IMPORTANT
Today’s activity is foundational to experiencing web3. You’ll need to be in a quiet and private location where you can focus uninterrupted for 30-60 minutes. I recommend working on a computer, but you can do it on a mobile phone too. Also make sure you have a good internet connection and a notebook!
“Not your keys, not your coins”
When you own a cryptocurrency like Ethereum, what you really own is a private key. A private key unlocks the right for you the owner to spend the associated cryptocurrencies. Because a private key grants access to your cryptocurrencies, it should always remain private.
Yesterday, you purchased some Ethereum on a centralized exchange. Your ETH was held on a custodial wallet. With a custodial wallet, you don’t own your key (the service provider does). This means you don’t own your coins either - you can’t use them for anything outside the exchange.
Today, you’re going to move your ETH off the exchange and onto your own wallet. This process is a bit like going to a bank and withdrawing cash from an ATM. Once you take your money out of the ATM, it’s your responsibility. The bank no longer has custody of that money and it won’t help you if you lose it.
Wallets come in many forms, from hardware wallets that look like a USB stick to mobile apps like Coinbase Wallet. MetaMask is one of the most popular software wallets. MetaMask is available through a desktop browser extension and a free mobile app.
Installing MetaMask
I recommend starting out on a desktop computer and using MetaMask as a browser extension. Most browsers have MetaMask in their stores; here are links for Chrome, Firefox, and Opera.
I also recommend setting up a new browser profile solely for your web3 adventures. (See here for a tutorial on how to do this in Chrome). Better yet, download the Brave browser and earn “basic attention tokens” while browsing and playing in web3. Brave is built on Chrome and uses the same extension storefront.
If you’re using Chrome or Brave, then adding the MetaMask extension to your browser is very simple.
- Click on Install MetaMask as a Google Chrome extension
- Click Add to Chrome/Brave
- Click Add Extension
Once the extension has been added, you can pin it to your browser for easy access.
If you’re doing this on a mobile device, you can download MetaMask from the Apple Store or the Google Play store.
Creating an account
Once you have the app installed, open it and you should see a screen that looks like this.
Click the “Get Started” button and then click the “Create a Wallet” button.
You’ll be shown a privacy policy, click “I agree”, and then you’ll come to a password prompt.
This is a standard password to access the app from your browser or mobile device. It is not the private key to your Ethereum. For now, all you need to follow is standard best practices for creating a website password (ie, don’t make your password “password”).
Once you’ve entered your password, you’ll be shown a video on securing your wallet’s private key, aka, the Secret Recovery Phase. Even if you’re the type of person who usually skips the instructions, you should watch this two-minute video!
Get your Secret Recovery Phrase
Your Secret Recovery Phrase is a 12-word phrase that is the “master key” to your wallet and your funds.
How to save your Secret Recovery Phrase:
- Save in a password manager
- Store in a bank vault
- Store in a safe deposit box
- Write down and store in multiple secret places
Never, ever share your Secret Recovery Phrase!
If someone asks for your recovery phrase, they are almost certainly trying to scam you and steal your wallet funds.
I strongly recommend writing down your Secret Recovery Phase on a pad of paper and storing it in a safe place. (Right now, as you’re only experimenting with a modest amount of money, it’s not the end of the world if you lose your private key. But once you start doing more things, you’ll want to think about better security.)
Once you’ve written down your Secret Recovery Phrase, click “Next” and MetaMask will give you a test to make sure you’ve recorded the phrase correctly. If you make a mistake, you can go back and recopy the phrase. Once you pass the test, you’re on your own - MetaMask cannot recover your Secret Recovery Phase.
Sending Ethereum to your wallet
Now for the interesting part… let’s make your first transaction on the blockchain!
You should see a screen that looks like the one below: an empty wallet. Later on you can edit the account name to something other than “Account 1”, but don’t worry about that for now. Hover over the account name and you will see a “Copy to clipboard” option pop up. Click it to copy a 42 character string that begins with “0x”. This is your wallet’s public key.
Your public key is the public address for your wallet on the Ethereum blockchain. Every transaction you make on the blockchain will be linked to this public key.
With your 42 character public key in your clipboard, log into Coinbase (or whatever centralized exchange you’re using). Then follow these steps:
- Click Ethereum on your list of assets
- Click the Send / Receive button
- Toggle from USD to ETH
- Click Send all (or enter 0.1 ETH)
- In the To field, paste your wallet address
- Click Continue
You’ll be given a chance to preview the transaction and see the network fee before sending. If it looks OK, click Send now. (You may be prompted to authenticate the transaction.)
Now go back to the browser where you have MetaMask. Wait a minute or two… and your ETH will magically appear.
You can also toggle the Activity tab and see the transaction record.
Give yourself a pat on the back… It’s all downhill from here!
Importing your wallet onto your mobile phone
Assuming you set up your wallet on a desktop computer, you can also import it onto your mobile device. First, install the MetaMask app.
You’ll be prompted to create a password again. Note that this password doesn’t need to be the same as the one on your browser version of MetaMask. Think of this password like a debit card pincode: it’s only useful to someone when they’re holding your phone with your installation of MetaMask. (No one could take money out of an ATM just by knowing your pincode - they would need your debit card too.)
Finally, when you enter the app for the first time, you want to click “Import wallet” instead of “Create a wallet”.
You will be shown a field for you to paste your private key string. To get your private key, go to your browser wallet, click the three dots next to your account name, and click “Account details”.
You will then see a pop-up that shows a QR code, your public key, and a button to “Export Private Key”. Click the button and enter your MetaMask password (not your secret recovery phrase). Your private key will appear. Copy the private key and figure out a way to get it over to your mobile device (eg, paste it in a draft email to yourself).
Copy-paste your private key into the MetaMask app installed on your phone. Your wallet balance should appear immediately. Now your wallet is synced between your phone and your computer. Delete the draft email or whatever digital record you used to copy-paste your private key from desktop to mobile.
Give yourself two pats on the back… it can feel tedious and disorienting to do all this work just to get going. I’m hopeful the onboarding experience for new users will get easier in the future.