A cryptocurrency wallet is where you can safely store your cryptocurrencies. There are many different types of cryptocurrency wallets, but the most popular are hosted wallets, non-storage wallets, and hardware is jaxx wallet safe wallets.
Which one is right for you depends on what you want to do with your cryptocurrency and what type of security you want to have.
The most popular and easy to set up cryptocurrency wallet is the hosted wallet. When you buy crypto using an app like Coinbase, your crypto is automatically saved in your hosted wallet. This is called hosted because a third party holds your cryptocurrencies on your behalf, just as a bank keeps your money in a checking or savings account. You may have heard of people “losing their flash drives” or “losing their USB wallets,” but with a hosted wallet, you don't have to worry about any of these things.
The main benefit of storing cryptocurrency in a hosted wallet is that if you forget your password, you won't lose your funds. The downside of a hosted wallet is that it doesn't have access to everything that cryptocurrencies have to offer. However, this may change as hosted wallets begin to support more and more features.
How to set up a hosted wallet:
Choose a platform you trust. Safety, ease of use and compliance with government and financial regulations should be top criteria.
Create an account. Enter your personal details and choose a strong password. It is also recommended that you use two-factor authentication (also known as two-factor authentication) for an extra layer of protection.
Buy or transfer cryptocurrency. Most cryptocurrency platforms and exchanges allow you to buy cryptocurrency using your bank account or credit card. If you already own cryptocurrencies, you can also transfer them to a new hosted wallet for safe storage.