How To Setup a Crypto Wallet in the Philippines

In a world that’s excited about crypto, the Philippines stands out as being among the places most open to active using decentralized digital currencies for various investment and payment purposes.

Secure and convenient storage solutions are essential as digital currencies gain more traction and popularity. This is where crypto wallets come into play. In this article, we will guide you through setting up a crypto wallet in the Philippines, providing you with all the information you need to ensure your digital assets are safe and easily accessible.

What Is a Crypto Wallet?

Before we dive into the steps, let’s start with the basics: What exactly is a crypto wallet?

A cryptocurrency wallet is a digital tool that allows you to store, receive, and send cryptocurrencies securely. It acts like a bank account for your digital assets, providing a secure storage solution and enabling transactions.

A crypto wallet is a vital tool for users to authenticate their account balance, allowing them to monitor and track their cryptocurrency holdings effectively. It empowers users to initiate both outgoing and incoming cryptocurrency transactions, mirroring the functionality found in traditional banking systems. For countless individuals, a crypto wallet is the primary means for overseeing and controlling their cryptocurrency assets.

Why Are Crypto Wallets Essential?

Crypto wallets facilitate crypto assets’ functional utility for individuals and organizations. They are indispensable for several crucial functions that enhance the practicality of cryptocurrencies, including:

Cryptocurrency Management: Crypto wallets empower users to efficiently monitor their cryptocurrency asset balances, allowing them to stay updated on their holdings.

Transaction Facilitation: Sending and receiving cryptocurrency payments is a fundamental feature of crypto wallets, ensuring smooth and secure transactions.

Integration with Decentralized Apps (dApps): To engage with the emerging world of Web 3.0 dApps, a crypto wallet is a requisite connection point, enabling users to interact with decentralized applications seamlessly.

Username Identities: Cryptocurrencies are stored on blockchain networks, and crypto-wallets facilitate transactions by associating a username with a public key address on the blockchain, simplifying the process for users.

Key Management: At its core, cryptocurrency resides on the blockchain as a public key address. Crypto wallets play a crucial role in helping users effectively manage the private encryption keys required to access specific addresses and authorize transactions.

Types of Crypto Wallets

Crypto wallet users can select their wallet service or provider and the deployment method that aligns with their needs. There are two primary categories of crypto wallets: hot and cold. Each type offers unique advantages and serves distinct purposes within cryptocurrency management.

Cold Wallets

Cold wallets, also known as cold storage, are a secure option for occasional online connectivity, ensuring the user’s assets remain protected. Within this category, two primary types exist:

1. Hardware Wallets: Hardware wallets store the private key for the user’s cryptocurrency holdings on a physical medium, often a USB drive. These devices, isolated from constant online connection, provide users an extra layer of security and control.

Hot Wallets

Hot wallets, by contrast, maintain a consistent online presence and are designed for regular accessibility. They fall into three distinct subcategories:

1. Online (Web) Wallets: Online wallets, the most prevalent among crypto users, are provided by online services, including cryptocurrency exchanges. Users entrust their public and private keys to these platforms, accessing their wallets by logging in through a web browser.
2. Desktop Wallets: Desktop wallets involve the storage of cryptographic keys within an application installed on a user’s desktop system. This type provides a balance between accessibility and security.

Mobile Wallets: Mobile wallets like Saakuru App Wallet are mobile applications that enable users to store and manage their public and private keys directly on their smartphones. This on-the-go accessibility makes them a popular choice for those who wish to utilize cryptocurrencies seamlessly.

Steps on How to Setup Crypto Wallet in the Philippines

Now that you know the diverse range of crypto wallets available, let’s embark on a journey to create a crypto wallet explicitly tailored for the vibrant Philippines market. Below are the steps to embark on your crypto wallet creation adventure:

Step 1: Choose Your Ideal Wallet Type

In the Philippines, kickstarting your crypto journey frequently requires selecting a mobile wallet, such as the popular Saakuru App wallet. These wallets are designed with user-friendliness and mobile accessibility in mind, making them an excellent choice for newcomers to the crypto realm.

As a case in point, we’ll delve into the Saakuru App wallet as an example:

Step 2: Download and Install the Wallet App

Navigate to your device’s application store, whether the iOS App Store for Apple users or the Google Play Store for Android enthusiasts. Once there, embark on your quest by searching for your chosen wallet app: in this instance, Saakuru App. Download the app and proceed to install it on your device.

Step 3: Set Up a New Wallet

Open the app and follow the on-screen instructions to create a new wallet. This typically involves establishing a robust password or PIN code. Be sure to store this securely since it’s the key to your wallet.

