Intro to Wallets
WALLETS
Now, you may be just fine simply leaving your coins on Coinbase. But I will share my view on wallets so you are at least aware of why they might be a very good thing to have.
Wallets are like the spaceship interface, the navigation board, the command center for how to direct and move your cryptos around this invisible blockchain they run on. That’s all! And, if you have a simple wallet, it should be simple!
As you may know, your coins have a public key and a private key, both of which you need if you are going to have full control over your coins.
Exchanges will show you your public key, but not your private key. The main point of having your own wallet is to have access to your own private key for each coin. This is a long chain of numbers and letters, your private access to your coins on the blockchain.
Nobody can take your coins IF only you have the private key with which to move them on the blockchain. Because exchanges don’t allow us to have this, I don’t leave my cryptos on exchanges and risk losing access to them.
Wallets are also where things can get a little tricky. The thing is, NOT confronting this area may lead to major regrets. Let’s avoid that! (Don’t worry, I can help set up wallets if needed in an hour or two.)
Many people just leave their coins on exchanges, which is like buying groceries and leaving them at the checkout after having paid for them.
My Rule #1: I ALWAYS STORE MY LONGTERM CRYPTOS IN MY OWN POSSESSION! I do not let an exchange hold the majority of my coins long term.
Another reason I like to do this is so I do not SELL MY COINS TOO EARLY!!!! This is sooooo easy to do if you leave your coins on an exchange. Prices go up or down one day and trigger some intense emotion (as markets are designed to do), or you hear some news (creating FUD, fear uncertainty doubt), and before you know it you’ve violated your PLAN and sold too soon. I like my cryptos to be somewhat harder to access, haha! Avoid that regret...
Rather than just getting excited about cryptos, signing up for Coinbase, buying your coins and leaving them there, here’s the more ideal sequence of events, in my opinion:
Take a deep breath and calm down about ‘having to buy right now!’. Markets move in cycles (see last section of this guide). I like to ‘know why before I buy’, so… Research cryptocurrencies from multiple sources, decide which you’d like to own, make a purchasing plan to allocate money to the cryptos (be wary of overdoing it, stick to your PLAN so you have an idea of what amount you are buying at what price and at what price you are selling what amount, etc.), then before buying them find out which exchanges sell them and which wallets can store each kind of coin.
You may want to research each thoroughly as to exchange fees, etc and the best wallets. Ideally, set up the wallet(s) BEFORE buying cryptos. At least know in which wallet you can hold them for the long term before you buy a coin. (I will not buy some obscure crypto that has a wallet I do not trust. In the “single coin wallets” section I list top coins and their wallets. I like having some coins in their own wallet designed just for that coin. Or, most coins are storable all together on Exodus, Guarda, Trust...which may be simpler for you.) Send the cryptos to the wallet asap after purchasing. There may be a wait time, that’s okay.
A good rule to follow with sending coins to wallets is to send a SMALL AMOUNT as a test, like $5-$10. It’s uncommon to make mistakes, as most exchanges will warn you if something is wrong. Still, I always send a test amount to avoid any mistakes. Double check the first and last three digits on the address to make sure it’s right.
Send them, and then check that the coins ended up in your wallet all right before sending a larger amount. You don’t want all your coins to go to the wrong address and get lost forever. Most people have me do this for them the first few times, but soon you will get the hang of it! (There are many how-to videos online if you search exactly what you want to know.)
When you set up your wallet, each coin in the wallet has a “public key” which is a long string of numbers and letters, the public “receiving address” for that coin. It is not secret or private. If you want to receive coins to that wallet, you need only copy that address and paste it into the exchange you are sending the coins from (to the wallet).
For example, on Coinbase, you select the coin and click Send. Paste in the public address for the coin from your coin wallet and enter in the amount of coins you’d like to send. Then confirm it (some exchanges make you confirm this with an email confirmation before sending, so do check for that).
To make things easier, I have a short notepad on my computer of public addresses for each coin for a specific wallet (if I have multiple wallets I specify which one it is for). This way, I don’t have to open up my wallet and find my address every time I want to send coins to my wallet. It’s MUCH faster, and I can keep my wallet and passwords hidden and out of sight.
If all of this sounds confusing to you, you can watch a video tutorial on the overall process to help you get familiar. But I find that after I help someone do this the first time or two or three, they often can get the hang of it.
