Think of your onboarding as a journey with several stops; to reach the next stop, you’ll need a couple of materials/tools. This guide is meant to equip you with the information you need to make this journey as smooth as possible and is based on my personal experience, too.

So, if you’re just starting on Ethereum, this is a detailed primer for everything to try on Ethereum. Excited? Let’s get started!

First Stop: Crypto Wallets

The first step is to get a reliable and safe wallet to store crypto assets and connect with the Ethereum ecosystem. A crypto wallet helps you prove ownership of your assets, sign transactions, and interact with dApps.

Why are crypto wallets so important?

Well, they are the gateway to the decentralized world of Ethereum and Web3. Your wallet stores your digital assets and acts like a pass to use Web3 apps. Your crypto wallet is like an all-access pass on the blockchain; it acts as:

  • A personal account (stores your digital assets and collectibles)
  • Your digital identity (prove ownership of your assets and sign transactions)
  • Bank (lets you carry out financial transactions like borrowing/lending
  • Security measure (Keeps your private keys secure, giving you complete control over your assets.)
  • Access to Web3 activities: (like a username/password that allows you to participate in activities like quests, earn airdrops, and engage in community engagement)

How to open and use a Crypto wallet

For a beginner, the idea of crypto wallets might seem confusing at first, especially since you might need different wallets to explore different blockchains. But I promise you will get a hang of it in no time.

The first thing to consider regarding your choice of wallet is deciding on the right wallet for your needs. Crypto wallets are classified into different groups based on different criteria, but right now, you only be concerned with the grouping based on internet connection.

Based on internet connection:

  • Hot Wallets (like MetaMask and Argent) are connected to the internet and are great for day-to-day use and quick transactions.
  • Cold Wallets (like Ledger and Trezor) are offline and ideal for securely storing large amounts of crypto over a longer period.

Hot wallets are usually the best choice for beginners because of the ease of setup and use. However, the more you increase your holding, the more you’ll need an offline option to store your assets. This is because cold wallets are less susceptible to wallet attacks and compromise.

Hot Wallets and Seed Phrases

If you’re using a hot wallet, you’ll probably get a seed phrase (recovery phrase) that encodes your private keys. The seed phrase is usually a series of 12 or 24 random words that you will require to recover your wallet in case you change phones or lose access to your device.

Your seed phrase is the most essential security measure for keeping your asset. You must never share it with anyone. You can write this phrase down and store it offline to protect against online attacks.

Buy Some Crypto

Lastly, you’ll need to add some ETH to engage with dApps on Ethereum. In my opinion, the easiest way to do this is to use a centralized exchange (like Binance or Bybit) to buy some crypto and then send it to your wallet’s public address.

Your public address is like your bank account number – you can share it with others to receive payments, but it doesn’t give anyone access to your funds.

You can also try P2P exchanges (these are exchanges that connect you directly with other people who are willing to buy from or sell to you). P2P exchanges usually allow you to transact in your local currency and from your local bank account. It is a simple process:

  • Find a seller on the platform willing to sell crypto to you at a price you’re comfortable with
  • Initiate the process
  • Pay for the crypto by sending the money to their wallet
  • Receive your crypto in your wallet.

Top Crypto Wallets on Ethereum (Hot Wallet)

In my personal experience, these are some of the best crypto wallets I’ll recommend for beginners on Ethereum.

Metamask

Metamask is an Ethereum OG! It is one of (if not the most popular) non-custodial hot wallets on Ethereum. Most people start their Ethereum journey on Metamask; at least I did.

It is best known for its easy-to-use interface and compatibility with dApps. Also, as a non-custodial wallet, it gives you complete control over your private keys and allows you to store all ERC-20 tokens and all EVM-compatible networks.

The token swap function within the wallet, coupled with its range of compatibility with dApps, provides a seamless DeFi and Web3 experience on Ethereum.

On Metamask, you can:

  • Send/receive cryptocurrencies and NFTs
  • interact directly with decentralized applications (dApps) through its web browser extension or mobile app.
  • Swap tokens
  • Stake ETH and Matic for rewards

Metamask also offers third-party integration for on/off ramp from fiat to crypto in some locations.

