Learning something new is always intimidating. The fear of messing up. The inevitability of feeling dumb or uneducated. The stress of ânot getting itâ.
Whether itâs learning a language or to cook. Whether itâs starting a new job or moving to a new city. The new, the unknown, can be a lot.
If you add financial or technical elements, this just gets exponentially more intimidating and inaccessible for beginners.
Web3, cryptocurrencies, blockchain - theyâre all of the above. Technical, financial, with a whole language around it. Even with a ton of great primers out there, Iâve found itâs hard to get to a âso whatâ or a âok, but where do I start?â.
For me personally, I learn best by doing and got a better sense of bitcoin and ethereum, wallets and NFTs, just by playing around.
Iâve been doing little sessions for friends over the past couple of months and figured Iâd share here what Iâve shared 1:1, in case it might provide others a roadmap for exploration.
But for our purposes, assume you want to buy Ethereum, so you can go on to get some NFTs or a vanity .eth domain (kinda like a personal domain name but it maps to your wallet - more on that shortly).
So, you need to convert your fiat (eg. your USD or CAD or Euro) into crypto (eg ETH), just like you would if you were traveling to another country. Right now, the exchange is something like $100 USD = ~0.0003 ETH or 1 ETH = ~ $3300 USD (word to the wise, cryptocurrencies are crazy volatile so this changes a lot and quickly, and donât do this with any money youâre counting on needing to be there).
Youâll do the converting on a cryptocurrency exchange like Coinbase, MoonPay or Gemini. If youâre in Canada, try Bitbuy. Youâll need to set up an account and go through classic KYC (Know Your Customer compliance) things like uploading your driverâs license etc. No need for multiple accounts - like you probably have a main personal bank, just pick one.
Once you have an account, youâll be able to connect your bank account or in some cases, buy via your credit card. Start with something small (eg $100) and work your way through all the steps. See your USD get converted into ETH.
You can stop here, if you want to simply diversify some of your dollars into crypto, like investing in a stock and holding. This is what I did back in 2017, just as a learning exercise and really didnât do anything more until 2021 when NFTs started exploding, and I was âairdroppedâ my first NFT. Which leads me to âŚ
đł Whatâs a wallet and why do I need one?
If youâd like to use this ETH to explore and transact with web3 products, youâll want to move this ETH to a âwalletâ. Think of a wallet as a digital safe that holds your assets - yes, currency, but also eventually, NFTs and other tokens. Itâs been one of my favorite parts of the web3 experience - this idea that I own all my assets and I carry them to all the different sites, like a secure digital backpack and to interact with the site, I just âconnect walletâ, instead of remembering a kazillion passwords and logins, which can also more easily be compromised.
There are mainly two kinds of wallets: a hot wallet thatâs basically an app like Metamask or Rainbow or a cold wallet thatâs essentially like a USB stick (Ledger, Trezor). A hot wallet is crazy convenient but easier to hack (as itâs connected to the internet) while a cold wallet is way more secure but can be a pain to use often. A lot of times people will split their assets across a number of hot and cold wallets but for our purposes, weâll talk about setting up a hot wallet like Metamask.
The simplest is to download it as Chrome extension - the instructions are fairly straightforward - be sure to be super careful about the Seed Phrase step. This is your Private key. Think of this like your password or your banking pin. You donât want to ever tell anyone this. You donât even want to write it down digitally. I found this annoying (but I did it) - write it down on a piece of paper and store it in your safe.
Once youâre done, youâll be given your Wallet address - a long string of letters and numbers starting with OxBâŚ
Counterintuitively, this is your Public key and feel free to share this when people ask for your wallet address - itâs like an email address to direct anything to your wallet.
Itâs not very user friendly, so a lot of people will go buy a âvanity eth addressâ - the thing like apatelthompson.eth and map it to the hexadecimal address.
đđ˝What can I buy and do??
Now the fun part. Go exploring. Not everything requires buying things and here are a range of things you can do to start exploring in web3.
đđ˝ââď¸ Buy a vanity eth name. Go to ENS Domains and find an .eth address youâd like to buy. Many people will get one tied to their name. Find one thatâs available and go through the steps to register it. Beware of paying âgas feesâ with each transaction - these are essentially transaction costs paid to the people that process the computations related to your transaction. If they seem high, try waiting for another time of the day that might be less congested. In any case, you want to keep track of how much gas fees are because sometimes they can outweigh the cost of the thing youâre buying (incidentally, if youâre interested, there are a lot of efforts ongoing to solve for this part of the Ethereum network, while itâs also driving people to build on other protocols like Solana, with tradesoffs).
Anyway, once you buy it, you should see it in your wallet or when you connect to an NFT marketplace like OpenSea or Rarible.
đź Find an NFT to âmintâ: Either find a project youâre interested in (on IG or Twitter) and keep track of when theyâll be releasing their collection of NFTs, or use a calendar like this or this to find a collection youâd like to get at release. The pros are you can get them for likely the lowest prices, especially if itâs a popular project. The cons are itâs completely random which one you might get - a super rare one or not so much. Plus you can buy one before itâs really clear if the community is really committed to investing in the roadmap and project. Best bet is to follow a project for a while leading up to the mint, check out their discord (which I find often too chaotic to hang out in for long) and get a sense of what theyâre building and how.
đ Find an NFT to buy on âsecondaryâ: This just means you go to a marketplace (like OpenSea or Rarible) to buy an NFT that others already own. You can search different collections like World of Women or Boss Beauties or mfer.
IMPORTANT: Be really sure youâre on the official page (eg with the verified badge) - there are a ton of fake pages that will get you to connect your wallet and try to sell you fakes. We havenât innovated our way out of scammers.
The pros here are you can find exactly the one you want and you can get a sense of collections that have a lot of value and investment from the people behind them. The cons are theyâre likely pricey.
Fwiw, I know a lot of people buy NFTs because they expect them to appreciate in value - I think thatâs a wonderful side effect, but for my part, Iâve only ever bought NFTs of communities that I think are doing something really worth backing.
Through that lens, an NFT is like a membership card, or a ticket to a community doing some set of things. Here is a collection I came across that would be great for someone really into movies and screenplays. You can see the âbenefitsâ you get access to buy holding one of their NFTs.
đş Read (or write!) a post on Mirror, âlearn to earnâ on sites like Rabbithole or Layer3. Check out snippets of the metaverse by visiting Sandbox or virtual NFT museums on Spatial.
đ§ A couple last notes. The thing that makes this all scary and intimidating (I think), is that weâre talking money and weâre talking deeply technical things. And thereâs the fear of doing something that either loses you the money (eg. via the volatility or via a scam or just âpicking the wrong thingâ). So:
Itâs still so early in the space (youâll hear people say this a lot), that for many people, buying some crypto and some NFTs will be enough. But my hope is that people are able to enter the space through a sense of curiosity and wonder and excitement, not fear (or missing out or messing up) or intimidation.
And that starts with baby steps.
đ Happy exploring.