In the future, as cryptos go mainstream, I believe all this will be as easy as a phone call. But for most, that will probably mean cryptos being held by banks (starting now!!!). That’s exciting, because many more billions can flow into this market more easily, but it’s also not what I myself would prefer.
The smartest crypto holders will keep at least some of their coins solely in their own possession and take full responsibility for them themselves.
This guide will help you immensely!
There are a few different kinds of wallets to know about. In this guide I will show you a few options and let you know some of my favorites.
First, you may want to review this website:
https://academy.coinzilla.com/cryptocurrency-wallet-guide/ to help with clearing up a few things about the types of wallets overall.
What is a bitcoin wallet? https://youtu.be/A1Pl5hYHXiI?t=54
Wallet Tutorials: https://thebitcoinbug.blogspot.com/2021/03/wallet-tutorial-guides.html
DESKTOP / MOBILE / WEB WALLETS
Guarda https://guarda.com/
Trust Wallet https://trustwallet.com/
Exodus https://www.exodus.io/
Atomic Wallet https://atomicwallet.io/
Jaxx Liberty https://jaxx.io/
Ellipal https://www.ellipal.com/
MyEtherWallet https://www.myetherwallet.com/
HARDWARE WALLETS
SafePal https://www.safepal.io/
Trezor https://trezor.io/
Ledger https://www.ledger.com/
Ellipal https://www.ellipal.com/
Corazon https://gray.inc/collections/corazon-wallet
FIRST, check to see if your coins are supported on a particular wallet.
For example: Trezor One, Model T https://trezor.io/coins/ or Ledger: https://www.ledger.com/supported-crypto-assets/
Most of my favorites can be stored on the Trezor One, but you may prefer the latest Trezor Model T instead. The Model T can now be linked with the free Exodus desktop wallet if you like, to provide extra security for your Exodus as this video shows: https://www.exodus.io/trezor/
→ How to set up: https://www.youtube.com/watch?v=N4L8EjQoyVM
I will list more how-to steps for wallets below. Here is how to set up the Ledger: https://www.ledger.com/start/
There are always new technologies being developed and new wallet companies coming out.
The wallets above are generally highly recommended. Be sure to weigh the pros and cons of your wallet choice(s) and keep up as this industry evolves into even more security and simplicity.
Here are some wallet review and comparison sites:
https://www.cryptovantage.com/best-crypto-wallets/
I also search Youtube for reviews, forums, Medium articles…
Here’s a question for you if there is any doubt in your mind as to securing your coins in a wallet versus leaving them on an exchange:
What is the point of buying cryptos if your coins have a high chance to eventually get LOST or STOLEN?!
Over the years, I’ve seen exchanges suddenly close with people’s coins GONE. I’ve seen scammy wallets suddenly DISAPPEAR.
This is why I trust mainly the US-based companies, as there are LAWS to protect us from criminal behavior, unlike some other countries.
Now, in order for cryptos to go mainstream, this kind of thing has to be handled and cryptos need to be 1. Easy to use and 2. Easy to secure. And it is MUCH easier than it was! Just follow the pointers in this guide and don’t practice loose security with your information.
Will there always be a chance for bad stuff to happen?
Yes, of course. Everything we do in life has some risk to it. But you probably wouldn’t be interested in crypto if you were scared of a little risk!
In this simplest of simple guides I am going to impart what may be the most important data in regards to keeping your cryptos SAFE for the long haul.
You can also swap crypto-to-crypto within these exchanges, and even within the Exodus and Guarda or Atomic wallet, if you like, but beware of possible tax consequences of doing so. USD into crypto is not taxable, but crypto into crypto may be. Crypto into USD is taxable. (I am not a tax advisor.)
I do hold some coins on these exchanges for various time periods, but I do NOT hold the majority of my coins on ANY exchange.
LEARN MORE: https://www.buybitcoinworldwide.com/wallets/
Tutorials: https://coinwalletguide.com
Wallet intro for beginners: https://www.youtube.com/watch?v=voJ-ps-fVOw
When setting up your wallet, only store your private keys on paper (and you may use a thumb drive). Do NOT store them in an email, dropbox or on a word document on your computer. Make two copies in case one of the copies gets compromised. Do not take photos of your private keys with your phone.
