Crypto Wallet

A crypto wallet, at a high level, is the medium through which transactions are executed by the individual on a blockchain. They are also a means by which ownership over digital assets is secured on a blockchain. Wallets can be used to send and receive digital assets, and they can come in the form of software solutions (usually in app form like Metamask or BlueWallet), or they can be integrated into hardware (this is known as a hard wallet).

In order to provide security for one’s digital assets, a crypto wallet also creates and stores a user’s private keys. Private keys (also referred to as seed phrases consisting of 12-24 random words) are essential to securing and accessing the crypto that exists in a wallet. These keys allow a user to recover their wallet and assets should their hardware wallet, phone or laptop get lost, stolen or destroyed because they’re responsible for distinguishing the ownership of one sum of crypto from another in the underlying network.

Where did Crypto Wallets Come From?

The first “crypto” wallet, named Bitcoin, was created when Bitcoin was released in 2009 as an early solution to holding (or hodling) Bitcoin. Since then, thousands of wallets have come and gone. All of which were created to allow a crypto user(s) to hold crypto.

Anybody can download and use a crypto wallet given they have a phone, laptop or tablet and an internet connection, which is one of the biggest allures to using a wallet. They allow cryptocurrencies to be unbiased, and in the best instances, sovereign, anonymous financial tools for all individuals.

It should be noted, though, that not all wallets are created equal. Even if a wallet requires the user to record private keys, that does not mean the protocol of the wallet is genuine. It is vital to research for the safest, most individual-focused wallet when choosing where to store your assets. Most reliable wallets are free, open-source projects because transparency encourages communities to act responsibly for one another, and also expedites solving any bug/performance issues.

This leads us to another important distinction to be aware of regarding crypto wallets, and that is if the wallet is custodial or non-custodial.

Custodial vs Non-Custodial

Wallets that are custodial are accessible and controllable beyond the user’s intentions. Wallets on applications like Coinbase, Binance, Kraken, or many other exchanges are custodial. They require KYC (Know Your Customer) compliance, which forces users to provide personal information. Furthermore, the funds on these exchanges are at mercy to the whims of the exchange.

Non-custodial wallets like BlueWallet or Coinomi do not require KYC, but are instead maintained entirely by the individual user. Only the owner of these wallets control the assets inside them, making them autonomous and resilient to any censoring, freezing, or asset revoking efforts that might be made by the exchange, a government, or malicious actor.

Some popular wallets (as of early 2022) for storing NFTs include the following:

- Metamask - AlphaWallet - Math Wallet - Trust Wallet - Coinbase Wallet

How to Use a Crypto Wallet

1. One must decide their values when it comes to financial assets. Do you prefer to have full, autonomous control over your assets, or do you prefer to have another entity to have shared or total power over your assets? 2. Conduct thorough research to decide which wallet fits your needs best. App reviews and forum reviews can be incredibly useful resources at this point of the process. 3. Download the wallet of choice to your device. 4. If given one, physically write down your seed phrase. This step is crucial. Depending on how protective of your assets you want to be, you can take extra precautions to ensure their safety. Writing and memorizing the seed phrase is important. Another strategy is to write decoy seed phrases as well, or write synonyms to the words on actual seed phrase, allowing only you to know what the actual phrase is. Also, make sure to store these phrases in a highly secure place and avoid giving the phrase to others if possible. 5. Transfer your funds to your wallet. Service providers like MoonPay are sometimes integrated into wallets to allow users to transfer their fiat (USD, EUR, etc) funds into crypto. Other options include buying crypto from an exchange and sending your crypto to your storage wallet. Or, many users receive payment directly to their wallets, rather than their bank accounts. 6. Every wallet has a send and receive address to allow for peer-to-peer transactions, while protecting the actual wallet address. 7. You’re ready to go! Now you can access your crypto from anywhere at any time, assuming you went the non-custodial route!

Conclusion

Interacting on the Fayre network can be accomplished by using a variety of wallets, all of which allow the user to hold various different cryptocurrencies and NFTs. Metamask is the wallet of choice for the Fayre Marketplace.

But, no matter which wallet you decide to go with, hopefully it allows you to interact with NFTs and cryptocurrency in a way that makes you feel most comfortable.