If you’re just starting your cryptocurrency journey, the most important step to take is to set up a crypto wallet and take the necessary precautions to ensure your crypto remains safe.
We’ll show you how to create a crypto wallet and explain the most important aspects of keeping your cryptocurrency safe.
We’ll also be highlighting the different types of crypto wallets you can use and explain their advantages and disadvantages.
Key highlights:
You can download a cryptocurrency wallet for free and set it up in just a few minutes.
Crypto wallets can be installed as mobile apps, web browser extensions or desktop applications.
Some cryptocurrency wallets support many different cryptocurrencies, while others are specialized for a particular cryptocurrency.
When creating a cryptocurrency wallet, it is extremely important to back up your seed phrase and store it in a secure location.
How to create a crypto wallet?
The first thing you need to create a crypto wallet is to know which cryptocurrencies you plan to store in it. There are multi-currency crypto wallets that support many different cryptocurrencies, as well as specialized crypto wallets that only work with a specific cryptocurrency.
You should also decide which device you want to use your cryptocurrency wallet on. Crypto wallets can function as mobile apps, web browser extensions or applications for your desktop computer or laptop.
In this guide, we will use a multi-currency wallet, but the set up process is quite similar for all kinds of crypto wallets. We will set it up as a browser extension.
Before we explain how to create a crypto wallet, we want to emphasize some basic tips for beginner crypto users which will help keep your cryptocurrencies safe:
Never share your private key with anyone.
Never share your seed phrase with anyone. Just like your private key, your seed phrase provides full access to your cryptocurrencies.
When setting up your wallet, make sure you back up your seed phrase (you can use a piece of paper) and store it somewhere safe.
Cryptocurrency transactions can not be reversed. Before you send your cryptocurrency anywhere, make sure to double-check that you are sending to the correct address.
If you lose the device your crypto wallet is installed on, you can still access your crypto if you have backed up your seed phrase.
Sharing your cryptocurrency address publicly is completely safe for your crypto funds, but you need to consider the privacy implications of doing so.
If you are a cryptocurrency beginner and working with a relatively small amount of funds, it’s okay to use a software wallet. If you plan to invest a significant amount of money into cryptocurrency, we strongly recommend you purchase a crypto hardware wallet.
1. Download and install your crypto wallet software
In this guide, we will be using Trust Wallet, which is a crypto wallet that supports many different cryptocurrencies and can be installed as a mobile app or as a web browser extension. We will be using the browser extension version for the purposes of this guide.
First, let’s head over to Trust Wallet’s official website, click “Download extension” and select our web browser (Google Chrome).
Then, we’re going to select “Add to Chrome” to add the Trust Wallet extension to our Chrome web browser.
The installation of the Trust Wallet browser extension should only take a couple of seconds. Once the welcome screen pops up, select “Create a new wallet”.
Now, you will be asked to set up a password which you will use to access your wallet. The extension has built-in checks that will automatically prevent you from creating a weak password.
2. Back up your seed phrase
After you set up your password, you will be automatically logged into your Trust Wallet. Now, it’s time to back up your seed phrase so that you will be able to access your cryptocurrency even if you forget your password or your device is stolen or lost.
Please note that Trust Wallet uses the term “secret phrase”, but the more commonly used term is “seed phrase”. Both terms refer to the same thing.
Grab a pen and a piece of paper, then click “Backup your Secret Phrase now” at the top of the Trust Wallet interface.
Click “Show” to reveal your seed phrase. You will be asked to enter your password.
Your seed phrase is an ordered list of 12 words. This combination of words provides complete access to all the cryptocurrencies you store in this wallet. You can use it to restore access to your wallet if you forget your password or switch to a new computer or mobile device.
Write down the 12 words in the correct order on a piece of paper and store it somewhere safe.
3. Get your crypto address
Now that you have securely backed up your seed phrase, it’s time to get your crypto address. We’ll use Bitcoin in this example, but the process is the same for any other cryptocurrency supported by Trust Wallet.
Click on BTC in the main menu to get to the Bitcoin section of your Trust Wallet. Then, click Receive.
The wallet will display a QR code, as well as a plaintext address that you can use to receive BTC. Please keep in mind that different cryptocurrencies can have different address formats. Our Bitcoin address starts with “bc1”, while Ethereum addresses start with “0x”.
