How To Make an NFT Wallet
How to make a cryptocurrency or NFT Wallet
In order to buy cryptocurrencies and Non-Fungible Tokens (NFTs), you will need to set up a cryptocurrency wallet. Your crypto wallet will contain any crypto assets you own, and is also required in order to trade on NFT marketplaces like OpenSea.
Why would I need a crypto wallet?
A crypto wallet functions as an online depository where you can store crypto assets securely. Think of it as a savings account of sorts for your crypto assets.
Using a crypto wallet, you can make deposits, withdrawals and transfers.
Crypto wallets are also essential if you intend to buy or trade NFTs. In order to buy NFTs in NFT marketplaces like OpenSea, you will need to log in with a linked crypto wallet account. The price of transactions will then be charged directly your crypto wallet and deducted from your balance.
What kinds of crypto wallets are there?
There are several varieties of crypto wallets available, including software and hardware wallets, and custodial and non-custodial wallets. The most popular ones fall under one of these three categories:
– Hosted or custodial wallets – Your crypto is stored by a “host”, “custodian” or third party. The key benefit of this type of wallet is that forgetting your private key (or password) is not fatal as the provider can reset it for you.
– Non-hosted / self-custody / non-custodial wallets – As the name suggests, self-custody wallets let you hold your crypto directly without the help of a third party. The wallet functions simply as software that holds your crypto assets but does not host it on a server. The catch is that if you lose your private key, you lose access to your account. This option is suitable if you wish to partake in activities like yield farming or lending.
– Hardware wallets – A hardware wallet is a device that lets you store your crypto offline. It functions much like a thumb drive and offers greater security from hackers, but is relatively inconvenient. Like any piece of hardware, it must be kept safe and taken care of.
If your main activities are going to be buying and selling cryptocurrencies or NFTs, a hosted wallet would make the most sense, so that is what we will be focusing on here.
How to choose a crypto wallet?
Here are the main things you should be thinking about when selecting a wallet:
a) Laws and regulations in your country
When signing up for a crypto wallet, your first step is to choose a platform. It goes without saying that you should use a platform that is allowed to operate legally in your country of residence.
Your platform should protect you from fraud and hackers. If you are new to crypto, it would be safer to go with a reputable platform with a relatively long history and a proven track record of security.
c) Mobile-only or desktop version
Some crypto wallets are mobile-only, while others also have a desktop version. If you prefer browsing on your desktop, you will need one with the latter.
d) Purchase crypto with a credit card
Some wallets let you purchase crypto with a credit card, although you should always check exchange fees first. This is convenient if your main reason for buying crypto is to spend it on NFTs.
What is the best crypto wallet?
There is a dizzying array of crypto wallets out there. But if your main goal is to buy NFTs, you will need one that supports ETH and that is compatible with your NFT marketplaces of choice, including OpenSea, the most widely-used of them all.
Here are the best NFT wallets that are compatible with OpenSea.
– MetaMask – Most popular crypto wallet, with both desktop and mobile versions. Does not have its own crypto exchange but enables you to swap tokens directly on its platform.
– Coinbase Wallet – Very popular mobile-only wallet that can be used with or independently of the Coinbase crypto exchange platform.
– Gemini – Cryptocurrency exchange, wallet and custodian that lets you buy and store your crypto with one single account.
– Binance – Well-known cryptocurrency exchange and wallet. However, note that it does not serve certain areas such as Singapore.
– TrustWallet – One of the most popular non-custodial, mobile-only wallets.
How to set up a crypto wallet?
Once you’ve chosen a crypto platform, all you have to do is click on the sign up link, enter the required information and wait for your account to be approved. Wherever possible, opt for 2FA verification for better security.
Here’s how to set up a MetaMask wallet on your desktop.
1. Go to MetaMask.io, click [Download] > [Install MetaMask for Chrome] and add the extension to Chrome.
2. Click [Get Started] > [Create a Wallet].
3. Create a password and click [Create].
4. Write down your seed phrase. Make sure you never lose this. Make back-up copies if necessary.
5. Click [Confirm] > [All Done].
How to add Ethereum to your wallet
To purchase cryptocurrencies, sign up for an account with a cryptocurrency exchange. Once your account has been set up, you can use your debit or credit card to purchase Ethereum (ETH).
Once that is done, you can transfer the ETH to your crypto wallet. This is usually done by selecting the “Transfer” function on your crypto exchange platform’s software.
When the transfer has been completed, you should see an updated balance in your crypto wallet.
Let’s go through the process step-by-step, assuming you are buying ETH using popular platforms Coinbase, Gemini and Binance and then storing it in a MetaMask wallet.
1. Create an account
For all accounts, you will have to verify your email, phone number and identity (with a government-issued photo ID), and link a payment method.
Go to Coinbase.com or download the app for Android or iOS to create an account.
Go to Gemini.com to create an account.
Go to Binance.com or download the app for Android or iOS to create an account.
2. Buy ETH
Before you put down the money, make sure you are only spending what you can afford to lose. Cryptocurrency exchange rates can fluctuate dramatically, even within a single day. If you are buying ETH for the purpose of purchasing an NFT, it is recommended that you do so just before making the purchase.
Purchasing is easy if you have opted for a platform that lets you buy crypto via credit card. Simply link your credit card, click “buy”, enter the currency and amount you wish to purchase and you are good to go.
3. Send ETH to your wallet
Next, it’s time to send your ETH to your MetaMask wallet.
Open the MetaMask app and copy your public address. If you can’t find it, it’s the chain underneath your account name starting with 0x.
Now, go back to the Coinbase app, and click [Portfolio] > [Ethereum] > [ETH Wallet].
Key in the amount of ETH you want to send to MetaMask and click the send button.
When asked to select a recipient, paste your public address (copied previously from Metamask) in the “To” field and click [Preview send].
Confirm your transaction and you should find your ETH in your MetaMask wallet.
4. Linking a hardware wallet
If you are using a hardware wallet as backup, you can link it to MetaMask for an added layer of security.
Access MetaMask’s desktop app, select [Connect Hardware Wallet] and then follow the instructions directed by your hardware wallet provider.
Check out FIgment’s Citizenship NFT page here.