1/ Crypto Wallet 101. How to keep your assets clean, secure, and ready for tax season. Plus, track all your NFTs and coins in one place. 🧵
2/ Security is a top priority, for sure—but so is organization and clarity. To trade and invest with confidence, you will need a complete understanding of what’s working in your portfolio.
Let’s start with safety, and why you need both hot + cold wallets.
Let’s start with safety, and why you need both hot + cold wallets.
3/ Hot wallets
You can instantly create these by downloading MetaMask or Rainbow. They’re less secure, but more convenient. By keeping some crypto in them, you’re ready to trade on the fly.
You’ll get a private seed phrase. Keep it safe—never store it or type it online.
You can instantly create these by downloading MetaMask or Rainbow. They’re less secure, but more convenient. By keeping some crypto in them, you’re ready to trade on the fly.
You’ll get a private seed phrase. Keep it safe—never store it or type it online.
4/ Fun fact about your seed phrase. You can take it to other hot wallets.
Signed up using Rainbow, but want to take it into MetaMask? No problem.
These apps don’t lock you in to their UI. Your wallet and passwords are yours alone, take them to whatever interface you want.
Signed up using Rainbow, but want to take it into MetaMask? No problem.
These apps don’t lock you in to their UI. Your wallet and passwords are yours alone, take them to whatever interface you want.
5/ Cold wallets
A more secure solution for long term investments and NFTs. These are offline, USB-like devices that never share private keys with your computers. Store the bulk of your holdings on these.
I use Ledger Nano X. Other options are Trezor and the GridPlus Lattice1.
A more secure solution for long term investments and NFTs. These are offline, USB-like devices that never share private keys with your computers. Store the bulk of your holdings on these.
I use Ledger Nano X. Other options are Trezor and the GridPlus Lattice1.
6/ Bottom line: you need both hot and cold wallets. Ideally, you will have multiples of both.
It may seem disorganized to be spread across several wallets. But if you are hacked, this limits your exposure. Better to lose 10% than 100%.
Now, let’s solve for organization.
It may seem disorganized to be spread across several wallets. But if you are hacked, this limits your exposure. Better to lose 10% than 100%.
Now, let’s solve for organization.
7/ Portfolio monitoring
Before trying to create spreadsheets, sign up for portfolio viewers like CoinTracker or Zapper.
These allow you to import all your wallets, monitor complete financial performance, and analyze your investment strategy.
Before trying to create spreadsheets, sign up for portfolio viewers like CoinTracker or Zapper.
These allow you to import all your wallets, monitor complete financial performance, and analyze your investment strategy.
8/ Taxes
A lot of people swear by @CoinTracker in particular, which gives you visibility into your unrealized gains and can help with tax-loss harvesting.
Trust me, you do not want to be unprepared come tax season.
A lot of people swear by @CoinTracker in particular, which gives you visibility into your unrealized gains and can help with tax-loss harvesting.
Trust me, you do not want to be unprepared come tax season.
9/ NFT monitoring
Unifying all your NFT holdings in a dashboard is critical.
But because NFTs can be so volatile, it’s also necessary to have visibility into their floor prices and unrealized value.
@NFTbank_ai is a leading solution here. nftbank.ai/landing
Unifying all your NFT holdings in a dashboard is critical.
But because NFTs can be so volatile, it’s also necessary to have visibility into their floor prices and unrealized value.
@NFTbank_ai is a leading solution here. nftbank.ai/landing
10/ Staking
Staking means committing your crypto assets to support network transactions in exchange for interest. An easy way to earn money that would otherwise clutter your wallet.
There are many ways to stake. One place to start is @LidoFinance.
Staking means committing your crypto assets to support network transactions in exchange for interest. An easy way to earn money that would otherwise clutter your wallet.
There are many ways to stake. One place to start is @LidoFinance.
11/ NFT viewing
It’s informative to take a peek at your NFT holdings (and those of others 👀). At rainbow.me, you can paste in any address for a quick look. And the links are sharable!
I’ll be sharing tips soon on how to take this analysis to a much deeper level.
It’s informative to take a peek at your NFT holdings (and those of others 👀). At rainbow.me, you can paste in any address for a quick look. And the links are sharable!
I’ll be sharing tips soon on how to take this analysis to a much deeper level.
12/ Now you’re organized, armed with insights, and ready to trade with confidence. Go get yourself some JPEGs.
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