How to Set Up a Wallet for Stablecoins like USDC and USDT (Step-by-Step Guide)

Why You Need a Wallet for Stablecoins

Stablecoins offer a digital form of money that stays pegged to real-world assets or currencies like the U.S. dollar. Whether you’re looking to send money globally, earn interest, trade, or hold funds without the volatility of traditional crypto, stablecoins provide a reliable and accessible entry point into the world of digital finance.

But before you can get started with them, you need a wallet.

Think of a crypto wallet as your personal vault and control center for digital money. It’s where you can store your stablecoins, track balances, and send or receive funds. And you can do all of that without a traditional bank account or involvement from other intermediaries. Some wallets are fully controlled and installed by you. Others are built directly into apps and offer the same benefits.

There are two important types of wallets to be aware of:

• An external wallet like MetaMask, which you download and manage yourself. These are commonly referred to as externally owned accounts (EOAs).
• An embedded wallet which is created instantly within an app. These are powered by infrastructure providers like Dynamic, but remain fully owned and controlled by the user.

You’ll only need to set up one of these options, not both. Below, we’ll walk through each path separately so you can choose the right one for your needs and follow the process step by step.

Setting Up an External Wallet: MetaMask

1. Installing MetaMask

Through MetaMask’s website, you can get started with a wallet in a few different ways. You’ll have the option to either download their:

• Browser extension: Ideal for desktop users who interact with crypto apps through Chrome, Firefox, Brave, or Edge. This is a popular choice for users and developers who prefer managing assets from their computer.
• Mobile app: Best for people who do most of their browsing and transactions on their phone. This comes with built-in browser support for mobile-friendly apps.

Once you’ve picked the option that fits your needs, simply follow the installation instructions to get started. The good news is that your wallet will work seamlessly across both versions. You also won’t need to create a new wallet if you decide to use a different wallet provider later on.

Note: the web app in the image can only be accessed after you’ve created a wallet.

2. Creating a Wallet

With either option, you’ll be prompted to create a wallet once you reach the opening screen following the download.

Here, you will be asked to do two very important things:

1. Set a strong password: This works like a regular password and protects access to your wallet on the device you're currently using. It keeps your wallet locked if someone else tries to access it from that device. However, this password applies only to the current device and won’t be used if you access your wallet on another one.
2. Write down and confirm your seed phrase: This is a sequence of randomly generated words that serves as the master key to your wallet. Anyone with access to your seed phrase can control your funds, so it’s essential to store it offline in a safe place. Never share it with anyone or save it in a cloud document.

Once you have confirmed your seed phrase, MetaMask will generate your wallet and take you to your dashboard.
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3. Getting Familiar with Your New Wallet

Before we acquire stablecoins, here’s what you need to understand within your wallet interface:

• The selected blockchain appears in the top left corner, determining which tokens, NFTs, activity, and portfolio are shown in your interface.
• At the top center, you’ll see your selected wallet name with its unique address below. You can click the address to easily share it and receive funds.
• The globe in the top right corner indicates whether you are currently connected to an app or not. Click the three dots next to it to manage your wallet settings.
• Front and center, you'll find the total value of your portfolio, along with shortcuts to dive into DeFi or send and receive funds.
• Through the tabs at the bottom, you can view and manage your individual holdings or past wallet activity.
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4. Getting Stablecoins into Your Wallet

Once your wallet is created, you’re ready to fund it with stablecoins! The most common are USDC or USDT, but there are many others to explore with various use cases. There are two main ways to add stablecoins to your wallet:

1. Send them from another wallet or exchange: When you click “Receive” within your wallet interface, you will be shown the screen below. This offers a simple way to copy your wallet address or scan a QR code to send funds from another wallet or exchange. It is very important to ensure that you are sending tokens from the same blockchain network.
2. Use a fiat on-ramp: EOA wallets integrate with on-ramp services like MoonPay, allowing you to purchase crypto using a debit card or bank account. This process requires identity verification and fees, similar to using a crypto exchange. Once completed, the funds are sent directly to your wallet.

After your wallet is funded, you are free to explore everything that stablecoins have to offer. We cover several key ways to use them in our stablecoin sandwich blog here.

Getting Started with Embedded Wallets

Embedded wallets, powered by wallet infrastructure providers like Dynamic, are designed for simplicity. You don’t need to install anything, manage private keys, or remember seed phrases. Instead, your wallet is created automatically and mimics a traditional account-like experience.

Here’s how the process works with embedded wallet creation:
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1. Onboard to an App That Uses Dynamic

As soon as you visit an app or platform that uses Dynamic for wallet infrastructure (fun fact: there are thousands!), you'll be prompted to go through Dynamic’s onboarding flow. When creating a wallet, you can choose from familiar options including:

• Email
• SMS
• Your favorite social account or Google
• Connect an existing EOA if you have one

Once you choose a login method and authenticate, Dynamic will securely create a wallet for you behind the scenes. In less than a minute, you’re ready to acquire stablecoins.

2. Add Stablecoins to Your Wallet

Funding an embedded wallet is very similar to funding an EOA, which we covered above. You have the ability to scan a QR, connect an external wallet, or buy crypto from an on-ramp provider. However, Dynamic takes it a step further with a more streamlined interface and flow:

This level of simplicity minimizes the risk of errors and offers a user experience comparable to traditional Web2 platforms. You can learn more about external wallet funding on our site here.

Best Practices: How to Keep Your Wallet Secure

Regardless of how you set up your wallet, security is essential in crypto. Here are some best practices for keeping your wallet and digital assets secure:

• Always use a strong and unique password to protect your device.
• Enable two-factor authentication where possible.
• Never share your seed phrase or store it digitally. It is recommended to write it down and store it somewhere safe.
• Consider a hardware wallet if you plan to hold large amounts of crypto.
• Be cautious of phishing scams and never click links from untrusted sources or DMs.
• Navigate to sites and apps through official links from their website or social accounts. Sometimes phishing links can rank highly on Google or other search engines.
• When possible, avoid using public WiFi for wallet-related activity.