What is a Crypto Wallet?
Think of a crypto wallet like a digital bank account for cryptocurrency. But unlike a bank account, YOU control it completely - no bank or company can freeze it or take your money.
A crypto wallet lets you:
- Store cryptocurrency like Bitcoin, Ethereum, and others
- Send crypto to other people
- Receive crypto from others
- Keep track of how much you have
Important concept: Your wallet doesn't actually "hold" your crypto
Your cryptocurrency lives on the internet (called the "blockchain"). Your wallet is more like a set of keys that proves the crypto belongs to you. Whoever has the keys controls the crypto.
Types of Wallets (Which Should You Choose?)
There are two main types of wallets. Here's the simple breakdown:
| Type | Best For | Examples |
|---|---|---|
| Hot Wallet (App on phone/computer) | Beginners, smaller amounts, frequent use | Coinbase Wallet, Trust Wallet, MetaMask |
| Cold Wallet (Physical device) | Large amounts, long-term storage | Ledger, Trezor |
Our recommendation for beginners: Start with a hot wallet app. It's free, easy to use, and perfect for learning. Once you have more than $1,000 in crypto, consider getting a cold wallet for extra security.
Setting Up Coinbase Wallet (Recommended for Beginners)
We recommend Coinbase Wallet because it's made by a trusted American company, has a simple design, and offers good customer support.
Important: Coinbase Wallet vs Coinbase App
These are two different things! Coinbase (the main app) is where you buy crypto. Coinbase Wallet is where you store crypto YOU control. For this guide, we're setting up Coinbase Wallet.
1 Download Coinbase Wallet
On iPhone:
- Open the App Store (blue icon with white "A")
- Tap "Search" at the bottom
- Type "Coinbase Wallet" (not just "Coinbase")
- Tap "Get" next to Coinbase Wallet (it has a blue circle icon)
- Use Face ID or enter your Apple password to download
On Android:
- Open Google Play Store
- Search "Coinbase Wallet"
- Tap "Install"
2 Open the app and create a new wallet
Once downloaded, tap the Coinbase Wallet icon to open it.
- Tap "Create a new wallet"
- You may be asked to enable notifications - you can choose Yes or No
3 Set up your security
The app will ask you to set up security to protect your wallet:
- Enable Face ID or fingerprint if asked (this lets you open the app with your face or finger)
- Create a PIN code as backup (6 numbers you'll remember)
4 Write down your recovery phrase (CRITICAL STEP)
This is the most important step. The app will show you 12 random words. This is called your "recovery phrase" or "seed phrase."
THIS IS EXTREMELY IMPORTANT:
- Write these 12 words down ON PAPER in the exact order shown
- Store the paper somewhere very safe (like a safe or lockbox)
- NEVER share these words with anyone - not even Coinbase support
- NEVER type them into a website or email them
- Anyone with these words can take all your crypto
After writing them down, the app will test you by asking you to select the words in order. This confirms you wrote them correctly.
5 Your wallet is ready!
That's it! You now have a crypto wallet. You'll see your "wallet address" - this is like your account number. It's a long string of letters and numbers that looks something like:
0x1234abcd5678efgh9012ijkl3456mnop
This address is safe to share - it's how people send you crypto. Think of it like your email address for crypto.
Congratulations!
You now have a crypto wallet. Your recovery phrase (those 12 words) is stored safely, and you're ready to receive cryptocurrency.
Understanding Your Wallet
Here's what you'll see in your wallet:
- Balance: Shows how much crypto you have (will be $0 at first)
- Receive: Shows your wallet address and a QR code others can scan to send you crypto
- Send: Use this to send crypto to someone else
- Activity: Shows your transaction history
Safety Tips
Keep your crypto safe with these rules:
- Never share your 12-word recovery phrase - No legitimate company will ever ask for it
- Be careful of scams - If someone promises to double your crypto or asks for your phrase, it's a scam
- Don't click links in emails about crypto - Go directly to the app instead
- Start small - Practice with a small amount before adding more
- Make multiple copies of your recovery phrase and store them in different safe places
What's Next?
Now that you have a wallet, you might want to:
Want help setting this up?
Setting up a crypto wallet can feel overwhelming. We'll walk through every step together, making sure your wallet is secure and you understand how it works.
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