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First steps into DeFi

How to acquire cryptoassets and install an Ethereum wallet

 

Step 1:

Buy crypto at an exchange

The first step is to buy cryptoassets at a Crypto Exchange. Crypto exchanges are banks that enable you to exchange your local currency into cryptomoney. Some exchanges allow credit card payments, some only allow traditional wire transfers.

Exchanges have to comply with KYC (Know Your Customer) regulations, which means you will have to provide proof of identity and residency. Registration can take several business days.

What exchange should I use?

It depends on your country of residence. Each exchange has a list of supported countries and supported currencies / assets.

See here a list of crypto exchanges.

It is recommendable to pick one that has a high liquidity. Reputable exchanges like Coinbase or Kraken work pretty well in Europe or the US.

Which assets should I buy?

For the purpose of our courses, we recommend to start with Ether, the native token of the Ethereum blockchain. Ether is the reserve currency of DeFi applications so you will need to test all the applications. You will also need Ether to pay for the transaction fees in the Ethereum network. Furthermore, Ether is considered by industry experts to be undervalued.

As a second option you can look into is Bitcoin. It is the first, largest and most liquid blockchain network. It could position itself as the world's reserve currency, as "digital gold".

These are the two assets that are best positioned to acquire a monetary status. For this reason these are the two assets we recommend to begin with. 

Remember that Bitcoin and Ethereum are two different blockchains and require two different type of wallets.

For DeFi purposes, we will use only Ether and Ethereum compatible assets .

 

 

Step 2:

Install an Ethereum Wallet

A blockchain wallet is a piece of software that let you manage your cryptocurrencies and digital assets.

With an Ethereum wallet, you can get and manage one or several Ethereum addresses, from which you can store or send cryptoassets to somebody else or directly interact with smart contracts running on a blockchain.

Ethereum wallets can hold Ether or Ethereum compatible tokens (ERC-20 / ERC-721 standards). They can't hold Bitcoin but can hold Ether and the great majority of DeFi assets, which are Ethereum compatible.

There are many wallets in the market. For beginners we recommend starting with Argent Wallet as it is currently the user friendliest wallet. Argent is a wallet designed for mobile devices and has integrated many DeFi applications.

Instructions for installing an Argent wallet

It is also possible to buy directly cryptoassets through the Argent wallet, so you can "skip" step 1. See here a list of supported countries where you can do it.

A second option for more advanced users is the Metamask Wallet. Metamask is one of the most popular wallets with over 1m users. 

You can install a Metamask plug in in your Chrome, Firefox or Brave browser. Metamask is a desktop wallet, although a mobile version will be launched.

 

Step 3

Funding your wallet

Now that you have bought your first crypto, you need to transfer your funds to your new Ethereum wallet. In case you bought the assets directly through the Argent wallet, this step is not necessary. If you bought the assets through an exchange, you should go there and see the instructions for transferring the funds to an external wallet.

 

 

... Now you are all set to go!

 

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