{"id":139248,"date":"2023-12-14T15:51:01","date_gmt":"2023-12-14T15:51:01","guid":{"rendered":"https:\/\/www.techopedia.com\/?post_type=how-to&#038;p=139248"},"modified":"2024-03-12T12:31:22","modified_gmt":"2024-03-12T12:31:22","slug":"how-to-use-a-crypto-wallet-in-cur_year","status":"publish","type":"how-to","link":"https:\/\/www.techopedia.com\/how-to\/how-to-use-a-crypto-wallet","title":{"rendered":"How to Use a Crypto Wallet in 2025"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Managing a <a href=\"https:\/\/www.techopedia.com\/definition\/cryptocurrency-wallet\">crypto wallet<\/a> is an integral part of being a <a href=\"https:\/\/www.techopedia.com\/definition\/27531\/cryptocurrency\">cryptocurrency<\/a> user. It is more than just a simple payment app. It is your crypto bank, and you are in charge of managing and securing it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Whether you&#8217;re new to the world of cryptocurrencies or seeking a refresher on wallet management, understanding <\/span><span style=\"font-weight: 400;\">how to use a cryptocurrency wallet<\/span><span style=\"font-weight: 400;\"> is essential. This guide aims to demystify the process and equip you with the necessary knowledge to navigate the complexities of <\/span><span style=\"font-weight: 400;\">cryptocurrency wallets <\/span><span style=\"font-weight: 400;\">effectively.<\/span><\/p>\n<h2><span id=\"crypto_wallets_explained\">Crypto Wallets Explained<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A <\/span><span style=\"font-weight: 400;\">cryptocurrency wallet<\/span><span style=\"font-weight: 400;\"> is a <a href=\"https:\/\/www.techopedia.com\/definition\/4356\/software\">software<\/a> application or a <a href=\"https:\/\/www.techopedia.com\/definition\/2210\/hardware-hw\">hardware<\/a> device that can manage, send and receive cryptocurrencies.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Every crypto wallet has a pair of <a href=\"https:\/\/www.techopedia.com\/definition\/24749\/cryptographic-key\">cryptographic keys<\/a> to encrypt and decrypt data, called public and <a href=\"https:\/\/www.techopedia.com\/definition\/16135\/private-key\">private keys<\/a>.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.techopedia.com\/definition\/9021\/public-key-cryptography-pkc\">Public keys<\/a> are like your bank account numbers \u2013 they are used to receive cryptocurrencies.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Private keys can be thought of as your debit\/credit card PIN, used to access the cryptocurrencies in a crypto wallet.<\/span><\/li>\n<\/ul>\n<h2><span id=\"how_do_crypto_wallets_work\">How Do Crypto Wallets Work?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Technically speaking, a cryptocurrency wallet does not actually \u201cstore\u201d crypto <a href=\"https:\/\/www.techopedia.com\/definition\/4140\/token\">tokens<\/a>. In reality, your cryptocurrencies, as well as all other cryptocurrencies, exist on the <a href=\"https:\/\/www.techopedia.com\/definition\/30246\/blockchain\">blockchain<\/a>.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A crypto wallet stores the private keys. These keys prove your ownership of the crypto tokens and allow you to send them to another address or use them on <a href=\"https:\/\/www.techopedia.com\/definition\/33409\/decentralized-application-dapp\">decentralized applications<\/a> (DApps).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To transfer crypto to another wallet, the sender enters the recipient\u2019s public address, chooses how much to send, and initiates the transaction. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">They need to have enough funds available in the wallet to cover the amount plus the fee for processing the transaction, known as the <a href=\"https:\/\/www.techopedia.com\/definition\/gas-fee-ethereum\">gas fee<\/a>.<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-139556 size-large\" src=\"https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/How-do-Crypto-Wallets-Work-496x1024.jpeg\" alt=\"How do Crypto Wallets Work?\" width=\"496\" height=\"1024\" srcset=\"https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/How-do-Crypto-Wallets-Work-496x1024.jpeg 496w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/How-do-Crypto-Wallets-Work-145x300.jpeg 145w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/How-do-Crypto-Wallets-Work-768x1586.jpeg 768w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/How-do-Crypto-Wallets-Work-744x1536.jpeg 744w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/How-do-Crypto-Wallets-Work.jpeg 828w\" sizes=\"(max-width: 496px) 100vw, 496px\" \/><\/p>\n<h2><span id=\"types_of_crypto_wallets\">Types of Crypto Wallets<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Choosing the right type of cryptocurrency wallet is an important step if you are new to the world of cryptocurrencies. Let\u2019s go through them.