*****************Do not share your private key with anybody!!!!!!!!!*******************
Get your long-term holds off exchanges as soon as possible and in a wallet.
https://blockogy.com/security/whats-best-way-store-cryptocurrency/
Keep your data secure and you have a much better chance of keeping your coins safe.
MORE ON WALLETS
Now, most people might not impart this next piece of data in a simple how-to guide. It is taken from my advanced guide as a freebie, because it is so important to understand!
As you know, all cryptocurrencies run on blockchains.
The main purchasing exchanges mentioned above are NOT on the blockchain. I don’t know any that are except decentralized exchanges (not run by a third party) like IDEX, BlockDX but that is super advanced stuff.
Some wallets are NOT on the blockchain either (ie, Abra wallet).
Until a coin is in your own possession ON THE BLOCKCHAIN you do not really “physically” own it, even if you bought it.
Think of a proper wallet as a way to better “see” the blockchain and manage your coins on it. That’s all it is. The coins are not there in the wallet, they are on the blockchain. But with your wallet, you can control your coins.
We could worry about many things in this evolving crypto world… what if this wallet or exchange suddenly goes down? What if I can’t get into it anymore? What if…!
Guess what? If you have the PUBLIC KEY and PRIVATE KEY written down for EACH CRYPTO you hold in a wallet, you can always access it on the blockchain itself, even if you can’t access your wallet.
Woah! How cool is that? And it’s fairly easy to do!
If your wallet doesn’t have the option to “export private key” for each type of crypto, then that wallet is not actually linking your coins to the blockchain.
Is it boring to write down the long string of characters and numbers and triple check them? Yeah. Is it super worth it? HECK YEAH! I can sleep at night when I know that I hold my cryptos safely in my own possession.
So how does one get this extra level of security? Well, this is one reason why I have come to prefer certain coins and wallets over others.
BEST KINDS OF COINS?
My favorite coins run on their own blockchain (not off another coin’s blockchain) and have their own wallet just for that coin (many listed below.). A ton of coins run on the Ethereum blockchain and I do hold some of those like ChainLink. But most coins I like have their own blockchain, and thus their own wallet (downloadable free on their website). Some coins that I bought were originally created on the Ethereum blockchain but have since migrated to their own blockchain and are growing fast. Ethereum blockchain requires fees to move ethereum-based (ERC-20) coins on their blockchain, and that’s not always fun… Ethereum is getting expensive!
I simply go to the coin’s website to see their wallets, download that coin’s wallet on my smart phone (or extra smart phone, external hard drive or USB drive, whatever you prefer) and write down the “Seed Phrase” or “Recovery Phrase” (12 to 24 random words given to you when setting up the wallet. Each word relates to a standard number sequence, meaning, these words are in fact your private keys for that coin), and keep it secure and offline. It’s ok if you lose the phone or delete the app, because you can restore these wallets to your new phone with your Seed Phrase. No one has it but you.
I was concerned that hardware wallets like Ledger and Trezor do not show you each individual crypto’s private key.
This is what an article from Exodus says about it, “Trezor does not show you anything other than your secret recovery phrase. This is because all private keys your Trezor device generates is stored locally on your device and never leaves it. This allows you greater security to store your private keys safely for you and therefore, you cannot view it.
Instead, Trezor gives you a 12, 18, or 24 word secret recovery phrase which is the master key to all of your private keys held on the Trezor device. Each private key for each asset is actually mathematically derived from this secret recovery seed so by having your secret recovery phrase, you can always have access to all of your private keys on your Trezor device.
You can view your secret phrase when you first set up your Trezor device.”
I do hold cryptos on these types of wallets, as they are deemed very safe as of today, but I diversify coins into other wallets as well.
For example, with Digibyte, there is the Digibyte (DGB) mobile app wallet (free), Trezor/Ledger hardware wallet, and Guarda (free), Exodus (free), etc wallet options, also the DGB Core wallet for desktop. If you can, set up more than one wallet and spread out your coins a bit. This reduces your risk in case something happens to one wallet. I feel that coins with their own wallets can easily keep advancing their tech into the future. If a blockchain is modified or upgraded, these kinds of wallets, like the DGB mobile wallet or Core wallet for example, can easily stay ahead. They are also not centralized but open-source and decentralized, so no database hacks like Ledger suffered, and there’s no company for anything bad to happen to that may possibly affect a hardware wallet. So, I like to have a hardware wallet for some coins, but I also hold a portion in that coin’s mobile or desktop wallets as well. You may not want to go to that trouble, and just stick with one or two wallets.
