How to Use a
DeFi Cryptocurrency Wallet
Decentralized finance, or DeFi, is a rapidly growing area of the cryptocurrency industry that offers a new way to earn, save, and borrow money. DeFi apps, or dApps, are built on blockchains such as Ethereum, and use smart contracts to offer users secure and efficient ways to manage their finances.
In recent years, the DeFi sector has seen explosive growth, with the total value locked in DeFi now measured in the hundreds of billions of dollars.
DeFi has the potential to revolutionize the way we interact with financial services by making them more accessible, transparent, and secure. In this series, we will explore DeFi in depth and provide readers with the information they need to get started in this exciting new world of finance.
Welcome to Boba Network’s DeFi 101.
Step 1. Choosing a Crypto Wallet
There are many different wallets that can be used for DeFi, but not all of them are created equal. Some wallets, like MetaMask, offer an easy-to-use interface and support a wide range of dApps. Others, like Gnosis Safe, place a greater emphasis on security.
Some of the top options on the market include MetaMask, Coinbase Wallet, Trust Wallet, and Wallet Connect. We can also recommend official Boba partners BitKeep Wallet, D’Cent Wallet, and Onto Wallet. The features and design of each wallet will vary, so be sure to check out a few options before deciding on the right one for you.
As you decide, make sure to consider security, dApp integration, mobile vs. desktop availability, and supported assets. Each of these wallets are constantly improving and adding more features and integrations, so check their websites for the most current documentation as it may have changed!
Source: https://defirate.com/wallet/
The best wallet for you will ultimately depend on your needs and preferences. For the purposes of this tutorial, we’ll stick with MetaMask, as it’s one of the most popular browser-extension based wallets out there today.
Step 2. Installing a Crypto Wallet
Depending on the type of wallet you’re using, the installation process may vary. For example, to install MetaMask on your Chrome browser, simply search for “MetaMask” in Chrome web store and click “Add to Chrome.”
Whichever wallet you choose, go directly to the app store or publisher web site and follow the instructions from there. It is not recommended to follow links from a Google search or advertisement as these are common attack points used to trick you into downloading malicious software. Make sure you know what you’re installing!
If you’ve chosen a desktop or mobile based wallet, the install process would look similar to any other app or program installation.
Always make sure to carefully read and follow the instructions! We’ll talk about this more in the next step, but there are usually some steps where you have to record a “seed phrase” that acts as your master key to the account, and if you lose that or if someone else gets access to it, your funds may be at risk!
Once you’ve installed the wallet, it’s time to open it up, create your account, and get started with DeFi!
Step 3. Creating Your DeFi Wallet Account
Today we’ll be starting fresh with a new account, but if you have an existing account you can save a couple steps and click “Import Wallet” and put in your secret recovery phrase, or seed phrase.
Go ahead and click “Create a Wallet” and let’s go!
After clicking through some terms and conditions, it will ask you to create a password. This is NOT your seed phrase, although this password is still quite important, because anybody with this password and access to your physical device could still login and transfer funds even without your seed phrase. Keep it safe!
Storing Your Seed Phrase Securely
This next step is probably THE MOST IMPORTANT of the entire process! Your Secret Recovery Phrase, or seed phrase, is a phrase that is the “master key” to your wallet and your funds. On MetaMask it is 12 words. On other wallets it may be 24 words long, or some other combination. Never, ever share your Secret Recovery Phrase! If someone asks for your recovery phrase they are likely trying to scam you and steal your wallet funds.
Store your seed phrase in a secure location that only you have access to. Do not screenshot it, save it on your phone or computer, text it, email it, take a picture of it, save it as a word document, or any other digital form of record, as this will increase the likelihood of it being stolen in a cyber attack.
How do I save my Secret Recovery Phrase?
- Save in a password manager
- Store in a bank vault
- Store in a safe deposit box
- Write down and store in multiple secret places
Step 4. Deposit funds to your account
Now that you’ve setup your DeFi wallet, the fun part begins! You can deposit funds and start to interact with the thousands of exciting dApps available right now.
First, you need to get some funds in your account. If you’ll be interacting with the Ethereum blockchain, which most of DeFi and NFTs run on, you’ll need Ether, or ETH, to make purchases and pay for transactions on the network, so that would be a great place to start.
Option 1: If you have some crypto in a centralized exchange such as Coinbase, Binance, or KuCoin, simply follow their instructions to withdraw or send tokens to your newly created wallet.