<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-139512\" src=\"https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/4-Types-os-Crypto-Wallets.jpg\" alt=\"4 Types os Crypto Wallets\" width=\"1390\" height=\"963\" srcset=\"https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/4-Types-os-Crypto-Wallets.jpg 1390w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/4-Types-os-Crypto-Wallets-300x208.jpg 300w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/4-Types-os-Crypto-Wallets-1024x709.jpg 1024w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/4-Types-os-Crypto-Wallets-768x532.jpg 768w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/4-Types-os-Crypto-Wallets-1200x831.jpg 1200w\" sizes=\"(max-width: 1390px) 100vw, 1390px\" \/><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><b>Hardware Wallets<\/b>:<span style=\"font-weight: 400;\">\u00a0These are physical devices that securely store private keys offline. They are considered the most secure <\/span><span style=\"font-weight: 400;\">crypto wallet <\/span><span style=\"font-weight: 400;\">option. Hardware wallets are also known as <a href=\"https:\/\/www.techopedia.com\/cryptocurrency\/best-cold-wallets\">cold wallets<\/a>.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Software Wallets<\/b><span style=\"font-weight: 400;\">: These are software applications that can be downloaded on computers or <a href=\"https:\/\/www.techopedia.com\/definition\/23586\/mobile-device\">mobile devices<\/a>. They are convenient, free-to-use and feature-packed. Software wallets are known as <a href=\"https:\/\/www.techopedia.com\/cryptocurrency\/best-hot-wallets\">hot wallets<\/a> because they are always connected to the <a href=\"https:\/\/www.techopedia.com\/definition\/2419\/internet\">internet<\/a>, which makes them less secure compared to hardware wallets.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Paper Wallets<\/b><span style=\"font-weight: 400;\">: The use of paper wallets refers to writing down your private keys on paper. This method removes the <a href=\"https:\/\/www.techopedia.com\/definition\/26361\/hacking\">risk of hacking<\/a> but is prone to mishandling.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Multi-Signature Wallets<\/b><span style=\"font-weight: 400;\">: These are advanced wallets that require two or more signatures to authorize transactions. <a href=\"https:\/\/www.techopedia.com\/definition\/multisignature-miltisig-wallet\">Multisig wallets<\/a> are typically used by companies, <a href=\"https:\/\/www.techopedia.com\/definition\/32500\/decentralized-autonomous-organization-dao\">decentralized autonomous organizations<\/a> (DAO), and escrow services to add an extra layer of protection by requiring multiple approvals.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Software wallets are best suited for beginners to learn <\/span><span style=\"font-weight: 400;\">how to use a crypto wallet<\/span><span style=\"font-weight: 400;\">. These wallets are not only easy-to-use but they also come with browser features for you to explore DApps on the internet. Once you get the hang of it, you can consider using a hardware wallet to safeguard your crypto holdings.<\/span><\/p>\n<h2><span id=\"how_to_set_up_a_cryptocurrency_wallet\">How to Set Up a Cryptocurrency Wallet<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In this section we will focus on how to set up software wallets on your phone and on your laptop. We chose to take <a href=\"https:\/\/www.techopedia.com\/cryptocurrency\/metamask-wallet-review\">MetaMask<\/a> as our example because it is the most popular cryptocurrency wallet in the world.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Learn <\/span><span style=\"font-weight: 400;\">how to get a crypto wallet<\/span><span style=\"font-weight: 400;\"> and <\/span><span style=\"font-weight: 400;\">how to create one <\/span><span style=\"font-weight: 400;\">by following these simple steps below.<\/span><\/p>\n<h3>How to Set Up a Mobile Crypto Wallet<\/h3>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">You can find crypto wallets in the App Store on your Apple device and on your Google Play store on your Android device.