BITCOIN WALLET IN A NUTSHELL:
It is essentially a device used for holding and sending Bitcoins. Requiring an OTP to access your bank account is analogous to private keys used for Bitcoin transactions. An online Bitcoin wallet can help you store and send cryptocurrency on your behalf. Choose between a hot wallet or a cold wallet and make sure they’re reliable and accessible anywhere. Such online crypto wallets are often user-friendly and easy to adapt to. These wallets are not backed by governmental schemes and hold only cryptocurrencies. In the end, you are in control of your funds at all times. Non-custodial is a term given to online wallets that are completely different from the accounts you may have on cryptocurrency exchanges. When you hold money on a crypto exchange, the companies are in control of your cryptocurrencies. However, when you move your cryptocurrency to a non-custodial wallet, you hold the keys to your wallet. It is advisable to know such information before starting an online wallet.
HOW TO SET UP AN ONLINE WALLET:
Setting up a wallet only takes up a few minutes. However, it depends on the type of wallet you select. There are different types of wallets available in the market. You can select one that sails your boat and helps you reach your destination. Online wallets are famous for their accessibility, easiness, and convenience. Different blockchains require different wallets. Thus, it is important to create an online crypto wallet that adjusts to your needs. When choosing a reliable wallet, a good rule of thumb is to check which wallets are recommended by a coin’s community.
- Step 1: Download your desired Bitcoin wallet app OR install the browser extension on your laptop.
- Step 2: Follow the registration process. Provide your name, password, and sometimes they might even ask you to add a security question! (Always remember, security is the most important aspect of a crypto wallet)
- Step 3: Copy your private key and keep it only to yourself. (Anyone who has access to your private key can log into your account)
- Step 4: All done! Now you can start receiving and sending funds!
A WORD OF ADVICE FOR NEW USERS:
In case you lose your private key, there is an alternate option you can use. You will be able to use something called a seed phrase / secret phase. There are 12 or 24-word strings that act as a backup password in case of emergencies. This should be kept private too. No one should ever ask you for your secret phrase. If someone does, beware because they might be trying to scam you. NFT requires more attention. Most online wallets automatically support fungible tokens, like Ethereum, Bitcoin, and others. However, non-fungible tokens such as crypto art such as CryptoKitties, Rare Pepe, are handled a tad bit differently. Marketplaces, although not online wallets, will mechanically display your Ethereum NFTs if you connect your wallets.