How to get started with digital wallets
Your first step into Web3 and blockchain technology is opening a digital wallet. Here is information you should know to give yourself that boost of confidence and enthusiasm to get started.
Why open one now?
If you are new to Web3, you will probably hear the advice: “just jump in and experiment.”
Do you read a book first to learn how to swim or go straight into the water? Even if you are ready to dive in, there are sharks and the possibility of drowning. Like learning to swim, using a crypto wallet for the first time can be scary, especially when you know about the risks.
But there are great benefits of opening a crypto wallet: access to Web3 dApps (websites), cryptocurrencies, and NFTs. It allows you to explore and splash around when you are ready.
Where to start?
Most people start by setting up a Metamask or Coinbase wallet. The setup process is very similar; they both have easy-to-understand instructional videos and articles.
No matter what wallet you choose, go to the official company website. Scammers tend to be sneaky by placing their devious websites at the top of the browser search results. Pay attention to where you click.
Where will you access your wallet?
Will you be browsing dApps, buying crypto, and NFTs mostly on your phone or desktop browser? You will install a browser extension for your wallet to connect to websites for access and/or payments.
If you want to install the same wallet on multiple devices, you can do this by using your seed phrase (more on this next).
Password, seed or recovery phrase, and wallet address (public key)
To open a new wallet, you must create a secure password. The password opens your wallet extension or app on your mobile device.
Next, you will be given a seed or recovery phrase. Everyone will warn you: DO NOT SHARE IT AND KEEP IT IN A SAFE PLACE. You will be reminded of this many times.
Your wallet address is similar to your mailing or email address. You do share this string of long numbers and letters with others. It allows you to send and receive digital assets. If you want to shorten it, an ENS or Unstoppable domain are two options to create memorable names.
Other details to know
A digital wallet isn’t like an actual wallet that holds items. Instead, it is a portal or gateway that unlocks your assets on the blockchain. If you lose your phone or your computer crashes, you can recreate your wallet on a new device by entering your recovery phrase.
Within your wallet, you can also create separate accounts. Each account will have a different address but share the exact recovery phrase. You can always create a new account but cannot delete it. While you can transfer assets between these accounts, note that this action will incur a small transactional fee.
Your wallet also connects to different networks. I won’t go into the technical explanation, but note that if you need to be on a particular network to complete a transaction, the website will give you instructions.
How to view wallet transactions
The benefit of blockchain technology is the ability to view all transactions.
You can view your wallet transactions by looking them up in a blockchain explorer (Etherscan is one example), and it allows you to review transfers or purchases and verify completion.
It may look intimidating initially, but the more you explore the data, the more you will understand.
What do you do with your new wallet?
Once you have your new wallet, you can discover and use new dApps. When you connect your wallet to a new website, a window will pop up asking you to acknowledge or sign that you want to proceed.
You can do many things with your wallet at little to no cost. Buy some cryptocurrency available, just in case. If you get an opportunity to receive a free NFT or token, be prepared with some cryptocurrency to pay for the small transaction fees.
With Metamask, you can purchase cryptocurrency directly from your wallet. There are several choices of companies that can provide the exchange of fiat for cryptocurrency.
These companies may also have tighter security measures that want you to verify your identity, including scanning your ID and sending a digital picture of yourself. But note that Metamask or other wallet companies do not store this information.
Have fun exploring, but be safe
Like learning to swim, it takes time and practice to feel comfortable. You can do quite a lot with a digital wallet without investing large sums of money. You should practice transferring assets from one wallet to another in small amounts.
Always be aware of who you are interacting with on the web. Do not click on links or connect your wallet that you think are suspicious. Wallet ownership brings great opportunity and responsibility.
Conclusion
If you are still unsure about opening a wallet, find a trusted friend to help answer questions and support you.
There are many communities to join that provide beginning Web3 education (such as Tokens Square). Ask questions and seek advice.
Owning a digital asset is your first step to exploring this exciting new world of Web3.
Go ahead and jump in; the water is just fine.