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Search for the cryptocurrency wallet you want to download. For this example, we choose \u201cMetaMask.\u201d<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Open the app and click on \u201cGet Started.\u201d<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Click on \u201cCreate a new wallet\u201d and agree to the wallet\u2019s terms and conditions.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">You will be prompted to <a href=\"https:\/\/www.techopedia.com\/how-to\/how-to-create-a-strong-password\">create a password<\/a> that will be used to access your crypto wallet. Later, you can set up Face ID or Touch ID authentication to access your wallet seamlessly.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">After you click on \u201cSecure my wallet,\u201d you will find a 12-word <\/span><a href=\"https:\/\/www.techopedia.com\/definition\/seed-phrase\"><span style=\"font-weight: 400;\">secret recovery phrase<\/span><\/a><span style=\"font-weight: 400;\"> (SRP).<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Write down the 12-word SRP in your diary or store it on your device or <a href=\"https:\/\/www.techopedia.com\/definition\/26514\/cloud\">cloud<\/a>. This is the most important step when <\/span><span style=\"font-weight: 400;\">creating a crypto wallet.<\/span><span style=\"font-weight: 400;\"> You will need SRP to recover your wallet in case you lose your phone or delete the mobile application.<\/span><\/li>\n<\/ol>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-139557 size-large\" src=\"https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/Secret-Recovery-Phrase-540x1024.png\" alt=\"Writing the Secret Recovery Phrase in MetaMask Wallet\" width=\"540\" height=\"1024\" srcset=\"https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/Secret-Recovery-Phrase-540x1024.png 540w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/Secret-Recovery-Phrase-158x300.png 158w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/Secret-Recovery-Phrase-768x1457.png 768w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/Secret-Recovery-Phrase-810x1536.png 810w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/Secret-Recovery-Phrase.png 832w\" sizes=\"(max-width: 540px) 100vw, 540px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0 \u00a0 8. In the next step, you will have to confirm the 12-word secret recovery phrase. Enter the words in the correct order.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0 9. Click \u201cDone\u201d. Your <\/span><span style=\"font-weight: 400;\">cryptocurrency wallet<\/span><span style=\"font-weight: 400;\"> is ready to use.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Most mobile crypto wallets require you to follow similar steps when setting them up. Remember, it is crucial that you safeguard the SRP in your wallet. If you lose the SRP, you will not be able to recover your wallet. If someone gains knowledge of the SRP, they will be able to access funds in the cryptocurrency wallet.<\/span><\/p>\n<h3>How to Set Up a Desktop Crypto Wallet<\/h3>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">First, check whether your browser can support the desktop crypto wallet you want to download. As MetaMask is the wallet of choice in this example, we see that it is supported on <a href=\"https:\/\/www.techopedia.com\/definition\/30048\/google-chrome\">Chrome<\/a>, Firefox, Brave, Edge, and Opera. In such a case, a Macbook user can download any one of these browsers, as MetaMask is not available on Safari.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Visit the website of the desktop crypto wallet you want to download. Double-check whether you are on a legitimate website. In this example, we visited <a href=\"https:\/\/metamask.io\/\" target=\"_blank\">MetaMask&#8217;s official website<\/a>.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Find the download page and hit \u201cInstall MetaMask.\u201d<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Chrome users will be directed to the Chrome web store. Download the MetaMask browser extension by clicking \u201cAdd to Chrome.\u201d<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Give the application the required permissions and click \u201cAdd extension.\u201d<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Once the download is complete, you will be required to follow the same steps mentioned in the mobile crypto wallet setup example above.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Create a strong password that will be used to log in and access your desktop wallet.