In this guide, we’ll expound the variants of crypto wallets and recommend ways to secure them. Crypto wallets are the substratum of web3 and understanding how they work is essential to bulwarking your NFTs and cryptocurrencies. Mark that, OpenSea is not a wallet company, and users are simply responsible for keeping their wallet safe. Intro To Crypto Wallets
What Is A Wallet?
“Wallet” is a pretty impecunious metaphor for a crypto/NFT wallet. The word “wallet” makes you cerebrate that securing a crypto wallet is identically tantamount to securing the wallet you keep in your pocket. Most importantly, it seems that if you have your crypto wallet then no one else can have it concurrently. Infelicitously, this is far from the veracity.
Since we are stuck with the term, what precisely is a wallet?
A wallet is a private key
What Is A Private Key?
Private keys are like a personal signature. In the authentic world, it’s mundane to utilize your personal signature to sanction documents or contracts. In the web3 space, only you can engender this signature (the private key), but the entire world kens how to check it by optically canvassing your wallet address.
Each public key can verify one private key, and each private key can engender a message that can be verified by one public key.
The wallet address on Ethereum is the string of desultory letters and numbers that commences with “0x”. Everyone can ken your wallet address, and kenning your wallet address does not give any control over your wallet. Intro To Crypto Wallets
The seed phrase, customarily 12-words long, is a shortcut to the private key and to the wallet itself. This is why it is so paramount to forfend your seed phrase.
There are two main types of wallets:
Custodial wallets are managed entirely by a third-party and generally do not fortify NFTs.
Components Of A Non-Custodial Wallet
Securing anything on a computer is arduous, and a crypto wallet especially so. You’ll need to cogitate this in two components:
The Seed Phrase
The seed phrase should never be stored digitally as a picture or as text on a computer or mobile contrivance. The phrase is identically tantamount to your wallet, and anyone who has it has consummate control of your wallet. The best thing to do is indite it down on paper (or metal) and store it in a secure place in the authentic world. Intro To Crypto Wallets
The Private Key
Your private key is stored within your wallet application and your best auspice is to cull a prominent one.
Recommended Approach to Securing your Wallet
Because of this, we recommend utilizing a two wallet system at a minimum, with a sultry-wallet utilized for every day transactions and a cold-wallet for long term storage of your crypto items.
Just as your authentic life wallet wouldn’t have all your mazuma in it, your sultry wallet should not have substantial amplitude of cryptocurrency in it. Consequently, you should only have enough cryptocurrency for purchases and only crypto items that you have recently acquired or are orchestrating on selling. This is your day-to-day wallet that you can afford to lose.
A cold wallet is one that is not facilely accessible to you. This wallet should store all of your high-value items and any consequential before magnitudes of cryptocurrency. Intro To Crypto Wallets
Now that you ken how a crypto wallet works, check out the full list of compatible wallets with OpenSea here. In the future, we will be making additional posts about NFT security, transaction before security, and the risks of signatures. You can also follow our Support Twitter for NFT tips & tricks. Stay tuned and stay safe!