I told you that you need an Cryptocurrency Wallet to use a marketplace called Open Sea.
Today, we are going to learn about the concept of an cryptocurrency wallet.
Prior to the story, there are often people who don't understand the NFT structure, so I'll give you basic explanation.
NFT consists of smart contracts and metadata.
In other words, there are "smart contracts" that programmed the rules that NFT must follow
and "metadata" called NFT's attributes.
Smart contracts refer to contracts concluded based on blockchain.
Metadata is structured data that contains attribute information of the data.
Each blockchain-based ecosystem, including NFT, consists of a mainnet.
So the range of activities varies depending on which mainnet the NFT project uses.
If you are interested in NFT, I recommend you to understand the concept of Mainnet first.
Shall we get back to the main topic?
We need an cryptocurrency wallet to purchase or sell NFT at marketplace like Open Sea.
I talked about which cryptocurrency wallet can be used in a previous posting.
(Go to the previous posting ▶)
NFT Marketplace #1 - How to sign up for Open Sea + a wallet that can be linked
Hello! I told you in the last post that I'll learn more about how to sign up for NFT Marketplace. We would like to find out how to sign up in the order we informed you. ▼ Go to the last post righ..
nft-information.site
What is a cryptocurrency wallet?
However, there are people who are curious about the exact concept of a cryptocurrency wallet.
Cryptocurrency wallets are the same as wallets,
Instead of storing cash and credit cards,
it holds evidence of digital tokens such as cryptocurrency and NFT (Non-Fungible Tokens).
Also, if you use an cryptocurrency wallet, you can send and receive NFTs.
It can be used on blockchain integrated websites such as OpenSea.
Then you might be curious about the types of crypto wallets I told you about last time.
Most commonly, there are two types of wallets.
Software wallet
A software wallet is like a wallet in a pocket.
In other words, it is convenient but not suitable for storing large amounts of money.
It's use-friendly, but it's a little vulnerable. It's also called "Hot Wallet"
This is because personal keys are stored on devices connected to the Internet,
such as mobile phones and computers.
It is most suitable for Dapp transactions.
I also explain the concept of Dapp.
Dapp is a decentralized application. (It's often called dab! Decentralization is generally referred to as DeFi.
Without relying on a central financial intermediary, such as an intermediary, exchange, or bank,
It is a blockchain-based financial form that utilizes smart contracts in blockchain.
Smart contract!
I told you that NFT takes the form of a contract based on smart contracts and blockchain.
Dapp does not have a separate server,
but communicates with smart contracts on the blockchain and provides services.
Software wallets install browser extensions on your computer,
Start by installing the application on your mobile device.
Popular software wallets include MetaMask, Rainbow, or Coinbase.
The advantages of software wallets include easy installation and multiple instances.
And the advantage is that it only takes a few minutes to get an existing wallet address
and private key or make a new wallet.
And if you use seed phrases, you can have the same wallet on multiple devices at the same time.
However, because the wallet exists as software,
here is a disadvantage that the private key is stored on the device.
What sound is this?
Anyone (directly or remotely) who can access the device can access the private key.
It's easy and convenient to use, but a higher level of security is required.
Hardware wallet
Hardware wallets are similar to vaults for cryptocurrency and NFT.
These physical devices, often referred to as "Cold Wallet" are specially designed to keep digital treasures safe.
The hardware wallet generates a private key, stores it on the device, and moves the item.
It is ideal for long-term storage because it can be kept completely offline.
To set up and use a hardware wallet,
you usually need to connect to your computer via USB and follow the manufacturer's instructions.
The biggest advantage of hardware wallets that require physical connection is physical security.
Since private keys are stored only in hardware wallets,
only those who physically own hardware wallets can send a transaction from the hardware wallet address.
However, if you leave your wallet at home or lose it, you can't make a deal.
If permanently stolen, damaged, or destroyed, the wallet must be reset using seed phrases.
The hardware wallet is a little uncomfortable. This is because it doesn't work on all devices.
Connection errors often occur.
Some hardware wallets require the installation of 'bridge' on the connected device
before explaining in the transaction on the blockchain.
Um... If it's your first NFT, there might be people who are curious about the seed phrase.
Seed phrases are generally a list generated
in a specific order consisting of 12 to 24 words and are issued to cryptocurrency wallet users.
You can gain access and control over funds again on-chain.
N.e.v.e.r. this seed phrase should not be shared.
Seed phrase sharing is similar to my public certificate and password sharing ... Don't ever tell me.
Fraudsters may hack into URLs to people who use software wallets,
for those who want to pay attention to safety, we recommend using a hardware wallet.
For your information, since the market called NFT is still in its infancy, related laws have not been enacted.
In other words, there is often nothing you can do even if you are scammed.
Hybrid wallet approach
To maximize both utility and security, I recommend using both software and hardware wallets.
Many users store most of their cryptocurrency and high-value NFTs in hardware wallets,
which are called "bolt" wallets.
It would be easy to understand if you think of a bolt wallet as a private safe for high-value wealthy people.
It's a good idea to read the security guide when protecting the NFT and using your wallet.
If you read each security guide, your chances of being beaten by a scammer will be lowered, right?
As I told you last time, I want to say, "Enjoy the NFT!".
Some might say, "I started NFT because I wanted to make money!"
Yes, I started NFT because I wanted to be an asset too.
But first, an understanding of the market must be accompanied.
There are so many ways to make money with NFT.
You can invest in the cryptocurrency of NFT's project, buy and sell NFT, and earn profits.
If you have talent, you can make and sell NFT yourself. You can also make money with minting or P2E.
However, I think investing in NFT without understanding the market is like gambling.
It's still an early market.
Don't be too impatient, and let's approach NFT based on our understanding of the market. :)
It needs to be fun, right?
I think it's fun when you know something about NFT.
Let's gain basic knowledge and approach it together!
If you have any questions through today's posting, please let me know in the comments.
And we'll find out how to change cryptocurrency to local currency, so please look forward to the next post!
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| NFT Marketplace #1 - How to sign up for Open Sea + a wallet that can be linked (0) | 2022.03.02 |
| How do you buy and sell NFT? Check out the marketplace! (0) | 2022.02.23 |
| What is NFT? I want to start, too! (0) | 2022.02.20 |
