CRYPTO-4-BEGINNERS

Welcome to Crypto-4-Beginners, our topic is Digital Crypto Wallets.

In this section we will discuss the difference between three types of digital crypto wallets: wallets on exchanges, software wallets, and hardware wallets.    

Crypto exchanges are places where people can buy or sell cryptocurrencies.  We're going to cover this more in depth in the following section titled "How to Buy & Sell Crypto", but for now, its important to understand that when you purchase crypto off an exchange, the crypto you've purchased will sit in a digital wallet that exists on the exchange platform.  

There are some pro's and con's to leaving your crypto in an exchange wallet.  The pro's are that you will likely save in transaction fee's.  Often when sending crypto out of an exchange wallet to a private wallet, whether its software or hardware, there will be an "exit fee".  Another benefit is if you plan to sell that crypto, the easiest way is to do so on an exchange.  

The con's however are that you don't actually own the crypto that sits in an exchange wallet, despite you having purchased it.  When you leave your crypto in a wallet on an exchange, what you're really doing is entrusting the company that operates the exchange to hold your crypto for you.  It's technically still yours, but you don't have control over the private keys of the account - and we have a saying in crypto, "Not your keys, not your crypto".  What this means is, if the company ever wanted to lock you out of your account, or simply vanish, they would be able to steal your crypto because they control the private keys.  

Every digital crypto wallet is secured by a private and public key.  The public key is your digital wallet address.  This is an alpha-numeric code that you can give out to someone that is sending you crypto.  The private key is also an alpha-numeric code, but this one must remain secret, for your eyes only.  If anyone gains access to your private keys, they can send crypto from your digital wallet, thus stealing your crypto.  We'll explore this more in detail towards the end of this section.  

Software wallets are digital wallets that are downloaded directly to your computer or mobile device.  These are generally considered to be more safe than the exchanges, and you gain full control of your private keys.  The benefits to this are you are in full control over your crypto.  But alternatively, being in control of your own crypto means you're responsible for keeping it safe, and not losing your passwords, back-up phrase, and private keys.  It also means that if you forget your password or back-up phrase, you'll be forever locked out of your account, with no way to access the crypto stored in that wallet.  Software wallets for the most part are safe, it is still possible for hackers to gain access to your computer and target your crypto wallet - but as long as you're not opening strange, sketchy links online, you should be fine.  If you're really worried, what I tend to do is keep my software wallets on a laptop I don't normally use to browse the internet, but this isn't necessary.  At the end of this section i'll provide steps to ensure your wallet safety.  

Hardware wallets, often referred to as cold storage, are devices similar to a USB-key, but stores crypto offline, safe from hackers.  Hardware wallets are not for rookies in the crypto space.  They tend to be slightly more advanced, so you should definitely start with a software wallet, and then slowly transition to a hardware wallet once you become a little more familiar with how all this stuff works.  The pro's of having a hardware wallet are that it is the most safe form of a digital wallet.  However, if the device is damaged, or lost, the crypto on the device is lost forever.

In this section we will look at two of my favourite software wallets, MetaMask and Exodus.  

MetaMask is an Ethereum based digital crypto wallet.  What that means is it stores tokens that exist on the Ethereum blockchain.  These tokens are ERC-20 (Cryptocurrencies, like Ethereum, Chainlink, etc...) or ERC-721 (NFTs).  Cryptocurrencies like Bitcoin can't be stored in the MetaMask digital wallet.  

It is important to download the MetaMask wallet from the official MetaMask website.  
https://metamask.io/

MetaMask is available as a browser extension or a mobile app.  Once downloaded, we can begin to explore its features.  

You'll be asked to create a password, and given a generated 12-word phrase.  It is important that you make a strong password and keep both your password and the 12-word phrase safely stored offline.  Do not take a picture of your 12-word phrase, and do not store that data online.  The reason I say not to take a picture is because if you have any apps on your device, you've likely given them access to your photos.  If a hacker gets a hold of this 12-word phrase and your password they can access your digital crypto wallet from another device.  So, make sure to store this data offline, somewhere safe, where you won't lose it.  And for the love of god, don't forget your password!  

