With the ever-growing popularity of cryptocurrencies, many first-timers want to onboard the industry and make their first digital money as soon as possible.
However, it is essential to know that guaranteeing the storage of crypto funds is as important as generating yield and buying the bullish tokens of the season.
In this article, you will discover how to choose and set up a crypto wallet for your smartphone. Before you buy bitcoin, make sure to nail the basics.
Crypto Wallet – Back to Basics
A crypto wallet is a space in which investors can safely store their cryptocurrencies (e.g., BTC, ETH, XRP, etc.).
Given the fact that cryptocurrencies are not tangible, the functioning of a crypto wallet is based on private and public keys.
All transactions done in the blockchain network are recorded, but you need a unique “password” to prove the existence of your crypto funds on the blockchain- and that is where these special keys step into the game.
The purpose of private and public keys is to allow users to access deposits within their account or to send cryptocurrencies to another account.
It is crucial to notice that the private key is the most fundamental password you can have in the crypto industry. Hence, users must keep it confidential, as in the case this information is taken by an unauthorized individual, all funds may be lost. It has already happened to crypto millionaires.
Choosing a Crypto Wallet
Cryptocurrency wallets are divided into two distinct categories, which are custodial wallets and non-custodial wallets.
A custodial wallet is a type of crypto storage where the funds belonging to the user are controlled by a third-party. On the other hand, a non-custodial wallet is a type of crypto storage in which the users fully control their funds, keeping the private key and public key information by themselves.
The most popular options of crypto wallets for smartphones are mobile wallets. Similar to desktop wallets, they can be easily accessed from any place where there is an internet connection.
All the wallet’s information is stored in the user’s phone memory.
In this guide, we will utilize Coinbase Wallet to illustrate the process of setting up a crypto wallet for a smartphone. This wallet application permits users to store their cryptocurrencies on their devices, manage their private keys, and explore the decentralized web via the DApp browser.
Plus, the wallet offers multi-coin support, allowing users to hold and manage Bitcoin (BTC), Ethereum (ETH), LTC (Litecoin), and other ERC20/ERC721 tokens.
Notice that there is no need to create a Coinbase account to download and use the Coinbase wallet application, as they provide distinct services.
Setting Up a Crypto Wallet for Your Smartphone
Searching and Downloading the Wallet App
To start setting up your wallet, search the name “Coinbase Wallet” on Play Store/IOS and select the corresponding option. Do not mistake it with “Coinbase Android”, which is another product.
Once you have selected it, click on download and wait until the process is completed. Then, click on “Open” to continue the setup process.
Creating a New Account
At this stage, you will be given two options – to create a new wallet or to import a wallet.