INTRODUCTION #1: How to Setup Your Crypto
Mr. Fox breaks down what you apps you need to setup to start getting involved in crypto.
Today is the first email in the INTRODUCTION series that will go over all of the basics of crypto that you need to know in order to get started. This series will be the starting point for all new subscribers and anybody starting out in crypto.
What apps and accounts do you need to setup in order to get started in crypto? Let’s find out.
There are really only two things in crypto that you need to have. If you have these two things, you can do pretty much everything. The first thing you need is a place where you buy and sell your crypto, and the second thing you need is a place to keep your crypto.
A place where you buy and sell your crypto is known as an exchange, and the place where you keep your crypto is known as a wallet.
If you’re in Canada, although it’s more difficult to get going than it would be if you were living the The States, it’s really not too complicated.
The first thing you need to find is an exchange, a place to buy and sell cryptocurrencies. Remember that if you want to buy anything digital, it will most likely only be available in a cryptocurrency, which is why you need to be able to buy that currency beforehand. Buying cryptocurrencies is also important if you want to start investing in crypto. For example, if you do research that says the price of Ether is going to go up, you’ll want to be able to buy Ether.
Ok. So which exchanges do I recommend to buy your cryptocurrencies on in Canada? I have two options, and you can decide between them.
Binance. Binance is one of the biggest exchanges in the world. They have over 120 cryptocurrencies that you can buy, and their fees are some of the lowest out there. I would recommend Binance if you plan on pursuing cryptocurrencies deeply because it has the most options out of any other exchange. You can download the mobile app and use their website too.
Shakepay. Shakepay only has two currencies: Bitcoin and Ethereum. If you’re just starting out in crypto, these are all you’ll need. Shakepay is a very simple app that I use to this day. They don’t have a website, but you can use their mobile app.
If you’re living in the USA, Coinbase is also a great option and substitute for Shakepay. The Coinbase user experience for Canadians is not great which is why I prefer Shakepay for Canadian readers.
There are other options out there such as Coinbase, Kraken, or Bitbuy, but they do the same things as Binance and Shakepay. You should do your own research into which crypto exchange will work best for you. Remember, you should choose Binance if you want to dive head-first into crypto, and Shakepay if you want to start out slow. There is nothing stopping you from switching exchanges, or starting on Shakepay and moving to Binance later.
Recap: an exchange is the place where you can buy and sell crypto, and Binance and Shakepay are two options that Mr. Fox recommends.
What else do you need to know about exchanges? A few things.
Canadian banks do not allow you to buy cryptocurrencies with credit cards. The banks know that crypto can make them extinct, so they’re doing everything in their power to stop it from happening, which is why they don’t let you buy crypto with credit cards. You will need to use a debit card. In some cases, you may buy crypto with your debit card and the transaction will fail. This is your bank blocking the transaction because they don’t want you buying crypto. You will need to call them to tell them to remove the block on the transaction.
Be ready to verify your identity. Make sure you have some ID on hand because you will need to complete some basic questions on your identity. You will not be able to buy cryptocurrencies before verifying your identity, which should take 24-48 hours.
You do not own your crypto after buying it on an exchange. It sounds crazy, but it’s true. Even after you buy your crypto on an exchange, you still don’t actually own it. You can do whatever you want with it, but technically it is not yours until you take it off of the exchange and into your personal wallet. Which leads us into the second part of your setup…
After you find an exchange, the second thing you need to do is find a place to store your cryptocurrency - a wallet. Your wallet is extremely important, it’s the place where all of your money will be stored and accessed from. That’s why you should choose a dedicated time to organize it. You shouldn’t be in a rush and you should have a pen and paper in hand.
You should know that there are two types of wallets:
An online wallet. You can use this as long as you have an internet connection.
An offline wallet. Think about when you move files from your computer onto a USB stick. This is the same way you would work an offline wallet. You take the crypto you have online in an exchange or online wallet, and move it to a physical hard drive that exists in the real world.
Ok. So what wallets do I recommend?
For an online wallet, I use MetaMask. You will need a MetaMask account in order to use a lot of different crypto websites, so making an account is a must. This is where I store my Ethereum and NFTs.
To install MetaMask on your computer (you must be using Chrome):
Go to the Google Chrome store.
Search for MetaMask.
Add the extension to your browser.
Create an account.
To install MetaMask on your phone, just visit your app store.
When you create an account, you’re going to get a recovery phrase. Your recovery phrase is 12 words in a particular order, and you can use it if you ever get locked out of your account. You can also use it when you’re setting up your MetaMask on mobile or on a different browser. What that means though is that if somebody has your recovery phrase, they can access your account. So how do you stay safe? Write your recovery phrase on paper, store it somewhere safe, and never under any circumstances share it with somebody else.
Once you have your MetaMask setup, you’re ready to store Ethereum and NFTs in your new online wallet, all you have to do is follow the steps from your exchange on sending your currencies to your wallet.
Notice how I said that you’re ready to store Ethereum and NFTs, not Bitcoin. This is because MetaMask does not allow the storage of Bitcoin. To store Bitcoin, I use the mobile app Bitcoin.com Wallet App, which follows almost the exact same process as MetaMask.
Let’s recap. You install MetaMask on Chrome and on your phone, and send your cryptocurrency to the wallet. For your Bitcoin, you install Bitcoin.com Wallet App on your phone, and send your Bitcoin to that wallet from your exchanges.
Remember that I said there are two types of wallets, online and offline. Well we just went over online wallets, now let’s spend a little bit of time on offline wallets.
Offline wallets are generally more secure than online wallets. If you never lose your hard drive and make sure to keep it undamaged (out of water or heat), YOU are the only person who can access it. You can’t get hacked and you don’t have to worry about fishy websites. With that added security comes a lot more difficulty to actually use the crypto you store on the offline wallet. It takes a lot more time to move crypto that you are storing on a hard drive online, so the main use of an offline wallet is to store very large sums of crypto and/or crypto you plan on holding for a very long time.
If you like this added security, want to buy a lot of crypto, and don’t plan on moving that crypto between wallets very often, then you should buy the leading offline wallet - a Ledger.
Ok. So now that you’ve read all that, let’s break it down into some simple steps.
You need a place to buy and sell your crypto. Binance is great if you want hundreds of currencies to choose from, and Shakepay (or Coinbase if you’re in the USA) is if you want to start off with Bitcoin and Ethereum. Download their apps from the app store. Binance and Coinbase have websites as well.
You need a wallet to store your crypto and take it off the exchanges and into your hands. For Ethereum and NFTs, download MetaMask on your phone and add it as an extension to your Chrome. For Bitcoin download Bitcoin.com Wallet App from the mobile app store. For large sums of crypto or crypto you plan on holding for a long time, buy a Ledger.
Buy your crypto on your exchange.
Transfer it to your wallet.
Quick note: if you’re looking to buy NFTs, you won’t find them on exchanges. They’re only available on NFT websites like OpenSea, Rarible, SuperRare, or NiftyGateway, as examples.
There will be a few things along this setup process that you will need to do some problem solving around, but this framework covers 95% of what you will experience in the process. Please remember to do your own research and find what works for you. What I have presented is just what has worked for me.
If you learned anything or found this helpful, think about sending it to somebody who wants to get involved in crypto but isn’t sure how to start. Keep on the look out for more emails part of the INTRODUCTION series that will help you get started in crypto.
And down the Rabbit Hole we continue.
Mr. Fox.