Trust Wallet

Trust Wallet stands out for supporting a wide range of networks; it supports up to 100 blockchains, including Ethereum. This makes it one of the best places for beginners to explore Ethereum and other blockchains. It is perfect for cross-chain transactions like bridging and swapping.

You can also easily access dApps from the wallet. The wallet itself offers an in-built decentralized exchange for DeFi transactions like staking and token swaps. The process is simple and easy to use. On Trust Wallet, you can:

  • Send/receive cryptocurrencies and NFTs
  • Buy crypto with credit cards in some locations
  • Swap tokens
  • Cross-chain transactions
  • DeFi transactions like staking
  • interact directly with decentralized applications (dApps) through its web browser extension or mobile app.

However, it might take beginners a while to understand the whole process and get a hang of use Trust Wallet.

Argent

Argent is a mobile Ethereum-only wallet, also known as the Starknet wallet (Starknet is a layer two solution on Ethereum). While Argent is relatively new in the crypto space, it is known for its low fees and support for only the Ethereum network.

One of the best parts of using Argent is how it simplifies DeFi and tries to help beginners make sense of the Ethereum ecosystem. It doesn’t hurt that it is quite cheap to use. It also introduces a new security feature called “Guardians.”

A Guardian is another argent user who acts as another layer of security in case of wallet compromise. You can also make your ledger wallet the Guardian. Your Guardian is notified if a withdrawal above your set limit is initiated from your wallet, and they can freeze your account if they suspect the wallet is compromised. Also, the Guardian can help define new keys and recover your digital assets should you lose your private keys.

With Argent, you can:

  • Buy crypto with a credit card
  • Manage your Starknet portfolio
  • Send/receive crypto and NFTs on Ethereum
  • Carry out simplified interaction with Ethereum dApps
  • Swap and stake tokens on the Ethereum network for less than $0.01

MEW (Myetherwallet)

MEW is the world’s first and one of the most trusted Ethereum wallets. It is an open-source, client-side wallet that supports Ethereum and all EVM-compatible networks. Client-side means that MEW doesn’t collect or store your personal user information. MEW offers the MEW mobile wallet and a multichain browser extension, Enkrypt.

The multichain browser extension, Enkrypt, allows you to manage and connect with a wide range of blockchains, including Bitcoin.

With MEW, you can:

  • store, send/receive ERC-20 tokens
  • connect with dApps on Ethereum
  • deploy and interact with smart contracts
  • stake ETH
  • token swap
  • buy and manage ENS domains

Zengo

Zengo is an MPC (multi-party computation) wallet that eliminates the need for using private keys to secure your wallet. With its simple setup, advanced security measures, and beginner-friendly interface, Zengo is a great place to start for beginners if you don’t want to bother about keys.

The wallet also spots an impressive 3FA (email, 3D FaceLock, and Zengo recovery file) to ensure your crypto assets are always recoverable. So, I recommend Zengo if you’d like to start exploring Ethereum without worrying about securing a seed phrase.

The wallet also integrates with top DEX and dApps on Ethereum, so you can easily carry out transactions from your wallet interface. With Zengo, you can:

  • Store, buy, and sell crypto and NFTs
  • Swap tokens
  • Stake ETH
  • Carry out simplified interaction with Ethereum dApps

Top Crypto Wallets on Ethereum (Cold Wallet)

Ledger

Ledger wallets (Nano S and Nano X) are known for their advanced security features. Usually, in the form of a drive, Ledger allows you to store a wide range of crypto assets across several chains offline. Since it is offline, it offers high security for your crypto assets. With your Ledger wallet, you can:

  • Store crypto and NFTs
  • Send/receive crypto
  • Stake tokens
  • Integrate your wallet with popular dApps

Trezor

Trezor is another popular hardware wallet you can try. It offers a user-friendly interface, password manager, and open-source firmware. Trezor devices keep private keys offline, and its integration with third-party platforms allows users to engage in DeFi activities safely.

