Web3 101 - Set up Your First Crypto Wallet 👝

First NFT just one step away! 🏆

GM 🌻

Welcome to the second edition of Web3 101: A Quest for Knowledge! Feeling lost and confused? Just click here to refresh your memory on the first edition. We've got more juicy knowledge nuggets for you to feast on! 💪

Here’s what we’re covering in this edition:

• Know about popular blockchains ⛓

• Best crypto wallets 👛

• Set up a crypto wallet with Metamask 🦊

• Exciting rewards! 🏆

As usual, If you stick around until the end of this newsletter and follow our step-by-step guide on setting up a metamask wallet, you'll be rewarded!

Missed the syllabus for the next issues? Read our Overview of The Course and come back to dive into this edition.

So, sit back, relax, and get ready to travel through the blockchain world! 🚀

🚨 Note: This is not investment advice. We do not make any recommendations on whether you should buy or sell any cryptocurrency or digital assets. The information contained in this article is for educational purposes only.

Unlock the Cryptic World of Crypto

Level up our crypto vocab game before we dive in. Let's break down some lingo and its significance. 👇

• Scaling: A way to make the network faster and more efficient. It is about making sure that the technology can handle more users, more transactions, and more data.

• Layer 2: A term used in blockchain to describe the network that sits on top of the main blockchain. Layer 2 removes some of the load from the main blockchain and allows for more flexibility in terms of how transactions can be processed.

• Off-chain computation: A process where some of the work done to compute a transaction is done outside of the blockchain. The reason this is useful is that it allows you to reduce the amount of data being transmitted over the network, which can save you time and money.

• "Underbanked" and "Unbanked" are terms used to describe people who have limited or no access to traditional banking services.
  
  "Unbanked" refers to individuals who do not have any bank account or formal relationship with a financial institution. This means they don't have access to basic banking services such as savings or checking accounts, loans, or credit cards.
  
  "Underbanked" refers to people who may have a bank account but still have limited access to financial services. They may not be able to access credit or loans, and they may have to rely on alternative financial services like check cashing services, payday lenders, or pawnshops.

Let’s Get On-Chain: Discover the Top Blockchain Networks! ✨

Blockchain networks offer unique features and advantages that can be leveraged to build powerful decentralized applications. Here are some of the most popular Ethereum blockchain networks that you should know about:

• Ethereum: A decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (dApps).

  • Created in 2015 by Vitalik Buterin and a group of developers.

  • The Ethereum network is powered by its own cryptocurrency, Ether (ETH), which is used to pay for transactions and computational services on the network.

  • Establishes a peer-to-peer network that securely executes and verifies application code, called smart contracts.

• Polygon: A decentralized network built on the Ethereum blockchain.

  • Designed to solve the scalability and high gas fee issues of the Ethereum network.

  • Uses a system of sidechains, which are parallel blockchains that run alongside the main Ethereum blockchain.

  • Polygon uses a proof-of-stake (PoS) consensus mechanism.

• Optimism: A scaling solution for the Ethereum network to improve the scalability and lower the costs of smart contract execution.

  • It helps make smart contracts faster and less expensive by using a technique called “optimistic rollups”.

  • “Optimistic rollups” lets some work happen away from the main Ethereum chain but still keeps everything safe and secure.

• Arbitrum: A scaling solution for the Ethereum network that allows for faster and cheaper execution of smart contracts and decentralized applications (dApps).

  • Designed to improve the scalability and reduce the cost of transactions on the Ethereum network.

  • Arbitrum uses a technique called "off-chain computation" to move the execution of smart contracts and dApps off the main Ethereum blockchain and onto a sidechain.

  • This allows for faster and cheaper transactions, as well as the ability to handle more complex computations and data storage.

💡 DID YOU KNOW?

Bitcoin might be the cool kid on the block, but it isn't capable of running smart contracts or building Dapps. So, the Ethereum founders were like, "Hold my beer, we're gonna change the game!" They added smart contract computations and Dapps creation to the blockchain, making it the ultimate decentralized powerhouse.💪

And since then, every other project has been trying to improve the gas fees, scalability, security, and consensus. Ethereum is a groundbreaking innovation in the blockchain history.✨

Your Digital Piggy Bank: Know Your Crypto Wallets 👛

A crypto wallet is like a special kind of bank account that you use to store your digital money. Like a regular bank account, you can use your crypto wallet to keep your money safe and send it to others. But, instead of using dollars or euros, you use cryptocurrency like Bitcoin, Ethereum or Stablecoins.

