How To Open A Cryptocurrency Account

The first step to start working with digital money is creating a cryptocurrency account. It provides access to full coin management, including storing, buying, selling, and withdrawing the user’s assets. In this guide, we will tell you more about what a cryptocurrency account is, how it is connected with a crypto wallet, and how to create one.

What Is A Cryptocurrency Wallet?

All cryptocurrency is stored on a blockchain even after purchasing; for example, ETH coins are held on the Ethereum blockchain. To interact with the digital assets, a cryptocurrency wallet is used. That is a software or hardware tool that stores private keys to access a user’s crypto.

A crypto wallet is often presented in the form of a mobile app or website where a user registers to make financial transactions or just store crypto. After signing up, he becomes the crypto account owner and can manage the digital coins as he wants. Therefore, a cryptocurrency wallet is the same as a crypto account. This also applies to the offline type of wallets, when assets are stored on special physical media.

How Does A Cryptocurrency Wallet Work?

To better understand how cryptocurrency accounts (i.e., cryptocurrency wallets) work, you need to know the basic elements they consist of.

As we have already said, all crypto is stored on the blockchain, and all transactions are recorded there, so crypto wallets are linked to it. Such access is provided by a private key, which is a secret code that is available only for the account holder. To make a transfer, the transaction is signed using this private key, guaranteeing its authenticity.

Also, there is a public key involved in transactions, which is the wallet address to which funds are sent, like a bank account number in the traditional banking system. Of course, any wallet has an interface that helps to easily and conveniently perform operations with crypto and track them.

Can You Open A Cryptocurrency Account?

So, you can open a crypto account by registering in a crypto wallet app or on a wallet provider online. There are quite a lot of them on the market, so you can always choose the one that suits you for the coins you need or the conditions of use.

You can also own one by signing up with fintech platforms or cryptocurrency banks. These options incorporate traditional banking features and cryptocurrency services, so users can manage both fiat and crypto assets.

Examples of such fintech platforms include Wirex, Revolut, Nuri, Robinhood, and others. They are custodial, meaning they store and securely manage users' assets partially on their own behalf. However, there are not so many such platforms on the market, so not every crypto holder can choose the appropriate one for their needs and preferences. In such cases, there is an option to create crypto accounts on crypto exchanges or specific wallet providers; unlike fintech services, they are focused on working only with digital assets and, at the same time, are as safe and functional.

How To Create A Cryptocurrency Account?

Let's now see how to create a cryptocurrency account step by step. The algorithm will be almost identical, regardless of the type of platform chosen. Here are the steps:

• Step 1: Select a platform. Whether you use a crypto wallet app, exchange, or fintech platform, consider the service's security features, supported coins, and transaction fees. If you choose a fintech service, make sure it's available in your region.

• Step 2: Sign up. Install the platform app or go to the website, select the “Sign up” option. Enter your name, email address and come up with a strong password.

• Step 3: Confirm your identity. Typically, financial and cryptocurrency services require this step for enhanced security measures. You may be needed to upload a passport or driver's license photo, or take selfies, which are the part of a KYC procedure. Completing it allows you to access all account features; what is more, KYC is an additional protective measure during the trading process.

• Step 4: Protect your account. Enable two-factor authentication; it will protect your account from being hacked. Also, make sure your password is strong enough. If the platform offers other features like SMS verification, enable them too for additional security.

• Step 5: Get your public key. Find your wallet address, copy it, and save it in a convenient place. This advanced measure will save you time during transactions because the address will always be at your fingertips.

After completing these steps, all you need to do is to fund your account, and you can start managing your cryptocurrency. Next, we’ll tell you more about depositing your account and getting started.

How To Deposit Crypto Into Account?

Topping up a cryptocurrency account, as well as creating it, are about the same on any platform. The only differences are in the interface of the app or website. We suggest you study this process on the example of trading on the exchange. Follow the algorithm to get it right:

1. Launch the app or go to the exchange's website, and authorize.

2. Go to the buying section for purchasing the crypto you need; follow the instructions provided to do it correctly.

3. Go to the “Deposit”, “Wallet” or other similar section on the platform or wallet you use, and choose the cryptocurrency you plan to deposit.

4. Find your account address on the page, copy it, or request a QR code.

5. Go to the exchange where you have bought crypto; then paste the account address on the “Transfers” page. Enter the amount to send and confirm the transaction.

6. Wait for the crypto to appear in your new account and manage it as you like.

You can fund your account in other ways as well. If you use a fintech platform, you can buy cryptocurrency with fiat right there; it depends on the service’s functionality. You have the same option of directly purchasing crypto with a debit card if you have registered on a multifunctional wallet provider like Cryptomus.

Moreover, having an account on such a service, you can use a P2P platform and buy crypto at the most favorable conditions there by sending fiat money to the seller's card. For example, the opportunity is available on the Cryptomus P2P exchange, where you can find more than 200 banks and services for payment and choose a trading partner from almost any country in the world. The transaction there will also please you with profit because the commission is only 0.1%. Moreover, on Cryptomus you can convert coins in real time or stake them, multiplying your capital.

Now you know that you can have a cryptocurrency account on different services, which will differ in the functionality offered. When choosing a platform, be sure to check its availability in your region, as well as security measures and favorability of use. Create your own investment strategy to be sure that your plans are going to be profitable.

We hope this guide has helped you understand what a cryptocurrency account is and how it works, so now you’re confident to create one. If you have any questions, feel free to ask them in the comments!