A cryptocurrency wallet allows you to store, send, and receive cryptocurrencies on the blockchain.
Before selecting the wallet you would like to use for crypto transactions, it is important to learn more about the different types of wallets.
The steps to getting a crypto wallet depends on the type of wallet you would like. Here is an overview of how to get a crypto wallet.
How to get a software wallet
A software wallet, or hot wallet, is a browser or mobile app based wallet. There are two types of software wallets - custodial wallets and self-custodial wallets.
A custodial wallet is a wallet in which a third party holds your cryptographic private keys and securely stores your funds.
In most jurisdictions, custodial wallet providers are regulated entities, similar to traditional banks. Like banks, custodial wallet providers are responsible for securing your account and funds.
To use a custodial wallet, you log in with a username and password to access your account with the provider, and you instruct the provider to conduct transactions on your behalf.
- Download the wallet application to your phone or visit the web browser to begin account set up.
- Create a username and password that secures your account. The wallet you choose will have specific set-up steps for you to follow. It is important to know that you will not be given the private key to your account, as the wallet issuer has custody of this.
Do your own research to find the best custodial wallet for you!
A self-custodial wallet is a wallet in which you alone hold your cryptographic private keys and are responsible for securely storing those keys.
Self-custodial wallets are software that allow you to directly interact with blockchains and blockchain-based applications like Uniswap or Compound.
When you set up a self-custodial wallet, you do not have an account with the wallet software provider, so it is imperative to write down your recovery phrase that is given when signing up for the wallet.
That is because no third-party provider can give you access to the wallet if you forget the private keys or recovery phrase.
Download the wallet application to your phone or visit the web browser to set up your account
Create your account and write down your recovery phrase in a secure location. Some wallets may prompt you to backup your recovery phrase to your phone.
It is important to remember that anyone who has access to your recovery phrase can access your wallet. Do not share your recovery phrase with anyone else.
Connect your fiat funding source to your wallet. Depending on the wallet, there are different options for you to convert fiat currency to crypto in your wallet.
How to get a hardware wallet
A hardware wallet, or a cold wallet, is a hardware device that stores your cryptographic private keys on a secure offline device. A hardware wallet is a type of self-custodial wallet.
Each hardware wallet has different steps for step up, depending on the device.
Purchase a hardware wallet directly from the manufacturer. This ensures it is a brand new wallet.
Follow the directions for set-up included with your hardware wallet or posted on the device’s official website.
Save your recovery phrase. Most hardware wallets will include materials for you to save your recovery phrase.
When you set up a self-custodial wallet, you do not have an account with the wallet software provider, so it is imperative to write down your recovery phrase that is given when signing up for the wallet. That is because no third-party provider can give you access to the wallet if you forget the private keys or recovery phrase.
After setting up your wallet and purchasing tokens, you can connect your self-custodial wallet to Uniswap to store, send, and receive cryptocurrency.