Auto Draft is an area that you can safely store your cryptocurrency. There are many different types of crypto wallets. However, the most popular ones are hosted wallets, non-custodial wallets, and hardware wallets.

Which one is best depends on your needs and how much security you want.

Hosted wallets
Hosted wallets are the easiest and most popular cryptocurrency wallets. Your cryptocurrency is stored in a hosted wallet whenever you purchase it through Coinbase. It is called host since it allows you to store your cryptocurrency, much like a bank stores the money in a savings or checking account. Some people have reported to lose their keys or their USB wallets. But with an online wallet, you don’t have to worry about that.

The best thing about keeping your crypto with a hosted account is that you don’t need to forget your password and you’ll never lose it. One disadvantage of a hosted account is that you don’t have access to all crypto that is available. Hosted wallets will soon support additional features.

How to create your hosted wallet

Choose a trusted platform. Security, user-friendliness, conformity with financial regulations, and the law should be the top priorities.

Create a new account. Provide your personal information and choose a secure password. It is also possible to use two-step verification, commonly referred to as 2FA to provide an extra layer of security.

Purchase or transfer crypto. The majority of cryptocurrency exchanges and platforms let users purchase crypto with credit or debit card. You can transfer crypto that you already have to your new hosted account for secure storage.

Self-custody wallets
You are in complete control of your cryptocurrency with self-custody wallets such as Coinbase Wallet. Non-custodial vaults don’t depend on any third party or “custodian” to keep your cryptocurrency safe. They offer the software to store your crypto however, you must remember and protect your password. If you forget or lose your password — which is often known as”private key” or “private key” or “seed phrase” — you’ll have no way to gain access to your crypto. If someone else has access to your private key they’ll have full access to all your accounts.

Why not get a non-custodial cryptocurrency wallet? A non-custodial wallet allows you to have complete control over your cryptocurrency. You also have access to advanced crypto transactions, such as yield farming as well as borrowing. Hosted wallets are the best for those looking to buy, send, and receive crypto.

How do you set up a non custodial wallet

Download a wallet application. Popular options include Coinbase Wallet.

Register your account. Unlike a hosted wallet, you do not need to provide any personal details in order to set up a non-custodial bank account. Not even an email address.

It’s essential to keep your private key private. It’s presented in a random 12-word phrase. It is recommended to keep it safe. This 12-word sentence will stop you from having access to your crypto.

Include crypto in your account. It isn’t always possible to buy cryptocurrency using traditional currencies such as euros or US dollars. To do this, you will need a transfer of crypto to your non custodial wallet.

Coinbase customers can select either a hosted wallet or a self-custodial wallet. Hosted wallets are available through the Coinbase app. It allows you to sell and purchase crypto. It is also possible to install the separate Coinbase Wallet app to take advantages of a non-custodial wallet. Both wallets are utilized by a small portion of our clients, allowing users to purchase traditional currency as well as participate in advanced crypto activities. You don’t have to spend a dime to use either of the wallets.

Hardware wallets
Hardware wallets are tangible device that’s roughly the size of the size of a thumb drive, which holds the private keys to your crypto offline. They are not often used due to their complexity and the high price. However, they have certain advantages. They are able to safeguard your crypto in the scenario of a cyber-attack. These wallets are more complicated than software wallets and can be difficult to utilize. They can also cost anywhere from $100 to $1000.

How to setup your hardware wallet

Buy hardware. Trezor, Ledger, and Ledger.

Download the software. Each company has its own application. To set up your wallet, you will have to follow these steps. Download the software from the official website of the company and follow the instructions to create your wallet.

Transfer cryptocurrency to your account. Unlike a non-custodial account, a hardware wallet won’t let you buy crypto using conventional currencies (like US Dollars or Euros). You’ll require crypto in order to transfer funds to your wallet.

There are a variety of options available for storing your crypto, just like you can store cash in a bank account or safe. When you store crypto, you can choose to keep it simple by using an online wallet. However, you can take full control of your crypto by using an uncustodial account.