How to set up a cryptocurrency wallet: step-by-step guide
Why proper wallet setup is important
For anyone who finds themselves diving into the world of cryptocurrencies, a series of frequently asked questions often arises: what is a cryptocurrency wallet, what types of wallets there are, and how to set up a crypto wallet. The itez team has already addressed the first two questions, so now it’s time to tackle the third.
In this step-by-step guide, we’ll walk you through how to choose, set up, and secure your cryptocurrency wallet. Let's get started!
Types of cryptocurrency wallets
Let's begin with the basics. A cryptocurrency wallet is a type of cryptocurrency storage. It allows users to conduct transactions—receive, store, and send cryptocurrency.
Interestingly, the coins themselves are not stored in the wallet; they are kept in the blockchain. So, what’s the purpose of wallets? Well, wallets store the cryptographic keys, also known as private keys, for the user. These keys are the only way to access your cryptocurrency.
Therefore, a cryptocurrency wallet can be likened to the door of a safe, behind which lies the blockchain and the user's digital coins.
Wallets come in various types: custodial and non-custodial, centralised and decentralised, hot and cold. We’ll focus on the last two categories, as they are the fundamental ones.
Hot wallets
A hot wallet is a special programme, browser extension, or application that requires a constant internet connection to function.
Some of the most popular wallets in this category include Trust Wallet, MetaMask, and wallets from well-known centralised cryptocurrency exchanges like Binance or Coinbase.
Step-by-step wallet setup
Let's move from theory to practice and understand how to set up a cryptocurrency wallet in real life. We'll demonstrate this with one of the most popular hot wallets, MetaMask.
Downloading and installing the app
First, you need to download and install the wallet application. MetaMask is available for the most popular web browsers, such as Google Chrome, Firefox, Brave, and Edge. The app can also be installed on iOS and Android devices.
We've chosen the browser extension for Google Chrome. Here’s what you’ll see first:
