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Crypto Basics: Wallets, Buying Crypto and Getting Started Safely
Before you borrow against crypto or lend it out, you need a few basics in place: a wallet you control, a way to buy crypto, and habits that keep your funds safe. This hub covers the essentials in plain language.
What you need before using crypto lending
- A wallet to hold your crypto. See crypto wallets explained.
- A way to buy crypto, usually an exchange or a broker. See how to buy crypto.
- A small amount of the network’s native token to pay transaction fees.
- A clear plan for how much you can afford to lose.
Custodial vs self-custody
With a custodial service, such as an exchange account, a company holds the keys to your crypto. It is convenient but you depend on that company. With self-custody, you hold the keys yourself in a wallet. You are in full control and fully responsible: if you lose your seed phrase, nobody can recover your funds.
Key terms
| Term | Meaning |
|---|---|
| Seed phrase | A list of words that can restore your wallet. Anyone who has it controls your funds. |
| Gas / network fee | The fee paid to process a transaction on a blockchain. |
| Stablecoin | A token designed to keep a steady value, usually one US dollar. See stablecoins. |
| DeFi | Financial services run by smart contracts instead of companies. |
| Collateral | Assets you lock to secure a loan. See crypto loans. |
Your first steps, in order
- Learn the basics on this page and in the guides below.
- Set up a wallet and write down the seed phrase offline.
- Buy a small amount of crypto and practice sending it to your own wallet.
- Only then look at lending or borrowing, starting small.
When to be careful
Most beginner losses come from scams and mistakes, not from markets: sending to the wrong address or network, sharing a seed phrase, or trusting a fake website. Read our risk and security guide before moving larger amounts.
Frequently asked questions
For DeFi, yes. Centralized platforms hold assets for you, but a personal wallet gives you more control.
For larger amounts, a hardware wallet with the seed phrase stored offline is generally considered the safest option.
Only an amount you could lose without harming your finances. This is not financial advice.
This page is for educational purposes only and is not financial, investment or tax advice. Crypto assets are volatile; you can lose all of your money.