A cryptocurrency wallet is a piece of software that makes it easier to purchase, sell, and store cryptocurrencies as well as (in many cases) NFTs. You can transmit and receive items from it, it stores your items, and you want to keep it locked and safe. Think of it as your address on the blockchain. We'll go over the different kinds of cryptocurrency wallets in this article, along with how to put one up.
kinds of cryptocurrency wallets
Custodial vs. non-custodial
Custodial ("hosted") and non-custodial wallets are the two different categories of cryptocurrency accounts. A third-party business oversees the management of custody wallets, but not non-custodial wallets. Non-custodial wallets are similar to keeping your valuables in your house safe, while custodial wallets are like storing them in a storage facility. Therefore, custody wallets demand less accountability but are subject to third parties' whims. (like, if the storage facility was robbed). Although non-custodial wallets offer you complete control, they also require extra caution. (like, not losing your key or accidentally throwing away something valuable when you reorganize your closet).
Hardware vs Software
Software and hardware wallets are non-custodial accounts.
A software wallet is a program that runs in your web browser or device. Software wallets are thus an excellent choice for swiftly and easily purchasing, selling, and transferring NFTs and cryptocurrency.
A hardware wallet is a real-world tool that you use by plugging it into your PC. It's a great option for long-term secure storage because it's not always linked to your computer or browser, but it's a little less practical for quick or frequent transactions.
Not all wallets accept NFTs, and different wallets support various blockchains. The following currencies work with OpenSea:
- Metamask (Ethereum, Polygon, Klaytn)
- Phantom Coinbase Wallet (Ethereum, Polygon, and Klaytn) (Solana)
- A wallet with an emphasis on usability called Ethereum offers a fiat on-ramp and no transaction fees.
- Bitkeep is a mobile software and browser extension. Over 75 mainnets are presently supported by the decentralized multi-chain cryptocurrency wallet Bitkeep.
- Bitski is an easy-to-use wallet that enables users to join up using their email address and password.
- Users of the Coinbase Wallet app can use a dApp browser to access the decentralized web. The Coinbase Wallet software can be used without having a Coinbase account.
- Core: An add-on for the Avalanche ecosystem's browsers.
- Dapper is a browser add-on that handles your petroleum expenses.
- Fortmatic/Magic - An easy-to-use wallet that lets you sign up on any computer using your phone number.
- Glow - Glow is Solana's quick and simple pocketbook.
- Kaikas is a browser add-on that lets users of webpages communicate with the Klaytn network. Kaikas for Chrome is available to obtain here.
- A safe method to connect to your Ledger wallet is through Ledger Live. Your Ledger devices' partner is called Ledger Live.
- MetaMask is a smartphone application and browser extension. The most well-known wallet on web3 and one of the pioneers in the field is MetaMask.
- Opera Touch - Opera Crypto Wallet is compatible with both the Opera web browser on your PC and the Opera Touch for iOS (or Opera for Android) web browser on your mobile device.
- Phantom - Phantom is a well-known non-custodial cryptocurrency wallet created for Solana that offers more functionality than just the ability to trade and receive cryptocurrency.
- A non-custodial digital wallet called Solflare makes the Solana cryptocurrency accessible to everyone.
- Trust Wallet is a non-custodial mobile wallet with an extra layer of security that stores your private key locally.
How To Set Up A Crypto Wallet
The process of creating a crypto wallet varies by wallet, but for this example, we'll travel through the steps of creating a Metamask wallet. Metamask is a famous non-custodial software wallet for NFTs.
Connect Your Crypto Wallet With OpenSea
You can purchase NFTs now that your wallet is configured! Even though OpenSea allows you to purchase some NFTs with a credit or debit card, there may be situations where you may need to have Bitcoin on hand.
There are two primary ways to fund your cryptocurrency wallet. However, each wallet is different:
Directly Adding Money To Your Wallet
Numerous NFT-compatible wallets allow you to add Bitcoin straight to your wallet by utilizing a platform like Wyre or Moonpay. These are included within the wallet and enable you to buy cryptocurrency without utilizing a cryptocurrency exchange by using a credit or debit card. During this process, you can be asked to prove your identity.
Transferring Cryptocurrency From A Crypto Exchange
Purchasing cryptocurrency through an exchange like Kraken, Binance, or Coinbase is an additional choice. Typically, when you purchase cryptocurrency through an exchange, it is placed in a custodial wallet run by the exchange, the majority of which is incompatible with NFTs. Therefore, you must transfer the cryptocurrency from the custodial exchange wallet to your other wallet to fund the cryptocurrency wallet that you'll use for NFTs. To buy NFTs with ETH, you would need to transfer it from your custodial Binance wallet to your Metamask wallet.
The benefit of using this method is that there aren't any maximums, unlike when you use a service like Moonpay or Wyre to deposit cryptocurrency directly into your wallet.
How To Secure Your Cryptocurrency Wallet
You'll want to use some best practices for keeping your cryptocurrency wallet secure, just like you would with any other valuables. Here are a few pieces of advice:
- Don’t reuse passwords: Verify that none of your other accounts are using the same password as your crypto wallet.
- Protect your seed phrase: keep your seed phrase somewhere you won't forget but that is out of the way of others. Never divulge your seed phrase to others.
- Don't click on unsure links: This is particularly valid if you received a link directly from someone.
Connecting Your Crypto Wallet To OpenSea
Connecting your cryptocurrency wallet to OpenSea is simple once it has been set up. You can connect your wallet by clicking the wallet icon in the top right corner of the OpenSea website. You can complete the remaining fields in your OpenSea profile from here.
You will be prompted to connect your wallet and approve any action you try to take that will be recorded on the blockchain, such as buying an NFT. To buy, sell, create, or transfer NFTs using OpenSea, your wallet must be connected.
Crypto wallets are a vital tool for anyone interested in buying, selling, or trading cryptocurrencies. They provide a convenient and secure way to store and manage your digital assets. It is important to choose a reputable wallet provider and take steps to keep your wallet secure.
Q. Are NFTs compatible with all crypto wallets?
A. No. Some cryptocurrency wallets only accept digital currency. Make sure to confirm that the wallet supports NFTs when setting up one that you'll want to use with NFTs.
Q. Can I have several crypto wallets?
A. Yes! Actually, a lot of people do. It's possible that you'll need different wallets for various blockchains, such as a Phantom wallet for Solana NFTs and a Metamask wallet for Ethereum NFTs. For easy transactions and safe long-term storage, you might also want to have a hardware wallet in addition to a software wallet.