So, you’ve purchased some Hydro tokens and now you’re wondering about the best way to store them safely.
Firstly, well done for wanting to learn about how to keep your tokens safe. Scams, phishing attempts, and hacks are prevalent in crypto. While cryptocurrencies allow you to truly be your own bank, it comes with the added responsibility of having to treat your bank like a digital Fort Knox.
Understanding how wallets work and what warning signs to watch out for should be one of (if not the most) important priority when it comes to securing your portfolio, so you can reap its benefits in the future.
The aim of this guide is not for it to be a comprehensive list of different ways to store your tokens. The truth is that there are lots of ways to store your tokens and many different degrees of security. The aim of this guide is to show you what methods I use to store my tokens, and what you can do today to make sure your holdings are better secured.
Since Hydro is an ERC20 token (meaning its built on the Ethereum network), the information I’ll lay out below applies to every other ERC20 token too.
There’s a wealth of information on the intricacies of the wallets and services that I’ll be writing about, so instead of repeating others (who probably do a better job of explaining it anyways!), I’ll provide you with links to further resources so that you can research in more detail to get an even better understanding.
The basics you NEED to know
Links (bookmark these to avoid fake websites!)
MyEtherWallet (MEW): https://www.myetherwallet.com/
MetaMask: https://metamask.io/
Ledger Hardware Wallet: https://www.ledgerwallet.com/ — Only purchase direct from the Ledger website, NOT 3rd party sellers, to avoid any chance of tampering
When visiting MEW, always check that the SSL certificate is secure when visiting the website (that goes for other crypto-related websites too). You can do so by looking at the green section to the left of the URL (on Chrome). Make sure the name is MyEtherWallet Inc. See below.
Some terms you should know when it comes to sending/receiving, wallets and security:
Public address: This is your public ETH wallet address used to send and receive ERC20 tokens. If you wish to send Hydro to your own wallet, this will be the ‘send to’ address when withdrawing from exchanges, for example.
Ethereum addresses come in the following format: ‘0x0472ec0185ebb8202f3d4ddb0226997789663cf2’. They always start with 0x, and each and every one is unique.
You can search your public address on https://etherscan.io/ to see a history of all past transactions in and out of the wallet, and also to get an overview of your holdings. Here’s a short video explaining how to use/navigate Etherscan
Private key: Rule #1: NEVER share your private key with anyone! This is what you’ll used to send transactions (and what hackers would use to steal your funds!)
When you create an ETH wallet, it’ll generate a private key randomly. This is then encrypted by a password of your choice, and stored in the UTC file in the keystore folder.
Seed (recovery phrase): Rule #1: NEVER share with anyone. Store in a secure place, offline (on paper and an encrypted thumb-drive/USB). If you ever lose your password to your wallet, this is the phrase you’ll use to backup your account and create a new password. If you lose this too, you won’t be able to access your account again. Think of it like the master pass to everything. Treat it like that too.
I personally store my seed recovery phrases for different wallets on two pieces of paper, stored in different locations, alongside one encrypted (meaning password protected) USB stick.
Here’s a little more information on seeds https://blockonomi.com/keep-recovery-seed-safe/
ALWAYS USE 2FA ON EXCHANGES YOU USE TO PURCHASE TOKENS.
Should I store my tokens on an exchange?
This is something I hear very often and the simple answer is no, you shouldn’t. While holding your tokens on an exchange seems convenient, if you weigh up the risks it simply isn’t worth it.
Exchanges are a hot-point for attackers. They carry tens of millions of dollars’ worth of cryptocurrencies and thus become a prime target for predators wanting their next payday. Now, that’s not to say that exchanges aren’t secure; for the most part, they are. But secure doesn’t mean impenetrable. And we’ve seen that time and time again.
By storing your funds on an exchange, you put your trust fully in the exchange, which is a bit ironic as it goes against the whole notion of decentralization and trustless systems in the first place.
In a perfect world, we could trust exchanges. Maybe when DEX’s take over that may be the case. For now though, it isn’t.
