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Setup a new Wallet

What is a Wallet, an Address and a Seed?​

A Wallet serves as a digital tool for storing, managing, and transferring cryptocurrencies. Essentially, it acts as a secure container for your private keys, which are essential for authorizing transactions. Accessed through various interfaces like web or mobile apps, wallets facilitate control over your crypto assets.

An Address is a distinctive identifier representing your wallet on the blockchain. It's a public key derived from your wallet's private key using cryptographic techniques. You share this address to receive funds or monitor transaction history associated with your wallet securely.

A Seed comprises a sequence of words used to generate a private key and corresponding addresses. Typically consisting of 12, 15, 18, 21 or 24 words, it's created by wallet software. This seed is pivotal for recovering your wallet if access is lost or for generating additional addresses for the same wallet.

In the context of Cosmos, a single seed can generate private keys and addresses for multiple chains within the Cosmos ecosystem, enabling seamless management across various networks.

Regarding Cosmos accounts, they contain pertinent data such as balances and transaction histories, tied to interactions within the chain. An account can be associated with a wallet, an address, or a seed, depending on the context in which it is used. In general, an account represents a unique entity that interacts with the blockchain and is identified by a unique address or public key.

Types of Wallets​

There exist various types of cryptocurrency wallets, each presenting distinct advantages and drawbacks. Among the primary categories are:

  • Mobile Wallets are applications installed on mobile phones. While they offer convenience and user-friendliness, they may lack the robust security measures found in desktop counterparts.

  • Web Wallets are online applications accessible via web browsers. They provide ease of access from any location, but they are also susceptible to cyberattacks and unauthorized access.

  • Desktop Wallets are software applications installed on computers. They provide a heightened level of security by operating offline, yet they remain vulnerable to malware or hacking if the computer becomes compromised.

  • Hardware Wallets are physical devices that securely store user's private keys offline. They allow users to manage and interact with their cryptocurrencies while offering maximum security against online threats.

How to Set Up a Wallet​

To set up a wallet, follow these steps:

  • Select a Wallet - Begin by researching various wallet options to find the one that aligns best with your requirements. Key considerations include security measures, user-friendliness, and the range of cryptocurrencies supported.

  • Download and Install - If opting for a desktop or mobile wallet, download and install the software from the developer's official website or an authorized app store. For web-based wallets, register for an account directly on the provider's website.

  • Generate a Seed - Your chosen wallet will create a unique set of words known as a seed. Safeguard these words by writing them down and storing them securely. The seed is crucial for recovering your wallet in case access is lost.

  • Receive Funds - Your wallet will provide you with a distinct address for receiving funds. Share this address with others to receive payments or transfers securely.

  • Send Funds - When initiating a transfer, input the recipient's address and the desired amount to send. Confirm the transaction and complete any necessary authentication steps, such as entering your password or using other verification methods.