This post is taken from the “Making Your First Wallet” section of The On-Chain Blueprint. Get The On-Chain Blueprint when you subscribe to our free newsletter.

This is part of our beginner series, which aims to help people who are just beginning their crypto and on-chain trading journey.

Making Your First Crypto Wallet 

What is a Wallet? 

A crypto wallet isn’t like a physical wallet. It has: 

• A Public Address → You can share this to receive funds. Think of it like your bank account number. Your wallet address is publicly available to see and can be used by other people to send you funds (or to just send funds to yourself). 
• A Private Key / Seed Phrase → NEVER SHARE THIS. Whoever has it controls your wallet. It is a master key to your wallet, similar to a password. We will discuss keeping your private key safe when we set up your wallet. 
• An Interface → The app or device that lets you interact with the blockchain. For our purposes, you will be using an extension or app-based wallet. 

Types of Wallets 

There are both software wallets and hardware wallets. We will be focusing on software wallets, but, for your education, we will quickly touch on both. 

• Software Wallets – also called Hot Wallets 
• Mobile apps (MetaMask, Trust Wallet, Coinbase Wallet, Phantom Wallet). 
• Browser extensions. 
• Pros: Easy setup, free, convenient for trading. 
• Cons: More exposed to hacks/phishing, since they’re connected to internet. 
• Hardware Wallets – also called Cold Wallets 
• Physical devices (Ledger, Trezor). 
• Pros: Ultra-secure, private keys never touch the internet. 
• Cons: Costs money, slightly less convenient. 

Software wallets are used for trading, while hardware wallets are typically used for long term, secure holds. 

Setting Up Your First Wallet 

Now to actually make your first wallet! 

Here, you can decide whether you would like to use your phone or your computer. Opinions on which to use are varied, so choose whichever one you would prefer (or you can use both!). 

For this process, we will set you up with Phantom Wallet – our personal favorite and one that offers a lot of multichain trading options. 

Step 1: Download 

• Go to the official website → phantom.com 
• Install the browser extension or mobile app for your phone. 
• Verify it is from an official source, as fake apps exist. 

Step 2: Create Wallet 

• Click Create a New Wallet. 
• Set a strong password. This protects local access, meaning logins from your computer or phone, not your funds. 

Step 3: Secure Your Seed Phrase 

• Phantom gives you a 12-word seed phrase. 
• This is your master key, if you lose it, you lose access to your wallet and funds forever. If stolen, your wallet is drained.  
• Write it down on paper and store safely. Don’t screenshot, copy/paste, or store in email/cloud, as these are viable to be hacked or compromised, in which case your funds can be accessed and stolen.  

Step 4: Confirm 

• You’ll be asked to re-enter words from your seed phrase to prove you backed it up correctly. 

Step 5: Ready to Use 

• You have a public address! 
• You can now send and receive funds and connect to dApps  (decentralized Apps). 

Important Note: 

I would recommend using Solana for the next few sections, because its gas fee (the cost of using the blockchain) is much cheaper than Ethereum, making it ideal for you to test things out for almost no cost. 

Later, we will also discuss the differences between trading on various blockchains, as Solana is currently the more active memecoin ecosystem but has drawbacks at the same time. 

Adding Funds 

• Buy crypto on an exchange such as Coinbase, Binance, or Kraken, then withdraw to your wallet’s public address. 
• Most wallets offer the ability to purchase crypto directly, but the rates tend to be worse than if you buy from an exchange. 
• Alternatively, you can receive crypto directly from someone else. 
• The next section will detail how to do this. 

Basic Safety Rules 

• Never share your seed phrase with anyone. 
• Always verify URLs – there are many phishing scams that want to take your funds. 
• Consider a hardware wallet if you hold large amounts. 
• Use different wallets for everyday trading vs. long-term holding. 
• Never approve wallet transactions that you do not understand or did not initiate. 

Congrats! You now have your own crypto wallet that is set up and ready for on-chain trading. 

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