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!
DO NOT SEND BITCOIN OR NON ETHEREUM TOKENS TO METAMASK
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.
Any time you send crypto to / from wallets, test w/ small amounts first.
DO NOT SEND BITCOIN OR NON ETHEREUM TOKENS TO ETHEREUM WALLETS
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.
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