Now that you know what Web3 is, let’s take a look at what you need in order to “play” in this space.
First things first, in order to interact in this world, you’re going to need a wallet. No, not that kind of wallet. Yes, I know you already have a wallet. No, I don’t need to see it. It’s not the right wallet for this world. 😉
You’re going to need a crypto wallet. “A What?” I’m glad you asked.
Remember when I mentioned digital currencies in the previous newsletter? Well, digital currencies require a digital wallet. See, it’s all starting to make sense.
You’re also going to need a way to add funds to your wallet. And no, you can't go to the ATM for this one.
The easiest way is to open an account on an exchange. A crypto exchange. It’s an online marketplace that lets you buy, sell and trade crypto - like Coinbase, Binance, Coinspot or CoinJar (for the Aussies out there). In the Web2.0 world - you remember from last week, right? - an equivalent would be a share trading platform, like E-Trade, eToro, Interactive Brokers.
So, I suppose that’s 2 steps you need to take to have a funded digital wallet ready for the Web3 world:
Open an account on a crypto exchange and add some funds;
Create a digital wallet and transfer your funds from the exchange to your wallet;
Step 1 is explained above. For step 2, you have a few choices. I would suggest MetaMask as the digital wallet of choice in the Ethereum-based ecosystem. “Ethereum?” Don’t stress. It’s just another popular digital currency.
Once you download the app and create an account, you will have a wallet address that looks similar in format to this - 0x7B3932D72C7B019D7c3F523db6b2EdF22A76ca6e (this is one of mine). And, you are ready to transfer funds from your crypto exchange to your new wallet.
Ok, I need to use my serious voice for this bit.
There’s a critical step here that you need to understand when it comes to security. When creating a wallet, you will receive a security passphrase to allow for the recovery of your wallet, should you ever forget your password. Store this passphrase securely. <--- Read that last line again.
Store this away from anything related to this wallet. Don’t write it down and stick it to your monitor! Yes, I know all your passwords are written on that post-it. Best you change your system.
If you lose your passphrase, you cannot recover your account. End of story. If your passphrase is stolen and your wallet compromised, someone else will have full access to your account.
Enough of that now. Serious voice off.
Voila! You now have a wallet. With your passphrase securely stored and funds in your wallet, you are ready to traverse the Web3 world.
“So what can I connect my new wallet to?” Woah, Nelly. Slow your roll. Baby steps.
I think that’s enough for today.
If you have questions, please leave me a comment.
Until next time.
Cast of the week:
Want to dive in further?
I use Coinspot to add AUD and fund my crypto wallet. Coinjar is another good option (I'm in Australia)
What is a Crypto Wallet? (Good explanation but mind the self promotion towards the end)
Visit the MetaMask website for a good overview of this popular wallet (my recommendation)
What Are Crypto Exchanges And How Do They Work (a Forbes article)
