Creating a new wallet offers enhanced security and full control over funds, with users generating a unique passphrase or mnemonic seed. This option is recommended for newcomers. On the other hand, using an existing wallet offers convenience and easy access to funds, eliminating the need for multiple wallets. Users can import their wallet by entering the recovery phrase or private key associated with it. Both options have their benefits, and it's important to securely store wallet information to ensure the safety of funds.