Over the past few years, the world of cryptocurrency has experienced tremendous growth and the future of the industry is looking even brighter. With crypto’s future trend looking promising, more people are getting encouraged to join the industry as either traders or investors. Of course, as a person aspiring to trade or invest in crypto, the first step that is required of you is to create a crypto wallet. Want to learn how to create a crypto wallet? Bitmama offers the easiest wallet creation process. This article walks you through how to create one and other key things to note including the requirements, and how you can choose the right crypto wallet to suit your needs.
What is a crypto wallet?
A crypto wallet is simply an application or a device that serves as a wallet for storing your cryptocurrency. It is generally called a wallet because it has the same function as the wallet you put your cash and cards in. However, rather than holding these physical items, your crypto wallet helps to store the passkeys you will use to sign for all your cryptocurrency transactions. Also, it provides an interface that allows you to access your crypto.
The function of crypto wallets is to hold your private keys – the passwords that grant you access to all your cryptocurrencies – securely and accessible. This allows you to easily send and receive cryptocurrencies such as Bitcoin and Ethereum. They can come in different forms, from hardware wallets such as Ledger (which is similar in appearance to a USB stick) to apps like Coinbase Wallet, which makes using your cryptocurrencies as easy as shopping with your credit card online.
How to choose a crypto wallet
Choosing the proper crypto wallet is important for the security and easy accessibility of your crypto assets. Here are some important factors to consider when selecting a crypto wallet:
Always go for wallets that offer you strong security features, such as multi-signature support, two-factor authentication, as well as encryption. Also, it is important to consider the wallet’s track record of security and know if it has ever been hacked.
Make sure you choose a crypto wallet that has a user-friendly interface and is easy to use. Also, it should support the different cryptocurrencies you intend to store and have an easy backup and recovery process.
Check out the reputation of your prospective wallet provider and go through their existing user’s reviews and feedback. Also, you can research the background history of the company, its management, and any other notable events.
Consider whether the crypto wallet is compatible with your current device and its operating system, such as Android or iOS. Go with a wallet that is compatible with your device.
Look for crypto wallets that charge users fair fees for both transactions and account maintenance. Beware of crypto wallets that offer very low fees, as they are likely to be unreliable or compromise on security.
6. Customer support
Choose a crypto wallet provider that offers you very reliable and responsive customer support. This will be very important if you experience any issues or have queries.
What are the different types of crypto wallets?
There are various types of cryptocurrency wallets currently available, and each has its distinctive features and characteristics. They include:
1. Hardware wallets
Hardware wallets are physical devices that help to store your private keys offline and offer you very high security. They are also called cold wallets, physical devices developed specifically for the main purpose of storing crypto assets.
Hardware wallets offer you the best security for your crypto assets because they protect you from the internet, which makes it virtually impossible for hackers to penetrate your wallet.
2. Software wallets
Software wallets are digital wallets that you can easily download onto your mobile device or computer. Since they generally connect to the Internet, there’s a slight risk of hacking. Hence, it is recommended that crypto traders and investors do not store large amounts of cryptocurrencies in their software wallets. An excellent example of a software wallet is Bitmama.
4. Web wallets
These are crypto wallets that are generally accessed through a web browser and are usually hosted by a third-party service provider. The private keys here are kept in some web wallets and are extremely prone to DDOS attacks. They can either be hosted or non-hosted. Web wallets are the least secure wallets.
5. Paper wallets
Paper wallets are built by downloading a distinct software package and then running the software (best done in an offline environment for security) to develop a public/private key pair which you have to print out clearly on a piece of paper. These are physical duplicates of your public and private keys that you print out and store offline.
You can select the wallet based on your needs but don’t forget to back it up at regular intervals and always update your software.
Factors to consider when creating a crypto wallet
Here are some important factors to consider when creating a crypto wallet:
Security should be the most important thing to look out for to ensure that your funds are protected from threats and malicious actors. Ensure that you look for a wallet that provides you with features such as multi-signature support, two-factor authentication, as well as backup and recovery options. Also, it is important to ensure that the wallet you choose has a good reputation and a robust track record of security.
2. Number of supported cryptocurrencies
If you intend to hold multiple cryptocurrencies, then it is important to choose a crypto wallet that supports all the digital currencies you desire to hold. Go through the wallet’s website to check the list of supported currencies to ensure they align with your long-term trading and investment strategy. Bitmama, for example, supports over 10 types of cryptocurrencies.
Fees can differ widely between different kinds of crypto wallets, so it’s very important to assess the costs of the wallet involved. Ensure that you go for a wallet that offers you fair fees and very transparent pricing. Note that some crypto wallets may charge you extra fees for some specific features or transactions.
4. Customer service
Evaluate the level of customer service that is being offered by your prospective wallet provider. A wallet provider that offers timely customer support and gives useful resources such as FAQs and user guides is an excellent choice. This can be very important in case you have any queries or issues while making use of the wallet.
How to create a crypto wallet
Let’s look at the various ways on how to create a crypto wallet according to the different types available.
How to create a software crypto wallet
Follow the steps below to create a Bitmama software crypto wallet:
Step 1: Select a software wallet app
The first step on how to create a software crypto wallet is to choose a reliable wallet provider. Bitmama offers the best software wallet due to its user-friendliness and easy-to-create nature.
