How-To Web3, NFTs and DeFi Introduction

• Quick Links:
• Introduction
• Step 1. Choosing a Wallet
• Step 2. Funding Your Wallet
• Step 3. Things You Should Know
• Ready to Go!

Introduction

So you've gotten your feet wet and bought your first Bitcoin or Ethereum on one of our favorite exchanges, but you've heard so much about NFTs, DeFi, and want to get in on the action without a clue on how to get started. Look no further! Our How-To Guide: Web3, NFTs, and DeFi will help you get started with owning your own keys, getting more out of your crypto, and things you should look out for. Part I of our guide is an introduction on how to set up your wallet and transfer funds over.

Not Your Keys, Not Your Coins.

You may have heard the expression “Not your keys, not your coins” being thrown around in the world of crypto. If you haven't heard it before, you will definitely hear it more and see why it is important as you begin your journey with crypto and the decentralized web. In short, without owning your keys, you are not really in control of your coins. When you log into an exchange and access your account, it may appear that you have full control of your cryptocurrencies but in reality you are entrusting a third party to your funds if you don’t own the keys.

What are "Your Keys": In cryptocurrency, sending and receiving coins are done through an address on the underlying blockchain network, similar to a bank account number. The technical term for the receiving address is known as the public key. Linked to your public key is the private keys which is what everyone is referring to as "Your Keys". Anyone that knows the private keys has access to the funds on the public key it is linked to. In essence, the private keys is a password and a means of identifying the true owner. This takes us to the first step, choosing a capable wallet.

Step 1. Choosing a Wallet

The first step in interacting with web3, NFTs, and DeFi is choosing a wallet that supports the underlying network, has browser capabilities, and dependent on the device you are browsing from. The most widely used network is Ethereum, and the wallet we will cover is Metamask which is what we will base this guide on.

1. Install Wallet App. If you are browsing with PC you can install the Metamask chrome extension, or if you are planning to use your mobile phone, then you can download the iOS or Android app. Visit the Metamask website to download the latest version.
2. Create a New Wallet. When you first launch the app, click on Create a new wallet, You will be prompted to create a password which will be used to log in to your wallet. Secondly, you will be asked to secure your wallet by reciting a 12 word Secret Recovery Phrase that is randomly generated. Your private key is derived from your secret recovery phrase, so keep it secured and backed up as you will not be able to access your funds if lost! The order of the words matter and if it is not obvious enough, DO NOT SHARE THIS WITH ANYONE!
3. Congrats! That's it! Your wallet is set up. You should see a list of your tokens, a 0 ETH balance. That brings us to the next step, funding your wallet.

Step 2. Funding Your Wallet

After you explore the app/wallet settings and functions, the next step is to fund your wallet from your favorite exchange. Generally, exchanges charge a flat fee for moving funds to a wallet, some good exchanges covers this fee, and some bad exchanges don't even let you move crypto out of their platform.

Pro Tip: Check out , they cover the transaction fees for sending out Ethers (min requirement of 0.1 ETH) to your wallet.

1. Get Your Public Key Address. The first step is getting your public key in your Metamask wallet. This is your "account number" to receive the funds. In Metamask, on the main page under "Account 1" (if you didn't rename your wallet) you should see your address in a similar format: 0x0000...0000, click it to copy your address.
2. Withdraw From Exchange. In your favorite exchange (make sure they support sending crypto out of their platform), the steps are similar but may differ slightly, so follow the guide of your exchange: go to your Ether balance and click Withdraw/Send, paste your Public Key Address from Metamask in the to/recipient field, and input the amount of ether you wish to send over. Most exchanges prompts you for your password and/or Two-factor authentication (2FA) for security purposes when moving funds out. Take note of any fee's/requirements of the exchange.
3. Wait for Confirmation. That's it! Once you send the withdraw request, you must wait for the exchange to process it. This may take time depending on the exchange's cold storage policy and procedures for withdrawal. Once the transaction is posted on the blockchain, exchanges may provide a transaction hash (a unique string of characters that points to your transaction on the blockchain) which you can view the transaction at etherscan.io

Step 3. Things You Should Know

Once your funding transaction is finalized and confirmed, you should see your ether balance in your wallet. Alright!! So you are all set and ready to explore the wild-west of crypto! Before you are let loose into the crypto world, there are a few things you should be aware of if it's your first time on the blockchain.

1. Transaction Fees. When performing transactions on most blockchains, the transactions requires fees called gas, and for Ethereum they are denoted as gwei; the smallest unit in ETH (i.e. 0.000000001 ether = 1 gwei). Gas fees can vary greatly depending on how congested the blockchain network is, and transactions can fail if the gas limit is set too low. Gas prices are usually astronomical during NFT mint launches, as eager NFT collectors push transactions through the blockchain.

2. Watch Out For Scams. Only interact with legitimate websites which you trust and be aware of what transactions you are signing on your wallet. Signing a transaction from a malicious website can have your funds stolen from your wallet.

Ready to Go!

You are ready to explore the decentralized web. If you are using PC with the chrome extension, simply browse to your favorite web3 websites and interact by clicking Connect my Wallet. If you are on the mobile app, click on the hamburger icon on the top left corner, click on browser, and you are ready to explore. Check out these links.

• DeFi Aggregator: 1inch Swap
• NFT Marketplace: Opensea
• Name Service: Unstoppable Domains
• Name Service: ENS

Keep a lookout for our next how-to guide as we will cover topics such as DeFi and NFTs in more details.