Types Of Crypto Wallets

TYPES OF
CRYPTO
WALLETS

BY: BLOCKTECH BREW

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Hosted Wallets

These are the most popular and easy-to-set-up wallets. Once
you buy crypto using an app, it is automatically held in a hosted
wallet. It is called ‘hosted’ because a third party keeps your
cryptocurrency for you, just like a bank keeps your cash in a
savings account.

With a hosted wallet, you don’t have to worry about “losing your
keys” or “losing your USB wallet”. In this case, even if you forget
your password, you won’t lose your digital currency. However,
you can’t access everything cryptocurrency has to offer when
you use a hosted wallet. This might change as hosted wallets
start supporting more features.

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How to set Before you set up a crypto wallet, choose a
up a hosted trusted platform. The three main qualities of
wallet? such a platform are ease of use, security, and
compliance with government & financial
regulations.
Next, create an account. Fill in your personal
details and choose a strong password. We highly
recommend that you use two-step verification
for an added layer of security.
Either buy or transfer cryptocurrency. Most
crypto exchanges and platforms allow you to
buy crypto using a credit card or a bank
account.
If you already own crypto, feel free to transfer it
to your new hosted wallet for safe keeping.

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Hardware Wallet

It is a physical device – about the size of a thumb drive – that
stores the private keys to your cryptocurrency offline.

If complexity (setting them up takes time) and comparatively
high costs (over $100) seem like barriers for you to set up a
crypto wallet, then you should reconsider using a hardware
wallet.

But it has a huge benefit too — it’s the most secure of all wallet
options. So, using hardware wallets keeps your cryptocurrency
secure even if your computer is hacked.

The extra security is possible because your private keys are held
in an offline device that isn’t your laptop, mobile phone, or other
computer. As such, hardware wallets are less prone to malware
attacks from hackers.

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How to set Buy the hardware. The two popular brands are Trezor
up a and Ledger.
hardware
wallet? Install the software that’s needed to set up a crypto
wallet. Download the software from the company’s
official website and follow the given instructions to
create your wallet.

Write down the recovery passphrase for your private
keys.

Connect the hardware device to your computer.

A hardware wallet doesn’t typically allow you to buy
crypto using standard currencies (like Euros or US
dollars). So, you’ll need to transfer the cryptocurrency
to your wallet.

5

Mobile Wallet

A mobile wallet is much easier to set up. The first step is to
choose a mobile crypto wallet app from your device’s associated
app store. Two examples are Edge and BRD.

The thing about most mobile wallets is that you can instantly
accept cryptocurrency payments. But ensure that during the
setup process, you keep a backup of your private keys on
physical paper.

Such a backup generally comes in the form of a 12 to 24 letter
passphrase, also called your recovery phrase. Though not all
crypto wallets require this step, it’s a best practice to follow.
Otherwise, if you lose your phone or your mobile device simply
stops working properly, you may permanently lose access to
your funds.
Remember, in the cryptocurrency industry, no third party can come to your rescue once you’ve lost your password.

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How to set Launch the mobile wallet app on your phone.
up a mobile
wallet on For Apple and Samsung, click on the “+” symbol or
Apple Pay, add button to add a new card and then select
Samsung “Continue”.
Pay, and
Google Pay? For android users, the app will show cards that are
already linked to the account.

Select one of the linked cards or select add another
card.

The app will either let you take a picture of the card
or enter the card digits manually.

Make sure to “Review the Terms and Conditions” and
tap on “Agree”.

Enjoy the convenience of paying with the wave of
your phone.

7

Desktop Wallet

As compared to mobile wallets, desktop wallets typically include
a more extensive portfolio. Using these, you can track graphs
and charts to know the value of your assets in various ways.

Some examples of desktop wallets are the Jaxx Liberty Wallet,
Exodus Wallet, and Atomic Wallet.

You can also set up a crypto wallet on your desktop. Setting up a
desktop wallet is similar to setting up a mobile wallet. All you
have to do is select your cryptocurrency wallet software. Then,
you only need to run the software to begin the setup process.

Just as in the mobile wallet setup process, desktop wallet
software could ask you to create a backup of the passphrase
associated with your private keys.

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How to set After you install the Desktop Wallet, open it and
up a desktop create a password that contains at least six
wallet? characters.
Note down the password somewhere safe as you’ll
need it to sign into the Desktop Wallet again.
Go to “Settings” in the Desktop Wallet and select
“Node settings”.
By default, the Virtual Hive node is inserted.
However, you can change this to any other node of
your preference. You can even choose the node
provided by your third-party provider.
Then, enter the Address & Port of the node you’re
running. The address is the node’s network address.
Then select “Set Connection”. You will see a message
saying “Successfully Connected” if the connection is
working fine.

Once you install the Desktop Wallet, ensure that you set up an identity & an initial account.

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Custodial vs. Non-Custodial Wallets

Custodial wallets differ from non-custodial wallets in that they
hold your private keys for you. So basically, a third-party holds
your cryptocurrency for you. It is crucial that you choose
trustworthy, regulated providers like Coinbase.
Further, use two-factor authentication whenever it is offered.
Almost every custodial wallet offers two-factor authentication.
The Electrum wallet even offers this feature in a quasi-
decentralized way.

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How to set Setting up one of these doesn’t need right away; that
up a self- comes later when you want to put some crypto into
custody it.
wallet? Choose a wallet app like Mycelium, Coinbase Wallet,
or Metamask.
Make an account and record your recovery phrase.
Certain wallet apps might allow you to add an extra
layer of security, like creating a passcode or facial
recognition.
Add some cryptocurrency into the wallet. After this,
your ID will be verified.
Now start sending, receiving, or trading crypto!

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YOU

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www.blocktechbrew.com

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