(NFTChronicle.com) – Before a journey into the world of cryptocurrencies begins, users need a place to buy, store, and transfer their digital assets, otherwise known as a crypto wallet. In what may seem like a confusing unfamiliar world, this simple task offers a starting point for an exciting new experience and a process that most will find far more straightforward than they expected.
There are two types of crypto wallets: self-custody and hosted. Many crypto marketplaces automatically open a wallet when a new member joins. The host becomes responsible for the safety and security of the wallet’s contents, removing the user’s need to do much of anything. Hosted wallets are for people who intend to use specific marketplaces and deal in particular cryptocurrencies.
Self-custody wallets put the power and the responsibility of crypto ownership squarely on the user. Opening a self-custody wallet is a relatively simple task but includes far more liability than hosted ones. These wallets live on the blockchain and not on a centralized platform. A 12-word security phrase secures them, but the system allows wallet access and control to absolutely anyone who enters the security phrase.
The advantage of a self-custody wallet is autonomy. With a wallet from a provider such as Metamask, Coinbase, or Mycelium, users can purchase and trade most forms of crypto, convert digital assets to standard currency, and store and maintain non-fungible tokens (NFTs). Keep in mind that opening a crypto wallet will require identification before making a crypto purchase.
Opening a crypto wallet isn’t particularly difficult. The user’s intent is what matters most. For those looking for the easiest way to buy and sell, opening an account at any centralized crypto exchange will walk them through the process. For self-custody needs, checking with the top providers and making sure wallets are compatible with the crypto they plan to use is a critical step.
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