Beginner’s Guide On Crypto Wallet
Updated: Jan 25
Because of their exchange value, cryptocurrencies have become a valuable asset and their loss could cause a considerable level of pain.
When it comes to storing crypto, you need a wallet. You can either keep your crypto online (hot storage) or offline (cold storage).
What is a Crypto Wallet
Just like we have wallets to store cash and other valuable items, a digital wallet is required to store and use cryptocurrencies. Unlike in banks, cryptocurrency cannot be stored in a physical location. Rather, they are stored in online addresses that are accessible through the use of a wallet. Therefore every time you buy, send, receive, transfer, sell, save, invest and interact with anything crypto be sure you have used a wallet.
How To Get a Wallet
Get Custodial wallets automatically- Most exchanges and platforms for cryptocurrency trading offer a multi-currency wallet. Once you sign up on Vibra, you automatically get wallets enabled for all the cryptocurrencies available on Vibra. Vibra offers highly secured wallets that can be trusted.
Buy a wallet — A hardware wallet or software wallet app can be purchased online. These are non-custodial wallets that require you to keep your private key without a third party. Ensure you DYOR before you buy.
How To Avoid Loss of Funds in Crypto
1. Avoid Transferring to the Wrong Address
Due to the irreversible nature of blockchain protocols, transactions can’t be cancelled or reversed once initiated. If you send funds to the wrong address, you’ll need to contact the receiving party and ask for their cooperation in returning the funds. Because crypto enables anonymous transactions, this can only work if you know the receiver.
To understand how blockchain works, read our blog post Blockchain Explained — A Beginner’s Guide to Understanding Blockchain
Therefore, it is necessary to exercise caution when making any crypto transactions. Make sure the wallet you are sending to is the right one. Always copy and paste or scan QR code. You can ascertain that the wallet address is correct by checking the first four or five figures or alphabets and the last four or five digits too. If they are the same you can then send out your crypto.
2. Generate the Right Crypto Wallet
Bitcoin is based on an older blockchain platform that faces challenges with energy consumption and speed. Ethereum, which was made to compensate for some of the Bitcoin network shortcomings, became a barrier to entry in itself, as a single transaction in the network could cost up to $100 or more in late 2021.
Several modern blockchain platforms have been developed to help overcome these limitations and provide practical value for other business uses and applications. For this reason, generating the right crypto wallet requires carefulness.
Why so? Well, most of the modern Blockchain networks are Ethereum Virtual Machine (EVM) compatible, that is, their wallet addresses are exactly the same as that of Ethereum for example, Fantom network, Polygon, Finance Smart Chain etc. If you generate an Ethereum network address and send in a Fantom network coin, your crypto could be permanently lost.
For more information read our blog post Token Standards and Transfer Networks — ERC20 vs BEP20 vs TRC20
3. Differentiate Between Transfer Network Chains
When withdrawing crypto assets from VIBRA, especially USDT, you will be offered a number of different network options.
The best thing to do is to always select the coin’s native network. For example:
BTC should be sent to your Bitcoin address via the BTC/Bitcoin network.
ETH and ERC20 tokens should be sent to your Ledger Ethereum address via the ETH/ERC20 network.
BNB and BEP20 tokens should be sent to your Ledger Binance Smart Chain address via the BSC/BEP20 network.
Tron and TRC20 should be sent to your Ledger Ethereum Classic address via the ETC network.
HOW TO TRANSFER ON DIFFERENT NETWORKS FROM VIBRA
Using USDT cryptocurrency as an example (download VIBRA app here and set-up an account if you don't have one)
Before you start withdrawing your funds from VIBRA, you will first need to obtain the wallet address of the other platform/wallet/storage
1. Go to the other platform and click on [Deposit] to obtain the wallet address of USDT
2. Choose the transfer network that is also present on VIBRA (ERC20, BEP20, TRC20)
3. Copy the wallet address from the recipient platform under the preferred chosen network (e.g. ERC20)
4. Go to your VIBRA account and select the withdraw option at the top of the home page.
4. Select the coin (USDT) and the network of transfer (ERC20) and enter the recipient address [make sure it’s in the same network as the withdrawal network].
5. Enter the amount of crypto that you wish to transfer, then hit [Withdraw]. You will be prompted to enter an OTP/Token/Code sent as email or SMS or Google Authenticator code — depending on the 2-factor authentication rule you have enabled for withdrawals.
6. Go to your email and copy the code and paste it on the designated spot. Do the same for SMS or Google Authenticator and click [Submit].
Within a few seconds, you will receive your coins in your other Wallet app. That’s it!
You can use the same approach to transfer from VIBRA using another network.
Important links
Telegram: https://t.me/vibraofficial
Twitter: https://twitter.com/VibraAfrica?t=NS4g5RiTAHm59MbENJnL4A&s=09
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