A cryptocurrency wallet allows you to securely store digital currencies such as Bitcoin. While there are several types of wallets to choose from, hosted, non-custodial and hardware wallets are the most popular options right now. Which wallet you should choose depends on how you want to use your crypto and the level of safety you require. If you are asking yourself "Do I need a crypto wallet?" Of course, the answer is yes. Every crypto investor needs a wallet to store their assets.
Here is how to get a crypto wallet that is just right is for you
1. Hosted wallets
Hosted wallets are easy to set up. When you open an account with crypto platforms such as Coinbase, your funds are automatically stored in a hosted wallet. Hosted wallets are named so because third parties store your crypto for you similar to the way banks keep your savings. With hosted wallets, you don't have to worry about losing your private keys; the exchange platform can retrieve that for you.
The advantage of using this method to store your crypto this way is that if you forget your login password, you can reset it. Hosted wallets are, however, limited in terms of functionality as you can't use them to access everything the crypto world offers. Still, with more features being added to hosted wallets lately, they may increase their functionality in the future.
How to set up a hosted wallet
Choose a reputable crypto platform such as YouHodler, Coinbase, or Binance.
You should want to research the level of security, user reviews, usability, and compliance with industry regulations before you pick your hosted wallet provider for your crypto.
To open an account, prepare your personal information such as your email address and identity documents. It's a good idea to activate multiple-factor (2FA) authentication to boost your security
Once your hosted wallet is set up, you can use it to buy and transfer crypto to other parties or even HODL it. Some popular crypto exchanges support buying Bitcoin with both cards and bank transfers. If you have some crypto, you can transfer it to a new hosted wallet for secure storage.
Why do you need to get a YouHodler multi-coin crypto wallet?
YouHodler offers one of the most high-end crypto wallets on the market. A YouHodler multi-coin wallet allows you to HODL crypto, earn Bitcoins, and multiply your assets in one interface.
Individuals who create interest accounts with YouHodler can integrate them with their multi-coin wallets and earn up to 12% APY. The accounts are simple in design and advanced in functionality, YouHodler's multi-coin crypto wallet is designed to simplify managing your coins and tokens. You can earn interest and increase your digital currency holding through this smart and friendly crypto wallet app. The YouHodler wallet app is compatible with android, iOS, and desktops.
2. Non-custodial wallets
Why do you need a non-custodial crypto wallet?
Non-custodial wallets such as MetaMask puts you in full control over your crypto. Unlike hosted wallets, non-custodial wallets do not rely on third parties to store crypto. While these software applications provide the platform for you to store your crypto, it is your responsibility to safeguard your wallet password, seed phrase or private keys.
In other words, with non-custodial wallets, forgetting your private key or seed phrase means that you can't ever access your crypto again and you will lose everything. If a third party happens to gain access to your private keys, they can easily withdraw your funds.
So why get a non-custodial wallet? This kind of crypto wallet provides you with full control over your crypto assets. You can also benefit from extra features such as crypto lending, borrowing, staking, and yield farming. On the other hand, a hosted wallet may be your best choice if you want to frequently buy, sell, and receive crypto.
How to create a non-custodial wallet
You can download a non-custodial wallet application such as MetaMask
Create your user account. You don't need to sign up with your personal info (e.g., email address).
Take note of your private key (which is normally represented as a 12-word phrase). Keep your private key in a secure place to avoid losing your funds forever.
Can I always buy crypto using fiat currency with a non-custodial wallet?
You will have to transfer your crypto into your non-custodial wallet from a different wallet. It's not always possible to buy cryptocurrencies with fiat currencies namely USD and Euros with non-custodial wallets.
