What Is a Crypto Wallet?
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Cryptocurrency is a highly abstract store of value, and ownership exists as nothing more than a string of code on a larger blockchain.
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When you purchase a crypto, such as bitcoin or Ethereum, your ownership boils down to a public key and a private key.
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The public key is like your bank account number but doesn’t provide access to your crypto. The private key identifies you as the “true owner.” If you lose your key, you could lose access. Likewise, the person holding a private key has full access to your crypto.
There’s a popular expression in the crypto world, Not your keys, not your coins. If you don’t control your keys, you don’t have full access to your crypto assets.
How To Set Up a Crypto Wallet
Just like there are many ways to store your cash, there are many ways to stash your crypto.
Opening a crypto wallet will vary by the type chosen. If you’re using an exchange wallet, for example, you’ll pick a platform that you trust and then create an account. Generally, personal information and a two-step verification process is required.
For a hardware wallet, you’ll need to purchase the hardware first. You’ll typically need to install software to set up the wallet, too.
