A set up crypto wallet is essential for anyone who uses cryptocurrencies like Bitcoin and Litecoin. These wallets use public and private keys to cooperate with the blockchain to allow users to buy, send or swap coins however they like. They can be software, mobile or even hardware devices that resemble USB sticks. There are three different kinds of wallets all with their own pros and cons.
Software wallets (sometimes called hot wallets) are programs that live on a desktop or mobile device and let you purchase, sell and transfer your crypto quickly and easily. They can be custodial (meaning they hold your private keys for you), or non-custodial (which gives you full control over your own keys but also means you have to be extra careful, like not losing your password).
A Beginner’s Guide: How to Set Up Your First Crypto Wallet
Mobile wallets are available on iOS and Android phones and are convenient for face-to-face transactions. They often use QR codes and offer additional security features like 2FA.
A hardware wallet is a more high-tech option that stores your private keys in an offline device that can be disconnected from your computer or phone. They can be custodial or non-custodial and typically cost more than a mobile or software wallet. They can be a good choice for those who want the most secure option but don’t mind the added expense or time to set up. They are also more difficult to hack than a wallet that is online.