- July 5, 2018
- Posted by: Lars
- Category: Blockchain, Cryptocurrency
How to Create your own Ethereum Wallet
More people are interested to invest in the cryptocurrency. If you’re new to the cryptomarket, you probably only knew the Bitcoin. However what most people do not realize that the Ethereum (ETH) represents the second largest market cap (€ 22 Billion). The best way to invest in the ETH is to participate in an Initial Coin Offer (ICO). Although participating in an ICO is relative easy, most people are restrained in investing because they are unfamiliar with the ICO process. Of course finding the right project through ICO seems somewhat complicated. But once you have found it, it will be almost child’s play to get your investment rolling. With this article we will show you a simple way to participate in an ICO on the Ethereum blockchain.
Setting up Ethereum ERC20 compatible wallet
Today most ICO tokens are issued via the Ethereum blockchain. To participate in an ICO people most have available Ethereum and an Ethereum wallet. However not all digital wallets support the Ethereum powered ICO tokens. For example you need an Ethereum ERC20 compatible wallet if you want to participate in Fast Invest ICO. Participating in an ICO means that you will send and receive Ethereum coins by using your private wallet. To use this wallet you will receive a private key which you never may share with anyone else. The private key is necessary for a private and correct interaction with the smart contracts to transfer and receive tokens.
Token compatible Ethereum wallets list
As we mentioned before not all wallets are suitable for the Ethereum blockchain. At the website Tokenmarket.net you can find the wallets which are compatible with Ethereum tokens (ERC-20 standard). For desktop applications you can use MyEtherWallet, MetaMask, Mist, Parity or Parity + Ledger. If you’re a mobile investor you can use Cipher, imToken or Trust for use with Android or iOS. Next to these wallets you can find a lot of other wallets. However, these are incompatible with or not (yet) tested for the Ethereum blockchain.
Using MyEtherWallet to participate in ICO
Most people are using MyEtherWallet to participate on the Ethereum blockchain. MyEtherWallet is the most convenient Ether wallet which is capable to interact with smart contracts. This wallet is an online application with support for offline functionalities and a hardware wallet. This means that users will be able to generate wallet keys form a variety of Ethereum storage solutions.
If you want to use MyEtherWallet you have to activate it at myetherwallet.com. First you have to create a password with a combination of letters, numbers and symbols. Keep this password in safe storage. After this you hit the “Create New Wallet”-button. After your wallet is created you have to download and store your keystore file. Save it at a secure and local location. After this MyEtherWallet will present you your private key. This string of symbols is of critical importance to initiate transactions and provides your safety during these transactions. Make sure you save your private key at an secure and local location. Be aware that there is no way to retrieve your forgotten or lost password or private key! There are several ways to open and unlock your wallet. The most common way is to open your wallet by using your private key or the keystore file. You simply have to copy and paste your private key or upload your keystore file to open and unlock your wallet. Now you have opened your fully functional Ethereum wallet. All you now have to do is to load your wallet with some Ether. If you already hold some, just send it to your public address. Or simply buy some Ether by using Coinbase.
1. Go to www.myetherwallet.com
2. Create a password
3. Download and store your keystore file
4. Save your private key
5. Open your wallet
6. Start trading
Using the Mist wallet to participate in ICO
In contrast to MyEtherWallet, Mist is a local wallet which you have to download the latest version from the site github.com. Once downloaded, you have to unzip the file and launch the application file. Make sure you have enough hard disk space because all Blocks combined can take up to 30 Gb of disk space. Just follow the steps as stated by the Mist installer to install your Mist wallet. Make sure to select the option ‘Main Network’. After this the installation program asks if you already have a wallet file. Just skip this step if you don’t have a wallet file. Now the program will ask you to create a secure password for your account. Use a combination of letters, numbers and symbols and keep this password in safe storage. After this the program will remind you to save your password and keystore file. By clicking ‘OK’ you will save this information and your Mist wallet is ready to use. Be aware that your wallet is fully functional after it finishes downloading all of the network blocks.
1. Go to www.github.com and download Mist wallet
2. Unzip and start the local installation
3. Select ‘Main Network’
4. If available upload your existing wallet
5. Create a password
6. Save your password and store your keystore file
7. Open your wallet
8. Start trading
Participating in an ICO
If you want to participate in a Fast Invest ICO you will have to follow the next steps:
1. Make sure Ether is available in your ERC20 compatible Ethereum wallet
2. Copy and paste the payment address from the official fastinvest.com site
3. Be aware of spam and do not copy and paste this address from any other site
4. Open your Ether wallet and send a deposit to the ICO payment address
5. Specify the amount and use the correct Gas value
6. Confirm the transaction and click the send button
7. Add your new acquired tokens to your wallet
8. Click the save button
9. Your Fast Invest ICO coins will appear immediately in your wallet
Beware of Gas
You have to pay ‘Gas’ to make a transaction using the Ethereum blockchain. The total value of Gas depends on the complexity of the transaction. A token sale transaction is more complex than a regular Ether transfer. It uses more processing power to execute the smart contracts. If the Gas limit for a token transaction is too low, the network won’t be able to handle and execute smart contract. Therefore for each token transaction a minimum value of Gas is needed to process this transaction.