Your New Personal Bank Account

• A crypto wallet is like a bank account on steroids.
• Think about it, any financial service you use, (PayPal, Credit Card, Stripe...) needs to be linked to a bank account. Not just for funding, but for verification.
• In crypto, your wallet is what connects you to the DeFi applications that are out.

Your wallet acts as your log-in for crypto apps. Just like when a website asks you "Would you like to log-in with Facebook / Google?"

Browser wallets, like MetaMask, are popular because they are browser extensions you download, and can be used right on your web browser. Speeds things up!

Some Wallet Buzzwords:

• Cold Storage = a hardware wallet, not connected to internet (Ledger)
• Hot Storage = online facing wallet, such as MetaMask.
• Hardware wallet = physical crypto wallet device, like a ledger nano x.
• EVM = Ethereum Virtual Machine is what most networks are built on.
• Browser Wallet = A wallet in the form of a browser extension. (i.e MetaMask)
• KYC = Real world verification required to use.
• Custodial = The wallet providers holds your secret key. (if they get hacked, so do you)
• Non-Custodial = Your wallet is as safe as you not losing your password / seedphrase.
• Self-Custody = Keeping your crypto inside a wallet that only YOU have the key to.

Your crypto wallet, lets you:

• Store $$$, Send $$$, Receive $$$
• Interact with blockchain apps.
• Buy / Sell / trade NFTs on marketplaces.
• and plug into any decentralized apps, games, or social media.

Most Popular DeFi Wallets

Wallets:

• MetaMask (browser)
• Coinbase Wallet (app / web)
• Ledger Nano X (Physical Wallet)
• Trezor (Physical wallet)
• Phantom (Solana / Matic compatible)
• Argent (Non Cusotidial App)
• Trust Wallet (app)
• Exodus (desktop & physical wallet)

Physical / Hardware Wallet?

• There are USB looking physical devices that are made for storing your crypto behind physical authentication.
• You can still interact with apps using hardware wallets.
• You are responsible for not losing your seed phrase. Be careful.
• Yes, they are deemed "more secure" because your seedphrase never touches the internet.
• Seedphrase = master password.
• Pin Code = memorable few digits.

Takeaways:

• Self Custody is empowering and you should control your crypto funds!
• Cold storage can be more secure, but if you lose your seed phrase, you lose your crypto.
• Browser wallets like MetaMask are great for quickly and securely interacting with DeFi apps.

Made with 💜 - by @thekriskay - share with a friend to help DeFi grow.

Lets Do DeFi ™ is a free DeFi educational resource and guide aimed to explain complicated crypto stuff to everyday folks.

© DeFi Donut 2021 - © Lets Do DeFi 2021 |