMask from the official website: https://metamask.io/download. You can download MetaMask for Google Chrome and Firefox, or a mobile version, download it for your Android or iOS phone.
2. Follow the easy setup steps to install your MetaMask wallet. Sign up with your mail and password.
3. Click Create a Wallet. The software will give you a randomly generated seed phrase (a collection of words that can be used to access your cryptocurrency wallet) that is your security tool and should be kept secret. Write down the phrase on a piece of paper and keep it secret. Remember, without this phrase, your funds can’t be recovered if your device is damaged or lost. The user is responsible for securing the phrase.
4. Confirm that you have written the see phrase down. And your wallet is set and ready for use!

Next, simply add the network to your MetaMask. Check a step-by-step guide on how to connect the MetaMask wallet to the Polygon Network here: https://coinmarketcap.com/alexandria/article/connect-metamask-to-polygon-network

Trust Wallet

Trust Wallet is one of the most used crypto wallets. It provides you with the tools to buy, store, collect NFTs, exchange, and earn crypto assets. Trust Wallet is available on Google Play and Apple Store.

1. Download your Trust Wallet from the official website: https://trustwallet.com
2. Follow the installation steps. Create your account to set up your Trust Wallet.
3. See a step-by-step guide on setting up your Trust Wallet for the first time: https://support.trustwallet.com/en/support/solutions/articles/67000670232-how-to-create-a-multi-coin-wallet
4. Save and keep your Recovery Phrase secure!

There are various crypto wallets to choose from. Going back to advise #1: make your research and keep your login keys secure! Happy trading!