2.1.4. Setting up your Wallet
Now that you understand the main types of crypto wallets and common threats against them, it’s time to set one up and use it for real.
This article will guide you through setting up three widely used wallets across different categories:
Phantom, a non-custodial software wallet
Trezor, a non-custodial hardware wallet
Coinbase, a custodial wallet managed by an exchange
The goal is to help you get started with the wallet that best fits your needs and begin experimenting with them to familiarize yourself with how they work.
a) Non-Custodial Software Wallets
For this section, I will be showing you how to set up a Phantom wallet, one of the most used non-custodial wallets on the market.
Refer to Module 2.1.3 for my quick review on this wallet.
Here are the step-by-step instruction for desktop, which are essentially identical to mobile setup:
Choose your browser.
Follow the instructions and wait for Phantom to download. Once it's installed, you should get a notifications saying so and a new tab should automatically open with instructions.
At this point, you can either
-> 'Create new wallet' (press if this is your first wallet) OR
-> 'I already have a wallet'. If you were ever to lose access to a device with your wallet but you still have your seed phrase saved, you would be able to gain back control by clicking here.
After pressing 'Create new wallet', you can either use an email address or create a seed phrase wallet, I recommend the seed phrase option.
After choosing 'Create a seed phrase wallet', you will be prompted to create a local password.
This password will only be used to unlock the wallet from the device you are setting it up on. If someone gained access to your seed phrase, they would not need this password to access your wallet.
Next, you will receive your unique 12 word seed phrase, also called 'Recovery Phrase'.
Write your seed phrase down on paper (not on your phone or computer) and keep it somewhere safe, like a fireproof safe or a secure place at home.
If you lose your seed phrase and your wallet gets wiped or your device is lost, there’s no password reset button. You’ll lose access to your crypto forever.
Refer back to Module 2.1.2 for a more complete explanation.
Create your wallet username.
Ready to go! You have now completed the setup process and can access the wallet through the extensions tab.
If you are looking for a tutorial on how to use it efficiently, we will be making a full article on it in 'Module 3: Operating on the Blockchain'
b) Non-custodial Hardware Wallets
For hardware wallets, I'll be covering the Trezor Safe 3, the most popular Trezor model.
Refer to Module 2.1.3. for my short review on Trezor.
Here are the step-by-step instruction for desktop, which are essentially identical to mobile setup:
Go to the Trezor website and buy whichever model is best for your needs and price point. We will be covering the Trezor Safe 3.
Take the Trezor device from the box and remove the tamper-evident holographic film from the device
Download and install Trezor Suite, then connect your Trezor to your computer with a USB cable(included in the box) and begin setup.
The setups consists of 4 steps
-> Device: Install the latest firmware and verify that the device is legitimate. In this step you will also be given the choice to go through a tutorial on how to use the device.
Throughout the setup process (and during future use), you will need to physically press the buttons on your Trezor device to confirm important actions.
This is a security feature designed to ensure that only someone with the actual device in hand can approve important operations, like connecting to apps, sending funds, or changing security settings.
-> Wallet: Here you have 2 options, 'Create new wallet' or 'Recover an existing one using a seedphrase'.
For this guide we are going to create a new wallet and select the standard 12 word seed phrase option.
Next, you will be prompted to confirm the wallet creation from the device, which will allow you start the backup process.
After pressing 'Continue to backup', you will again be prompted to confirm this action from the device.
The 12 word seed phrase will then appear on the device, not the computer.
Open Trezor's paper recovery sheet, or use any piece of paper, and carefully write down all the words in order.
The device will then do a quick "quiz" to verify you have saved the seed phrase securely.
Refer to Module 2.1.2 for a full walkthrough on seed phrase management.
-> PIN: Now it's time to set your device pin, a 4-50 number code to unlock the device upon connection.
Make sure to also write this PIN down in your recovery sheet.
-> Coins: In this last stage, you will select which coins/chains you'll be interacting with, so it can show you only what’s relevant and keep things simple.
You can always add or remove them later after setup.
Setup complete! You are now able to explore and use Trezor Suite.
If you are looking for a tutorial on how to use it efficiently, we will be making a full article on it in 'Module 3: Operating on the Blockchain'
c) Custodial Software Wallets(CEX)
Lastly, for custodial wallets, I want to walk you through how to set up a Coinbase account, one of the most beginner-friendly centralized exchanges available.
Issue is, this process is different depending on your country of residence.
I also already have a Coinbase account set up, which means I can't walk you through the setup myself, so here is a tutorial video made by Coinbase themselves:
This Coinbase article provides detailed setup instructions, including links to country-specific guides, and offers a contact page for additional support if needed.
Now that your wallet is set up, feel free to start experimenting with them to get used to the user interface!
In 'Module 3: Operating on the Blockchain', we will guide you on how to effectively use your wallet, interact with dApps, explore blockchain networks, and more.
Stay safe and Stay Spicy!🌶️
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