Guide to Set Up Your Own Crypto Wallet

New to cryptocurrency? The first step is to get a crypto wallet! This is a tool that allows you to send, receive, and store cryptocurrencies and digital assets. There are different types of wallets with their own benefits, limitations, and risks.

Let’s take a look at them so you can choose the best one for your needs.

Custodial Wallets

Also known as hosted wallets, custodial wallets are provided and managed by a crypto exchange or a third party. With these wallets, you don’t have full control over your assets and rely on the provider’s services for withdrawals or payments. The advantage is that you don’t have to manage your own keys and can reset your password if needed.

Setting up a custodial wallet:

1. Choose a platform: Select a reputable crypto exchange that complies with local regulations.

2. Create an account: Sign up with your email and a strong password.

3. Verify identity: Most platforms require ID verification to comply with regulations.

4. Add funds: Once verified, link a payment method to deposit fiat currency or crypto into your wallet.

5. Start trading: You’re now ready to trade or invest. Check out the beginner’s guide for Binance for more details.

Non-Custodial Wallets

Non-custodial or self-custody wallets give you complete control over your keys and funds. While these wallets offer more freedom and control, it also means that you’re responsible for protecting your keys and seed phrases that keep your crypto safe. If you get hacked or lose access, there’s no way to recover your funds. Examples of non-custodial wallets include MetaMask and Trust Wallet.

Setting up a non-custodial wallet:

1. Get the wallet app: If using mobile, make sure to install a trusted wallet app from official sources. For desktop, get the browser extension from the official website.

2. Create a new wallet: Choose the option to create a new wallet in the app.

3. Set a strong password: Protect your app from unauthorized access.

4. Back up your seed phrase: Write down the 12 or 24-word seed phrase provided by the app and keep it safe. This is crucial for restoring your wallet if needed.

5. Add funds: The traditional way to add funds is by transferring crypto from an exchange like Binance, but some wallets offer other options.

Be cautious when connecting to DeFi platforms and make sure to use reputable services. Your non-custodial wallet is now ready to use. Remember to be careful when using DeFi platforms and consider using burner wallets to reduce risks.