If you want to start buying, selling, or trading with cryptocurrency, you’ll need somewhere to store your coins. There are plenty of platforms and exchanges to help you get started, as well as online and offline wallets to consider depending on your needs. To help, here is our quick guide on how to open a virtual cryptocurrency wallet today.
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Find an exchange & register
When you start exploring cryptocurrencies to buy or invest in, you’ll want to find an exchange platform to register with that will act as your main hub. Similar to other trading platforms like eToro or Plus500, a cryptocurrency exchange such as Coinbase will provide a full overview of the market and help you store your newly acquired crypto-funds. All you have to do is register and you can then access it from your mobile or tablet easily, setting up a virtual wallet to use as you please. Whether you want to purchase an established cryptocurrency like Bitcoin, Ethereum, or Dogecoin or choose an altcoin with plenty of potential like Floki Coin, you can make your choice and store it in your wallet.
Alternatively, rather than store your coins with a virtual wallet via an exchange platform, you can choose a separate storage solution. There are plenty of online and offline wallets to choose from, with some providing a mixture of both software and hardware-based options. Online wallets can be more convenient to use, but users may find offline options more secure and easier to manage. This is referred to as both hot and cold storage, but it’s important to know that keeping your coins stored in exchange is similar to keeping cash in a bank account and isn’t technically owned by the user.
Choosing between offline & online wallets
Depending on your level of expertise, you may want to keep things simple by keeping your coins with an exchange or online. However, to be certain of having ownership and full control, you will want your own private cryptocurrency wallet. You can find plenty of downloadable desktop or mobile apps that can store your coins offline to do so. You’ll need to keep in mind that some online wallets may charge a transaction fee to use, such as SoFi or Coinbase. Having your own wallet means you have access to your own private keys to access it, whereas an exchange does not provide this and uses public keys similar to your bank account number.
As well as storing virtually via cloud or software storage, many experienced with using cryptocurrency will own a hardware wallet that is similar to a USB storage device. The benefit of doing so allows full control of your cryptocurrency balance, just like having cash in a physical wallet. You’ll have your own private key to access the funds and use it, and as it is a physical device, it can be kept completely offline and secure – as long as you keep it safe. Some exchanges will allow you to purchase a hardware wallet for an additional fee too.
Security with virtual wallets is high, so you will need to use a complex password and ideally additional layers of security and encryption to be on the safe side such as 2FA. Once you have set up an online or offline wallet, you’re ready to start on your cryptocurrency journey.
