The ADA and other assets that you own are linked to a public key whose history is recorded on the blockchain, and a private key is needed to control these assets. For non-advanced users, these keys can be generated and interacted with using Cardano wallets.

There are multiple types of wallets; the most common and beginner friendly are software wallets and hardware wallets. For more information regarding wallets, please visit this link.

Seed Phrases

Both software and hardware wallets generate a seed phrase. A seed phrase is an ordered combination of English words, typically 24 words, that give access to your keys. The seed phrase is of the utmost importance as anyone who knows it will have full access to your funds. Likewise, if you lose or forget it, there will be no way to access your funds.

<aside> ❗ Please refer to our risks and safeguards page.

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• Software wallets are wallets that you typically interact with through browser extensions or mobile applications. They are more convenient and quicker to access and use. However, they are more susceptible to hacking or unauthorized access if someone gets access to your phone or computer, for example.
• Hardware wallets are usb-like devices that plug into your computer or smart device. They offer enhanced encryption and extra layer of security. You can interact with your hardware wallet using a software tool by plugging it in to your computer (not by restoring the hardware wallet seed phrase in a software wallet), but any outgoing transaction has to be physically confirmed using the hardware wallet. This is less convenient but offers better security.

<aside> 💡 Hardware wallet seed phrases can only be used with hardware wallets, and likewise software wallet seed phrases can only be used with software wallets.

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Creating a Cardano Wallet

The exact steps of creating a wallet differ based on the wallet of your choice, but they follow the same structure.

1. Select the wallet you want to use and go to their website and download the browser extension. Note: Verify the authenticity of the website you are visiting; do not automatically click on the first search result.
2. Create a new wallet and give it a name and password if prompted.
3. If prompted, select the number of accounts you want. Start with 1 account if unsure.
4. You will be shown some warnings and hints regarding the security and privacy of your seed phrase; make sure you read and follow them carefully.
5. You will be shown the seed phrase. Make sure you record it in a safe place and have safeguards in place.
6. You will be asked to enter your seed phrase or part of it to verify that you have recorded it correctly.
7. Congratulations! You now have a Cardano wallet.