Step 4: Safeguard Your Recovery Seed

During the setup process, the app will provide you with a recovery seed, a series of words. Carefully transcribe these words onto a physical piece of paper and keep them in a secure location. This step is crucial for wallet recovery if you lose access to your device.

Step 5: Verify Your Identity (If Necessary)

Some wallet providers, especially those tailored to the Philippines, may require identity verification for enhanced security. If prompted, follow the verification process diligently.

Step 6: Fund Your Wallet

Once your wallet is set up, you can fund it by purchasing cryptocurrencies from a reputable exchange operating in the Philippines. Various methods are available, such as bank transfers, credit/debit cards, or cash transactions at a cryptocurrency ATM. For Saakuru App users, the Alchemy Pay option is available.

Step 7: Initiate Crypto Transactions

With your wallet adequately funded, you can now send and receive cryptocurrencies. You’ll need the recipient’s wallet address and a unique alphanumeric code. Always exercise utmost caution by double-checking the recipient’s address to ensure your crypto finds its intended destination.

How to Safeguard Your Crypto Wallet

1. Opt for a Secure Platform: When selecting a digital wallet, prioritize a secure and reputable platform. Conduct thorough research to verify the platform’s solid reputation and robust security measures for safeguarding users’ private keys. Taking these precautions can significantly enhance the security of your digital wallet, minimizing potential risks.
2. Fortify Your Password: Establish a strong password impervious to easy guessing during the account creation. Avoid standard, easily guessable terms such as “password” or your birthdate. Instead, employ a combination of letters, numbers, and special characters for added protection. You can utilize a password generator like LastPass to craft a unique and robust password for your account.
3. Secure Your Private Keys Offline with a Hardware Wallet: Consider using a hardware wallet for one of the most secure methods of safeguarding your private keys. Hardware wallets are physical devices that store your private keys offline. Your private keys remain safe even if your computer is compromised. Reputable options in this category include the Ledger Nano S and the Trezor.
4. Activate Two-Factor Authentication: Take advantage of a platform offering two-factor authentication. This additional layer of security necessitates entering a code from your phone or another device in conjunction with your password. While not foolproof, two-factor authentication significantly bolsters your account’s defense against potential breaches.
   
5. Stay Current with Software Updates: Regularly update your digital wallet software with the latest security patches. This practice helps shield you against newly discovered security vulnerabilities, enhancing your wallet’s resilience.
6. Diversify with Multiple Crypto Wallets: You don’t need to rely solely on one digital wallet. It’s advisable to use multiple wallets. By doing so, if one wallet is compromised, your other assets remain secure.
7. Steer Clear of Public Wi-Fi: When accessing your digital wallet, avoid using public Wi-Fi networks, which can be attractive targets for hackers seeking to steal private keys. For enhanced security, consider using a trustworthy VPN service for crypto wallets, like ClearVPN, to encrypt your traffic and make it more challenging for hackers to access your private keys.
8. Guard Your Private Keys:  You must keep your private keys strictly confidential. Refrain from sharing them with anyone except trusted family members whom you’ve designated to manage your estate in the event of unforeseen circumstances.
9. Backup Your Digital Wallet:  Create regular backups of your digital wallet to ensure you keep access to your account or funds in case of device loss or failure. Establish a backup schedule and stick to it to maintain access to recent backup copies.
10. Safeguard Your Recovery Phrase:  If you’re using a software wallet, you’ll receive a recovery phrase during setup. This sequence of words serves as a fail-safe for regaining access to your account if you forget your password. Store this recovery phrase securely in a location accessible only to you.

Conclusion 

The Philippines has adopted a cautious yet open approach to cryptocurrencies, recognizing their potential for investment and payments. As the use of digital currencies continues to grow, the importance of secure and convenient storage solutions, such as crypto wallets, cannot be overstated. These wallets serve as the gateway to managing, sending, and receiving cryptocurrencies, making them an essential tool for users.

Crypto wallets play a pivotal role in cryptocurrency management, transaction facilitation, interaction with decentralized apps (dApps), and the management of encryption keys for secure access to addresses. In the Philippines, users can choose from various wallet types, including mobile wallets like Saakuru App, designed for user-friendliness and accessibility.

References

• https://www.investopedia.com/news/bitcoin-safe-storage-cold-wallet/
• https://www.investopedia.com/terms/b/bitcoin-wallet.asp
• https://www.forbes.com/advisor/in/investing/cryptocurrency/crypto-wallets/