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Again, it is crucial to store your SRP securely.<\/span><\/li>\n<\/ol>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-139558 size-large\" src=\"https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/Create-Password-995x1024.png\" alt=\"Create Password on MetaMask\" width=\"580\" height=\"597\" srcset=\"https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/Create-Password-995x1024.png 995w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/Create-Password-292x300.png 292w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/Create-Password-768x790.png 768w, https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/Create-Password.png 1032w\" sizes=\"(max-width: 580px) 100vw, 580px\" \/><\/p>\n<h2><span id=\"best_practices_for_securing_a_crypto_wallet\">Best Practices for Securing a Crypto Wallet<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Creating a crypto wallet is fairly easy. Securing it \u2013 that is where things get tricky. In a world full of <a href=\"https:\/\/www.techopedia.com\/10-most-common-cryptocurrency-scams\">crypto scammers<\/a> and hackers, it is crucial to learn the best practices to secure your cryptocurrency wallet. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">We have created a concise list just for that:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">We will repeat this again \u2013 the SRP to your wallet is the most important piece of information that you have to safeguard. SRP gives access to your wallet. You will need the SRP to recover your wallet in case you lose your phone\/laptop or delete the application by mistake. Writing down your SRP in your diary is considered the best way to secure it. You can choose to save the SRP on your device or on the cloud, however, devices and the cloud are vulnerable to hacks.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Create a strong password with alphanumeric characters for your cryptocurrency wallet. It is best not to use your birth date or names that can be guessed by an attacker.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Diversify your holdings across different wallets.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Keep your wallet application up to date. Developers regularly add patches and upgrades to keep the wallets safe against new <a href=\"https:\/\/www.techopedia.com\/definition\/25263\/cyberthreat\">threats<\/a>.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Always double-check the transaction before signing it.<\/span><\/li>\n<li style=\"font-weight: 400;\">Double-check the website you are entering.<\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Never click on random links on <a href=\"https:\/\/www.techopedia.com\/definition\/4837\/social-media\">social media<\/a> and emails.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Do not fall for too good-to-be-true deals. There are scammers who lure victims in by offering freebies and insane returns.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Never post sensitive information, wallet addresses, email addresses, and other personal information on social media. Scammers will use them against you.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Use <a href=\"https:\/\/www.techopedia.com\/definition\/13699\/twofactor-authentication\">two-factor authentication<\/a> whenever possible. It adds an extra layer of security which is always helpful.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Avoid public <a href=\"https:\/\/www.techopedia.com\/definition\/10035\/wireless-fidelity-wi-fi\">Wi-Fi networks<\/a>.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Use a burner wallet for <a href=\"https:\/\/www.techopedia.com\/definition\/airdrop\">airdrops<\/a>. Even the <a href=\"https:\/\/www.techopedia.com\/cryptocurrency\/best-crypto-airdrops\">most prominent airdrop campaigns<\/a> are attractive but can be risky as scammers use them to lure victims in.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Use cold hardware wallets for HODLing. Hardware wallets are expensive and have limited features, but they are the most secure way to safeguard your crypto savings.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Use multisig wallets for team and company accounts.<\/span><\/li>\n<\/ul>\n<h2><span id=\"transacting_with_a_crypto_wallet\">Transacting With a Crypto Wallet<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Now that we have learned how to keep your<\/span><span style=\"font-weight: 400;\"> cryptocurrency wallet<\/span><span style=\"font-weight: 400;\"> safe, let\u2019s get to the fun part \u2013 transactions and using wallets on DApps.