# How to create a crypto wallet By [BTC](https://paragraph.com/@btc-63) ยท 2022-08-24 --- 1. What is a crypto wallet? To store cryptocurrency, you need a cryptocurrency wallet. Roughly speaking, a cryptocurrency wallet is a program that stores your private and public cryptographic keys that you need to access the blockchain in your own name and transact with your cryptocurrency. The public key is similar to the wallet address, while the private key is used to unlock the public key. When someone wants to send you money, the other party will reassign their address to you. To do this, the sender needs access to their private key. Then, to unlock and use the newly received money, you have to enter the private key that corresponds to your public key. There is one very important thing to remember here: holding some cryptocurrency and storing it in a cryptocurrency wallet does not mean that you have money in your pocket. The wallet is really just two keys, the money is in the blockchain, and it never leaves the blockchain. When a transaction occurs, the only action that actually happens is to add the block used to describe the transaction to the blockchain. So how do you create your own wallet? (1) Software Wallets It is easy to buy, sell, store, trade and use. Software wallets exist in the form of apps that can be downloaded to your phone or computer for free. All you need to do is open the app and you are ready to trade bitcoins immediately. As software wallets are connected to the internet, there is a slight risk of hacking. Therefore, it is recommended that you do not store large amounts of bitcoins in your software wallet. While there have been a few isolated cases of software wallets being hacked, by far the greater risk is the loss of the "private key", which is like a password for your wallet. Therefore, it is vital to back up your wallet and adhere to best practices for password management. (2) Paper Wallets This is the simplest form of cryptocurrency wallet. A cryptocurrency account is simply your private key and public key, and the easiest way to store these two keys is to write them down on a piece of paper. This form of wallet is called a paper wallet, and is the type of wallet that people actually use in real life. However, paper wallets can only store cryptocurrency; to be used for payments, another type of wallet must be created and funds transferred from the paper wallet to the new wallet. Manually entering these long strings of keys is not an easy task, and for this reason QR codes have been introduced. To generate the key and convert it into a QR code, the user has to use special software. Advantages: security (unless the paper is destroyed or stolen) Disadvantages: difficult to use, limited access (3) Hardware Wallets Ideal for storing larger amounts of bitcoins over time. A hardware wallet, also known as a cold wallet, is a physical device built specifically to store cryptocurrencies. Hardware wallets offer the best security for your digital assets as they are isolated from the internet, making it impossible for hackers to break into your wallet. Hardware wallets are not ideal for frequent bitcoin transactions due to the longer access times required: instead, they can be used for long-term storage of bitcoins. As with software wallets, you will need to back up your private keys and follow best practices for password management. Pros: higher security than any type of cryptocurrency wallet Disadvantages: there is a cost; another device is required (4) Web wallets Web wallets are the easiest type to use and are also known as hot wallets. Hot wallets allow you to purchase a number of online services, so called because you can access your assets from any location using any device you want - all you need is an internet connection. To get a hot wallet, you simply register or install some software on the service's website, and the service will then provide an interface to manage your crypto funds. Centralised cryptocurrency exchanges are a popular place for many newcomers to buy their first bitcoin, as they have a very simple buying process. It's like opening a trading account. However, cryptocurrency exchanges have control over the funds in your account. Not only does this put you at risk of the exchange being hacked or going out of business, it also means you have to get permission from the exchange to withdraw your coins and have to wait longer and pay higher transaction fees. We recommend only using a cryptocurrency exchange for trading and not for storing your bitcoins. Pros: Easy to use, accessible at any time Disadvantages: less secure; requires a third party 2. The above is just the basics of cryptocurrencies, which relate to whether or not we can make money with cryptocurrencies. In addition to increasing your income through scientific methods, you should also find ways to save money. The handling fees are small, but they must not be ignored. I have calculated that with frequent transactions and long trading hours, the accumulation of fees can add up to more than 10,000 U a year. Next I will introduce a few common ways to reduce fees on large trading platforms. (1) Lowering Binance's fees Binance is currently the world's largest digital currency exchange, and you must sign up for Binance if you want to speculate on coins. The transaction fee is deducted from the assets received. For example, if you buy Ethereum/USDT, the fee is paid in Ethereum. If you sell Ethereum/USDT, the commission is paid in USDT. Example. You place an order for 10Ethereum at a price of USD3,452.55 per share. Transaction fee = 10Ethereum_0.1% = 0.01Ethereum Or you place an order to sell 10Ethereum at 3,452.55 USDT per share. Transaction fee = (10Ethereum_3,452.55USDT)\*0.1% = 34.5255USDT What many people do not know is that the Binance transaction fee can also be reduced. If you want to reduce your Binance trading fees, you must use the invitation link below or use the invitation code "Q022W7SC" to register. [https://accounts.binance.com/en/register?ref=Q022W7SC](https://accounts.binance.com/en/register?ref=Q022W7SC) ![](https://storage.googleapis.com/papyrus_images/667e39208611aea7d2fd22c499d4eddc6a5929ef0df3fc18a5386a953e7d8286.png) (2) Reducing OKX fees OKX is a professional digital currency trading platform loved by many users, and its transaction fees can be reduced. Depending on the volume of transactions, OKX divides its users into two levels: normal and professional. Ordinary users are graded according to their OKB positions, while professional users are graded according to their trading volume and asset size. The different tiers determine the trading fees for the next trading day. When calculating the fee levels, if the coin trading volume, total trading volume of delivery and perpetual contracts (USDT delivery contract, coin-based delivery contract, USDT perpetual contract, coin-based perpetual contract), option contract trading volume, and asset volume meet the conditions of different fee levels, users will enjoy the fee discount of the highest level. First method: OKX has an official maximum savings rate of 20%. Use the link below to register with OKX and save 20% on fees. [https://www.ouyi.business/join/BTC1ETH](https://www.ouyi.business/join/BTC1ETH) Second method: Open the OKX website and enter "BTC1ETH" in the "Invitation Code" on the registration page to see the cashback percentage: 20% at the bottom. Be sure to enter this invitation code, otherwise you can not get 20% cashback percentage. (3) Reduce FTX fees FTX is currently a very fast-growing, contract players more exchange, you must register FTX if you play the contract. if you want to reduce the FTX transaction fees, you must use the following invitation link to register. [https://ftx.com/referrals#a=121031692](https://ftx.com/referrals#a=121031692) 3, trading road is long, together with the forward Want to know more about how to reduce the commission? telegram: btcethcool We have set up a community dedicated to researching trading, add telegram friends to pull you into the community. --- *Originally published on [BTC](https://paragraph.com/@btc-63/how-to-create-a-crypto-wallet)*