Copyright 2021 @ Cryptocurrency NZ
What is a Cryptocurrency Wallet?
A cryptocurrency wallet is a digital account where you store your Bitcoin and other cryptocurrencies.
Your wallet is where you receive payments in and send transactions out, acting as your heart of operations for interacting with the cryptocurrency world.
Cryptocurrencies like Bitcoin and Ethereum aren’t stored in banks, but rather in privately controlled user wallets.
This provides crypto users with an unparalleled level of asset security and ownership, all while changing the way millions of people store and transfer value across the globe.
Crypto wallets are free to use, safe to operate, and you can have as many wallet accounts as you’d like.
Best of all – you don’t have to ask anyone for permission to set one up, or use it to send and receive payments.
Follow our guide to learn how to set up your first cryptocurrency wallet, and become your own bank in 10 minutes or less.
Disclaimer: Cryptocurrency NZ has no affiliation with any wallet or service showcased below. All recommendations are based on our own research, experiences and preferences – and are provided in the best interest of the NZ crypto user. If you would change anything about our guide, don’t hesitate to let us know.
Table of Contents
Different Types Of Cryptocurrency Wallet
Mobile wallets are wallets that you operate on your phone or tablet, mainly used for making fast and easy payments on the go.
Like your physical wallet, you should only ever store as much crypto in them as you’re willing to lose.
Recommended wallet – https://www.exodus.io/
Desktop wallets like Exodus are wallets that you run and operate on your laptop or PC.
Desktop wallets make ideal first wallets for Kiwi crypto newcomers, offering a safe and easy sandbox for diving deeper into other more secure wallet types.
Recommended wallet – https://www.exodus.io/
Hardware wallets are the most secure wallet type available, and we’d recommend getting one if you’re serious on holding large amounts of coin long term.
Recommended – https://www.ledger.com/
A paper wallet is the rawest form of cryptocurrency wallet, comprised of the two core components that make up every cryptocurrency wallet;
A public and private key pair.
What are Public and Private Keys?
Until today, you would’ve been accustomed to accessing your various online accounts and services by using your email address and password.
In the world of crypto, wallet access and ownership is instead represented by something called a public and private key pair.
Acting as your digital identity and signature, every cryptocurrency wallet is distinct by having its own unique public and private key – with each unique key pair being freshly generated whenever a new cryptocurrency wallet is created.
Your public key is like your crypto bank account number – an address others can use to send crypto to your wallet. You can safely send your public key to anyone, knowing they can’t change or open your wallet, but rather use it to send you payments.
Your private key is like the password to your crypto bank account, and it’s required to sign off outbound transactions from your wallet. You should never share your private key with anyone, and the security of your wallet rides on how safely you store your private key.
To put theory into practice – below is me locating my public key (otherwise known as my Bitcoin address) in my Exodus desktop wallet. This is the address I would provide to any person or service wanting to send Bitcoin to my personal wallet.
My private key, on the other hand, is already being safely stored and harnessed by Exodus behind the scenes; allowing Exodus to authenticate and execute outbound transactions on my behalf whenever I send Bitcoin to someone else’s wallet from mine.
Almost all cryptocurrency wallets automatically hold, harness and protect your public and private keys for you. This makes setting up and using your wallet about as easy as using an app like PayPal, Venmo or TransferWise – depending on the wallet type you choose.
Because crypto wallets use public and private keys to represent ownership rather than email addresses and passwords, you’re not required to connect your real world identity to your wallet and funds by default.
This provides users with an enhanced level of security and privacy, but that doesn’t mean crypto storage autonomy isn’t without it’s own downsides.
Studies show that approximately 20% of all Bitcoin in existence has already been lost due to poor private key management. And it’s highly unlikely these coins will ever return to circulation.
Learn more about public and private keys here.
How to Choose your Cryptocurrency Wallet
The wallet best suited to you will depend on what you wish to do with your coins and how much you intend to hold.
$0.00 - $200 NZD
Mobile wallets are designed for storing small amounts of coin, to be used on the day to day.
We’d recommend only keeping coins you want to spend on the go in these wallets and look at storing the bulk in desktop or hardware wallets.
$200 - $2,000 NZD
Note – the size and value of your crypto stash is measured by your own perception. $200 might be a fortune to you and small amount to someone else. All three wallets above are known to be extremely safe and trusted. The security of your wallet ultimately comes down to how you backup your private keys and phrase.
How to Set up a Cryptocurrency Wallet
Used by thousands of Kiwis across NZ, Exodus is a highly popular wallet choice for first time Bitcoin and cryptocurrency users.
Exodus wallet is free, easy to use, and provides an extremely sleek interface and user experience.
Even better, Exodus is multicurrency; meaning you can store your Bitcoin, Ethereum, Monero, and over 100+ other supported coins in the one wallet application.
How to Set up Exodus Wallet in NZ- Step by Step
- On your laptop or desktop PC, head to the official Exodus website – https://www.exodus.com/
- Click ‘Get Exodus Now’
- Select ‘Desktop version Download’
- Select version (Windows, Mac, Linux)
- Let the Exodus installer download
- Click ‘Run Program’
- Wait for Exodus to install
- Follow the beginners tutorial and you’re sorted!
Congratulations, you're now your own bank!
Your next step is to top up your wallet and join the other 1% of New Zealanders who own Bitcoin and other cryptocurrencies.