Cryptocurrency exchange and storage, buying NFT, connecting to blockchain apps - crypto wallets are required for all of these purposes. A crypto wallet is a secure place to store your digital assets. They come in different types - custodial and non-custodial, software and hardware, multicurrency ones and those designed for a particular cryptocurrency or network.
Let's talk about what cryptocurrency wallets are, what kinds of cryptocurrencies there are, how to make a crypto wallet and set it up, and how to use the Broex cryptocurrency wallet.
What is a cryptocurrency wallet?
To pay with Bitcoin for a cup of coffee, exchange one token for another, store non-fungible tokens - this and other cases in the world of decentralized finance are impossible to do without a cryptocurrency wallet. An electronic wallet for storing cryptocurrency - what is it, and why is it needed?
A cryptocurrency wallet is an application, web service or hardware device that allows you to securely store cryptocurrency as well as NFTs. Such storage contains the user's public and private keys. Many wallets offer the option of signing data - this is necessary for the user to trigger smart contracts, and thus their active participation in the DeFi market and the use of other blockchain apps.
Public and private keys, in simple terms, are similar to a login and password. The public key, aka address, is a "login" that is visible to every participant and to which cryptocurrency can be sent. The private key is a "password" which should not be shared with anyone else.
Although we say "store cryptocurrency" it's not quite right. Cryptocurrencies store user keys that are needed to access the specific address that the funds are credited to. The funds themselves are stored in a blockchain, a publicly accessible decentralized ledger.
Types of cryptocurrency wallets
Before choosing a type of cryptocurrency wallet or even a specific app, it's worth thinking over: for what purpose will you be using the cryptocurrency wallet?
You may want to make trades with NFT collections - CryptoPunks, Bored Ape Yacht Club, Azuki, and others. Most popular Non-fungible Tokens run on the Ethereum blockchain and are available for buy/sell on the OpenSea marketplace. In this case, it's a good idea to use the MetaMask wallet, which supports the Ethereum blockchain and allows you to store both regular and non-fungible tokens. MetaMask is available as a browser extension as well as a mobile app for iOS/Android.
Your tastes may vary, and a completely different collection like Balloonsville 2.0, Degenerate Ape Academy, or DeGods may spark your interest. They are based on the Solana blockchain and presented in other markets. For example, on Magic Eden or Solanart. Since these are NFTs based on Solana technologies, you'll need a Solana-enabled wallet, such as Phantom or Sollet.
Non-fungible tokens is an integral part of the huge market of decentralized finance, or DeFi. You might just need a wallet to store, exchange and send cryptocurrency. Which cryptocurrency wallet to start with? An easy-to-use cryptocurrency wallet with exchange support of +200 coins and tokens, 5 networks (Ethereum, Tron, Binance, Solana, Fantom) is Broex.
Broex supports Ethereum, Solana, as well as Bitcoin, Litecoin, Chainlink, Fantom and other verified digital assets.
Software and hardware wallets
Check the mobile version of the wallet to see if it's available. The web version, while convenient for PCs, may not be suitable for smartphones.
The Coinbase exchange has its own app for smartphones. Broex has a web version of the wallet. The Broex mobile app for smartphones and pads with Android or iOS (Apple) supports all the usual features available to owners of desktops.
In addition to software wallets, there are hardware wallets. These are special devices in the form of a flash drive, typically not used for day-to-day business or regular trading, but serve as a reliable storage for large funds over an extended period of time.
Custodial and non-custodial wallets
The next thing to look at is whether a wallet is custodial or non-custodial. What is a custodial wallet in simple terms? Well, it's a wallet that has user data stored by a third party.
There are some pros to storing keys with a custodian. After losing access to the keys, a custodial crypto-wallet user can restore access to the account by verifying their identity.
Non-castodial wallets pose risks to the customer. By losing access to your wallet, you can say goodbye to it forever.
A custodial wallet has none of these threats and guarantees the safety of your assets.
A good example of a custodial service is the Broex cryptocurrency wallet. The advantages of Broex include:
- easy access via mobile app and website;
- adherence to legal standards, KYC/AML practices, EU registration;
- no hacking history, three-tier server architecture;
- ability to restore access to your accounts in case you lose your password without the risk of losing your savings.
Simple and multisignature wallets
Technically, wallets can be divided into simple and multisignature wallets. Multisignature (multisig) wallets allow a group of users to sign a single document. A multisig algorithm generates a single signature out of multiple signatures, which is usually more space-efficient than a set.
Finally, the quality of the wallet's customer service is something to pay attention to. Let's look at what Broex offers its users:
- + 200 coins and tokens, 5 major networks;
- adherence to KYC/AML rules;
- 24/7 technical support;
- active community in popular social networks;
- availability of withdrawal to cards and other usual services.
How to set up a crypto wallet?
Once you've chosen a suitable and convenient option, all you need to do is to download it and figure out how to set up a crypto wallet. Metamask is installed by downloading an extension for your browser or mobile software.
The setup of the wallet involves not only the creation of a password, but also the generation of a seed phrase.
A seed phrase is a set of 12-24 automatically generated words, which you can use in case you forget your password.
Seed phrases are recommended to be written down and stored securely. You can write it down on a piece of paper and keep it hidden in a safe place, or save it in an encrypted file, which will be stored on a separate flash drive.
Once the wallet has been set up and configured, all that is left is to top it up. This is often done with the help of exchanges or other services. Some wallets allow you to buy cryptocurrency in the wallet directly. Broex belongs to the latter type.
How to set up a crypto wallet with Broex.io?
Creating a Broex cryptocurrency wallet is familiar and convenient. Start by registering on the website - Broex wallet functionality is available directly from the website. Smartphone and tablet owners can download the Android version from Google Play or iOS version from Apple App Store.
To open the full functionality, it's recommended to go through a simplified KYC verification procedure. This gives legal guarantees to the client, as well as protects the community of traders from unscrupulous participants.
All you have to do is to top up your Broex wallet in the usual way. There's no need to go to third-party services to do it - you can deposit your account in the wallet.
Broex users have the following services available:
- depositing with Visa and MasterCard
- depositing with AdvCash
- instant deposit of funds;
- quick withdrawal of cryptocurrency to the desired address;
- a team that provides support with clear language on any cryptocurrency-related issue - all within 5 minutes.
USDT and USDC tokens are among the most understandable tokens for beginners. They are backed by real dollars, and their exchange rate corresponds to the U.S. currency rate. Swapping your funds for USDT and then buying other tokens for USDT at the right time is a pretty good way to avoid spending too much money when you deposit money from your bank card.
What can Broex users do with their tokens? All the necessary functionality is available:
Exchanging: the Broex wallet offers over 200 coins and tokens for exchange.
Sending: send money to friends and relatives.
Purchase: buy cryptocurrencies with bank cards or payment gateways.
Conclusion: withdraw cryptocurrency instantly.
Don't be afraid to start small. Put a modest amount of 30 euros into your wallet and try out the services in the real world - it's a great way to turn from a beginner into a more advanced cryptocurrency user.