• Latest
  • Trending
Your First Crypto Wallet: How to Use It and Why You Need One

Your First Crypto Wallet: How to Use It and Why You Need One

January 6, 2022
Ethereum Developers Advance With Big Data Experiment Ahead of ETH Upgrade

Ethereum Developers Advance With Big Data Experiment Ahead of ETH Upgrade

June 3, 2023
Floki Inu Gains Momentum As Alibaba Recognizes its Utility

Floki Inu Gains Momentum As Alibaba Recognizes its Utility

June 3, 2023
Musk’s alleged price manipulation, the Satoshi AI chatbot and more

Musk’s alleged price manipulation, the Satoshi AI chatbot and more

June 3, 2023
What Is KlimaDAO | CoinStats Blog

What Is KlimaDAO | CoinStats Blog

June 3, 2023
Billions of SHIB Burned for Several Weeks in Row by SHIB Army

Billions of SHIB Burned for Several Weeks in Row by SHIB Army

June 3, 2023
Injective Protocol (INJ) Tallies 23% Price Surge In Past 7 Days

Injective Protocol (INJ) Tallies 23% Price Surge In Past 7 Days

June 3, 2023
Warren’s alleged work with short-seller shows anti-crypto army heating up

Warren’s alleged work with short-seller shows anti-crypto army heating up

June 3, 2023
What Are BRC-20 Tokens | CoinStats Blog

What Are BRC-20 Tokens | CoinStats Blog

June 3, 2023
DOGE Price Analysis for June 3

DOGE Price Analysis for June 3

June 3, 2023
  • Privacy Policy
Saturday, June 3, 2023
Mount Rushmore Crypto
  • Home
  • Top News
  • Crypto
  • Crypto Technical Analysis
  • About Us
  • Crypto Vouchers
  • Cryptocurrency and ANKR Price Prediction
  • Cosmos cryptocurrency price prediction
No Result
View All Result
  • Home
  • Top News
  • Crypto
  • Crypto Technical Analysis
  • About Us
  • Crypto Vouchers
  • Cryptocurrency and ANKR Price Prediction
  • Cosmos cryptocurrency price prediction
No Result
View All Result
Mount Rushmore Crypto
No Result
View All Result
Home Crypto

Your First Crypto Wallet: How to Use It and Why You Need One

J_News by J_News
January 6, 2022
in Crypto, Top News
0
Your First Crypto Wallet: How to Use It and Why You Need One
0
SHARES
64
VIEWS
Share on FacebookShare on Twitter

Crypto wallets are like online bank accounts for your cryptocurrencies but with a few key differences: cryptocurrency wallets are not backed by government deposit schemes, they only hold cryptocurrencies (no regular money here) and, crucially, you are in control of your funds at all times.

Non-custodial is the term given to cryptocurrency wallets, like MetaMask, Rainbow Wallet or Trust Wallet, that are separate from the accounts you may have on cryptocurrency exchanges. When you hold money on a crypto exchange, like Binance, Kraken or Coinbase, those companies are in control of your cryptocurrencies. But when you move your crypto to a non-custodial wallet, you hold the keys to your wallet.

Related articles

Ethereum Developers Advance With Big Data Experiment Ahead of ETH Upgrade

Ethereum Developers Advance With Big Data Experiment Ahead of ETH Upgrade

June 3, 2023
Floki Inu Gains Momentum As Alibaba Recognizes its Utility

Floki Inu Gains Momentum As Alibaba Recognizes its Utility

June 3, 2023

These wallets are the key to the decentralized web and serve as the primary way to interface with decentralized finance protocols, like lending protocols, decentralized exchanges or non-fungible token (NFT) marketplaces. Crypto wallets are so foundational to decentralized finance that some people on Twitter or Discord refer to themselves solely by their cryptocurrency wallet addresses – anyone who introduces themselves with a username that starts with “0x” is referring to their Ethereum address.

Why you need a crypto wallet and how to choose one

Unless you’re running a huge company holding so much cryptocurrency that you need the watchful eye of a specialized custodian – a third party that looks after your crypto for you – you’re looking for a non-custodial wallet. These are, as mentioned, wallets to which only you hold the keys. You may have read the adage, “not your keys, not your crypto.” This phrase is commonly used and stresses the importance of looking after your own crypto.

With non-custodial crypto wallets, your assets are backed by something called a private key. This functions as a password to your crypto wallet. You must shroud this in secrecy and never tell anyone about it. Should you lose your private key, you’ll be able to use something called a secret phrase, or seed phrase. These are strings of 12 or 24 words that function as a backup password. It’s important to hide these in a trusted place, ideally by holding parts of the phrase in different places. No company or individual should ever ask for your seed phrase – those that do are almost always scams looking to steal your funds.

Different blockchains require different wallets. MetaMask, one of the most popular wallets, supports just a handful of networks, including Ethereum, Binance Smart Chan, Polygon (MATIC) and Avalanche (the common denominator is that these chains all support the Ethereum Virtual Machine (EVM)). MetaMask does not support Solana or Bitcoin, however, there are a number of other options including Trust Wallet that do support Bitcoin.