Types of crypto wallets

Crypto wallets are broadly categorized into two: Custodial and Non-custodial.

A custodial wallet is a type of wallet that is controlled by a third party.

• Often used by exchanges and other services that trade cryptocurrencies. The exchange holds the private keys to your funds, it can freeze accounts if you break their terms of service or if there is some regulatory issue.

• A custodial wallet is great for beginners because it makes things much easier than managing your own private keys.

• Examples: Coinbase, Binance and Kraken.

A non-custodial wallet allows you to store, send, and receive cryptocurrency without relying on a third-party service to manage your funds.

• When you use a non-custodial wallet, you are in control of your private keys, which are essentially the passwords that allow you to access your funds.

• This means that you don't have to trust a centralized organization to keep your cryptocurrency safe. Instead, you can keep your funds secure by managing your private keys yourself.

• Non-custodial wallets are considered to be more secure than custodial wallets, which are managed by a third-party service. However, it's important to keep in mind that if you lose your private keys, you may not be able to recover your funds.

• Examples: Metamask, Rainbow, Trust.

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Let’s look at some popular crypto wallets!

• MetaMask: A crypto wallet with a browser extension and a mobile app that allows you to store and manage your cryptocurrency and interact with decentralized apps on the Ethereum blockchain.

• Rainbow Wallet: A crypto-mobile wallet app that runs on Android and iOS devices and is known for its user-friendly interface and advanced security features. It also offers a built-in decentralized exchange (DEX) that allows you to trade your digital assets directly from the wallet.

• Ledger: A hardware wallet that stores crypto offline for added security. Ledger is a popular hardware wallet that provides mobile and desktop apps when paired with its companion Ledger Live app. Over 1,800 digital tokens and coins are supported by Ledger wallets.

• Trust Wallet: A popular mobile online crypto wallet and the official mobile app of Binance, one of the leading cryptocurrency exchanges in the world. It features a clean, scannable user interface, and built-in support for dApps and NFTs.

A Step-by-Step Guide to Setting Up Your Metamask Wallet

This guide will show you how to set up your MetaMask wallet on your Android phone in a jiffy. With MetaMask, you can securely store and manage your digital dough and join in on the fun of dApps on the Ethereum network. ✨

Plus, the process is the same whether you're team iOS or desktop! So let's jump right into it and get you a step further on your crypto journey. 💪

Follow this guide, set up your crypto wallet and get rewarded!

1. Go to the Play Store and search for MetaMask. Click on "Install" to download the app on your phone.

2. Once the installation is complete, open the MetaMask app.

3. Click on the "Create a Wallet" button to start the process of creating a new wallet.

   

4. Read and accept the terms of use and privacy policy. ✅

5. Create a strong password for your wallet and make sure to save it somewhere safe

   

6. Before proceeding, make sure you watch the video to learn more about the importance of your Secret Recovery Phrase. 🤓

7. MetaMask will generate 12 seed phrases for you, a unique set of words that can be used to recover your wallet if you ever lose access to it.
   
   Click on the button that says “View”. Make sure to write down your 12 secret seed phrases in the order shown and store them in a safe place. Once you have written down your seed phrase, click on Continue

   

   🚨 If you lose your secret recovery phrase, you will lose access to your crypto wallet.

8. You will then be asked to confirm your seed phrase by selecting the words in the correct order. Once you’ve confirmed your seed phrases, click on “Continue.”

9. Once you have confirmed your seed phrase, your MetaMask wallet will be created. 🦊

   

10. Now you will be taken to the main interface, and you can use your MetaMask wallet to send and receive cryptocurrency and interact with decentralized applications (dApps) on the Ethereum network. ✨

Task and Reward Time! 🏆

Ready to be rewarded for setting up your first crypto wallet? Here’s your TASK 👇

1. Follow our simple guide and set up your Metamask wallet.

2. Share your BIG WIN on Twitter by clicking here.

3. Complete the task in the upcoming issue and get the Level 1 NFT in the first week of March!

😎 Time to show off your first crypto wallet!

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And that's all for today, folks! Catch you in the next issue for some new stuff to learn, exciting topics to explore, and challenges to help you conquer the crypto world! 👋