New To Crypto
If you're already in crypto, skip to Getting Started.
If you're new to crypto, let's get you started!
Step 1: Exchanging Fiat for Crypto
To buy crypto with fiat currency like US dollars or Euros, you'll utilize what is known as a centralized exchange, also known as CEX for short. There are many CEXs to choose from. In this guide, we will use Coinbase as it's one of the biggest and most trusted CEXs.
Go to https://www.coinbase.com/ and follow this video to set up your Coinbase account:
After you've created and verified your Coinbase account, you're now ready to buy crypto with fiat on Coinbase. Follow this video to buy crypto on Coinbase, but rather than buying Bitcoin as seen in the video, buy Ethereum:
Step 2: Creating a Self-Custodial Wallet
One of the biggest benefits of crypto is that you can take complete control of your. Rather than your money being held by a bank that could go bankrupt or lock you out of your account, with crypto you can have complete control and exclusive access to your money.
The tool you use to take complete control of your crypto is a Self-Custodial Wallet.
You can think of this as your own personal bank that you can hold your crypto in as well as receive crypto or send crypto from. With this control of your money comes more responsibility and there are important things that you must understand so that you securely hold your crypto.
Private Key - Your private key is a list of unique, random words that is the password to your wallet. NEVER give your private key to anyone or else they will have full access to your crypto and likely steal it. When you create a crypto wallet, which you will do shortly, you will generate your private key. Write this sequence of words down on paper, keep them secret and in a safe place. If you lose your private key, you lose your crypto. Many people like to engrave them in metal, that way if your house burns down you won't lose the keys to your wallet. Here is a link to buy a Metal Plate to engrave your private key.
Connecting Your Wallet - To use most crypto apps, you will connect your wallet which we will talk about later in this guide. It is important that you only connect your wallet to apps that you trust.
Mobile vs Computer - While you can use crypto on your phone, it is recommended to use a computer for enhanced security.
There are many self-custodial wallets. In this guide, we will use MetaMask as it it's widely accepted as the industry standard and has been around for years. Follow this video to set up your MetaMask wallet:
Step 3: Send ETH from Coinbase to Wallet
Now that you have your MetaMask wallet set up, you're ready to send the ETH you purchased on Coinbase to your wallet. Here is a short tutorial video showing how to do so:
Awesome! You now have complete control of your crypto. Before moving on to Getting Started, read the important tips below 👇
Important Tips
Self-Custody ASAP - Moving forward, as you buy more crypto on CEXs, it's important to move your crypto from the CEX to a self-custodial wallet as soon as you can. When your crypto is on a CEX, it is being custodied by the CEX. Meaning if something were to happen to that CEX such as bankruptcy of them shutting down, you won't have access to your crypto which has happened in the past. This is where the phrase 'Not your keys, not your crypto' comes from to teach the importance of self custody. So self-custody your crypto ASAP.
Hardware Wallets - When you begin to invest more significant amounts of money into crypto, you will want to use a hardware wallet for enhanced security. These devices store your private keys offline and are what is know as 'cold storage.' When buying a hardware wallet, it's important to buy the device directly from the website of the company. I'd recommend using a Trezor. Here is a buy link and here is a tutorial video of how to set it up.
You're now ready to move on to Getting Started!
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