Step 2: Download your selected wallet app to your phone or computer
After you have selected an appropriate software crypto wallet, the next step to take is to download the app to either your phone or computer. Doing this allows you to access your digital assets whenever you need to. When downloading the wallet app, make sure that you download it from the official wallet provider’s website or your official app store to avoid downloading malicious software that can eventually compromise your security.
Next, create an account for yourself by filling out your basic information on the app such as your name, active email address, and a very strong password. To maximize the Bitmama app features, complete your verification up until level 3. Do this by providing a valid government-issued ID to verify your identity.
Step 4: Transfer your assets
Once you have successfully created your Bitmama account, you can now transfer all your crypto assets into your Bitmama crypto wallet. You can do this through your wallet address or by scanning your wallet’s unique QR code on the Bitmama app.
How to create a hardware wallet
Listed below are the steps to take if you want to create a hardware crypto wallet:
Step 1: Select the hardware you want to use.
The first step is to research the different kinds of hardware available and compare them to determine which one best suits your needs. Search for reputable manufacturers, reliable security features, and customer reviews.
Step 2: Buy the hardware and install the necessary software.
When you find the right hardware wallet for your needs, the next step is to buy the hardware wallet and install the integral software. The software installation process generally varies depending on the kind of hardware wallet you buy. However, most wallets come with a setup wizard that teaches you how to do the installation process.
Essentially, the setup wizard will urge you to download and install the hardware wallet application on your mobile device or computer. Once you’ve installed the software successfully, proceed to connect your hardware wallet directly to your mobile device or computer using a Bluetooth connection or USB cable. Make sure that you obey the manufacturer’s instructions very carefully during the software installation process to ensure that you set up the wallet correctly.
Step 3: Transfer your cryptocurrency.
After you set up your hardware wallet correctly and install the required software, you can now transfer your crypto assets to the wallet. To do this, you need to connect your hardware wallet to an exchange or brokerage account. Once you successfully transfer your cryptocurrency to your hardware wallet, it will be kept offline, providing an extra layer of security to your crypto assets.
How to create a paper wallet
Creating a paper wallet is a very easy and cost-effective way to keep your cryptocurrency offline. Listed below are the steps to take if you want to create a paper wallet:
Step 1: Go to a wallet generator
To create a paper wallet, you have to go to a wallet generator website. A wallet generator is simply an open-source software program that helps to generate special public and private keys for your specific cryptocurrency wallet. It is very important to choose a reputable wallet generator to guarantee the security of your wallet.
Once you have been able to access the wallet generator successfully, you have to save it as a web archive on your personal computer to ensure you can easily use it offline. This will reduce the risk of online cyber-attacks.
Step 2: Go offline.
To ensure utmost security, it is advised that you go offline when you want to create a paper wallet. This helps to reduce the risk of internet attacks and will ensure that your private key gets generated offline.
Step 3: Print key
Print the generated private key on a piece of paper and save it in any secure location, such as a lockbox or safe, to ensure that it doesn’t get lost or stolen. It is very important to secure your paper wallet key because it provides access to all your cryptocurrency funds.
What do I need to open a crypto wallet account?
To create a crypto wallet account, there are certain things that you have to consider, including choosing a reliable wallet provider, submitting personal information, and carrying some cryptocurrency that you can store in your wallet. Whether you choose to create a hardware, software, or paper wallet, the guide below will inform you of everything you need to open your crypto wallet account.
1. Personal information
Your personal information is the basic detail you need to open a crypto wallet account. You’ll generally need to provide these personal information to comply with know-your-customer (KYC) and anti-money laundering (AML) regulations:
2. Public and private key
You’ll need to have a fundamental understanding of public and private keys to effectively operate your crypto wallet. Essentially, a public key is just like your wallet’s address, where other crypto users can easily send you cryptocurrency. So it can be shared with people freely. However, a private key is just like the secret password to your wallet, which should be kept private. If somebody can access your private key, that means that they can access your funds.
Are crypto wallets free?
Software wallets, which can easily be downloaded as either mobile or desktop applications, are usually free to use. However, some of them may charge a small transaction cost when sending or receiving digital assets (cryptos). On the other hand, hardware wallets are physical devices that just need a one-time purchase, which can vary from roughly $50 to $200, depending on the kind of brand and its unique features.
What are the risks associated with storing cryptocurrency?
There are different risks associated with storing your crypto assets, some of which include:
1. Forgetting login or seed phrase
Unfortunately, if you forget your seed phrase or login credentials, you may lose access to your crypto assets forever. Since there is no central authority or extra backup/recovery for cryptocurrencies, it is important to keep your login credentials and seed phrase securely.
2 Phishing and cyber attacks
Hackers and scammers can try to hack and steal your private keys or seed phrases via cyber-attacks or phishing attacks. They can even deceive you into downloading malicious and dangerous software or phishing links that can easily compromise your crypto wallet and steal your digital assets.
3. Hardware failure
If you choose to use a hardware wallet, there is always the danger of hardware failure, which may result in the permanent loss of your seed phrase or private keys. It is important to save a backup of your seed phrase or private keys in a safe location to avoid any loss of funds.
Creating a crypto wallet is not as difficult as you think. With Bitmama, all you need to do is download the app, create an account, and complete your verification – your wallets are automatically created.