Cryptocurrency has been getting a lot of eyes as of late. And there seems to be a lot more new buyers. With Bitcoin recently breaking the $30k mark (and reaching past $40k at some point), it has reached all-time highs that have never been reached until the end of the year.
No surge for Bitcoin had occurred since 2017 when it went up to $20k before receding back down. But it would appear that this new high that Bitcoin seems to be experiencing appears to be lasting a bit longer than expected.
If you’re planning on buying or even trading cryptocurrency, then now might be a good time to create a wallet.
Let’s discuss how they work and the steps you need to take to create one for yourself:
What is a cryptocurrency wallet?
A cryptocurrency wallet can be easily downloaded from the Internet. The wallet can be a program or software that can be compatible with your PC or mobile device. This will keep track of any income or expenses that have occurred within the wallet itself.
You can use your cryptocurrency wallet for purchases (where cryptocurrencies are accepted) or even transferred to a trading exchange like Poloniex.
Or you can use it when playing on a real money online casino. Either way, you can put it to good use as long as you have cryptocurrencies like Bitcoin, Etherum, Litecoin, and so many different cryptos that you can trade or buy on exchanges.
Types of cryptocurrency wallets
There are some types of cryptocurrency wallets that exist. Let’s briefly take a look at what’s out there:
Desktop wallets: You can download these types of wallets like any normal desktop program. Keep in mind that this wallet can only be accessible from the same computer that you’ve downloaded it from. In terms of security, these are the most secure from any hacking or cyber-attacks.
Virtual wallets: This is a cloud-based wallet that you can access anywhere you are. So long as you have a computer or an Internet connection, you’re good to go. You can access them using your wallet’s private keys.
Mobile wallets: Similar to virtual wallets, they can be accessed via a mobile app on your phone or tablet.
Creating and setting up your cryptocurrency wallet
Now, we’re going to show you five easy steps on how you can create a crypto wallet. It’s important that you follow these steps so you can keep your wallet secure at all times. The more secure it is, the better.
Let’s dive right in:
1. Configure the API
The first thing you’ll be doing is configuring the API that will allow you to manage the permissions. You can obtain the API on programs such as Github.
2. Set up a password
Next up, it’s time to set up a password. Obviously, this is a password that you want to remember. You must absolutely keep this password to yourself.
DO NOT share this password with anyone. Also, you may want to keep the password on a piece of paper in a safe and secure place like a cash box (or a security box). Depending on the cryptocurrency exchange you are going through, you may also need to write down a series of words that will be used to recover your wallet in the event if you lost your password.
3. Set up private keys
Think passwords are enough to protect your wallet? Nope. You’ll want to take it a step further and set up some private keys.
This will ensure that you and only you can access your cryptocurrency wallet. Aside from your password, you want to keep your private keys in a safe and secure place.
The best thing to do is copy your private keys and copy it to a .doc file (DO NOT store it in Google Docs). Open a word doc on Microsoft Word or even use the Notepad app and paste it. Save the private keys and be sure to back them up to an external hard drive on a regular basis.
We’ve been hearing stories about people being locked out of their cryptocurrency wallets and accounts. And sure enough, they have been missing out on some pretty nice gains just because the crypto in their wallet had been sitting there for a while.
4. Test it with some outgoing transactions
Now, it’s time to test it out with a small deposit of cryptocurrency. So long as you have some crypto that you’re willing to spend or transfer to test out the wallet, you can add some small funds to the wallet. If things seem to be working, then you can move on to the next step.
Also, you’ll want to regularly test out the interface as thoroughly as possible.
5. Add more funds
If it passes the test and you’re able to easily transfer your funds into the wallet, you’ll be free and clear to add more. At that point, you should be set and ready to go. You can use it to spend it on whatever you want or if you plan on doing some kind of trading.
At this point, you should be done setting up your cryptocurrency wallet. But it never hurts to test it out in terms of security every once in a while. As instructed earlier, keep your private keys and your passwords handy and never share them with anyone.
Final Thoughts
If you want to put together a cryptocurrency wallet so you can store your Bitcoin and other cryptos, you can create one in just five easy steps. When you have your crypto wallet set up, be sure to keep your cryptocurrency safe and only accessible to yourself. Your passwords and private keys should never be shared no matter what.
At a time when trading regular stocks seems to be in question, there is always an alternative that you can consider. Cryptocurrency is tied to no bank or any central government and it’s totally decentralized.
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