You will need your wallet address, or public key, which is a long string of alphanumeric characters that is encrypted to protect your private key. This wallet address IS SAFE to share, but note that blockchain transactions are public so anybody with your wallet address can trace a complete transaction history (although not necessarily link it to your personally identifiable details).
IMPORTANT: Your wallet address is long and contains a lot of letters and numbers that must be copied EXACTLY without mistakes. Do not try to type this out by hand. Pretty much every wallet will have a “Copy / Paste” function. Use it, and then double check the first and last couple characters to make sure there were no transcription errors. Blockchain transactions are irreversible!
Option 2: There are services called “Fiat Onramps” which allow you to buy crypto directly with a credit card, debit card, bank account, PayPal, Venmo, etc. In MetaMask, you can do so by clicking the “Buy” button in the screenshot above.
Step 5. Connecting to Decentralized Applications (dApps)
Once you’ve got your wallet created and funds deposit, it’s time to start playing! There are thousands of dApps out there that let you use your funds in all sorts of ways, like swapping tokens, margin trading or futures contracts, lending or taking loans, games, NFTs, metaverse experiences, and more.
Your new web3 wallet is your connection point to all of these. Most dApps will have a “Connect Wallet” button, like in the screenshot above from Uniswap, one of the most popular dApps to swap crypto tokens.
If you’re looking for other interesting dApps to try out, you can visit the Boba Gateway at gateway.boba.network, and click “Ecosystem” at the top of the page.
Here you can find categorized links to the growing number of dApps in the Boba Network ecosystem. You’ll have to bridge some funds over to Boba first, but we’ll help you do this in the next part of our DeFi 101 series, so stay tuned!
About Boba Network
Boba Network is an Ethereum Layer-2 scaling solution and hybrid compute platform offering lightning fast transactions and fees up to 60x less than Ethereum.
Our Hybrid Compute brings the power of Web2 on-chain, with smarter smart contracts that allow developers and creators to leverage off-chain compute and real-world data to offer an enriched experience unlike anything else on the market today.
We’re delivering a faster, cheaper, smarter experience for Ethereum’s next billion users.
How to Use a
DeFi Cryptocurrency Wallet
Decentralized finance, or DeFi, is a rapidly growing area of the cryptocurrency industry that offers a new way to earn, save, and borrow money. DeFi apps, or dApps, are built on blockchains such as Ethereum, and use smart contracts to offer users secure and efficient ways to manage their finances.
In recent years, the DeFi sector has seen explosive growth, with the total value locked in DeFi now measured in the hundreds of billions of dollars.
DeFi has the potential to revolutionize the way we interact with financial services by making them more accessible, transparent, and secure. In this series, we will explore DeFi in depth and provide readers with the information they need to get started in this exciting new world of finance.
Welcome to Boba Network’s DeFi 101.
Step 1. Choosing a Crypto Wallet
There are many different wallets that can be used for DeFi, but not all of them are created equal. Some wallets, like MetaMask, offer an easy-to-use interface and support a wide range of dApps. Others, like Gnosis Safe, place a greater emphasis on security.
Some of the top options on the market include MetaMask, Coinbase Wallet, Trust Wallet, and Wallet Connect. We can also recommend official Boba partners BitKeep Wallet, D’Cent Wallet, and Onto Wallet. The features and design of each wallet will vary, so be sure to check out a few options before deciding on the right one for you.
As you decide, make sure to consider security, dApp integration, mobile vs. desktop availability, and supported assets. Each of these wallets are constantly improving and adding more features and integrations, so check their websites for the most current documentation as it may have changed!
Source: https://defirate.com/wallet/
The best wallet for you will ultimately depend on your needs and preferences. For the purposes of this tutorial, we’ll stick with MetaMask, as it’s one of the most popular browser-extension based wallets out there today.
Step 2. Installing a Crypto Wallet
Depending on the type of wallet you’re using, the installation process may vary. For example, to install MetaMask on your Chrome browser, simply search for “MetaMask” in Chrome web store and click “Add to Chrome.”
Whichever wallet you choose, go directly to the app store or publisher web site and follow the instructions from there. It is not recommended to follow links from a Google search or advertisement as these are common attack points used to trick you into downloading malicious software. Make sure you know what you’re installing!