With Trezor, you can:

  • Store crypto and NFTs
  • Send/receive crypto
  • Stake tokens
  • Integrate your wallet with popular dApps

Top Centralized exchanges to start

Centralized exchanges are the easiest way for a beginner to go on/off ramp from fiat to crypto. Since you’ll need to get some ETH to transact on Ethereum, you may need to convert from fiat to crypto.

I started with Binance, but currently, I use Bybit because of restrictions on regulations in my country. My favorite feature on CEXs is the P2P (Peer-to-Peer) trading feature; I use this all the time to convert from my local currency - naira - to stablecoins and other tokens.

Let’s look at the best exchange for beginners.

Bybit (Best for Nigerians)

My favorite part of Bybit is the P2P trading. It is up on my list because it is one of the few platforms that still supports P2P in my country. This means you can quickly deposit and withdraw money from your local bank account. Bybit also has the lowest fees for entry-level accounts.

A downside to Bybit is that they don’t currently serve customers from the United States.

Coinbase (best for beginners)

Coinbase is the second largest crypto exchange based on volume. It allows anyone with an account to buy, sell, and exchange cryptocurrency. You can buy over 10,000 assets on Coinbase with an NFT marketplace to trade your collectibles.

P.S. You can earn extra cash by engaging with Coinbase Learn. It's great for beginners to learn more about crypto and earn.

Binance/Binance US: (Largest exchange)

Binance is currently the largest crypto exchange globally, and it has advanced trading features like futures and margin trading. Binance is suitable for both beginners and experienced traders. For U.S. residents, Binance US provides a similar experience but with compliance to the local regulations in the United States.

Second Stop: Let’s talk about Layer 2s

Layer 2 solutions are scaling solutions on the Ethereum networks that help solve Ethereum’s blockchain challenges. In this case, Ethereum acts as the base layer on which Layer 2 solutions are built to solve problems like:

  • Speed
  • Transaction fees
  • Interoperability with other blockchains

The Layer 2 blockchains leverage Ethereum’s decentralization and security to offer faster and cheaper transactions on their network. So, you can use Layer 2 networks if you’re looking for lower gas fees and faster transaction times.

Interested in checking out layer 2 networks? Below are the top networks I recommend to try

Top Layer 2 Network on Ethereum

Polygon

Polygon, formerly MATIC, is an Ethereum sidechain (a type of layer 2 solution) that combines Proof-of-Stake, ZK rollups, and Optimistic rollups to provide faster and cheaper transactions. For example, Polygon can process up to 65,000 transactions, compared to the Ethereum blockchain processing speed of around 17 transactions per second.

Transactions are also much cheaper, with an average transaction fee of around $0.015, assuming 1 MATIC is worth about $0.9. This is compared to varying gas fees on Ethereum, which can reach up to $100 depending on network congestion. Personally, I have paid up to $50 for gas fee (this happened last year during the USDC depeg). I was desperate to convert my USDC holdings to USDT and had no choice but to pay the fee.

Because of its scalability and massive community, Polygon is a favorite among developers for building scalable dApps, games, and NFTs. Some projects using Polygon include Aave, Lens, Balancer, and Polymarket.

Arbitrum

Arbritrum uses optimistic Rollups, which allow transactions to be processed off-chain and then batch-verified on Ethereum, resulting in faster and cheaper transactions. The Optimistic Rollups automatically inherit Ethereum security, and they are secure.

The Arbitrum can process up to 40,000 transactions per second, and the transaction fee is set to around 0.01 gwei. Several projects, including Chainlink, Aave, and Sushiswap, use Arbritrum.

Optimism

Optimism also uses optimistic rollups to offer cheaper and faster transactions while maintaining security. Optimism focuses on minimal changes to the existing Ethereum infrastructure, which helps developers quickly deploy their existing smart contracts on its platform with minimal modifications.

Optimism typically processes around 2000 transactions per second with fees of around $0.09 to $0.18.

Popular projects on Optimism include Zora, OpenSea, and Kyberswap.

Starknet

StarkNet is uses zk-Rollups (zero-knowledge Rollups) to provide scalable and private transactions on Ethereum. zk-Rollups bundle hundreds of transactions off-chain and submit a single proof of validity back to Ethereum, significantly reducing gas costs while maintaining high security.

