How to Choose and Set Up a Crypto Wallet

If the people who buy cryptocurrencies with the sole intention of holding them as speculative investments, there would be no real need for crypto wallets. Online exchanges and brokerages that convert dollars to, say, bitcoin would store all that digital currency for you like so much money in a bank account.

But crypto wallets (also known as “blockchain wallets”), which have been around since the early days of Bitcoin, serve many purposes beyond just HODLing that cryptocurrency without fees.

Wallets can also store digital collectibles like NFTs that you may want to buy, sell, trade, or transfer to someone else, or even to another wallet you own. They can make it easy to send and receive digital money to and from other people’s accounts, cryptocurrency exchanges, or digital marketplaces. And, because they are typically decentralized, even if they are created by an exchange like Coinbase Wallet or from Binance trust wallet, you control the account. That means that you alone are responsible for what is in the wallet, remembering the password and secret seed phrase that unlocks the wallet, and managing the funds it contains.

While the concept is simple – a place to store your cryptocurrency and use it – choosing a crypto wallet can be an incredibly intimidating experience. Is there somewhere in the neighborhood of 150 different wallets to choose from. Some handle only a few popular cryptocurrencies; others allow you to exchange and store obscure types of digital tokens. Ready to start?

choose a wallet

The first thing you need to decide is what you plan to do with your cryptocurrency.

If the NFT market is what interests you, choose a wallet that can connect to NFT markets like Open sea, Super rareY solanarte. Some of these markets operate on a particular blockchain, and that could determine your choice of wallet. For example, Open Sea supports Ethereum, Polygon, and Klatyn blockchains; most of the transactions use Ethereum and many NFT traders use Metamask to buy, sell, store and list to buy NFT they got through OpenSea. Some of the top NFTs on OpenSea include “CryptoPunks” and “Bored Ape Yacht Club,” which you may have heard of.

For Solanart, which is based on the Solana blockchain, where NFTs are traded as “Degenerate Ape Academy”, you probably want to choose a wallet that is commonly used by Solana cryptocurrency holders. like Phantom, Solflare or Sollet.

If you don’t care about NFTs and just want a place to store or send and receive crypto, Coinbase, Trust Wallet, AtomicY Exodus are good places to start.

Another thing to ask before choosing a wallet: Is there a mobile app version? Some wallets are designed to be used on desktop as a browser extension and are not as mobile friendly as you might expect, especially if they are not as established as some of the wallet software mentioned here.

If security is what you are most concerned about, you may want to consider a hardware crypto wallet. They often come in the form of a USB stick that you can disconnect from your system (and the Internet) for added security. We’ll talk more about that in the last section below. Some examples of popular hardware crypto wallets include Trezor ($63 to $220 for its two models) and the Ledger Nano X ($149).