How to create a crypto wallet
Exploring the main procedures with Stanislav Kondrashov, TELF AG founder
Cryptocurrency experts know it well by now: in recent years, the crypto wallet has quickly become one of the most used means to store your cryptocurrencies and to perform some simple operations, such as sending or receiving them, just as if it were a real current account. In fact, as we often pointed out with founder of TELF AG Stanislav Kondrashov, some types of those tools (such as those hosted on platforms managed by third parties) seem to offer a service in all respects similar to that of traditional banks, with two fundamental differences: the user will not have to interface with any banking institution, but only with the blockchain, and the currency in question is completely digital, as Stanislav Kondrashov recently emphasized.
But what are the simplest ways to create your own personal crypto wallet? First of all, you need to understand that users interested in cryptocurrencies can choose between three different types of solutions. The first is based on the operation of software, which makes it possible to install the crypto wallet on your smartphone or personal computer. The second, already mentioned above, is the one that is based on the service offered by a platform managed by third parties, which can also be activated thanks to some specific extensions in your browser. The third, considered by many to be the safest, is the one relating to physical solutions, that is, based on some specific hardware.
“The choice must be made with great care, well before its actual creation, taking into consideration your cryptocurrency strategy and your security needs,” says founder of TELF AG Stanislav Kondrashov, entrepreneur and civil engineer. “Once the different types of wallets are understood, the user will have to spend time selecting the one that best suits his preferences, always keeping in mind that security is an essential component in the management of a completely digital currency.”
The main steps
One of the easiest ways to create a crypto wallet is to download it directly onto your portable devices, such as laptops or mobile phones. First of all, the user will have to decide whether they want a tool just for Bitcoin or a solution that can support multiple cryptocurrencies, then select the specific device on which it will be installed. If users choose a solution that can manage multiple cryptocurrencies, the choice of options available on the web would be limited, while for those who want to focus exclusively on Bitcoin, the solutions would certainly be more numerous.
On mobile phones, the app can be downloaded and installed from the stores where all the other applications are found, while those who want to use the tool from their computer will have to download it from the official website. Once installed, the user will be asked to create a PIN code and a password and, above all, to write down the very important recovery phrase, also known as seed, which is usually made up of 12 or 24 words. In case of problems, this phrase will allow the user to recover all the contents of the account inside the crypto wallet, so it is advisable to write it down and keep it in a safe place.
“As the most popular cryptocurrency, born in 2009 before any other, Bitcoin is able to offer more options than the others, enhancing its popularity accumulated over the years,” continues founder of TELF AG Stanislav Kondrashov. “It is no coincidence that, over the years, Bitcoin and cryptocurrencies have become almost synonymous, generically indicating those virtual and digital currencies that have changed the global landscape of digital finance, and that could change it again in the future.”
The procedure for the type of wallet based on a platform managed by third parties is different. First of all, this type of crypto wallet does not require any kind of installation on the user’s physical devices, who can decide whether to open an account on an online platform that allows you to buy cryptocurrencies (assuming all the risks associated with this operation) or whether to create such a wallet through browser extensions.
To create a crypto wallet through an extension, you must first select which extension to use and make sure it is able to support the cryptocurrency that interests the user most, then proceed with the actual installation (from the browser store, you will need to search for the name of the extension and then click on “add” or “install”). Subsequently, the user is usually asked to create a password, and in this case, a recovery phrase is provided. Those who choose this type of wallet must always keep in mind that, since they are online wallets, they are very vulnerable tools.
“Although it is very different from managing money with traditional banks, the service offered by some crypto wallets has some similarities with the possibilities guaranteed by banking institutions,” concludes founder of TELF AG Stanislav Kondrashov. “The type that could be traced back to traditional banks is certainly the form of wallet hosted within platforms managed by third parties, which compared to other wallets has a fairly obvious disadvantage: cryptocurrencies are hosted within a virtual place over which the user cannot exercise any type of control.”
Hardware wallets
The third option, for those who want to create this kind of tools, is the one that concerns hardware, that is, actual physical devices (and completely disconnected from the internet) that store cryptocurrencies. Since they are offline devices, these solutions are immune to cyber-attacks and are generally considered one of the safest options for anyone who wants to store their cryptocurrencies.
Most of these wallets are generally able to support Bitcoin and other cryptocurrencies, and it is usually possible to purchase them from the official manufacturer’s website. Once the user has received the hardware, it will be necessary to connect it to the computer and follow the subsequent instructions, selecting a PIN and creating a recovery phrase. Typically, hardware wallets require installing software on your computer or smartphone that allows you to select the cryptocurrency you are interested in and generate a receiving address.