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><div class=\"su-table su-table-responsive su-table-alternate\"><\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Aspect<\/b><\/td>\n<td><b>Description<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>Sending Cryptos<\/b><\/td>\n<td><span style=\"font-weight: 400\">To send cryptocurrencies to another wallet, you will have to select the token you want to send and add the recipient\u2019s wallet address. Make sure that the recipient&#8217;s wallet is compatible with the blockchain you are transacting on.<\/span><\/p>\n<p><span style=\"font-weight: 400\">For example, an<\/span><a href=\"https:\/\/www.techopedia.com\/definition\/32571\/ethereum-cryptocurrency\"> <span style=\"font-weight: 400\">Ethereum<\/span><\/a><span style=\"font-weight: 400\"> wallet address cannot accept Bitcoin. Double-check the transaction before signing on it.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Receiving Cryptos<\/b><\/td>\n<td><span style=\"font-weight: 400\">You will need your wallet address to receive cryptocurrencies. It is best if you copy and paste the wallet address directly from your wallet application instead of typing it. You can even use<\/span><a href=\"https:\/\/www.techopedia.com\/definition\/2915\/quick-response-code-qr-code\"> <span style=\"font-weight: 400\">QR codes<\/span><\/a><span style=\"font-weight: 400\"> to send and receive cryptos.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Blockchains<\/b><\/td>\n<td><span style=\"font-weight: 400\">A crypto wallet can access multiple <\/span><a href=\"https:\/\/www.techopedia.com\/12-best-blockchain-protocols-to-know\"><span style=\"font-weight: 400\">blockchain networks<\/span><\/a><span style=\"font-weight: 400\">. The number of blockchains available to you will vary and will depend on your crypto wallet. Always check that you are on the right blockchain before performing transactions.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Gas Fees<\/b><\/td>\n<td><span style=\"font-weight: 400\">Each time you perform a transaction, you will have to pay transaction fees which are commonly referred to as gas fees.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Ensure that you have enough gas fees so that the transactions go through. You will encounter times when the gas fees will be higher than normal. You can choose to wait for them to decrease as network traffic decreases. You can also limit the amount of gas fees you want to pay through your wallet application.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Transaction History<\/b><\/td>\n<td><span style=\"font-weight: 400\">You can check the history of transactions on your wallet app. The historical transaction data will show you which <\/span><a href=\"https:\/\/www.techopedia.com\/definition\/32499\/smart-contract\"><span style=\"font-weight: 400\">smart contract<\/span><\/a><span style=\"font-weight: 400\"> you interacted with, the addresses you sent cryptos to, gas fees paid, and blockchain transaction details.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>DeFi<\/b><\/td>\n<td><span style=\"font-weight: 400\">Cryptocurrency wallets are the gateways into the<\/span><a href=\"https:\/\/www.techopedia.com\/definition\/34630\/decentralized-finance-defi\"> <span style=\"font-weight: 400\">decentralized finance<\/span><\/a><span style=\"font-weight: 400\"> (DeFi) world. The DeFi website requires users to log in with crypto wallets. You can <\/span><a href=\"https:\/\/www.techopedia.com\/definition\/staking-blockchain-staking\"><span style=\"font-weight: 400\">stake<\/span><\/a><span style=\"font-weight: 400\">, lend, and borrow cryptocurrencies using your crypto wallet.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>NFTs<\/b><\/td>\n<td><span style=\"font-weight: 400\">Most software cryptocurrency wallets come with<\/span><a href=\"https:\/\/www.techopedia.com\/definition\/34529\/non-fungible-token-nft\"> <span style=\"font-weight: 400\">NFT<\/span><\/a><span style=\"font-weight: 400\">-compatible features. You can store, view, buy, and sell NFTs directly from your crypto wallets.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400\"><\/div><\/span><\/p>\n<h2><span id=\"common_wallet_scams_and_security_threats_you_should_be_aware_of\">Common Wallet Scams and Security Threats You Should Be Aware of<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It is important to be one step ahead of the threat, and being aware of the common wallet scams and threats is the best way to do so.