You've heard about immense opportunity and wealth in Web3. You are excited to get into the world of Web3. But, how do you get started?

Let’s Start with the world of blockchains

Blockchain is a transaction database distributed, validated, and maintained around the world on a network of computers.

Think of it as an evolving book. The title page has the origin information – the first transaction.

Each page adds to the story with new data or transactions.

As you make new transactions, they are added to the book for everyone else to see. You cannot change existing content, only add to the transaction. It is immutable. It is a “chain.”

Cryptocurrency

Cryptocurrency is digital money transferred between virtual wallets without the need of a bank or any third party permission.

Many types of cryptocurrency exists, but the most common is Ethereum. You might have heard of Bitcoin 😊.

Web3

Blockchains and cryptocurrency are the foundations of Web3.

Web3 transactions are between two or more parties without any middlemen or regulation. Many transactions are totally anonymous. There are few watchdogs telling you what services you can or cannot access. In Web 3, privacy and autonomy rule. The control of data is decentralized.

How does this work?

You buy cryptocurrency using a digital wallet like MetaMask or Coinbase. You can use your cryptocurrency for various transactions including making everyday purchases, maintenance records for your car, buying real estate, financial investments, NFTs, gaming, and even charitable donations. The list grows every day.

Crypto Wallets

Your digital purchases are recorded in your crypto wallet.

Hot wallets are usually saved and used on smartphones or laptops connected to the Internet. These wallets are less secure than cold wallets.

Cold wallets are not continuously connected to the Internet. Think of these wallets like USB sticks (they are actually called “ledgers”). Cold wallets are offline crypto storage solutions to avoid hackers stealing your cryptocurrencies or purchases.

Your wallet, hot or cold, is protected by a secure private key. This private key proves that you are the owner of the digital currency allowing you to authorize transactions.

But a note of caution, if you lose your private key, you cannot access your cryptocurrency any longer!

Unlike a PIN with your credit card, you cannot just call someone to change or restore your private key. Another layer of security with your private key is a “seed phrase.” It also should NEVER be shared with anyone. These two things are what protects your cryptocurrency from theft.

Conclusion

The best way to get comfortable in the Web3 space is to dive it. But start small and build from there.

Buy a small amount of cryptocurrency and purchase your first NFT (non-fungible token).

Then, as you learn and gain confidence, buy more. Use your cryptocurrency for other transactions.

Just remember to always guard your private key and seed phrase in a safe place and to never share them with others. Hackers are skilled at enticing users to revealing these sensitive pieces of information.