StarkNet is particularly suited for applications requiring high throughput and privacy, like DeFi platforms and gaming applications. Starknet is also known for its vibrant developer community.

Third Stop: Welcome to DeFi on Ethereum

DeFi (Decentralized Finance) protocols are blockchain-based platforms that allow financial transactions without the need for traditional intermediaries like banks, brokers, or payment processors. Instead, DeFi platforms rely on smart contracts (self-executing codes on Ethereum) to moderate transactions.

The smart contracts automatically execute to control document-specific actions based on rules encoded within them. This allows several parties to transact or interact directly with each other without the need for third-party moderators.

Want to move some money cross-border? You can easily send with stablecoins within seconds and for less than $1. Need a loan? Get a loan within minutes using a lending protocol like Aave.

Here are some of the best DeFi protocols to check out on Ethereum.

Best DEXs on Ethereum

DEX (decentralized Exchanges) are crypto exchanges that allow you to trade crypto assets directly with other users without relying on a central authority or intermediaries.

Unlike centralized exchanges (CEXs), which are run by companies that control users’ funds, DEXs operate on a decentralized network of smart contracts, giving users full control over their assets. This means you retain full control of your assets until trades are executed. All transactions are also fully transparent and secure since they are all recorded on the blockchain.

Uniswap

Uniswap is the most popular DEX on Ethereum, and it is known for its innovative automated market maker (AMM) model. The AMM uses an algorithm to facilitate trading by automatically determining the price of assets and providing liquidity. So, with AMM, you trade directly against a liquidity pool without waiting on another party to complete a trade.

Uniswap is user-friendly, offers deep liquidity, and has become the backbone of the DeFi ecosystem on Ethereum. Its intuitive interface and high liquidity pools make it a favorite among both beginners and experienced traders. On Uniswap, you can:

  • trade any ERC-20 token directly from your wallet
  • Provide liquidity and earn rewards
  • Earn from arbitrage trading
  • swap token

Curve Finance

Curve is designed specifically for stablecoin trading. It also uses an AMM algorithm model optimized for low slippage and low fees when swapping stablecoins or assets of similar value. This makes Curve a top choice if you want to trade stablecoins or yield farms with minimal risk.

The liquidity pools on Curve are also a great option if you’re looking for a stable yield with minimal risk. Here is what you can do on Curve Finance:

  • Trade stablecoins with low slippage and fees
  • Provide liquidity in stablecoins to earn interest
  • Swap stablecoins for another
  • Trade non-stables

Dodo

Dodo uses a new trading algorithm model—proactive market maker (PMM)—to provide better liquidity and lower slippage compared to traditional AMMs. It also offers advanced trading features like IDOs (Initial DEX Offering) for launching new tokens.

So, if you’re looking for a wider range of trading pairs or efficient trading like new token launches, Dodo is a great place to start. You can

  • Trade crypto assets
  • Stake tokens and receive rebates
  • Provide liquidity

Best Lending Protocols

Lending protocols connect borrowers with lenders directly, facilitating DeFi borrowing and lending without the need for an intermediary. For lenders, lending platforms provide a transparent and efficient way to earn interest on their crypto assets. Borrowers can use their crypto assets to take out loans; getting liquidity without selliing their assets.

Thinking of lending or borrowing on Ethereum? Here are the best places to start!

Compound

Compound is one of the biggest lending protocols on Ethereum, with Dynamic interest rates based on market supply and demand. When you deposit crypto into Compound, you automatically start earning interest, which is calculated in real time and based on the supply and demand for that particular asset.

You can also borrow assets against the deposited collateral with minimal interest rates. Additionally, users who lend or borrow on Compound earn COMP, the governance token of Compound.

Aave

Aave is another popular lending protocol to choose from, the platform offers unique features for both lenders and borrowers. It supports a wide variety of crypto assets and allows users to choose between stable and variable interest rates when borrowing, providing flexibility based on market conditions.

One of its standout features is the introduction of flash loans, which are uncollateralized loans that must be repaid within a single blockchain transaction – a powerful tool for developers and arbitrage traders.

