Types of Bitcoin Wallets

1. Mobile Wallets

A mobile wallet is a smartphone app that gives you immediate access to your Bitcoin. Once installed, it creates your wallet and gives you your Bitcoin address. The setup is fast, which makes it a good fit for people who want something they can open and use instantly.

Mobile wallets are popular because:

• You can carry them everywhere
  
  
• They work well for everyday transactions
  
  
• They allow you to receive Bitcoin without extra steps
  
  
• They are easy to restore as long as you keep your recovery phrase written down.

Most people in Nigeria start with a mobile wallet because the learning curve is very easy. You just need to  download the app, create your wallet, save your recovery phrase, and begin using it. From there, you can fund the wallet, swap tokens in some cases.

2. Exchange Wallets (Custodial Wallets)

An exchange wallet is created for you by a crypto exchange when you open an account. Instead of managing your keys yourself, the exchange handles that part on your behalf. You only sign in and use the wallet like you would use an online financial dashboard.

This type of wallet is convenient for people who prefer a simple login process or anyone who wants to move between Bitcoin and cash without switching between multiple apps. Since your wallet is linked to your exchange account, you can trade Bitcoin or withdraw to your bank directly from one place.

Exchange wallets are:

• Straightforward, especially for individuals who want to sell Bitcoin quickly
  
  
• Useful for people who prefer not to manage private keys manually
  
  
• Built into platforms that allow fast cashouts

Many Nigerians use custodial wallets when they want their Bitcoin to move into cash without delay. For instance, when you decide to sell your Bitcoin on any exchange, the process stays smooth because your wallet on the platform is already linked to the account you use for payouts.

3. Hardware Wallets

A hardware wallet is a small physical device that stores your keys offline. It doesn’t rely on your phone or computer to keep your Bitcoin accessible. Instead, you plug it in only when you want to approve a transaction. Because your keys stay offline, this makes hardware wallets suitable for people who want deeper control over their Bitcoin.

Hardware wallets are chosen by people who:

• Hold Bitcoin for long periods
  
  
• Want their keys stored away from internet-connected devices
  
  
• Prefer a slower but more deliberate way of handling their coins.

Using a hardware wallet means you handle more responsibility, but many find peace in the idea that their keys are not exposed to online threats. You can always send Bitcoin from a hardware wallet to an exchange like Cubex whenever you want to sell or withdraw.

How to Open a Bitcoin Wallet

A. How to Open a Mobile Wallet

1. Download the app- Open the Google Play Store or Apple App Store.
   Search for the wallet you want to use.
   If you want a wallet that lets you sell your Bitcoin without switching between different apps, you can download the Cubex app directly.
2. Create your account- Once the app installs, open it and begin the signup process.
   You’ll provide your email or phone number, create a password and confirm your details.
   Follow each step on your screen and take your time so you don’t miss anything.
3. Set up your wallet- The app will either create a wallet for you immediately or guide you through a few short steps.
   At this stage, the app might show you a recovery phrase. Write it down on paper and store it somewhere safe. Do not keep it on your phone.
4. Activate your wallet- Once setup is complete, your wallet becomes active.
   You will now have a Bitcoin address you can copy and share.
5. Start using it- You can receive Bitcoin from anyone by sharing your address.
   
   

B. How to Open an Exchange Wallet

An exchange wallet is part of your account on the platform. You don’t have to manage private keys by yourself and everything feels like a dashboard.

1. Create your account on the exchange- Go to the exchange website or app and sign up.
   Provide your basic details and confirm your registration.
2. Complete verification- Most exchanges ask you to verify your identity.
   Upload your ID, wait for approval and make sure every detail matches.
3. Log into your account- Once you’re verified, sign in with your email and password.
   Your Bitcoin wallet will already be created for you inside your account.
4. Use your Bitcoin address- Open the Bitcoin section of your account.
   You will see your wallet address and a button that lets you copy it.
   You can deposit Bitcoin into this address from any other wallet.

C. How to Set Up a Hardware Wallet

Hardware wallets are for people who want deeper control over their Bitcoin. They keep your keys offline inside a small device you hold in your hand.

1. Buy the wallet from the official store- Always buy directly from the manufacturer.
   This reduces the risk of receiving a tampered device.
2. Connect it to your computer- Use the cable included in the box. Open the setup page shown in the manual.
3. Follow the on-screen steps- The device will guide you through naming your wallet and setting a pin. Take your time, read every message and confirm each action carefully.
4. Write down your recovery phrase- This is the most important part.
   Your device will show a series of words in a specific order. Write them down on paper and keep it somewhere private. Do not store them on your phone or in your email.
5. Install the companion app- The hardware wallet will ask you to install a companion app on your computer or phone. This app lets you send and manage your Bitcoin.

How to Keep Your Wallet Safe

• Keep your recovery phrase on paper, not on your phone
  
  
• Download wallets from official app stores only
  
  
• Do not share your private key with anyone
  
  
• Double check every address before sending

Things to Avoid While Setting Up Your Wallet

• Saving your recovery phrase online
  Many people take screenshots or store their recovery phrase on their phone. If your device ever gets compromised, your coins can go with it.
• Sending Bitcoin to the wrong address
  Bitcoin transactions can’t be reversed. Once you send it, it’s gone. Always check the address carefully before confirming.
• Using fake wallet apps
  Some wallets online are unsafe copies. Always download from the official app store page and double check the developer’s name.
• Skipping app updates
  Wallet updates often fix security issues. Staying on an old version can expose you to risks you never planned for.

Frequently Asked Questions

Is opening a Bitcoin wallet free?

Yes. Creating a wallet costs nothing. You only pay network fees when you send Bitcoin, and that fee goes to the blockchain, not the wallet provider.

Can I withdraw from my Bitcoin wallet to my bank account?

Yes. To withdraw, you need to sell your Bitcoin on a platform that supports cashouts like  Cubex and your money will be sent directly to your bank.

How many Bitcoin wallets can I open?

There is no limit.  You can open more than one mobile wallet, create several exchange wallets or even use more than one hardware wallet if you want to separate your funds.

What is a recovery phrase?

 A recovery phrase is a group of words that gives you access to your wallet.
If you ever lose your phone or change devices, this phrase is what restores your wallet.