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Crypto Basics: Setting Up Your eWallet

 

Just like a physical wallet helps you to keep your physical fiat currency, a cryptocurrency wallet is a way for you to keep your cryptocurrency. There are several kinds of wallets, each with its own characteristics. I will list 3 basic types here, along with how to create them.

 


Online/Web Wallet

It is a wallet that is accessed through your browser via the internet. These wallets are provided by third parties. When using these wallets, bear in mind that you are in charge of your own safety. Ensure that your operating system is up to date to prevent any hacking or phishing software from stealing your information.

 

MyEtherWallet

 

1. Go to www.myetherwallet.com

 

MyEtherWallet

 

Enter in a password, and write it down somewhere safe. This password is required every time you wish to access your wallet!

 

2. Save the Keystore File.

 

MyEtherWallet

 

The Keystore file will be required to unlock your wallet whenever you wish to transfer funds. As it says on the website, do not lose it, do not share it, and make a back-up for it. This Keystore file ensures that no one but you can utilise your funds.

 

3. Save your Private Key

 

MyEtherWallet

 

A Private Key is what gives you access to the funds. Long story short, it guarantees that the transactions are only carried out by the owner of the wallet. Do not lose the Private Key. The Private Key should be printed out in QR form or text form and kept securely offline.

And with that, your MyEtherWallet has been set up, secured, and is ready for use.

 


Mobile Wallet

It is easier to transfer cryptocurrencies while on the go using your mobile, and it has handy features such as QR code scanning to facilitate accurate and fast transfer to addresses.

 

Jaxx

 

Jaxx Set-Up

Go to the Apple/Play Store to download the application.

 

Jaxx

 

2. Choose your wallets

Tick on the cryptocurrencies that you are keen on storing, and Jaxx will create wallets for each of them.

 

Jaxx

 

3. Back Up Your Wallet

Unlike other accounts where you can click ‘I forgot my password’, this does not fly with cryptocurrency. Security is of utmost importance.

The backup recovery phrase is a list of 12 words in order. This is the key to all the money within the wallet, if ever your phone is stolen, broken, or just upgraded to the latest model. If the recovery phrase is lost, so are all assets within the wallet. It is strongly recommened to write it down, and store it safely.

 

4. Set Up a PIN

A PIN is a 4-digit code used every time you transfer currency out of your wallet, as an added measure of security. We do not recommend using easy to guess PINs, such as 1234 or 000.

Tap the top right of the Jaxx App to open up the Menu, and enter the Settings to Set up the PIN.

 

Jaxx

 

Your Jaxx wallet has been set up. Jaxx also has a desktop application that can be installed on your computer and synced up with your mobile for further convenience.

 


Hardware Wallet

Of the 3 types of wallets listed here, the hardware wallet is the most secure. They are cold-storage (not connected to the internet) devices that have to be plugged into a computer to make a transaction. They are more secure than both the Web Wallet and Mobile Wallet because they generate the private key offline, meaning that it is impossible to hack. They also come equipped with a password, to prevent physical theft and usage.

 

Trezor Set Up

Purchase your Trezor - www.trezor.io

 

Trezor

 

Head on to www.trezor.io to purchase your Trezor. Choose your colour, shipping and payment method, then wait for your Trezor to arrive.

 

Activate your Trezor

1. Connect Trezor to your computer using a USB cable.

2. Head to https://wallet.trezor.io/ to download the software, which will prompt you to choose a PIN for your Trezor. This PIN will be used to unlock your Trezor whenever you want to use it for transactions, and the number pad is randomized to ensure that is only accesible by you.

3. There will be a 24 word back-up phrase provided. Just like the Web and Mobile wallets, this phrase is the only way to regain control of your funds in case of loss or damage to your device.

 

Congratulations! Your hardware wallet is now set up and ready for transactions at any time.

 

 

Safe Investing!

Mike