How to set up a self-custody crypto wallet Step 1: Know th | BTC Trunk

How to set up a self-custody crypto wallet

Step 1: Know the different types of self-custody wallets

Before you choose a self-custody wallet, you should know the different types. The biggest distinction is software versus hardware wallets.

Step 2: Choose a wallet

There’s no right or wrong choice between a software or hardware wallet - it all depends on your own preference and risk tolerance. Personally, we use SAVL but there are a lot of different trusted wallets, DYOR.

Step 3: Generate a recovery phrase (or import an existing one)

If you’re creating a new wallet, you’ll first create and safely store your “recovery phrase” (or “seed phrase”). This phrase consists of a sequence of words (usually 12 or 24) in a specific order.

Step 4: Create new crypto addresses (or import existing ones)

Crypto addresses (and their private keys) are automatically created when you set up a crypto wallet. You can use your wallet to generate additional crypto addresses, but you can’t generate a crypto address without a wallet.

Step 5: Transfer crypto to your self-custody wallet, or purchase directly

The last step is to add crypto to your wallet, either by transferring crypto from a CEX, or by purchasing crypto directly with fiat currency (if your wallet supports it).