Aave users also get its native token, AAVE, which can be restaked for additional rewards or for voting rights in the protocol’s governance.

MarkerDAO

Unlike other lending platforms, MakerDAO focuses primarily on creating and maintaining its decentralized stablecoin, DAI, which is pegged to the US dollar. You can borrow the DAI stablecoin by locking up crypto assets like ETH or wBTC as collateral in Maker Vaults.

The interest rate, known as the Stability Fee, is set by the MakerDAO governance community, which also decides on other key parameters like collateral types and risk levels. MakerDAO is ideal if you want to borrow a stablecoin without a centralized issuer.

Best Staking Platform

Staking platforms allow you to stake ETH and earn rewards. By staking your ETH, you help secure the network by participating in the network’s consensus mechanism. In return, you earn staking rewards.

However, you need up to 32 ETH to become a validator on Ethereum. You can agree with me that is on the high side! Staking platforms let you deposit your ETH as part of a bigger staking pool and still earn rewards. Here are

  • EigenLayer: EigenLayer offers restaking service that allows validators and stakers to reuse their staked ETH to secure additional services on the network and earn extra yield. All these without compromising the original security guarantees of the Ethereum blockchain.
  • Margex: offers flexible staking options with competitive yields, making it a great choice for beginners.
  • Lido: one of the most popular liquid staking platforms because it allows users to stake without locking up their ETH or maintaining their validator nodes. Instead, users receive stETH, a token that represents their staked ETH plus any accrued rewards.

Prediction Markets

This is a new use case in the DeFi ecosystem. With prediction market protocols, you can place bets on future events in a completely decentralized way. No need for a broker or bet company to moderate your bet; all bets are placed on a blockchain.

Interested in prediction markets? Check out Polymarket!

Polymarket leverages the Ethereum blockchain to provide a transparent, fair, and secure environment for users to speculate on future events. Polymarket covers a wide range of topics, from politics and economics to sports and entertainment.

A recent prediction that exploded on the platform is the best of Trump Vs. Kamala. You can place a bet on anything of interest to you on Polymarket.

Fourth Stop: What about DAOs?

DAOs (Decentralized Autonomous Organizations) are the governance layer of Ethereum. DAOs are organizations governed by community voting and smart contracts. DAOs advocate for a decentralized form of community participation without the traditional organizational hierarchy. So, there is no central authority like a board or management and executive in charge of running the organization. Here are some of the biggest DAOs on Ethereum:

  • MarkerDAO: manages the MarkerDAO protocol and the DAI stablecoin. The DAO makes all decisions including collateral types, stability fees, and more.
  • Bankless DAO: community-driven organization dedicated to driving the adoption of decentralized financial systems. It creates educational content, tools, and products to help people understand and engage with DeFi and blockchain technology.
  • Compound: governs the Compound lending protocol, one of the largest DeFi platforms on Ethereum. Holders of the COMP token can propose and vote on changes to the protocol

Fifth Stop: Are NFTs Dead? Let’s talk about NFTs on Ethereum

No, NFTs are not dead! But I do think we move from the NFT hype era to the one of stability. So, while there have been ups and downs in the market, NFTs continue to thrive on Ethereum. Now, you can use NFTs to represent anything, a ticket pass, real estate, art, collectibles, etc.

A fun way I have used NFT is to mint a piece of the birthday cake of a colleague on Rarible while I was working at Aave. You can also mint a ticket to your event as an NFT, which people can buy on-chain. For example, the last ETHSafari I attended minted its ticket as an NFT on Polygon.

Here are some NFT projects to check out on Ethereum:

  • Opensea: OpenSea is the largest and most popular NFT marketplace on Ethereum. You can buy, sell, and discover a wide range of digital collectibles, from art and music to domain names and virtual worlds on Opensea.
  • Rarible: Rarible is a decentralized NFT marketplace and it allows you to mint, sell, or auction their digital assets.
  • POAP: POAP (Proof of Attendance Protocol) allows users to create and collects badges as proof of attendance for attending events virtually and in real life. These badges are minted as NFTs and stored in your wallet.

