A digital wallet is a fundamental way of storing your cryptocurrency, and there are many different types of wallets to choose from. However, you first need to make sure you have the right digital wallet and that it is set up correctly so your funds are safe.
Once you have your digital wallet, you can start using it to send and receive payments or even store your crypto safely offline. Some wallets even come with crypto debit cards that allow you to buy goods and services online using crypto. Ensure your private key are kept safe and secure to avoid losing any of your valuable crypto assets.
Follow this guide to learn how to get a digital wallet for your crypto trading needs.
What is the Importance of a Digital Wallet?
As the cryptocurrency space grows, more and more people are beginning to use digital wallets to make their lives easier. A digital wallet is an online account that allows you to store your cryptocurrency holdings in one place.
It means that you can use your crypto assets securely, check your balance, execute transactions and other services. In addition, many digital wallets offer added features such as money transfers, staking, and cashback on certain purchases made with crypto.
Using a digital wallet to store your cryptocurrency is safe and secure. You can use a digital wallet to:
- Send and receive cryptocurrencies. For example, you can use a digital wallet to: Send crypto to another person, receive crypto from someone else, or exchange cryptocurrencies with other people.
- Store your cryptocurrency keys. Additionally, it is essential to know that you should never store your cryptocurrency keys on an exchange. If the exchange gets hacked or downsized, you could lose all your funds. So instead, it would be best if you store your keys in a secure place, such as a digital or hardware wallet.
- Check your cryptocurrency balance. This is vital if you want to keep track of your investments or if you need to find out how much money you have in your account.
- View your transaction history. This can help you keep track of all your transactions and ensure that everything is correct.
- Make payments with cryptocurrencies. You can use the created account to send and receive payments, as well as view your transaction history.
📖 Read more on: What else can a Digital Wallet be used for?
How to Get a Digital Wallet for Cryptocurrency
1. Choose a Wallet
Let’s face it: when it comes to cryptocurrencies, security is a big issue. That’s why it’s so crucial for you to choose the right digital wallet for you.
There are a variety of digital wallets to choose from, and each has its benefits and drawbacks. Some of the most recognized wallets include Coinbase, Trust Wallet, Atomic, and Exodus. These wallets are all relatively user-friendly and are available as mobile apps.
However, if you’re looking for a more secure option, you might want to consider a hardware wallet. These wallets come in a USB stick and can be disconnected from the internet for added security. Some examples of popular hardware wallets include Trezor and Ledger Nano X.
If you’re interested in the NFT market, here are some things to consider when choosing a digital wallet:
- Some wallets are specifically for connecting to NFT marketplaces like OpenSea, SuperRare, and Solanart
- Others have universal properties and can be used for storing or sending/receiving cryptocurrency
- Consider your security needs – hardware wallets offer more protection than software wallets
Do your research before making a decision! There is various information about different wallets and what they offer. There are many unique options out there, so be sure to do your research and find the one that best suits your needs. Once you’ve chosen a digital wallet, it’s time to start exploring the NFT market.
⭐️ Read more on: Best Digital Wallet for Crypto
2. Set Up and Use Your Wallet
After you’ve decided on a crypto wallet, you’ll need to install it and create an account. Some wallets, such as MetaMask, are available as apps or as browser extensions. You can use a keyboard command or connect to select websites that allow that wallet to bring it up at any moment (such as OpenSea). When you set up your wallet, you’ll probably be asked to create a “seed phrase,” which is a string of words that can be used to recover your wallet if you forget your password.
This is essential: You’ll need to remember your seed phrase. To make a transaction, multi-signature wallets (“multi-sig”) require two or more private keys, making it less likely that a wallet’s private key will be hacked.
After you’ve set up your wallet, you’ll need to fund it. For a fee, some wallets allow you to buy or trade one cryptocurrency for another right in the wallet.
USDC, a so-called “stablecoin” that constantly maintains a 1:1 ratio with the US dollar, is one of the most accessible crypto tokens to use. One strategy to avoid drawing money from your bank is to exchange US dollars for USDC and then use USDC to trade for other cryptocurrencies.
Each form of blockchain/currency will have its own blockchain address in your wallet. Going to “Receive” in your wallet, for example, should show you your wallet address for specific blockchains. You can use the 25- to 30-character string to authorize someone to send you cryptocurrency or make a transfer from another account.
A “private key” is identical to a “public key,” but it is used to transmit cryptocurrency from your wallet to someone else (or to another wallet). Some services may need a private key address rather than a wallet address to make a purchase. Some websites offer a button that allows you to link your wallet to make NFT bids or invest in tokens to earn interest.
3. Safeguard Your Wallet
Creating a “burner wallet” is a frequent practice among those who buy and sell NFTs. If you’re concerned that minting (the term for establishing a unique NFT) would expose you to some internet hijinks, you can create a temporary second wallet for a single transaction. A burner wallet ensures that only the funds in that wallet are at risk, rather than all of the assets in your main wallet. You could, for example, buy an NFT with a burner wallet, then transfer the NFT and any remaining funds to your regular wallet once the transaction is completed, and then destroy the wallet. But, of course, maintain track of all your wallets and, once again, don’t lose your wallet password and seed phrases.
Hardware wallets are a good method to ensure that your crypto wallet isn’t suddenly stolen when you’re not online, but they come with their own set of problems.
More likely than someone attacking your Metamask is you trusting shady cryptocurrency projects or websites that seek to connect with your wallet or sending money to fraudsters who tricked you into a scam.
Limit which sites you connect your wallet to and to whom you share your wallet address (particularly your private key—do not post it online) to keep your crypto safe.
Send and receive crypto in your hi wallet
hi makes it very easy to send, convert and receive cryptocurrency in your hi digital wallet. Unlike the traditional banking system that only wants to make money from you, hi.com aims to make money for you. There are many ways to earn money with hi:
- Earn HI by inviting your friends to join hi
- Stake HI and receive yield rewards every month
- Receive gift cards from friends and family on hi
- Play games on hi to earn coins that you can then swap (exchange) for ETH, BTC, or fiat
When you sign up to hi.com, you’ll instantly receive your own secure hi wallet right on your account. Your hi wallet offers the easiest and most convenient way to access your crypto with the hi ecosystem.