How to Choose Cryptocurrency Wallets: Beginner’s Guide – Part 2

 

Choosing (and using) a cryptocurrency wallet is essential for anyone remotely interested in trying out this new form of technology. With the multitude of different tokens, identifying which wallet is best can be tricky. We’ve already covered how to pick the right wallet, identifying your needs and what will suit your use case best. In part 2 of this guide, we’re going to examine how to use the chosen wallet. Enjoy!

Web Wallets

Web wallets are pretty self-explanatory and work in a similar way to signing up to something like a PayPal account. If we take a look at Coinbase, our first choice for web wallets, you can see how easy it is to get going. Here’s a step-by-step guide:

  1. Visit Coinbase.com
  2. Click ‘Get Started’
  3. Choose whether you’re an individual or business
  4. Follow the instructions
  5. Verify your email address
  6. You’re done!

Now you can either top-up your wallet via credit card, PayPal (pending in some locations), or bank transfer. Coinbase is one of the only web wallets to offer a direct purchase and online storage option for cryptocurrencies. As a registered US company, your funds are insured and kept in cold storage (like the other wallets we featured!) without the need for you to actually own the hardware.

Steps to sign up to CoinPayments and Blockchain are also similar, minus the ability to purchase crypto directly from the website. With these wallets, you’ll have to purchase a digital coin either on something like Coinbase or on another exchange.

Send and Receive Crypto

In order to send and receive, say Bitcoin, you need to make sure you have the right address that you’re sending it to, much like an email address. It will look something like this:

Image result for coinbase bitcoin address

All you need to do is carefully write down the wallet address that you are sending your Bitcoin to and follow the onscreen instructions for ‘Send/Receive’ from the Coinbase menu. Here is a great, simple explanation from Coinbase to get you going. Once you’ve verified the right details, you can click send and your Bitcoin will be submitted to the network!

Hardware Wallets

As we established in part 1, hardware wallets are for cryptocurrency users looking to store larger amounts of value, and include:

Once you’ve purchased your hardware wallet (from an official vendor!) it’s as simple as following the prepacked instructions. Taking the Ledger wallet as an example, you would need to:

  1. Plug the drive into your computer’s USB port
  2. Follow the onscreen setup instructions
  3. Write down and carefully store your recovery phrases (essential if you ever lose your wallet)
  4. Choose a passkey
  5. Install Ledger manager, and any relevant firmware/wallets
  6. Follow computer’s onscreen instructions to set up any wallets
  7. You’re done!

In case you’re stuck, here’s a great video to show you how to get going.

Send and Receive Crypto

Image result for send and receive cryptocurrency

Just like with web wallets, hardware wallets can also easily send and receive cryptocurrencies to other wallets. Depending on your wallet manager and user interface, all you need to do is follow the onscreen instructions and fill in the recipient’s address.

Here’s a very informative and clear video by Ledger themselves, explaining how to send Bitcoin

Conclusion

There we have it – a practical guide on how to start using your crypto wallet! Make sure to check out our other beginner’s articles over the next few months, as well as our other articles and news stories on everything crypto and blockchain.