There are better places to store your cryptos than Coinbase! Or any other exchange for that matter. It’s a great way to purchase, but not the best place to store your investment. (we’ll talk about how to send things into a wallet in the next section.)
You do not need to go set up all of the following wallets at once. I recommend downloading the Exodus Wallet first until you NEED to do more to accommodate other coins and tokens.
Sending, Receiving, and Storing:
Every wallet has an address. If you want to send Bitcoin to someone, that person needs to have their own wallet. You’ll need to get their address in order to send BTC to their wallet.
In most cases you’ll be sending BTC or another coin or token from one of your own wallets or exchange wallets (like coinbase) to another one of your own wallets or exchanges. There are a few important things to remember:
- You can only send coins to compatible wallets. BTC only goes to BTC wallets. ETH only goes to ETH wallets and so on.
- You need a compatible wallet to hold new coins. For example, if you want to exchange ETH for EOS using the Shapeshift.io site, you will still need to have an EOS wallet ready to receive the new coins.
- ERC–20 tokens can be stored in the MyEtherWallet.com wallet (or MEW). Many of the popular tokens being traded are built on the Etherium network using the ERC–20 standards. Don’t guess. Make sure a token is listed in “Tokens” section at etherscan.io/tokens. The majority of Initial Coin Offerings or ICOs today are ERC–20 tokens. This means you’ll most likely want to set up a MEW if you want to participate in ICOs.
- Crypto trading platforms like bittrex.com have wallets built in so that you can trade without having to create new wallets as you go. Most people recommend that you DO NOT leave your coins sitting in a wallet exchange. Once you have the coins you want, move them to a secure wallet that you control.
Exodus Wallet: This is my favorite wallet for Bitcoin, Etherium, Litecoin and a few others.
The Exodus wallet has an exchange function built into it. This means for example that you can send Bitcoin from your Coinbase into your Exodus wallet and then exchange it for some OmiseGo tokens or EOS tokens right inside the wallet without having to set anything else up. Very handy.
NOTE: ALWAYS backup your wallets. As soon as you open your Exodus wallet, follow the instructions to back it up. Keep a hard copy of the backup phrase as instructed.
TIP: The password management app 1Password, is also good for keeping a copy of wallet keys, passcodes and whatnot “in the cloud”. It’s secure and affordable.
For exceptional security, purchase the MyGoldUSB at MyGoldUSB.com.
Similar features to Exodus, but works across multiple platforms including mobile.
Many of the coins you’ll want are actually Tokens built on top of the Ethereum network. These are known as ERC20 tokens. The My Ether Wallet (MEW for short) allows you to store Ethereum and your ERC20 tokens in your wallet. Examples of ERC20 tokens include Veritaseum, Populous, Pillar, TenX, and many more. More about MEW in the next video!