Crypto Basics
New to crypto? This guide explains the essential concepts you need to understand as a guardian or recipient.
If you're new to cryptocurrency, this guide will help you understand the basics. You don't need to be an expert to be a guardian or recipient - but understanding these concepts will help you feel more confident.
What is Cryptocurrency?
Cryptocurrency is digital money that exists on a network of computers called a blockchain. Unlike traditional money in a bank, crypto:
- Isn't controlled by any government or company
- Can be sent anywhere in the world without intermediaries
- Is secured by mathematics and cryptography
- Gives you full ownership and control
The most well-known cryptocurrency is Bitcoin. Ethereum is another major one, and Ante Vaults works primarily with Ethereum and similar networks.
What is a Wallet?
A crypto wallet is like a digital identity that lets you own and manage crypto. It consists of:
Public address - Like your email address. You can share this freely. People use it to send you crypto.
Private key - Like your password. Never share this. Whoever has it controls your crypto.
Unlike a physical wallet, your crypto isn't actually "in" the wallet. Your wallet just proves you own certain assets on the blockchain.
Popular wallets:
- MetaMask - Browser extension and mobile app
- Coinbase Wallet - Good for beginners
- Rainbow - Beautiful mobile app
- Hardware wallets (Ledger, Trezor) - Most secure for large amounts
Smart Wallets vs Traditional Wallets
There are two main types of wallets you'll encounter:
Smart wallets (what Ante creates for you):
- Tied to your email address
- No seed phrase to manage
- Easy recovery - just sign in with your email
- Created automatically when you sign up with email
Traditional wallets (MetaMask, Ledger, etc.):
- You manage your own private keys
- Requires backing up a seed phrase
- Full control, but full responsibility
- Works across all crypto apps
You can use either with Ante. If someone adds you as a guardian or recipient by email, you'll use a smart wallet. If they add you by wallet address, you'll use your own traditional wallet.
What are Networks?
Different cryptocurrencies run on different networks (blockchains). Think of networks like different countries - each has its own rules and currency.
Ante Vaults supports:
- Ethereum - The largest smart contract network. More expensive but most secure.
- Base - A newer, faster, cheaper network built on Ethereum.
Your Ante vault exists on a specific network. Guardians and recipients don't need to be on the same network as the vault.
What are Tokens/Assets?
Tokens are the actual assets you own. Common types:
ETH (Ether) - The native currency of Ethereum. Used to pay transaction fees.
Stablecoins - Crypto that maintains a stable value (usually $1 USD)
- USDC - Popular, backed by US dollars
- USDT - Another popular stablecoin
- DAI - Decentralized stablecoin
Other tokens - Thousands exist for different purposes
- WBTC - Bitcoin wrapped to work on Ethereum
- Many others for specific projects or purposes
The vault owner might have a mix of different tokens in their vault.
What is Gas?
"Gas" is the fee you pay to make transactions on the blockchain. Think of it like postage for sending mail.
Why gas exists: The people running the network computers (miners/validators) need to be paid for processing your transaction.
How it works:
- Every transaction costs gas, paid in ETH
- Prices vary based on network congestion
- More complex transactions cost more gas
- Different networks have different gas costs
Typical costs:
- Ethereum: $1-50+ depending on congestion
- Base: $0.01-0.50
- Simple transfers cost less than complex operations
What is a Seed Phrase?
A seed phrase (or recovery phrase) is a series of 12-24 words that can recover your entire wallet.
Critical rules:
- Never share it with anyone, ever
- Never type it on a website or app (except when recovering)
- Never store it digitally (no photos, no cloud storage)
- Always back it up on paper or metal in secure locations
If someone has your seed phrase, they control your crypto. If you lose it and lose access to your wallet, your crypto is gone forever.
What is Self-Custody?
Self-custody means you hold your own crypto keys - no bank or exchange holds them for you.
Advantages:
- Full control over your assets
- No one can freeze your funds
- Not dependent on any company staying in business
- True ownership
Responsibilities:
- Securing your keys and seed phrase
- No password reset if you lose access
- No customer support to help you recover
- You are solely responsible
This is why services like Ante exist - to solve the problem of what happens to self-custodied crypto when the owner can't manage it anymore.
Ready to Get Started?
If the vault owner added you by email: You're all set. Just sign in with your email and a wallet is created for you automatically. No setup required.
If you want to use your own wallet:
- Download a wallet app - We recommend Coinbase Wallet or Rainbow for beginners
- Write down your seed phrase - The app will show you 12-24 words. Write them on paper.
- Secure your seed phrase - Store it somewhere safe (not on your phone or computer)
- Share your address - Give this to the vault owner so they can add you
Need More Help?
Don't feel overwhelmed. The vault owner who invited you chose you because they trust you, not because you're a crypto expert.
If you have questions, ask the vault owner or contact Ante support. There's no shame in learning - everyone started somewhere.