If you plan to actively trade your coins, by all means, store them on the exchange you wish to trade on in the short-term. It’ll save you a lot of time and who doesn’t need that?
But if your intention is to buy and hold (which I assume it is) … Let’s get them moved into your wallet!
#1 My Personal Setup — MyEtherWallet + Ledger Nano S
In my opinion, the gold standard for ease of use, convenience, and security.
You can use both MEW and a hardware wallet in conjunction, making it simple to login whilst keeping your private key off your computer (and stored on the hardware wallet).
The Ledger doesn’t actually hold your tokens — that’s all done on the Ethereum blockchain. What it does do is provide another vector of security so that you never have to enter sensitive information on your computer (like your wallet password or private key) in case your computer has been compromised. To login to your wallet, you simply go to MEW, hook up your Ledger by micro-USB, enter your PIN code on the device and you’re in. To send a transaction you’ll be asked to verify the address on the device, and then will need to manually sign the transaction via your hardware wallet. This may sound a little over-whelming but I assure you it’s not. The videos below will demonstrate setting up MEW, how to use a Ledger, and how to use both together!
MyEtherWallet tutorial:
Ledger Nano S guide:
Using MEW and Ledger together:
I advise you to watch all three videos above so you can feel really comfortable about how they work.
Important note:
When visiting MyEtherWallet for the first time you’ll be prompted with this screen:
Don’t skip through it. Read it all.
#2 MyEtherWallet + MetaMask
While I don’t personally utilize this, if a hardware wallet is out of the question right now, this is a good alternative.
MetaMask allows you to access MEW without having to enter your private key every time.
It’s also free.
Watch this video on how to set it up with MyEtherWallet and you’ll be good to go:
Important notes:
Even with the above solutions, you’ll still have passwords
Okay, I’ve set up MEW with MetaMask/Ledger, what now?
Congratulations!
The first thing you’ll want to do after logging in under the ‘View Wallet Info’ tab is to add Hydro’s custom token details, so that your HYDRO tokens display within MEW. Remember that even if you don’t add these, your tokens will still be there — MEW is just a gateway to access the Ethereum blockchain. For a lot of tokens, Hydro included, you need to add the details into MEW manually before they will show up on the interface. It’s very simple:
Scroll down on the right hand side and click on the ‘Add Custom Token’ button. Input the following data like so (I’ve copied the details beneath so you can copy & paste):
Token Contract Address: 0xebbdf302c940c6bfd49c6b165f457fdb324649bc
Symbol: HYDRO
Decimal: 18
After that, you’re ready to deposit some HYDRO! Let’s head over to Mercatox to show you how that would be done.
Go to the E Wallet section, and search for HYDRO
Click ‘Withdraw’
You’ll then be prompted with a popup asking you to input the amount you wish to send, and the address you wish to send it to (remember this is your public ETH address!)
Hit ‘Submit’ and confirm the transaction via email. *ALWAYS double, even triple check that you’ve inputted your public address correctly. If you send it to the wrong address, you won’t get it back.
Always send a SMALL, test transaction before making a larger one to your address to confirm you receive it!
After confirming, you’ll be taken back to Mercatox and the transaction will then be pending. It will take a little while for this to go through, but in the meantime, you can click ‘TX Info’ to pull up information on the pending transaction.
From there (and once the transaction has moved forward from the pending phase), you can copy the ‘Network hash’ and search it in Etherscan, to verify the transaction.
As you can see above, the Hydro tokens are now successfully stored in your wallet and on the Ethereum blockchain! Let’s check back on MEW to make sure they display there too.
And voila! You’re now storing your Hydro tokens in your own bank. Awesome!
This concludes my guide — I’m aware it may seem a little confusing at first, so I advise you to read, re-read, and read again. Also delve into the resources I’ve linked throughout this post!
REMEMBER: always send a small test transaction, and never give away your private keys & seed recoveries to anyone! (And be sure to store them safely).
If you have any more questions about how to store your Hydro tokens securely, join us in the official Telegram chat by going through this link https://t.me/projecthydro
Happy holding!
