A crypto wallet stores the keys that prove which coins belong to you. Without one, you can buy crypto, but you have nowhere safe to keep it and no way to spend it.
Creating a wallet takes a few minutes. The choice of wallet type matters more, because it decides who controls your funds and how easily you can turn them back into regular money.
Contents
- What a crypto wallet actually holds
- Custodial or self-custody: decide this first
- Hot and cold wallets
- How to create a crypto wallet: step by step
- How to open a crypto wallet in SharPay
- Adding funds and withdrawing to a card
- Security habits that actually matter
- Questions people ask before creating a wallet
What a crypto wallet actually holds
Coins never sit “inside” a wallet. They live on the blockchain, while the wallet keeps the private key that lets you move them. Anyone with that key can spend the funds, which is why every security rule below exists.
Each wallet also has public addresses. You share an address to receive crypto, much like an IBAN for a bank transfer. Each network has its own address format, so a Bitcoin address cannot receive Ethereum.
Custodial or self-custody: decide this first
There are two models, and the difference is who holds the private key.
Custodial wallet. A provider keeps the keys and secures them for you. You log in with an email, a password and two-factor authentication. If you forget the password, access can be restored. This model also lets the provider connect your coins to everyday tools, such as conversion to euro and withdrawal to a payment card.
Self-custody wallet. You hold the key yourself, usually as a seed phrase of 12 or 24 words. Nobody can freeze or restore it, which also means a lost phrase is lost money. Hardware wallets and most standalone apps work this way.
In practice, many people use both. They keep long-term savings in self-custody and spending money in a custodial wallet with card access.
Hot and cold wallets
A hot wallet is connected to the internet: a web account, a mobile app or desktop software. It is convenient for daily payments and transfers.
A cold wallet stays offline. That can be a hardware device that looks like a USB stick, or a paper wallet with a printed key. It suits large amounts you rarely touch.
How to create a crypto wallet: step by step
The steps below work for almost any service. The details differ, while the order stays the same.
- Pick the model. Custodial if you want to spend and convert easily, self-custody if you want full control.
- Register or install. For a custodial wallet, sign up with an email and phone number. For a self-custody app, install it from the official store only.
- Secure the access. Set a strong password and turn on two-factor authentication. With self-custody, write the seed phrase on paper and store it offline.
- Create the wallet for the coin you need. Check the network carefully, since USDC exists on several blockchains.
- Send a small test amount first. Confirm it arrives, then move the rest.
How to open a crypto wallet in SharPay
SharPay is a custodial wallet linked to a regular account and payment cards. To start using it, go through three steps:
- Registration. Sign up on the SharPay website or in the mobile app. Enter your email and phone number, then confirm the code. The password needs uppercase and lowercase Latin letters and numbers.
- Verification. Upload a scan of an international or EU passport. A domestic internal passport is not accepted. Fill in the form in English. The check usually takes 5 to 15 minutes.
- Opening the wallet. On the main page of your account, click the “+” above the transaction panel. Select the crypto wallet and confirm with a code.
After that, the wallet is ready for deposits, exchange, transfers and withdrawals to a card.
Adding funds and withdrawing to a card
The wallet supports USDC, BTC, ETH, DAI, LTC, XRP and TUSD. You can receive coins from another wallet or buy crypto with a bank card in EUR, USD or UAH.
Inside the app, crypto converts to fiat in a few taps. After conversion, you can pay contactless through Apple Pay or Google Pay, or withdraw to a card. In other words, you can top up a Mastercard or Visa card with crypto.
What it costs, according to the published SharPay price list:
- Depositing USDC with a Mastercard or Visa card: 4%.
- Withdrawing USDC to a Mastercard or Visa card: 3%, from 30 USDC.
- Transfers to an external crypto wallet: network fee only.
- BTC, ETH and other coins: network fee for deposits and withdrawals, with a minimum amount per coin.
Security habits that actually matter
Most losses come from simple mistakes rather than hacks. These habits cover the common ones:
- Turn on two-factor authentication and never share the confirmation codes, even with “support”.
- Type the website address yourself. Phishing pages copy wallet logins almost perfectly.
- Check the network and the first and last characters of every address before sending.
- Keep a seed phrase offline only. A photo in your phone gallery defeats its purpose.
- Split funds: spending money in a hot wallet, savings in cold storage.
Questions people ask before creating a wallet
Is creating a crypto wallet free?
The SharPay price list has no fee for opening the wallet. Fees apply to card deposits, card withdrawals and network transfers, as listed above.
Do I need to pass verification?
Yes. Deposits, exchange and withdrawals work only after verification. It usually takes 5 to 15 minutes.
Can I top up a bank card with crypto?
Yes. Convert the coins in the app, then withdraw to a Mastercard or Visa card. A USDC withdrawal to a card costs 3%, with a minimum of 30 USDC. You can read more about the SharPay crypto wallet with card withdrawal.