<\/span><\/p>\n<h3>Phishing<span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.techopedia.com\/common-phishing-scams-and-how-to-protect-yourself\"> Crypto phishing scam<\/a> is a <a href=\"https:\/\/www.techopedia.com\/social-engineering-attacks-3-strategies-to-mitigate-risk\/2\/34899\">social engineering scam<\/a> where the attackers trick users into revealing sensitive information or installing <a href=\"https:\/\/www.techopedia.com\/definition\/4015\/malicious-software-malware\">malware<\/a>. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Typically, phishing attacks occur via emails and social media platforms. The attacker will lure you into clicking a compromised website link or sharing your sensitive information with them.<\/span><\/p>\n<h3>Fake Initial Coin Offerings (ICO) and Giveaways<span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\"> Scammers target investor greed in luring victims to participate in fake ICOs and giveaways. These scams are very sophisticated to make them look as realistic as possible. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">They will be accompanied by a website, social media channels, and fake followers. Always <a href=\"https:\/\/www.techopedia.com\/definition\/do-your-own-research-dyor\">do your own research<\/a> (DYOR), don&#8217;t give into <a href=\"https:\/\/www.techopedia.com\/definition\/fear-of-missing-out-fomo\">fear of missing out<\/a> (FOMO), and use a burner wallet for airdrops.<\/span><\/p>\n<h3>Address Poisoning<span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\"> Here a scammer tries to trick a wallet owner into sending funds to the scammer\u2019s address. The scammer achieves this by studying the transaction history of the target wallet. Once a wallet address that the owner frequently transacts with is identified, the scammer will create a wallet address that resembles the frequently interacted wallet. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The scammer will then send a small amount of crypto to the owner\u2019s wallet, creating a transaction history with the fake address.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"> The scammer is counting on the owner to check only the last four-five digits of the wallet address (which will be the same as the frequently interacted wallet), copy-paste the fake address from the transaction history, and send funds to the scammer\u2019s account.<\/span><\/p>\n<h3>Rug Pull<\/h3>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.techopedia.com\/definition\/rug-pull\">Rug pull<\/a> is a common crypto scam where the scammer lures crypto investors into investing in a token in hopes of making massive returns. The scammer will abandon the project and disappear with the investor funds, and the token price will come crashing down.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Scammers are always working on new and more sophisticated ways to trick crypto users. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Keep the following things in mind to keep your cryptocurrency wallet secure:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Always DYOR.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Beware of too-good-to-be-true investments.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Do not share sensitive information on social media or with anyone.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Do not enter suspicious links and websites.<\/span><\/li>\n<\/ul>\n<h2><span id=\"the_bottom_line\">The Bottom Line<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Cryptocurrency wallets represent the ethos of the crypto community. These devices empower users with self-custodianship and <a href=\"https:\/\/www.techopedia.com\/definition\/decentralization\">decentralization<\/a>. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">In being a responsible cryptocurrency wallet owner, you are not only protecting your crypto investments but also representing the best the crypto community has to offer.<\/span><\/p>\n<p><b>FAQs:<\/b><\/p>\n<div class=\"man_faq_sec\" itemscope itemtype=\"https:\/\/schema.org\/FAQPage\"><\/time><section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">How does a crypto wallet work?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">Technically speaking, a cryptocurrency wallet does not actually \u201cstore\u201d crypto tokens. A crypto wallet stores the private keys. These keys prove your ownership of the crypto tokens and allow you to send them to another address or use them on decentralized applications (DApps).<\/p>\r\n                <\/div><\/div><\/section>\n<section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">How do I cash out my crypto wallet?