Cryptocurrency has become the fastest-growing digital currency globally. In this year itself, more people have embraced these tokens and currencies than ever before. However, the first step to using this currency is to have a crypto wallet. 

It has now become very convenient and simple to start your crypto wallet to deposit and hold your crypto gains securely. This article will walk through the process in an easy way to make one for yourself without any hassle or fees.

A crypto wallet holds private keys to access digital coins. Without a wallet, one cannot use it and store currency securely.

There are two types: hot wallets (online) and cold wallets (offline). Each wallet serves a different purpose. Hot wallets are fast and convenient, while cold wallets have enhanced security and provide protection from online threats.

Several options are available in 2025, each serving a different purpose.

Software wallets are complementary and convenient for frequent use. Hardware wallets, on the other hand, come with a cost and are best suited for long-term holdings.

A 2024 report shows that over 65% of crypto users prefer using software wallets for daily transactions, while 35% opt for hardware for storing larger holdings.

You can download an app or software by visiting an official website or app store, but be cautious about fake apps.

Install the app on a phone or desktop. Most apps ask for permissions and grant only what’s required.

Once installed, open the wallet and start the setup process.

Select “Create New Wallet.” The app will show a recovery phrase of 12 or 24 words to restore a wallet in case the device is lost.

Note that on paper and store it in a safe place. Do not save it online or in an email.

A lost recovery phase leads to a loss of crypto. 

Most people lose crypto due to lost recovery phrases. A study reported that approximately 20% of all Bitcoins are permanently inaccessible due to forgotten wallet details.

After creating a new wallet, the next step is to set a unique and strong password. Combining letters, symbols, and numbers helps create a strong password.

This password is for daily access. Some wallets also support PIN codes or biometrics, activating them for extra protection.

Once the wallet is successfully set up, crypto can be added.

Tap “Receive” in the wallet to generate a wallet address. Use this address to send coins from a crypto exchange. The transfer takes some time.

It is always advisable to back up the recovery phrase and store it offline. If the wallet permits it, activate two-factor authentication for security reasons. 

Avoid sharing the recovery phrase, as the employees working in the wallet companies will never ask for it.

• Never share passwords or seed phrases.

Setting up a crypto wallet has now become simpler and more convenient. Modern crypto wallets are designed with user-friendly features and strong protection; setup takes only a few minutes.

A wallet is mandatory for Bitcoin, Ethereum, or other coins. Many people are managing their funds with the rise of crypto users in India and globally. It is suggested to the users that they ensure that whatever wallet they choose is aligned with their choice of cryptocurrency and the amount of their holdings.