Cryptocurrency wallets (wallets) allow you to store crypto, send crypto to other people, and more.
Many people are familiar with or have at least heard of Bitcoin. Bitcoin and Ethereum use two different blockchain structures. Although you don’t need to understand the differences, you need to know that most wallets cannot store both Bitcoin and Ethereum compatible cryptocurrencies. If you attempt to store your cryptocurrency into a wallet that is not compatible, your cryptocurrency will be irretrievably lost.
Because DirtiCoin is built on the Ethereum Mainnet using the ERC20 protocol, receiving DirtiCoin requires an Ethereum compatible wallet.
In this article we discuss the various types of wallets and provide you with instructions in how to set up a wallet which we know will be compatible with DirtiCoin.
Disclosure: Although the DirtiCoin Crypto Wallet Quick Guide focuses on using MetaMask, this does not constitute an endorsement or recommendation of MetaMask, nor is DirtiCoinMinting, LLC (DCM) receiving any renumeration for using MetaMask.
MetaMask is a trademark of Consensys Software.
Disclaimer: Although the DirtiCoin Crypto Wallet Quick Guide uses MetaMask to set up a hot wallet, this is not the only ERC-20 compatible wallet available. Feel free to do your own research and find out the type and provider of ERC-20 compatible wallets that may suit you better than MetaMask.
Types of Wallets
Hot, soft, cold, hard, custodial, and self-custody. All these terms describe different, important, attributes of cryptocurrency wallets (wallets). We don’t pretend to know which is best for you. This article is intended to get you started with one of the industry-leading wallets so that you can receive DirtiCoin. At some future point, you may decide to set up a different wallet. If that happens, you will want to be sure it is able to receive your DirtiCoin.
- Hot (or Soft) wallet types live online and are typically a browser extension or a phone app.
- These wallets are considered less secure than cold wallets because they are always connected to the internet. Always being connected to the internet makes them discoverable by hackers, who may then try to trick you into giving them access to your wallet. They will then use that access to empty your wallet – an electronic version of being pickpocketed.
- Because they are always connected to the internet, they are also among the most convenient wallets to us and among the most popular.
- If you set up a self-custody wallet, part of the setup will include a 12-word cryptographic key (seed phrase or backup phrase), designed to keep your wallet safe. It is important that you keep your key both safe and private. Anyone with the key can empty your wallet. If you lose the key, it is the same as losing the wallet. No one can restore the key for you.
- Cold (or Hard) wallet types are similar to USB drives.
- When you unplug your cold wallet from the USB port of a computer, it is no longer connected to the internet. This makes cold wallets more secure than hot wallets (discussed above).
- Crypto investors, who have large amounts of crypto or who seldom trade their assets utilize Cold/Hard Wallets for long-term storage.
- Cold or Hard wallets are all self-custody wallets. Part of the setup will include a 12-word cryptographic key (seed phrase or backup phrase), designed to keep your wallet safe. It is important that you keep your key both safe and private. Anyone with the key can empty your wallet. If you lose the key, it is the same as losing the wallet. No one can restore the key for you.
- Custodial wallet types are very similar to bank accounts. They are storage wallets provided by third-party exchanges like Coinbase, Gemini, etc.
- With custodial wallets, you do not have access to your ‘private keys’ – these are stored by the third-party.
- Without the private keys, you don't trulyown and control your crypto because the custodian/third party holds the private keys. This means that law enforcement can impose freezes or seizures and the custodian will be compelled to comply, cutting you off from your wallet. Also, hackers may be able to rob the exchange, emptying your custodial wallet.
- Custodial wallets are often FDIC-insured up to $250,000 and some third parties, e.g., Coinbase, also carry crime insurance that protects a portion of digital assets.
Your First Wallet
Now that you have a better idea of the pros and cons of the various categories of wallets, you are ready to set up your first cryptocurrency wallet using MetaMask. Although there are many wallet providers, we use MetaMask in this example because it is one of the most popular cryptocurrency wallets which we know is compatible with DirtiCoin.