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">Many software crypto wallets have off-ramp features to convert crypto into <a href=\"https:\/\/www.techopedia.com\/definition\/fiat-currency\">fiat<\/a>. If your wallet does not have this feature, then you can send cryptos from your self-custodial wallet to your <a href=\"https:\/\/www.techopedia.com\/8-must-have-features-of-a-cryptocurrency-exchange\">centralized exchange<\/a> account and sell crypto for fiat there.<\/p>\r\n                <\/div><\/div><\/section>\n<section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">How do I pay with a crypto wallet?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">To send cryptocurrencies to another wallet, you will have to select the token you want to send and add the recipient\u2019s wallet address. Make sure that the recipient&#8217;s wallet is compatible with the blockchain you are transacting on.<\/p>\r\n                <\/div><\/div><\/section>\n<div class=\"reference-content\">\n<div class=\"reference-heading reference-content-collapsible-heading\">\n<h2><span id=\"references\">References<\/span><\/h2>\n<\/div>\n<div class=\"reference-content-body\">\n<ol>\n<li><a href=\"https:\/\/metamask.io\/\" target=\"_blank\">MetaMask&#8217;s Official Website<\/a> (MetaMask)<\/li>\n<\/ol>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Managing a crypto wallet is an integral part of being a cryptocurrency user. It is more than just a simple payment app. It is your crypto bank, and you are in charge of managing and securing it. Whether you&#8217;re new to the world of cryptocurrencies or seeking a refresher on wallet management, understanding how to [&hellip;]<\/p>\n","protected":false},"author":286557,"featured_media":139514,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","meta":{"_acf_changed":false,"_lmt_disableupdate":"","_lmt_disable":"","om_disable_all_campaigns":false,"footnotes":""},"categories":[601,602],"class_list":["post-139248","how-to","type-how-to","status-publish","has-post-thumbnail","hentry","category-blockchain","category-cryptocurrency"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.2 (Yoast SEO v24.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Use a Crypto Wallet in 2025 - Techopedia<\/title>\n<meta name=\"description\" content=\"Learn how to use a cryptocurrency wallet and discover the one that suits your needs best with Techopedia&#039;s comprehensive guide.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Use a Crypto Wallet in 2025\" \/>\n<meta property=\"og:description\" content=\"Learn how to use a cryptocurrency wallet and discover the one that suits your needs best with Techopedia&#039;s comprehensive guide.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.techopedia.com\/how-to\/how-to-use-a-crypto-wallet\" \/>\n<meta property=\"og:site_name\" content=\"Techopedia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/techopedia\/\" \/>\n<meta property=\"article:modified_time\" content=\"2024-03-12T12:31:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/How-to-Use-a-Crypto-Wallet.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@techopedia\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"11 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.techopedia.com\/how-to\/how-to-use-a-crypto-wallet#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.techopedia.com\/how-to\/how-to-use-a-crypto-wallet\"},\"author\":{\"name\":\"Mensholong Lepcha\",\"@id\":\"https:\/\/www.techopedia.com\/#\/schema\/person\/7cbd52e25b530c379bb0531645d987af\"},\"headline\":\"How to Use a Crypto Wallet in 2025\",\"datePublished\":\"2023-12-14T15:51:01+00:00\",\"dateModified\":\"2024-03-12T12:31:22+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.techopedia.com\/how-to\/how-to-use-a-crypto-wallet\"},\"wordCount\":2285,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.techopedia.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.techopedia.com\/how-to\/how-to-use-a-crypto-wallet#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.techopedia.com\/wp-content\/uploads\/2023\/12\/How-to-Use-a-Crypto-Wallet.png\",\"articleSection\":\"\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.techopedia.com\/how-to\/how-to-use-a-crypto-wallet#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.techopedia.com\/how-to\/how-to-use-a-crypto-wallet\",\"url\":\"https:\/\/www.techopedia.com\/how-to\/how-to-use-a-crypto-wallet\",\"name\":\"How to Use a Crypto Wallet in 2025 - 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