How to Set Up a New Crypto Wallet
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A crypto wallet is a secure place where you keep your cryptocurrency. There are two main kinds of crypto wallets:
Self-custody wallets: Also called non-custodial wallets, these are wallets (like Metamask, Trust Wallet, SubWallet, Talisman) that put you in total control of your crypto. Because there is no third-party between you and your crypto, this wallet type comes with great responsibility.
Hosted wallets: These are wallets which are created and maintained for you by third-parties. When you buy crypto using an app like Binance, Coinbase, Kraken, etc., your crypto is automatically held in a hosted wallet.
Because we are heavy proponents of the ideals of decentralization, this article will only cover the creation of self-custody wallets. This is partly because hosted wallets are easy to set up and partly because most hosted wallets cannot interact with NFTs.
To set up a new wallet, refer to this Getting Started with Metamask Guide.
While self-custody crypto wallets offer many benefits, they also demand responsible handling. Here are some best practices to ensure you don't lose access to your wallet or assets:
Secure your private keys: Never share your private keys (or seed phrase) with anyone. If someone gets access to your private key, they can access your assets. Think of your seed phrase / private key as a secure backup of your account. Many wallets offer seed phrases which can be used to recover your wallet if you lose access.
Keep software up-to-date: Always update your wallet software to the latest version. This ensures you have the latest security enhancements.
Seed phrases and private keys are both crucial elements in securing and accessing your crypto wallets. However, they differ significantly in their function, format, and user-friendliness.
A seed phrase, often comprising 12 random words selected from a list of 2048 possibilities, acts as a master key to unlock your crypto wallet. For example, a seed phrase might look like this: "First deer photo within exit sale notice carrot wall gap able capture". It's vital to remember or safely store this seed phrase, as loss or incorrect recall can lead to permanent inaccessibility to your wallet. These phrases, which are intrinsically linked to your private and public keys, are user-friendly and easy to jot down or remember.
On the other hand, private keys are cryptographic, 256-bit numbers that provide access to your public keys. They are generated when the wallet is created and represent a random mix of upper case, lower case, and numeric characters. These keys serve as secure 'passwords' to your blockchain addresses, allowing you to access, receive, and send funds. They tend to be complex due to their random composition, which can deter hackers.
While both tools safeguard your digital assets, seed phrases are often preferred due to their ease of use. With a seed phrase, you can easily regenerate your private key, providing a more user-friendly interface to control all your private keys.
Once your wallet is set up, you can explore the fascinating world of advanced NFTs on Singular.