Once your MetaMask is set up, you'll see at the top of the wallet is an alpha-numeric code that starts with Ox....... This is your public key, also called your wallet address.  If you want to receive crypto from someone that wants to send you crypto, you will give them this address.  If you'd like to send crypto from your wallet to another wallet, you'll need the address of the wallet you'd like to send crypto to.  Once you have that address, you can proceed to click the "send" button, then copy and paste the wallet address of the wallet address you want to send crypto to. 

When using the Ethereum blockchain, transaction fee's are called gas, and measured in gwei.  These transaction fee's are paid to the miners/validators that secure transactions on the network.  You can learn more about this in the section titled: "An Introduction to Important Concepts".  

After a transaction has been made, whether you're sending or receiving crypto, you can check the status of the transaction on EtherScan.  To do this, go into "Activity", and select the transaction you'd like to view.  You will be given the option to see the "EtherScan".  Here it will take you to a new page outside the MetaMask wallet, where you can see the status of the transaction.  I'll cover more on EtherScan in our Facebook group page "DocCrypt0's Futurist Topics".  

When you're done using your MetaMask wallet, make sure to lock it.  At the top right corner there is a circular icon.  Click that and a window opens, click "lock".  Whenever you want to reopen your MetaMask wallet, click the little fox face at the top right corner of the screen. You'll need to be in the proper browser to see it.  

Next, we'll look at the Exodus digital crypto wallet.  Exodus is also an app for mobile or can be downloaded directly to your computer.  Exodus is a multi-crypto wallet, meaning you can store hundreds of different cryptocurrencies in the Exodus wallet, including both Bitcoin and Ethereum.  

To download the Exodus wallet, make sure you go to the official Exodus website. 
https://www.exodus.com/

Again, when setting up the Exodus wallet, you'll need to create a strong password and save your 12-word phrase.  To do this, you'll need to select "Settings" at the top right corner of the screen, if on a computer, or if on a mobile device, click the "human" looking icon at the bottom of the screen.  Once in "Settings", select "Back Up", if on computer, or "Security" if on a mobile device.  There you will have the option to create a password, and view your recovery 12 word phrase.  Once again, keep this data saved, offline.  

If you're using a computer, the first thing you'll want to do is go back into "Settings", and then select "Assets" at the top of the screen.  Here you will see all the different crypto's supported by the Exodus wallet.  You can enable which ever crypto you'd like to be able to store in the Exodus wallet, and disable any you're not currently interested in.  

For mobile, click the little "human" looking icon at the bottom of the screen to access the "Assets".  

The Exodus wallet allows for adding apps.  These apps include, Exodus Shares, Exodus Rewards, Compound, and SportsX, as well as the built in applications such as the Portfollio, Wallet and Exchange.  

The Portfollio pages shows your current holdings, and offers some stats.  The Wallet part is where you can send or receive crypto, and you'll be able to access your private and public keys.  The exchange part allows you to exchange one crypto for another, without having to move your crypto off the exodus wallet to an exchange.  The Rewards are a feature called "Staking". This means that you can collect interest on the crypto that sits in your Exodus wallet.  Think of it like a savings account that pays interest on your crypto-savings.  Not all cryptocurrencies have this option, but a few do, you'll see an APY next to the name of the crypto if its offered.  Users also have the opportunity to buy shares into the Exodus company, or can use their crypto to gamble on sports events.  

If you're on a mobile device, once you set up a password, once you close the app, it automatically locks.  If you're using a computer, you'll have to go into the Settings, and select "Security".  Here you can set a timer to lock your wallet after being idol for a certain amount of time.  You can also click the "lock icon" at the top of the screen.  

The Exodus wallet also allows for the syncing of other devices, such as having your digital wallet synced to both computer and mobile device, or you can sync a hardware wallet for more security.  In the section titled "CryptoGems", we discuss the Ledger hardware wallet.  

For more information on how to keep your crypto safe, and to maximize security of your crypto digital wallet, please go to: 

https://support.exodus.com/article/767-how-do-i-keep-my-money-safe#Tier1