Now that we’ve explained how to create a crypto wallet, let’s learn some more about the different types of cryptocurrency wallets that are available.
Custodial vs. non-custodial wallets
A custodial wallet is a type of cryptocurrency wallet where a third party manages the private keys on behalf of the user. For example, when you deposit your crypto to a cryptocurrency exchange, the exchange controls the wallet's private keys.
If you hold cryptocurrency in an account on a cryptocurrency exchange, you are using a custodial wallet since the exchange, not you, controls the private keys associated with your coins.
When you want to perform any transaction with the cryptocurrency in your account, you submit a request to the exchange, and the exchange has the final say on whether to approve it or not.
The main benefit of custodial wallets is convenience. If you’re using a custodial wallet, you don’t need to worry about backing up your private keys or seed phrase, since the custodian will do that for you. They will also be able to restore your account in the event you forget your password.
Meanwhile, a non-custodial wallet gives you full control (and responsibility) over your cryptocurrency. With a non-custodial wallet, you manage your private keys by yourself and have to ensure that you back up your seed phrase properly.
The main downside of a non-custodial wallet is that all of the responsibility of keeping your cryptocurrency safe lies on you.
Trust Wallet, which is the wallet we used in the guide above, is an example of a non-custodial wallet. However, this also means that the Trust Wallet team will not be able to help you if you lose your seed phrase.
Hot wallets vs. cold wallets
A hot wallet is a cryptocurrency wallet where the private keys are stored on a device that is connected to the internet, such as your mobile phone or desktop computer. This is convenient, but makes the cryptocurrency stored in a hot wallet much more vulnerable to cyber attacks.
When it comes to cold wallets, however, the private keys are stored in a device that is always offline. The most popular type of cold wallets are hardware wallets.
Hardware wallets are devices that generate and store private keys in a completely offline environment. When you want to transact with your crypto, you connect your hardware wallet to your PC or mobile device and initiate the transaction. Then, the hardware wallet transmits the signature necessary to approve the transaction, but never sends the actual private keys to the device it’s connected to.
If you plan to invest significant amounts into cryptocurrency, we strongly recommend that you use a hardware wallet, for example the Ledger Nano S Plus.
FAQs
Now, let’s quickly answer some of the most frequently asked questions users have about how to create a crypto wallet.
How to create a Bitcoin wallet?
You can download a Bitcoin wallet for your mobile device, PC or laptop for free and set it up within minutes. Here are the Bitcoin wallets we recommend:
Blue Wallet (mobile)
Blockstream Green (mobile)
Electrum (desktop)
BitPay Wallet (desktop and mobile)
How to create an Ethereum wallet?
Ethereum wallets are typically offered either as mobile apps or web browser extensions. Here is our selection of the best Ethereum wallets on the market today:
MetaMask (mobile and browser extension)
Rainbow Wallet (mobile and browser extension)
Rabby Wallet (mobile, desktop, browser extension)
1inch Wallet (mobile)
How to create a Solana wallet?
Solana is a cryptocurrency that’s quickly growing in popularity, and there’s plenty of high-quality Solana wallets to choose from. Here’s our picks for the best Solana wallets:
Phantom (mobile and browser extension)
Solflare (mobile and browser extension)
Backpack (mobile and browser extension)
How to get a crypto wallet?
Crypto wallets are free to download and can be available as mobile apps, web browser extensions or PC applications. Before downloading a wallet, make sure it supports the platform you want to install it on and the cryptocurrency that you want to store.
What happens if I lose the phone my crypto wallet is installed on?
When you will be setting up your crypto wallet, you will receive a seed phrase, which is an ordered list of words that you can use to restore access to your cryptocurrency. As long as you back up your seed phrase safely, you will be able to access your crypto even if your phone gets stolen or you lose it.
How to create a crypto wallet address?
After you install your crypto wallet of choice, it will generate addresses for you automatically. You can then use these addresses to receive cryptocurrency.
The bottom line
Hopefully, our article helped you create your first crypto wallet and explore the exciting world of cryptocurrency. If you want to learn more about how cryptocurrency wallets work, check out our articles explaining hot wallets vs. cold wallets and Bitcoin wallet addresses.