As mentioned in the previous lesson, to get started with cryptocurrency, you need a wallet.
But what is a wallet, how do you use it, and how do you get one?
That is exactly what this lesson will teach you all about.
Introduction to Cryptocurrency Wallets
Cryptocurrency wallets are basically software that contains the cryptographic keys to the cryptocurrencies you own. The way it works is that cryptocurrencies must be stored on a wallet in order to transact on an exchange or simply to be held onto. Without the keys to the wallet, which are usually 10-12 different words in a particular order, one would have no way to access the cryptocurrencies on the wallet.
Wallets can either be cold storage or hot storage. The difference between the two is very simple. Cold wallets are stored offline using devices like a Ledger Nano or Ellipal wallet. These wallets store cryptocurrencies offline so that they can't be hacked into or taken control of. The only person that can access the cryptocurrencies stored on cold wallets is the person that has the keys to the cold wallet. Hot wallets, however, are more easily hacked if not used correctly. A hot wallet could be a wallet on an exchange like Binance, Crypto.com, or Coinbase (more about which wallets to choose later).
Cold wallets can't be accessed at all because they aren't connected to the web and only the owner can access the cryptocurrencies stored on the wallet.
Cryptocurrency wallets not only store your cryptocurrencies for you, but also act as your address from which you can send your cryptocurrencies to exchanges or to other addresses or where you can receive them. Essentially, if your cryptocurrencies are stored on a wallet, you will lose access to the cryptocurrencies if you lose your keys or login information.
Wallets are always recommended to use two-factor authentication when logging in for security purposes. It is always a good idea to have as much security employed on your cryptocurrency wallets as possible. They can become a target for hackers if left too unsecured.
Setting up a wallet for a specific cryptocurrency is usually as easy as searching which exchanges or wallets that specific cryptocurrency is available on (I will give examples of this below). For example, if you wanted to just start a Bitcoin wallet, it would be as simple as signing up for a platform that offers this. Once logged in, you would simply click on Bitcoin and then on Bitcoin wallet. The platform would then display the Bitcoin wallet address that you could use to transfer Bitcoin to.
Just be aware that newer cryptocurrencies are sometimes harder to find a wallet for.
I've found that the easiest way to get started is to get a wallet on an exchange and it's best to only use the most trusted platforms as there are some you cannot trust as well.
Personally, once I have bought or earned cryptocurrency, my plan is to HODL or hold on for dear life until the cryptocurrencies in my possession are worth much much more!
But the first step is to get a wallet so let's go over some good options for this.
Which wallet to choose?
As mentioned above, if you want to buy a specific type of cryptocurrency, you can just search for an exchange that has that specific currency.
Once you sign up for an exchange/trading platform, you will also automatically get a wallet for the cryptos they have available to trade with there.
But you need to make sure to only use the most trusted platforms. Below you can find info about 3 of the most trusted platforms to help you find the right one for you. They will also all give great bonuses when you sign up.
Personally, I have accounts and cryptocurrency on all of these platforms as they offer different benefits and I just like to spread out my cryptos a bit:-) But you can just start with one and just stick to that if you prefer. All of these platforms are 100% free to sign up for:
- Binance:
Binance is one of the most trusted crypto trading platforms. It offers wallets and trading for more than 500 cryptocurrencies including Bitcoin, Ethereum, Litecoin, Dogecoin, and more.
In addition to this, it also offers several ways to earn by, for example, getting high interests on your holdings.
If you join throught he link below, you will get a 10% discount on all fees on Binance for life.
Join Binance Now
_ - Crypto.com:
Crypto.com is another of the most well-known and trusted platforms for trading and holding cryptocurrencies. You can only use this as an app, but it is easy to use and gives a lot of options. It gives you access to hundreds of different cryptos and it also offers high interests on your holdings. You can also get a physical debit card that makes it easy to convert and use your cryptos.
If you join through the link below, you will get a $25 bonus if you get the metal debit card after signing up.
Join Crypto.com Now
_ - Coinbase:
Coinbase is a very well-know crypto platform and it is very beginner friendly. However, it does no have as many options as the other platforms mentioned above. You can, for example, not earn interests on your earnings and more, and it also “only” gives acces to around 50 different currencies. But if you want a platform that is very easy to get an overview of, then it can be a good option.
If you join through the link below, you will get a $10 bonus once you buy or sell for at least $100.
Join Coinbase Now
Today's tasks!
As mentioned above, to get started with cryptos, you need a wallet.
So to move forward with this course and with your crypto journey, you need to be a member of at least one platform where you have a wallet. Choose one or several of the options above and go to the platform and sign up.
After you have signed up, they will ask you to verify your account and this is a good idea to do as quickly as possible. A verified account will give you more opportunities and more security so follow their instructions to do this right away also.
Next Lesson!
Once you have joined at least one platform and have a wallet, you are ready for the next lesson. You will receive an email with the next lesson tomorrow. If you are eager to continue right away, you can find the next lesson here.
The next lesson will teach you about a cryptocurrency that is now yet as popular as Bitcoin but that gives great opportunities.