Setup a MetaMask (Hot/Soft Wallet)
- Download MetaMask
- Install the browser extension
- Brave, Chrome, Edge, and Firefox, browsers support MetaMask.
- To avoid mistakenly using a fake website, submitting any personal data or downloading any ‘bad’ extension(s), we recommend you verify you are visiting https://metamask.io by searching for ‘download MetaMask’ in a search engine such as Google.
3. Once on MetaMask's website, you'll click "Install MetaMask for Chrome [or your browser]" and you'll be taken to an app store to download and add the extension to your browser.
Creating Your Account
4. Once you've added the extension to your browser, select "Create a Wallet".
5. Read and accept the terms of use.
6. Create a password (to be used for logging into your wallet).
Revealing and then securing your seed phrase.
7. Choose 'click here to reveal secret words':
8. Metamask will reveal your 12-word secret backup phrase (your seed phrase).
Protecting Your Seed Phrase
The seed phrase is a big part of where the “crypto” in cryptocurrency comes from. The seed phrase is an encrypted code phrase required to open any cryptocurrency wallet. If you lose this code, you can’t open your wallet. If the code isn’t kept secret anyone with it can open your wallet.
Because it is important to keep this code secret and usable, the following general rules have been developed across the crypto industry.
Seed Phrase Rules:
- Do not screenshare when creating your wallet and don’t let anyone see this phrase, ever.
- Never give your phrase to anyone.
- Do not copy & paste these words into your computer, phone, iPad, or any other electronic device. If you store your seed phrase in any online digital media, it may be stolen by hackers and used to steal the contents of your wallet.
- This phrase or set of words should be written down and stored offline in a secure location (preferably on 2 separate pieces of paper stored in 2 different locations in case you forget one location, or it gets destroyed).
- Treat this phrase like you would your social security number, or the combination to a safe holding your money.
- When writing down your seed phrase, it must be written in sequential order in the same way that it was presented on the screen.
- Note: Losing this seed phrase or writing it incorrectly means you'll lose access to all of the crypto held in that wallet.
- You will be asked to confirm the seed phrase by typing it in again in the same order it was presented earlier.
Once confirmed, you have completed the wallet set up.
Wallet Addresses
Now that you have created your wallet you want to put money in and take money out. Doing that requires that you understand how to use your wallet address. The wallet address is another thing that puts the “crypto” in cryptocurrency. It is an encoded address on the blockchain which is a bit like a post office box. Using the address, you can put in or take out money from your wallet. All anyone sees is the wallet address for your transaction. They can’t see who owns the wallet, or where it is located. In this regard, it bears a strong resemblance to the numbered Swiss bank accounts which many have used across the years to hide their wealth from prying eyes.
- Click on the little orange fox logo on the top right of the browser (search bar or extensions bar), enter your password and sign into your wallet, and it should display something like the screenshot below:
2. Your wallet address will be at the top of the box (shown circled above), when clicked, it will copy the full 42-digit string of numbers and letters so you can paste them.
3. Now, this address is like your home address. You can give it out to someone who wants to send you crypto, or you can use it to send yourself crypto from an exchange.
4. If sending crypto to a wallet, ensure that the wallet is able to receive that form of crypto (e.g. you can't send regular bitcoin to a MetaMask wallet because MetaMask is an Ethereum wallet).
Getting Your DirtiCoin
If you have made deposits of US Dollars into DirtiCoin, or participated in the DirtiCoin presale, then you will need to provide both this wallet address and your email address to DCM before the DirtiCoin can be deposited into your wallet through an airdrop.
DCM will need this information when they send you your DirtiCoin. They will first send an email confirming your wallet address. After confirmation, they will deposit your DirtiCoin directly into your wallet, while notifying you of the transfer. DCM absorbs the nominal cost of this transfer.
This will give you custody of your DirtiCoin deposits.
