How Can I Use a Crypto Wallet?
Buying cryptocurrencies has become easier like never before. However, storing them isn’t that simple.
Cryptocurrencies have revolutionized the global financial world. Credit to the cryptocurrencies, we are now witnessing a shift from centralized financial systems to decentralized, transparent, and more secure ones.
At the time of writing, the global crypto market capitalization is at $894 billion. The majority of institutions, businesses, and corporations have already entered the crypto space. Even small and big investors are investing their funds in crypto. Irrespective of the volatility of the crypto market, investors still trust decentralized currencies as the future of the global economy.
But, for an investor like you, who has bought crypto or looking to buy, only investing is not enough. You also need to ensure that your funds are safe.
So, how can you ensure the safety of your crypto investments?
For this, you have a crypto wallet, where you can securely store all your cryptocurrencies. However, choosing the best crypto wallet and setting it up is not an easy task. If you do not select a credible crypto wallet, your crypto funds are still prone to risks.
That is why today we are here to help you select and set up a trusted crypto wallet.
What Is A Crypto Wallet?
Crypto wallets are digital software wallets that store your cryptocurrencies. These wallets are connected to the decentralized web. It acts as an interface that enables you to interact with decentralized exchanges, NFT marketplaces and other decentralized finance protocols or platforms.
There are mainly two types of crypto wallets. These are hot wallets and cold wallets.
Hot wallets are software wallets that are connected to the internet. Software wallets include both custodial or hosted wallets like Binance, and Bitgo and non-custodial wallets like Metamask and Coinbase wallet.
Custodial wallets are controlled by a third party or centralised institutions. They store your private keys on their online servers.
On the other hand, non-custodial wallets store your private keys offline. In non-custodial wallets, you are the one who is in control of your private keys. The third party only provides you with software assistance but has no control over your private keys.
Cold wallets are hardware wallets that store your cryptocurrency offline. These are similar to a USB drive which you can connect to your computer, transfer your cryptos, and store them securely. Being offline, hardware crypto wallets are considered safer than online wallets.
What Does A Crypto Wallet Do?
Unlike physical wallets, you cannot store your actual cryptocurrencies in your crypto wallet. It is because cryptocurrencies themselves exist as cryptographic codes.
Then what do the crypto wallets store?
Crypto wallets store your private keys, which are like the access portals to your cryptocurrencies.
Why are private keys so important?
The only way to access your crypto is through your private keys. The private keys are like the password to your bank account. Anyone with access to your private keys can do whatever he likes with your crypto. That is why it is advised not to share your private keys with anyone.
Moreover, you must keep your private keys safe. It is because your private keys are your cryptos. As long as you have your private keys, your crypto funds are intact. The moment you lose it, there is no way to recover your crypto. In the worst case, if someone else gets their hand on your private keys, you will lose your crypto forever.
Why Do You Need A Crypto Wallet?
Today we have major crypto exchange platforms where you can easily buy or sell cryptocurrencies. You can even keep your crypto on the exchange platform.
However, it is not safe to keep huge crypto funds on exchange platforms. Though these exchange platforms employ high-end security features, they are still prone to hacks.
That is why you should always go for a credible crypto wallet to keep your crypto investments safe.
Moreover, keeping your crypto on exchange platforms means that you are submitting your private keys to the centralized institution. The same is the case with hosted software wallets.
Therefore, we recommend you always go for hardware or non-custodial wallets. They offer maximum security and offer complete control of your private keys and crypto funds.
How To Use A Crypto Wallet?
You can not only store your cryptocurrencies and NFTs in your wallet, but also send and receive them.
Follow the steps to send and receive your cryptocurrencies after you have set up your crypto wallet.
• On the main page of the Wallet app, you’ll find three options: Send, Receive, and Buy.
• Select Receive.
• Next, from the list of coins, pick the coin you want to receive from other wallets.
• Your public wallet address will now be shown as a QR code. The wallet address can be copied or shared with the individual sending you the cryptocurrency.
• To receive the money, you’ll need to provide your public wallet address. The sender can only give you crypto directly to your Trust Wallet if he inserts this wallet address into his wallet.
• You will be notified once the coins have been received.
Similarly, when you need to send crypto, go to the home page and select Send. Then choose the cryptocurrency you want to transfer and the quantity you want to send. Now you must enter the wallet address of the wallet to which the coins will be sent. After that, you can continue and the coins will be sent to the wallet of your choice.
NFTICALLY is a one-of-a-kind NFT platform that is compatible with major crypto wallets. You can easily connect any trusted crypto wallet to mint and sell NFTs from your NFT store.