Crypto Wallets 101

Basics

Do have accounts on Crypto exchanges.

  • WazirX
  • Binance

Whole purpose of Crypto - "Be your own Bank"

Use Cases (add more):

  • Currency
  • deFi

Idea of crypto is all about decentralization.

  • Now you have the complete responsibility to hold your own assets.

Wallets

  1. Public Key:

    • It starts with a "0x..."
    • If someone wants to send you money, you just need to give them your address.
    • It's similar to a username/email in web2.

  2. Private Key --- Seed Phrase:

    • You shouldn't reveal it in any case.
    • It's similar to your password in web2.
💡

Seed Phrase is a way to remember.
If you can remember this seed pharse, you can recover your account anywhere in the world with the seed phrase alone.
You should keep this safe with your life.

You can use 1password manager to keep it safe.

Some examples of Crypto Wallets

  • MetaMask (best for transaction)
  • Rainbow (best iOS wallet)
  • Ledger (hardware)
  • Trezor (hardware)
  • MEW

Your assets aren't saved in wallet, but through that you can access them.

  • You can have multiple wallets, they are free.
  • Don't use any wallet you come across, don't use shady wallets.
  • Don't enter your seed pharse. Keep it safe.

Simple rule to remember - Not your keys? Not your crypto.

Q. If WazirX or binance have wallets too, then why to make separate wallet?

Ans. Yes, they have. But they don't give you seed phrases. So, if tomorrow they get shut down, you will loose your assets. Hence, use one of these wallets too.

You can keep it on WazirX, but you can have MetaMask. You need later to buy NFTs.

If you're figuring out, go for:

  • WazirX / Binance
  • MetaMask

Significant Investmemt:

  • WazirX / Binance
  • Cold Storage
  • MetaMask
  • Rainbow / MEW

What is Cold Storage?

It's the freeze. You don't touch they money.

  1. Hardware Wallets
    • Ledger
    • Trezor

(You need to buy from only legitimate sources)

  1. Paper Wallets

It's a print out. You can generate it online. It gives public key, private key and seed phrase. Keep it in:

  • Locker/Tijori
  • Seed phrase on 1password

Difference between MetaMask and other Wallets

  • MetaMask is how you interact with Blockchain.
  • Watch MetaMask video

We are right now living in Web 3.0, the apps running on it are called dApps. To sign in to dApps you need some wallet like MetaMask. Some transations you conduct on ethereum network, requires you to pay gas fees.

When you want to buy any NFT:

You need to pay = amount of that NFT + gas fee

What is Gas fees?

Basically, its a fee you need to pay to send your transaction through the ethereum network. This money goes to the network. Miner get this money.

Etherscan: It's a blockchain explorer. You can see your transactions happening here.

pumpthegas: Can track the amount of gas fees.

Every crypto-currency have its wallet.

End Note: How to start with Web 3.0

  1. Sign Up for WazirX, Binance
  2. Buy some $BTC & $ETH
  3. Move ETH from exchange to MetaMask
    • WazirX => Binance => MetaMask
    • Because WazirX => MM has fees, but WZ => Binance is free.
  4. Surf the decentralized web.
  5. Become a citizen of Metaverse.

For reference - ethereum.org Wallet Docs , coinbase docs