A crypto wallet is a place where you can securely keep your crypto. There are many different types of crypto wallets, but the most popular ones are hosted wallets, non-custodial wallets, and hardware wallets.
Which one is right for you depends on what you want to do with your crypto and what kind of safety net you want to have.
Hosted wallets
The most popular and easy-to-set-up crypto wallet is a hosted wallet. When you buy crypto using a crypto exchange like Millionero, your crypto is automatically held in a hosted wallet. It’s called hosted because a third party keeps your crypto for you, similar to how a bank keeps your money in a checking or savings account. You may have heard of people “losing their keys” or “losing their USB wallet,” but with a hosted wallet, you don’t have to worry about any of that 🙂.
The main benefit of keeping your crypto in a hosted wallet is that if you forget your password, you won’t lose your crypto. A drawback to a hosted wallet is that you can’t access everything crypto has to offer. However, that may change as hosted wallets start to support more features.
How to set up a hosted wallet:
- Choose a platform you trust. Your main considerations should be security, and ease of use.
- Create your account. Enter your personal info and choose a secure password. It’s also recommended to use 2-step verification (2FA) for an extra layer of security.
- Buy or transfer crypto. Most crypto platforms and exchanges allow you to buy crypto using a bank account or credit card. If you already own crypto, you can also transfer it to your new hosted wallet for safekeeping.
Self-custody wallets
A self-custody wallet, like Trust Wallet, Metamask or Coinbase Wallet, puts you in complete control of your crypto. Non-custodial wallets don’t rely on a third party — or a “custodian” — to keep your crypto safe. While they provide the software necessary to store your crypto, the responsibility of remembering and safeguarding your password falls entirely on you. If you lose or forget your password — often referred to as a private key or seed phrase — there’s no way to access your crypto. And if someone else discovers your private key, they’ll get full access to your assets.
Why have a non-custodial wallet? In addition to being in full control of your crypto’s security, you can also access more advanced crypto activities like yield farming, staking, lending, borrowing, and more. But if all you want to do is buy, sell, send, and receive crypto, a hosted wallet is the easiest solution.
How to set up a non-custodial wallet (Metamask, Coinbase, and Trust Wallet):
Trust Wallet Setup:
- Download the Trust Wallet app ONLY from the official website.
- Create your account. No personal details are needed.
- Write down your private key (12-word phrase) and store it securely.
- Transfer crypto to your wallet. Unlike Coinbase Wallet or Metamask, Trust Wallet supports major non-EVM networks, such as Solana and Cardano, as well as EVM-compatible chains like Ethereum, making it a versatile option.
Metamask Setup:
- Download the Metamask app or browser extension ONLY from the official website. There are a lot of fake extensions and apps going around the internet.
- Create your account. You won’t need to share any personal info — not even an email address.
- Write down your private key. It’s presented as a random 12-word phrase. Keep it in a secure location.
- Transfer crypto to your wallet. Metamask might not support buying crypto with traditional currencies, so you will need to transfer crypto from another wallet or exchange.
You can receive crypto on any of the listed networks on your metamask app by copying your public address and giving it to the sender. Make sure they choose the network that you prefer which usually is Ethereum Mainnet. Always double check the address for mistakes or typos.
Coinbase Wallet Setup:
- Download the Coinbase Wallet ONLY from the official website.
- Create your account. No personal details or email are required.
- Write down your private key (12-word phrase) and store it securely.
- Transfer crypto into your wallet from another wallet or exchange.
- Coinbase Wallet also supports EVM-compatible networks
Hardware wallets
A hardware wallet is a physical device, about the size of a thumb drive, that stores the private keys to your crypto offline. Most people don’t use hardware wallets because of their increased complexity and cost, but they do have some benefits — for example, they can keep your crypto secure even if your computer is hacked. However, this advanced security makes them inconvenient to use compared to a software wallet, and they can cost upwards of $100 to buy.
How to set up a hardware wallet:
- Buy the hardware. The two most well-known brands are Ledger and Trezor. ONLY BUY FROM OFFICIAL RETAIL STORE!
- Install the software. Each brand has its own software needed to set up your wallet. Download the software from the official company website and follow the instructions to create your wallet.
- Transfer crypto to your wallet. Like a non-custodial wallet, a hardware wallet typically doesn’t allow you to buy crypto using traditional currencies (like US dollars or Euros), so you’ll need to transfer crypto to your wallet.
Just as there are many ways to store cash (in a bank account, in a safe, under the bed), there are many ways to store crypto. You can keep things simple with a hosted wallet with us on Millionero, or have full control of your crypto with a non-custodial wallet, take extra precautions with a hardware wallet, or even have multiple types of wallets — with crypto, the choice is yours.
But you can never be too careful when it comes to keeping your crypto safe. Always DYOR (Do Your Own Research) to ensure you’re using the right wallet for your needs. You can explore more tips and guides at blog.millionero.com.