The next time you attend a Web3 event, don’t forget to mint and collect your POAP!

Final Stop: Socials on Ethereum

Decentralized socials on Ethereum leverage the network to provide decentralized, user-owned platforms where data and content are managed by users, not centralized entities. Imagine full control over your content and content

Lens Protocol

Lens protocol is a decentralized social graph that allows developers to create decentralized social apps. The Lens ecosystem is a rapidly growing ecosystem with a wide range of social apps for you. I recommend

  • Orb: (great for building communities)
  • T2 (Medium for Web3)
  • Hey (Twitter for Web3)
  • Phaver

Mirror

Mirror is a decentralized publishing platform that allows writers and creators to publish content and engage directly with their audience using blockchain technology. You owe your content, and it uses the IPFS to provide decentralized storage for your content.

You can also decide to monetize your content by adding a minting fee for people interested in collecting your article.

Minds

Minds is a decentralized social network that rewards users with cryptocurrency for their engagement and contributions. It prioritizes privacy, free speech, and user control over data.

Final Thought

The Ethereum ecosystem is a big one, and it is filled with opportunities and exciting projects. As a beginner, this might be overwhelming at first, but don’t be scared to dive in and explore.

A trick I find useful is to use gamified experience to learn about protocols. Education platforms like Layer 3 Quests and Galxe let you explore different projects in a fun way!

Bonus Section: Common Terms to Keep in Mind within the Ethereum Ecosystem

  • EIP (Ethereum Improvement Proposal): A standard for proposing improvements to Ethereum, such as protocol changes or new features.
  • ERC (Ethereum Request for Comments): A standard for creating tokens and smart contracts on Ethereum (e.g., ERC-20 for fungible tokens, ERC-721 for NFTs).
  • Gas and Gas Fee: The cost required to perform transactions or execute smart contracts on the Ethereum network.
  • Ether (ETH): The native cryptocurrency of the Ethereum network, used to pay gas fees and participate in staking.
  • Gwei: A smaller unit of ETH, used to measure gas fees (1 ETH = 1 billion Gwei).
  • EVM (Ethereum Virtual Machine): The runtime environment for smart contracts on Ethereum.
  • Layer 2: Solutions built on top of Ethereum to improve scalability, reduce fees, and increase transaction speed.
  • Infura: A service that provides scalable infrastructure for connecting applications to the Ethereum network.
  • dApps (Decentralized Applications): Applications built on blockchain technology that operate without central control.
  • Smart Contract: Self-executing code on the blockchain that automatically enforces and executes agreements.
  • Consensus Mechanism: The method by which a blockchain network agrees on the state of the ledger (e.g., Proof of Stake).
  • Proof of Stake (PoS): A consensus mechanism that selects validators to produce blocks based on the amount of cryptocurrency they have staked.
  • Staking: The process of participating in PoS-based blockchains by locking up tokens to support the network and earn rewards.
  • IPFS (InterPlanetary File System): A peer-to-peer protocol for storing and sharing files in a distributed manner, often used with Ethereum for decentralized storage.
  • Liquidity Pools: Pools of tokens locked in a smart contract to provide liquidity for trading on decentralized exchanges (DEXs). Liquidity providers (LPs) earn fees from trades that occur in the pool.
  • DeFi Lenders: Participants in decentralized finance who provide their crypto assets to lending protocols to earn interest. They offer liquidity to borrowers while maintaining control over their funds through smart contracts.
  • Private Keys: A secret alphanumeric code that gives access to a user’s cryptocurrency funds. Private keys must be kept secure, as anyone with access can control the associated assets.
  • Public Keys: A cryptographic code that serves as a wallet address for receiving funds. Public keys can be shared freely without compromising the security of the associated assets.
  • P2P (Peer-to-Peer): A decentralized network where transactions or communications occur directly between users, without a central authority. In Ethereum, P2P networks facilitate activities like decentralized trading, lending, and file sharing.
  • Yield Farms: DeFi platforms where users provide liquidity to earn rewards, often in the form of additional tokens. Yield farming involves staking or lending crypto assets to generate the highest possible return on investment.