In a digital world where #DeFi and #NFTs increase in popularity, storage and safety of your digital assets become a priority.
But where are you going to store your crypto assets? How do you do that? Is it safe?
Here is what you need to know about cryptocurrency wallets 🔐🪙
But where are you going to store your crypto assets? How do you do that? Is it safe?
Here is what you need to know about cryptocurrency wallets 🔐🪙
1/ What exactly is a web3/crypto wallet?
- A Web3 wallet is a software program or physical device that allows you to store your crypto and allows for the sending and receiving of crypto transactions.
- Web3 wallets are non-custodial.
- A Web3 wallet is a software program or physical device that allows you to store your crypto and allows for the sending and receiving of crypto transactions.
- Web3 wallets are non-custodial.
2/ What does it mean that they are non-custodial?
- It means that these wallets can store digital assets securely without needing a middleman, but its owner has COMPLETE responsibility for their wallet and for keeping their private information safe.
- It means that these wallets can store digital assets securely without needing a middleman, but its owner has COMPLETE responsibility for their wallet and for keeping their private information safe.
3/ Why you might need a Web3 wallet?
- Web3 offers a completely different user experience based on its decentralized nature.
- Web3 wallets are the gateway to Decentralized Applications running on blockchains - DeFi, Gaming, NFTs.
- Your wallet is your "login" to every DApp
- Web3 offers a completely different user experience based on its decentralized nature.
- Web3 wallets are the gateway to Decentralized Applications running on blockchains - DeFi, Gaming, NFTs.
- Your wallet is your "login" to every DApp
4/ How do Web3 Wallets work?
When you create a digital wallet, you receive a private key and a public key that is associated with your wallet.
Here are the differences between both:
When you create a digital wallet, you receive a private key and a public key that is associated with your wallet.
Here are the differences between both:
5/ Public Key
- This is the address used to send crypto to the wallet. The public key can be shared with anyone at any time without compromising your account information.
- A good analogy is that your public key is your email address or your bank account number.
- This is the address used to send crypto to the wallet. The public key can be shared with anyone at any time without compromising your account information.
- A good analogy is that your public key is your email address or your bank account number.
6/ Private Key
- Your private key should be kept as a secret because it gives access to your digital assets. You use this private key to access and spend your funds.
- A good analogy is that your private key is your password or the PIN to your credit card.
- Your private key should be kept as a secret because it gives access to your digital assets. You use this private key to access and spend your funds.
- A good analogy is that your private key is your password or the PIN to your credit card.
7/ Types of Crypto Wallets
Web3 wallets fall under two categories:
- Software wallets (A.K.A. Hot Wallets)
- Hardware wallets (A.K.A. Cold Wallets)
Cold Wallets are considered safer because they keep assets offline, but Hot Wallets offer less friction to operate in Web3.
Web3 wallets fall under two categories:
- Software wallets (A.K.A. Hot Wallets)
- Hardware wallets (A.K.A. Cold Wallets)
Cold Wallets are considered safer because they keep assets offline, but Hot Wallets offer less friction to operate in Web3.
8/ Software Wallets
- A software wallet is a computer program or mobile app that holds private keys online. This wallet could be a desktop or a mobile device, or it could be a web-based wallet that can be accessed online.
Examples: @MetaMask, @TrustWallet and @CoinbaseWallet
- A software wallet is a computer program or mobile app that holds private keys online. This wallet could be a desktop or a mobile device, or it could be a web-based wallet that can be accessed online.
Examples: @MetaMask, @TrustWallet and @CoinbaseWallet
8/ Hardware Wallets
A hardware wallet is a type of cold storage device, typically a USB, that stores the user’s private key in a protected hardware device completely offline.
Examples: @Ledger @Trezor
A hardware wallet is a type of cold storage device, typically a USB, that stores the user’s private key in a protected hardware device completely offline.
Examples: @Ledger @Trezor
9/ What wallet should I get?
This depends from situation to situation, but generally:
- If you are currently holding a large amount of crypto, a cold wallet will provide extra safety.
- If you are frequently trading NFTs, a hot wallet might facilitate your transactions.
This depends from situation to situation, but generally:
- If you are currently holding a large amount of crypto, a cold wallet will provide extra safety.
- If you are frequently trading NFTs, a hot wallet might facilitate your transactions.
10/ Conclusion
A Web3 Wallet is the bridge between your assets and Web3 DApps. It is important to pick the wallet that fits your needs best.
Write your private key somewhere safe and NEVER share it with anyone.
...now, time to surf Web3, frens.
A Web3 Wallet is the bridge between your assets and Web3 DApps. It is important to pick the wallet that fits your needs best.
Write your private key somewhere safe and NEVER share it with anyone.
...now, time to surf Web3, frens.
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