If you’ve chosen a desktop or mobile based wallet, the install process would look similar to any other app or program installation.
Always make sure to carefully read and follow the instructions! We’ll talk about this more in the next step, but there are usually some steps where you have to record a “seed phrase” that acts as your master key to the account, and if you lose that or if someone else gets access to it, your funds may be at risk!
Once you’ve installed the wallet, it’s time to open it up, create your account, and get started with DeFi!
Step 3. Creating Your DeFi Wallet Account
Today we’ll be starting fresh with a new account, but if you have an existing account you can save a couple steps and click “Import Wallet” and put in your secret recovery phrase, or seed phrase.
Go ahead and click “Create a Wallet” and let’s go!
After clicking through some terms and conditions, it will ask you to create a password. This is NOT your seed phrase, although this password is still quite important, because anybody with this password and access to your physical device could still login and transfer funds even without your seed phrase. Keep it safe!
Storing Your Seed Phrase Securely
This next step is probably THE MOST IMPORTANT of the entire process! Your Secret Recovery Phrase, or seed phrase, is a phrase that is the “master key” to your wallet and your funds. On MetaMask it is 12 words. On other wallets it may be 24 words long, or some other combination. Never, ever share your Secret Recovery Phrase! If someone asks for your recovery phrase they are likely trying to scam you and steal your wallet funds.
Store your seed phrase in a secure location that only you have access to. Do not screenshot it, save it on your phone or computer, text it, email it, take a picture of it, save it as a word document, or any other digital form of record, as this will increase the likelihood of it being stolen in a cyber attack.
How do I save my Secret Recovery Phrase?
- Save in a password manager
- Store in a bank vault
- Store in a safe deposit box
- Write down and store in multiple secret places
Step 4. Deposit funds to your account
Now that you’ve setup your DeFi wallet, the fun part begins! You can deposit funds and start to interact with the thousands of exciting dApps available right now.
First, you need to get some funds in your account. If you’ll be interacting with the Ethereum blockchain, which most of DeFi and NFTs run on, you’ll need Ether, or ETH, to make purchases and pay for transactions on the network, so that would be a great place to start.
Option 1: If you have some crypto in a centralized exchange such as Coinbase, Binance, or KuCoin, simply follow their instructions to withdraw or send tokens to your newly created wallet.
You will need your wallet address, or public key, which is a long string of alphanumeric characters that is encrypted to protect your private key. This wallet address IS SAFE to share, but note that blockchain transactions are public so anybody with your wallet address can trace a complete transaction history (although not necessarily link it to your personally identifiable details).
IMPORTANT: Your wallet address is long and contains a lot of letters and numbers that must be copied EXACTLY without mistakes. Do not try to type this out by hand. Pretty much every wallet will have a “Copy / Paste” function. Use it, and then double check the first and last couple characters to make sure there were no transcription errors. Blockchain transactions are irreversible!
Option 2: There are services called “Fiat Onramps” which allow you to buy crypto directly with a credit card, debit card, bank account, PayPal, Venmo, etc. In MetaMask, you can do so by clicking the “Buy” button in the screenshot above.
Step 5. Connecting to Decentralized Applications (dApps)
Once you’ve got your wallet created and funds deposit, it’s time to start playing! There are thousands of dApps out there that let you use your funds in all sorts of ways, like swapping tokens, margin trading or futures contracts, lending or taking loans, games, NFTs, metaverse experiences, and more.
Your new web3 wallet is your connection point to all of these. Most dApps will have a “Connect Wallet” button, like in the screenshot above from Uniswap, one of the most popular dApps to swap crypto tokens.
If you’re looking for other interesting dApps to try out, you can visit the Boba Gateway at gateway.boba.network, and click “Ecosystem” at the top of the page.
Here you can find categorized links to the growing number of dApps in the Boba Network ecosystem. You’ll have to bridge some funds over to Boba first, but we’ll help you do this in the next part of our DeFi 101 series, so stay tuned!
About Boba Network
Boba Network is an Ethereum Layer-2 scaling solution and hybrid compute platform offering lightning fast transactions and fees up to 60x less than Ethereum.
Our Hybrid Compute brings the power of Web2 on-chain, with smarter smart contracts that allow developers and creators to leverage off-chain compute and real-world data to offer an enriched experience unlike anything else on the market today.
We’re delivering a faster, cheaper, smarter experience for Ethereum’s next billion users.
