Wallets and Custody of Funds
What is a Crypto Wallet?
A crypto wallet is a tool that stores your private keys—the secret codes that prove you own your cryptocurrency. Think of it like a digital keychain that holds the keys to your crypto "safety deposit boxes" on the blockchain. The wallet doesn't actually store your coins (they live on the blockchain), but it stores the keys that let you access and move them.
Types of Wallets
Browser Wallets: Extensions like MetaMask that run in your web browser. Perfect for interacting with DeFi applications and easy daily use.
Pros: Convenient, easy to use with dApps
Cons: More vulnerable to online attacks
Mobile Wallets: Apps on your smartphone for on-the-go access.
Pros: Portable, user-friendly, often include QR code scanning
Cons: Phone security depends on device security
Desktop Wallets: Software installed on your computer.
Pros: More features, better for managing multiple assets
Cons: Vulnerable to malware and computer attacks
Hardware Wallets: Physical devices like Ledger or Trezor that store your keys offline.
Pros: Highest security, immune to online attacks
Cons: Less convenient for frequent transactions, costs money
Paper Wallets: Your private keys written or printed on paper.
Pros: Completely offline, free
Cons: Easy to lose or damage, not practical for regular use
Custody Models
You hold your own private keys and are fully responsible for security. This gives you complete control but also complete responsibility.
Best For: Users who want maximum control and are comfortable with security practices.
Exchanges or services hold your private keys for you, similar to a traditional bank account.
Best For: Beginners who want simplicity and aren't comfortable managing their own security.
Essential Security Best Practices
Start small: Begin with small amounts while learning
Use reputable wallets: Stick to well-known, audited wallet software
Keep software updated: Regular updates fix security vulnerabilities
Verify addresses: Always double-check recipient addresses before sending
Use strong passwords: Protect wallet files and accounts with strong, unique passwords
Write it down: Store your 12-24 word seed phrase on paper, never digitally
Multiple copies: Keep copies in separate secure locations
Never share: Never enter your seed phrase on websites or share with anyone
Test recovery: Verify you can recover your wallet before storing large amounts
Separate devices: Consider using a dedicated device for crypto activities
Limited funds: Only keep what you need for regular use in hot wallets
Regular backups: Backup wallet data regularly
Physical security: Store hardware wallets and paper wallets in secure locations
Test periodically: Occasionally verify your cold storage is still accessible
Have a plan: Ensure trusted family members can access funds if needed
Botanix Wallet Compatibility
Botanix is EVM-compatible, so you can use familiar wallets such as:
OKX: Comprehensive wallet with built-in DEX and multi-chain support
Rabby: Advanced wallet designed for DeFi users with enhanced security features
MetaMask: Most popular choice for interacting with Botanix dApps
Trust Wallet: Mobile-friendly option with broad crypto support
Coinbase Wallet: User-friendly with built-in dApp browser
Hardware Wallets: Ledger and Trezor support EVM chains including Botanix
Getting Started Safely
Choose the right wallet type for your needs and technical comfort level
Start with small amounts to learn and test everything works
Secure your seed phrase before adding significant funds
Practice basic operations like sending and receiving
Gradually increase your holdings as you become more comfortable
Common Mistakes to Avoid
Not backing up seed phrases - This is the #1 way people lose their crypto
Using exchange wallets for storage - Exchanges can be hacked or freeze accounts
Sharing private information - Never share keys, seed phrases, or passwords
Not verifying addresses - Always double-check before sending transactions
Ignoring software updates - Outdated software has security vulnerabilities
Learn More
Best Practices:
Specific Wallet Guides:
Remember: With crypto, you are your own bank. This brings great freedom but also great responsibility. Take time to understand security practices before committing significant funds.
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