Blockchain technology took the world by storm in the past couple of years, with cryptocurrency increasingly becoming a popular alternative to conventional currency. Instead of maintaining a bank account, you can carry out financial transactions through your online ethereum wallet with utmost security, discretion, and accessibility. We have developed the following step-by-step tutorial to help you set up your own cryptocurrency wallet.
Step #1 Understand Why You Need an Online Ethereum Wallet
First, you need to understand what a cryptocurrency wallet is so that you can realize why you need one. Essentially, a cryptocurrency wallet such as an online ethereum wallet is secure, digital wallet which can be used to send, receive or store block chain technology based currencies such as Bitcoin and Ethereum. If you wish to use cryptocurrency, you must create an online cryptocurrency wallet first.
Step #2 How Does an Online Cryptocurrency Wallet Work?
You might wonder if cryptocurrency wallets work the same way as a traditional pocket wallet – that is not the case. Digital wallets do not ‘store’ currency per say, as they essentially a software which record transactions stored on a blockchain. It records private and public keys, allowing you to interact with different blockchains to enable sending or receiving payments. The private key stored within your online ethereum wallet is matched with the public address to increase the balance within your digital wallet and subsequently decrease from the sender’s wallet.
Step #3 Finding the Right Type of Cryptocurrency Wallet
There are multiple different types of digital wallets, such as the ethereum online wallet, which offer different ways to store and access your digital currencies. Digital wallets can be categorized into three different categories – software, hardware and paper. Software-based wallets can either be used as a desktop, online or on a mobile device. In desktop wallet, the bitcoin wallet software is installed on a computer and they can only be accessed on that device only. On the other hand, online wallets provide greater accessibility from around the world, as they are stored on the cloud. Hardware and paper wallets provide greater security but limited accessibility which is why online wallets are more popular.
Step #4 Learning about Transaction Fees
The greatest thing about dealing in crypto currencies is the freedom to control the fees you pay and avoid the unnecessary regulation of your funds. Which is there are no set transaction fees when it comes to sending or receiving money to your online ethereum wallet. Generally, the crypto bank transaction fees are a minute fraction of what a traditional bank charges you – at times, there are no fees at all. You can choose your own fees to increase the priority of your transaction because in many cases if it may take days for your transactions to be serviced if you haven’t decided to pay a reasonable fees.
Step #5 Anonymity and Security
Cryptocurrency digital wallets are generally anonymous providing you with utmost security and privacy to conduct financial transactions to people around the world. You can use an online ethereum wallet to make or receive payments in a secure manner. Lastly, while your identity can be traced through various ways, you can make your cryptocurrency transactions completely anonymous if you want to.