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Becoming Web3 Native Pt 1: How to Use Web3 Wallets

Becoming Web3 Native Pt 1: How to Use Web3 Wallets

Your Gateway to the Decentralized World

Scott Kasten
March 19, 2025

Part 1: Starting with a Wallet — Your Passport to Web3

If Web3 is a digital world, then your Web3 wallet is your passport. A Web3 wallet lets you store, send, and receive cryptocurrencies, interact with decentralized apps (dApps), and even log in to Web3 services—without relying on a traditional bank or tech company. But choosing the right wallet can feel overwhelming. In this section, we’ll break down the different types of wallets, how to choose the best one for your needs, and most importantly, how to set it up securely so you stay in full control of your digital assets.

Why it matters:
A wallet isn’t just a place to hold crypto — it’s your identity, key, and control center for everything Web3. Without a wallet, you can’t interact with dApps, own NFTs, vote in DAOs, or manage tokens. So yeah, wallets are pretty important.

What you need to know:

Types of web3 wallets:

via Argot blog

1. Hot Wallets (Connected to the Internet)

MetaMask: Best for Ethereum-based assets and DeFi.
Trust Wallet: Multi-chain support and user-friendly for beginners.
Coinbase Wallet: Simple integration with Coinbase exchange.

2. Cold Wallets (Offline, More Secure)

Ledger Nano X/S: Hardware wallet for secure long-term storage.
Trezor: Similar to Ledger, providing high security.

3. Custodial vs. Non-Custodial Wallets

Custodial: You rely on a third party (e.g., an exchange) to manage your private keys.
Non-Custodial: You control your keys, reducing reliance on centralized services.

Where to Look When Choosing a Web3 Wallet

Choosing a Web3 wallet starts with understanding what you need it for—whether it’s holding crypto, using decentralized applications (dApps), staking assets, or NFT management. The best place to start researching wallets is through trusted sources like:

Official Project Websites
- MetaMask (https://metamask.io/)
- Trust Wallet (https://trustwallet.com/)
- Ledger (https://www.ledger.com/)
- Trezor (https://trezor.io/)
- Coinbase Wallet (https://wallet.coinbase.com/)
Crypto Security & Review Sites
- WalletConnect (https://walletconnect.com/) – Aggregates top wallet options.
- CryptoSec (https://cryptosec.info/) – Tracks wallet security updates.
- Reddit (r/cryptocurrency & r/ethfinance) – Community discussions on wallets.
- CoinGecko & CoinMarketCap – Often include user reviews and guides.
Official Blockchain Websites
- If you're using Ethereum, check Ethereum.org’s wallet list.
- For Solana, go to Solana’s wallet page.
- If you're in the Bitcoin ecosystem, see Bitcoin.org's wallet selection.

The Web3 Wallet Landscape

Best Web3 Wallets by Need

1. Best Wallet for Beginners: MetaMask

Why? Simple setup, widely supported, and works with most Ethereum-based dApps.
Best for: First-time crypto users, DeFi, and NFTs.

2. Best Wallet for Mobile Users: Trust Wallet

Why? Easy mobile app, supports multiple blockchains.
Best for: Managing crypto on-the-go, buying NFTs on a phone, and multi-chain assets.

3. Best for Security: Ledger Nano X (Hardware Wallet)

Why? Private keys stay offline, making it nearly impossible to hack.
Best for: Long-term investors, large crypto holdings, and high security.

4. Best for DeFi & Staking: Rabby Wallet

Why? Advanced security and multi-chain support, tailored for DeFi.
Best for: Power users in DeFi looking for extra security.

5. Best for NFTs: Rainbow Wallet

Why? Designed with NFT collectors in mind, with a great user interface.
Best for: NFT traders, OpenSea users, and those who want a visually appealing wallet.

6. Best for Web3 Identity: Coinbase Wallet

Why? Easy to use, integrates well with Ethereum Name Service (ENS).
Best for: Managing a Web3 identity and onboarding into the crypto space smoothly.

How to Choose the Best Wallet for You

Determine Your Purpose – Are you trading, holding long-term, using DeFi, or collecting NFTs?
Decide Between Hot (Connected) vs. Cold (Offline) Storage – If security is a priority, go for a hardware wallet.
Check Supported Blockchains – Not all wallets support every blockchain.
Research Security Features – Look for features like 2FA, seed phrase backups, and cold storage compatibility.
Test User Experience – Some wallets are easier to use than others.

Step-by-Step Guide to Setting Up Your First Web3 Wallet

Choose the right wallet for your needs.
Download the wallet app or set up a hardware wallet.
Create a new wallet and store your seed phrase securely (write it down and keep it safe!).
Fund your wallet by transferring cryptocurrency from an exchange or another wallet.
Connect your wallet to dApps like Uniswap or OpenSea.

Common Questions & Concerns

What if I lose my seed phrase? → If you lose it, you lose access to your funds. Store it safely.
Can someone hack my wallet? → Use strong security measures like two-factor authentication and a hardware wallet for large amounts.

Best Practices for Securing and Storing Your Seed Phrase

Your seed phrase (or recovery phrase) is the most important piece of information for accessing your Web3 wallet. If you lose it, you lose access to your funds—no exceptions. If someone else gets it, they can steal everything. So, securing it properly is essential. Here’s how:

1. Write It Down (But Not Digitally!)

DO: Write your seed phrase on paper and store it in a safe place.
DON’T: Store it in a digital format—no screenshots, emails, cloud storage, or notes apps. Hackers can access cloud services or malware can scrape your clipboard.

2. Store Multiple Copies in Separate Safe Locations

Have at least two copies stored in different secure locations.
Example: One at home in a fireproof safe and one at a relative’s home or a bank safety deposit box.

No legit service will ever ask for it. If anyone does, it’s a scam.
Be cautious of fake wallet apps, phishing emails, and social engineering attacks.

Final Rule: If You Lose Your Seed Phrase, You Lose Your Wallet

There is no "forgot my password" option in Web3 wallets.
Make absolutely sure you store it safely.

For more on web3 wallets, see our expanded article on Argot, our sister site.

Ready to set up your Web3 wallet? Hopefully this guide will both encourage you and make the process simple. Always feel free to contact us with your questions.

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