Module 3: Setting up & Using Web3 Wallets

1. Creating a Web3 Wallet

Step-by-Step Guide for Setting Up Different Types of Wallets:

Mobile Wallet:

Download the App: Install a mobile wallet app from the App Store or Google Play Store.
Create a New Wallet: Open the app and follow the instructions to create a new wallet.
Backup Seed Phrase: Write down the seed phrase provided and store it securely.
Set a Password: Choose a strong password to secure the app.

Desktop Wallet:

Download Software: Visit the wallet provider’s website and download the desktop application.
Install and Setup: Install the software and follow the setup instructions.
Generate Wallet: Create a new wallet and securely store the seed phrase.
Encryption: Enable encryption and set a strong password.

Web Wallet:

Choosing a Wallet Provider:

Reputation: Research the provider’s reputation and reviews.
Features: Ensure the wallet supports the features and cryptocurrencies you need.
Security: Look for wallets with strong security measures and user control.

2. Security Best Practices

Protecting Private Keys and Seed Phrases:

Offline Storage: Store private keys and seed phrases offline in a secure location.
Avoid Digital Copies: Do not store sensitive information in digital formats that could be hacked.

Using Hardware Wallets for Added Security:

Cold Storage: Use hardware wallets for storing significant amounts of cryptocurrency.
Transaction Confirmation: Physically confirm transactions on the device to prevent unauthorized access.

3. Making Transactions

Sending and Receiving Digital Assets:

Sending: Enter the recipient’s address, specify the amount, and confirm the transaction.
Receiving: Share your public wallet address with the sender.

Understanding Transaction Fees and Confirmations:

Transaction Fees: Fees vary based on network congestion and priority.
Confirmations: Transactions require multiple confirmations on the blockchain to be considered final.