Setting Up A Bitcoin Wallet – 3 Easy Options

Each Bitcoin Wallet has distinctive advantages, and here, we won’t focus on which ones are better options for Bitcoin asset holders. Instead, we will focus our attention on how you can set up your account at each of them.

Setting Up a Hosted Wallet

A hosted wallet is arguably the most common and popular way to hold your cryptocurrency. Crypto exchange platforms such as Coinbase and Binance are great examples of hosted wallets.

They are called ‘hosted’ as a third party (crypto exchange platform) has custody of your digital assets in a similar way a bank will keep your money in an account.

A hosted wallet eliminates the worry of losing your key or your USB, so even if you forget your password, there is a way back. So, here are the ways you can set up a hosted wallet:

1. Choose a platform: Do a bit of research and find a platform that you can trust. Always pay close attention to security, ease of use and government compliance.
2. Create an account: This is a step that you should have no problems completing. Provide the necessary information and choose a secure password. In addition, we suggest you use a 2FA and enjoy an extra layer of security.
3. Complete the KYC process: Reputable exchange platforms like Binance will ask you to go through lengthy KYC processes that serve to confirm your ID.
4. Buy or transfer: Crypto–exchange platforms will allow you to exchange Bitcoin with a bank account or a credit/debit card. If you already have Bitcoin, then you can transfer it to your new wallet.

How to Set Up a Self-Custody Wallet

A self-custody wallet means that you will have complete control of your digital assets. You don’t need to rely on third parties to keep your Bitcoin safe. So, self-custody wallets will always require you to remember a PIN and a Seed Phrase to obtain access to your Bitcoin holdings.

Of course, you can imagine what happens if someone obtains access to that information – they will likely steal all your Bitcoin savings!

Moreover, a self-custody wallet will allow you to enjoy several other perks:

• Yield farming
• Staking
• Lending
• Borrowing

So, now that you know all about self-custody wallets, here are the few steps you need to follow to set up one:

1. Download a wallet app of your choice – do your research and find a reliable wallet app that matches your preferences.
2. Create an account – self-custody wallets don’t have extensive sign up procedures like hosted wallets, so you will be done with your account in no time.
3. Remember your private key – your 12-word seed phrase is vital for accessing your Bitcoin assets, so don’t forget it!
4. Transfer Crypto – note that sometimes, you won’t be able to use fiat currencies to buy Bitcoin, so you’ll need to transfer it from somewhere else.

Set Up A Hardware Bitcoin Wallet

Finally, the third option you have at your disposal is a hardware wallet. It is a physical device, such as a USB drive that stores the private keys to your Bitcoin assets offline.

As you can imagine, hardware wallets are more complex and costly to use, but there are big arguments for their usage – mainly as they cannot be hacked. So, without further ado, here are the few steps to follow if you are to set up a hardware wallet:

1. Buy the hardware – some hardware wallets can cost up to $100 to purchase, so be prepared. Popular options include Ledger and Trezor.
2. Install it – each hardware wallet has its own software that you need to install. Download what you need from the official website and follow the instructions to set up your wallet.
3. Transfer Bitcoin – finally, you can transfer Bitcoin to your wallet, but as is the case with self-custody wallets, you might not be able to use fiat currencies.

The Choice is All Yours

At the end of the day, there are several options that you can use to store your Bitcoin. You can keep things simple by using a hosted wallet, but you can also go the extra mile to protect your assets by buying a hardware wallet. The choice is all yours when it comes to cryptocurrencies!