I am liking the desktop wallets a lot, like Guarda or Exodus. Easier to use than hardware wallets. You can also trade cryptos within some wallets themselves instead of on an exchange, which is cool.
HOW I SECURE MY COINS
Here’s how I personally like to secure my coins for the long term using hardware and desktop wallets, and some mobile wallets:
I open the wallet and turn off the wifi,
I select the coin on Exodus (or Atomic, etc) and export the private key for that coin
I write the key down on paper,
I double or triple check the key, noting capital letters etc clearly.
I then make sure I have the public key down, too (double check it!). I also have this key stored in my easy-access notepad on my computer (not private) as well as WITH my private key on that same paper (secret). You want an easy-access computer document of your public addresses for each coin for each wallet so you can easily send newly purchased coins from exchanges to the appropriate wallet by simply copy and pasting the address in the exchange to be able to “send” it to your wallet (without having to open the wallet to get the address every time). Saves a lot of time.
If your wallet is a web-based wallet, wipe the cookies.
For the single coin wallets or phone wallets, there is only that first “seed phrase” and that is what you write down. Remember, the words correlate to number sequences, containing your private key. For example, I would write down:
Wallet: DGB Mobile Wallet
Coin: Digibyte
Private Key: 1. Bird 2. Calm 3. Path 4. Toy 5. Weather 6………..
Public Key: edSdfi24hffG5yd55f3q1FDAA34………. (entire key with capitals and lower cases clearly indicated)
Do this for each coin (per each wallet) you hold or plan on holding. Each coin should have a website with helpful resources and a list of supported wallets.
As we are using Digibyte as an example, here is a great website for Digibyte wallet resources: https://digibytewallets.com/
SINGLE COIN WALLETS
Here are more top coins with their own blockchains and their websites:
Litecoin
https://litecoin.org/ - available in most wallets
Stellar Lumens
https://www.stellar.org/lumens and https://www.stellar.org/lumens/wallets and Stellar Account Viewer: https://accountviewer.stellar.org/#!/
Cardano
https://www.cardano.org/ and https://daedaluswallet.io/
Bitcoin Cash
https://www.bitcoincash.org/wallets.html
- available in most wallets
Bitcoin SV
https://bitcoinsv.io/services/wallets-and-exchanges/
available in most wallets
EOS https://coinfunda.com/best-eos-wallets/
available in most wallets
Theta Token https://wallet.thetatoken.org/unlock/keystore-file
Digibyte https://digibytewallets.com/
Vechain https://www.vechain.org/
Zilliqa https://www.zilliqa.com/wallets
NEM https://coinswitch.co/news/nem-wallet also on Guarda
Siacoin http://sia.tech/
Cosmos https://blog.chorus.one/top-cosmos-wallets/
PolkaDOT https://polkadot.network/ and wallet info: https://support.polkadot.network/support/home
Understand more about wallets here:
https://academy.coinzilla.com/cryptocurrency-wallet-guide/
Ethereum-based blockchains (available in most wallets under the coin’s name or “Ethereum”):
Ethereum
https://ethereum.org/en/wallets/
MyEtherWallet.com is the “core” wallet for Ethereum I believe...
available in most wallets
If a coin is Ethereum-based (ERC-20), you can send it to an Ethereum address and it should appear in that section in your wallet. Currently, Basic Attention Token, ChainLink (and many others) are on the Ethereum blockchain, so you can send it to an Ethereum address. It will require Ethereum in fees to send out of the wallet someday, so send some Eth ahead of time.
Stay up to date with your ERC-20 coins, as the developers can decide to split off from the blockchain and form their own, as happened to Theta Token and several others.
You can search ETH transactions here: https://etherscan.io/
On this site you can also search a coin name and see if it appears. Then you know it’s ERC-20. But double check by googling it thoroughly to be sure.
ChainLink https://getcrypto.info/chainlink/
Basic Attention Token https://basicattentiontoken.org/
There are many more… just search a coin on CoinGecko.com and it will provide you with data and their website.
No core wallet for XRP but commonly available in most wallets:
Ripple XRP https://ripple.com/xrp and https://coinsutra.com/best-ripple-xrp-wallets/ - available in most wallets
