First things first, what is a cryptocurrency wallet? A crypto wallet uses software that gives the users safe access to blockchain networks to send or receive crypto. To simplify everything, a crypto wallet is just like a traditional wallet or bank. The difference is that it actually holds unique digital passwords otherwise known as “private keys” giving users transaction access.
Custodial Wallets VS Non-Custodial Wallets
Let’s look into the difference between custodial wallets and non-custodial wallets.
Custodial Wallets
Custodial wallets come from centralized exchanges like Coinbase which holds the cryptocurrency for the user as a “custodial or “hosted” wallet. These are very convenient since they don’t take much to set up. For those that want to trade NFTs, however, they would need non-custodial wallets.
Non-Custodial Wallets
Gives users full control over their wallets. There is no third-party involved and the user is the sole owner of their own private keys. This comes with a good deal of security but could also come with a great deal of responsibility. NFTs exist mostly on the popular Ethereum blockchain and a post by GaryVaynerchuk explains how to make non-custodial wallets. They can come in many forms namely software, hardware, or even paper.
Types of Crypto Wallets
- Hot Storage – Software Wallets – wallets directly connected to the internet
- Web Wallets – can be browser extensions or websites
- Mobile Wallets – can be accessed through smartphone apps
- Desktop wallets – (Mycrypto client-side) software programs existing on the computer. (COLD Storage) stores keys independently of internet connection.
- Hardware Wallets – physical USB-like devices that allow users to make transactions.
- Paper wallets – way to store private keys on a piece of paper
How to Set Up MetaMask Desktop Wallet
1. Go to MetaMask.io
2. Download
3. Install MetaMask for Chrome
4. Add to Chrome
5. Get Started
6. Create and Confirm Wallet
7. Do not take screenshots, save the private keys on paper. Click Next
8. Confirm
9. All Done
10. Rename Account (Optional)
Hot to Set Up MetaMask Mobile Wallet
1. Download MetaMask app
2. Get Started
3. Sync with MetaMask Extension
4. Settings > Advanced > Sync with Mobile
5. Enter Password
6. Use Phone Camera and Scan QR Code
Read Also: NFT: How to Create and Sell Designs
While there are still other alternatives to MetaMask, the option is really simple and beginner-friendly. What’s more important is that it is reportedly secure and gives people access to “blockchain apps.” Making an account can easily be done by following the steps noted above.
For those wanting to learn how to use MetaMask more thoroughly, a YouTube video uploaded by Every Bit Helps explains how users can navigate through the crypto and blockchain world with MetaMask being a helpful companion. There are also multiple guides online that teach how to make other cryptocurrency wallets aside from just MetaMask for those that want to either open more wallets or test things out first. It is important, however, to do significant research to find out if the platform is truly safe to use.
Related Article: How a Web Application Firewall Can Help Protect Your Crypto Wallet
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Written by Urian B.
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