Setting Up a Cardano Wallet

Hot wallets vs. cold wallets

A hot wallet is software connected to the internet — a browser extension or mobile app. It is convenient for daily use but carries a higher risk: if your device is compromised by malware, your funds could be stolen. A cold wallet (hardware wallet) stores your private keys on a dedicated offline device like a Ledger or Trezor. Transactions must be physically confirmed on the device, so even if your computer is hacked, your keys remain safe.

For most beginners, starting with a reputable hot wallet is fine. If you accumulate meaningful value (a few hundred dollars or more), moving to a hardware wallet is strongly recommended. You can always upgrade later without changing your address.

Recommended wallets for Cardano

Eternl is the most feature-rich browser extension wallet for Cardano. It supports multiple accounts, hardware wallets, staking from a single interface, dApp connections via CIP-30, and advanced UTXO management. It is available for Chrome, Firefox, and Edge. Most power users and DeFi participants choose Eternl.

Lace is the official wallet built by Input Output Global (IOG), Cardano's main development company. It has a clean, beginner-friendly interface and integrates directly with a full Cardano node for maximum trust. Lace is available as a browser extension and is adding mobile support.

Vespr is the leading mobile wallet for Cardano as of 2026, available on iOS and Android. It offers a polished interface, staking, dApp browser, and hardware wallet support via Bluetooth Ledger connection. If you primarily want a mobile experience, Vespr is the top choice.

Step-by-step: installing Eternl

Step 1: Visit eternl.io and click the link for your browser's extension store. Always navigate directly to the official site — never install wallet extensions from search results or third-party links, as fake wallets are common.

Step 2: After installation, click the Eternl icon in your browser toolbar and select 'Create Wallet'. Give your wallet a name and set a strong spending password — this encrypts your wallet on your local device.

Step 3: You will be shown your 24-word seed phrase. Write every word down in order on paper — not in a text file, not a screenshot, not in a cloud note. This phrase is the only backup for your wallet. Anyone who has it controls your funds. Store it somewhere physically secure.

Step 4: The wallet will ask you to re-enter several words to confirm you wrote them correctly. Complete this verification step carefully. Once done, your wallet is ready to receive ADA.

The seed phrase: your most important secret

Your seed phrase (also called a recovery phrase or mnemonic) is a sequence of 12 or 24 ordinary words that encodes your private key. From these words, any wallet software can reconstruct every address and private key in your wallet. If you lose your device, your seed phrase lets you restore full access from any other device.

The flip side: anyone who obtains your seed phrase has complete, irreversible control of your funds. Never enter it on a website, never share it in a support chat, never store it digitally. No legitimate wallet, exchange, or support representative will ever ask for your seed phrase.

Consider making two physical copies of your seed phrase and storing them in separate secure locations. Metal seed storage products (engraved plates) exist for fire and water resistance if you have significant holdings.

Receiving your first ADA

Once your wallet is set up, navigate to the Receive section to find your Cardano address — a long string starting with 'addr1'. This is your public address; it is safe to share with anyone you want to receive funds from.

After you send ADA to this address (from an exchange or another wallet), it will appear in your wallet balance after one or two confirmations, which typically takes 20-40 seconds on Cardano. Your wallet is now active.