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Creating a Wallet
Each method has its own set of pros and cons. Be sure to pick the method that's right for you.
Seed Phrase
Single Sign-On (SSO)
Shamir's Secret Sharing (SSS)
Pros:
- Very secure when managed properly
- Most common method to create and manage self-custody wallets
- Familiar and well understood by crypto veterans
- Relatively easy to get started
Cons:
- Confusing for those newer to crypto
- Seed phrase mismanagement can lead to a total loss
- Without a backup, wallet is non-recoverable in the event your device is lost, damaged, or stolen
You can create a wallet using Web3Auth, which supports these Single-Sign On (SSO) logins:
- Apple
- Discord
- Reddit
- Google
- Facebook
Pros:
- Easiest and fastest way for new users to get started
- Follows a more traditional user sign-in flow
- Well-audited process by trusted third-parties
- Even without a backup, wallet is fully recoverable in the event your device is lost, damaged, or stolen
Cons:
- Most centralized of all the options
- Encrypted key fragments are stored online, not locally on your device
- Security is only as good as the security of your social logins
You can generate a wallet with a backup of multiple shares using the Shamir's Secret Sharing (SSS) algorithm which, when partially recombined, can be used to recover your wallet.
Pros:
- Extremely secure when managed properly
- Appealing to advanced crypto enthusiasts and security experts
- Reduces the risk of physical backups being used to compromise your wallet
- A safer way to electronically backup your wallet
Cons:
- Most complex and least accessible of all the options
- Requires a significant amount of manual set-up to properly backup a wallet
- Security is only as good as to how well you backup your shares
Last modified 9mo ago