NFT support requires special attention. Most wallets natively support fungible tokens, like ethereum, bitcoin and so on. But non-fungible tokens – crypto art, like Tyler Hobb’s Fidenza or the Bored Ape Yacht Club – are handled a little differently. Marketplaces like OpenSea, although not wallets, will automatically display your Ethereum NFTs if you connect your wallets. Rainbow Wallet displays NFTs within its app.

When choosing a wallet, a good rule of thumb is to check which wallets are recommended by a coin’s community. Solana’s community champions, SolFlare and Phantom, while Monero’s sings the praises of Cake Wallet. Bitcoincash.org recommends the Bitcoin.com wallet, among others.

Read More: How to Store Your Bitcoin

Most of these wallets function as either desktop wallets, browser extensions or mobile wallets. Those that function as browser extensions are particularly useful when interfacing with decentralized finance (DeFi) protocols. The websites of Uniswap, Aave, Compound and more each have a “connect wallet” button. This functionality replaces the “log in to Google”/ “enter your email and password” of Web 2.

How to set up a crypto wallet

Setting up a crypto wallet only takes a couple of minutes. To get started with MetaMask, either download the app on your phone or install the browser extension. Then, MetaMask will ask you to set a password to the app, name your wallet, then write down your secret phrase (and then get you to check that you have done so). And that’s it! You can then use your wallet to send or receive funds.

To find out your address, click the name of your wallet and MetaMask will copy it to your clipboard. Other wallets have near-identical setup processes.

What about hardware wallets?

The above is a survey of the popular web wallets, also known as “hot wallets” because you need an internet connection to use them. Hardware wallets, known as “cold wallets”, are physical devices like USB sticks that you plug into your computer and only connect to the internet when they’re docked. This makes them more secure, albeit a little cumbersome to use. Popular brands include Trezor and Ledger. Unlike hot wallets, you’ll need to buy these hardware wallets from the official suppliers. Purchasing them secondhand or from a non-trusted supplier is incredibly risky as devices could be faulty, tampered with or contain malware.

While cold wallets are considered the absolute safest place to store your crypto as they are entirely offline and cannot be hacked, they also pose a similar risk: If you lose the physical drive and/or the private key, you will be unable to access your crypto. That’s it. No password reset feature, no back button, zilch.

And it’s not just new crypto users that fall foul to forgetting their passwords. Former chief technology officer of Ripple Labs, Stefan Thomas, admitted last year he’d forgotten the password to his crypto wallet containing 7,002 bitcoin (worth approximately $325,000,000 at press time). He has just two guesses remaining before his device auto-encrypts his coins and makes them permanently unretrievable.



Source link

ShareTweetShareShare
Previous Post

best places to buy EverBNB now

Next Post

Kintsugi (KINT) Trading Starts January 6 – Deposit Now

Related Posts

Ethereum Developers Advance With Big Data Experiment Ahead of ETH Upgrade

Ethereum Developers Advance With Big Data Experiment Ahead of ETH Upgrade

by J_News
June 3, 2023
0

Tomiwabold Olajide ETH upgrade gets closer as Ethereum developers conduct large-scale data experiment Ethereum developers are advancing preparations for the...

Floki Inu Gains Momentum As Alibaba Recognizes its Utility

Floki Inu Gains Momentum As Alibaba Recognizes its Utility

by J_News
June 3, 2023
0

Floki Inu (FLOKI) is taking a giant leap forward in the world of meme assets. In an exciting development, the...

Musk’s alleged price manipulation, the Satoshi AI chatbot and more

Musk’s alleged price manipulation, the Satoshi AI chatbot and more

by J_News
June 3, 2023
0

Top Stories This Week Dogecoin investors accuse Elon Musk of insider trading in amended class-action lawsuit A group of Dogecoin...

What Is KlimaDAO | CoinStats Blog

What Is KlimaDAO | CoinStats Blog

by J_News
June 3, 2023
0

Klima DAO is a decentralized autonomous organization (DAO) and DeFi protocol that aims to combat climate change by using cryptocurrency...

Billions of SHIB Burned for Several Weeks in Row by SHIB Army

Billions of SHIB Burned for Several Weeks in Row by SHIB Army

by J_News
June 3, 2023
0

Yuri Molchan Burn rate of Shiba Inu has demonstrated rise, while billions of SHIB continue to be removed on weekly...

Load More

Enter your email address:

Delivered by FeedBurner

Quick Navigate

  • Home
  • Crypto
  • Crypto Technical Analysis
  • Top News
  • Thank You
  • Store
  • Crypto Vouchers
  • About Us
  • What Cryptocurrency Is and ANKR Price Prediction
  • Cosmos cryptocurrency price prediction

Top News

Bitcoin Price (BTC) in Stasis Below $27K Ahead of Powell Speech

Milady Meme Coin Price Prediction 2023-2030

Peercoin Network Successfully Hard Forks – New Developers Hired

© 2021 mtrushmorecrypto - Crypto Related News Blog

No Result
View All Result
  • Home
  • Top News
  • Crypto
  • Crypto Technical Analysis
  • About Us
  • Crypto Vouchers
  • Cryptocurrency and ANKR Price Prediction
  • Cosmos cryptocurrency price prediction

© 2021 mtrushmorecrypto - Crypto Related News Blog

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie SettingsAccept
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT