Before we begin
What is a wallet
Cryptographic Wallet is nothing but an Application for managing your ADA. You can check your account balance, transfer funds, etc. It differs from the regular banking application as we know it, in that no one but us has access to it (unless we allow it), there is no hotline that will unlock access or give us account balance. The wallet is secured with strong cryptographic algorithms, so if you don’t lose your keywords and passwords, you can sleep well.
There are many Cardano wallets available that can be used:
What's included in this module
1. Generating source words
The first step we are going to take is generating a new address, which will be our specific bank account number (with the difference that it is not given by the bank, but we generate it ourselves based on randomness). We have a guarantee that each address is unique. Generating the address from the user’s point of view consists in “drawing” from 12 to 17 random words in English. You should write them down as this is the only way to restore the address when we remove the wallet from our computer.
The second step is to synchronize the wallet with the blockchain. This is nothing else than loading history and calculating the account balance. It is also important when we do not generate a new address, but recreate the wallet from keywords.
We can download the Wallet from the official page of daedalus: https://daedaluswallet.io/en/download
The above steps are prepared for Linux distribution so if you have Windows or macOS, choose another option.
After downloading the wallet, we are going through a short installation process.
The proces of instalation is very simple:
Next we open the wallet applications. A shortcut should appear on the desktop.
When we open the wallet for the first time, we need to choose the format of time and number:
Now we need to read and agree with terms of service:
Creating a Wallet
Now we click Create button:
Then we can choose a name for our wallet and set a password that will be needed for transfers.
Remember, a strong password should be at least 10 characters long and contain numbers and special characters for example: Dragonpool.yui876
Next we move on to the source word generation operation.
Generating source words
As we wrote earlier, this is a very important operation and we should precisely rewrite the words on the screen and store them wisely because this is the only occasion when they will appear. After making sure that nobody is watching select the option: “I confirm …” and click Continue.
Then we rewrite the visible words. It is best to write them on a piece of paper and then put them in a safe:
Remember that each time the words will be different than those shown in the screenshot above. Once we have rewritten the words. Click the “Yes, i have …” button
The program will then ask us to enter the source words that we just wrote down to make sure they are correct. We can enter them from the keyboard or select from the drop-down menu:
Then we will notice the main panel of the wallet. We can see our account balance (it should be 0) and discover various wallet options. Now the operation of wallet synchronization is taking place which means loading the entire history of the blockchain. Depending on the speed of the Internet connection it may take from several to a dozen hours. It is reassuring that we only do this once. Subsequent wallet openings will “read” the history on a regular basis. However while waiting for full synchronization, we can perform some operations.
At this stage, the most important menu option is Receive that will show us the addresses on which we can receive funds, for example from the cryptocurrency exchange.