Editor's note: this tutorial changes tense and goes from first to third person excessively. It's one of the first things I've written in a while.
\nA lack of understanding about cryptocurrency does not a moron make, though the title of this article does tickle me. Crypto represents a significant paradigm shift compared to fiat currencies. This guide will detail all the steps that one needs to take in order to go from dollars in a bank account to monero (a cryptocurrency, like bitcoin) in a wallet. The contents and instructions in this guide are applicable many other cryptocurrencies, not only monero. There are also some cybersecurity practices outlined which are essential to the security of your digital identities and portfolios.
\nMonero works the way that people think that bitcoin works. While bitcoin was anonymous many years ago, agencies interested in tracing any and all monetary transfers have made great progress in their ability to track bitcoin payments. Because mining bitcoin requires such an extraordinary amount of electricity, most people or companies wishing to obtain bitcoin resort to purchasing it from an exchange.
\nIn These United States, one must prove their identity to transact on a crypto exchange (the government is \"fighting terrorists\"). By attaching one's identity to their exchange purchased funds, various agencies can trace who purchased crypto, how much one purchased, and which address received the purchased amount. Tracing using these methods can be mitigated by using \"tumblers\" or \"mixers,\" but such methods not foolproof.
\nThrough various technical innovations related to the blockchain technology which gives rise to cryptocurrencies, the developers of monero have reinstaged the anonymity of cryptocurrency. The implementation and scope of these innovations is out of the scope of this article. Key takeaway: monero assures anonymity to a significantly higher degree than bitcoin.
\nKraken is the only major U.S. cryptocurrency exchange where one can purchase monero. As you register for Kraken, whether or not you have already done so, there is no time like the present to start using a password manager. It will make your life easier, and is a good security practice for anyone getting into crypto.
\nBitwarden is an excellent no-cost password manager. They have a how-to on getting started. Since you will be storing your sensitive login information in your password manager, using a secure password or phrase is essential. There is a link to Bitwarden's own password/passphrase generator in their how-to. Passphrases are more secure and easier to remember, thus highly recommended. I like to write down a passphrase on a piece of paper, thoroughly memorize it, then destroy the paper. Please note: you cannot recover a Bitwarden passphrase via email.
\nThe sign up process all U.S. cryptocurrency exchanges is somewhat involved. Kraken provides some good tutorials. You can use your laptop/desktop or mobile phone with the Kraken app. Their customer support is excellent and they will be help you if you get stuck. The basic steps, in chronological order:
\nNow comes the tricky part.
\nAfter trading your dollars (or whichever currency you used) on the exchange for monero, you do not properly posess this monero. What you posses is an exchange credit denominated in monero. There is a colloquialism in crypto: \"not your keys, not your crypto.\" What this means is that the exchange credit that you just purchased, which was really an exchange in the denomination of your asset, is not under your control. In theory, were the exchange to fail, you could lose your newly gotten monero credits. The next step is getting that monero out of the exchange and into your wallet.
\nBefore you set up your wallet, it is important that you have some proper cypbersecurity practices in place. When you set up a cryptocurrency wallet, you will be given a private key, a mnemonic seed, or both. A private key is typically long string of letters and numbers starting with 0x. A mnemonic seed is almost always a series of words seperated by spaces. Mnemonic seeds are easier to hand write than private keys. Both types of string serve effectively the same purpose. Monero uses mnomonic seeds, so we will keep the focus of this article there.
How you store and secure your seed is of the utmost importance. If you lose a wallet's seed, you lose the money in that wallet. There is no means of recovering it whatsoever. Similarly, if your seed is compromised, your money is as good as stolen.
\nPersonally, I store my mnemonic seeds in Bitwarden. I find it convenient and it meets my security requirements. The mnemonic seed will be either thirteen or twenty-five words depending on which wallet you select. For the highest level of security, one might consider writing their seed on a piece of paper and securing that paper in a fireproof box.
\nYou can set up a wallet on a desktop/laptop, mobile phone, or both. In this tutorial, we will go through steps to withdraw your Kraken funds with either Monero.com (for phone/tablet) or Feather (for desktop/laptop.) Each wallet's site provides some documentation about installation and setting up your first wallet. This article will cover using a PC first (Macintosh is a brand of personal computer.)
\nIf you do not have a PC or wish not to use one, skip to the section Setting up a New Wallet for mobile devices.
\nGo ahead and install Feather. Instructions for installation can be found on their docs page. Feather works on both macOS and Windows.
\nOnce you have Feather installed, fire it up. If this is your first time starting feather, you should see a screen like this:
\nYou can click \"Next\" on each screen without changing the selected option; each option has sane defaults. More information about these settings can be found here.
\nAfter selecting a few defaults, you should see a screen with the option to create a new wallet:
\nEnsure that the option to create a new wallet is selected, then click \"Next.\"
\nWhen creating a new wallet, you will be presented with a screen showing you sixteen words. Write these words down in order, on paper. This series of words is called a \"seed.\" If you lose your seed, you will lose your money. If something happens to the computer on which you are running Feather, you will lose your money. Similarly, if a malicious actor finds your seed, they gain access to your money.
\nAfter you are completely certain that these words are safely stored, click \"Next.\" You will shown a warning message regarding your seed:
\nThis warning is worth reiterating:
\nOnce you are certain that your seed has been safely documented and secured, click \"I understand.\"
\nChoose a name for your wallet and the directory on your computer where you wish to store your wallet. The default options should be fine, as both options are a matter of personal preference.
\nAfter selectiing your wallet's name and directory, click \"Next.\" You will be presented with a password prompt. Storing this password in Bitwarden is a good idea. This password will be used to access your wallet on the device you are currently using. It is only applicable to this device. It is not the same as your seed, which can be used to access your funds on other devices. If both your device and password are compromised, a malicious actor could gain access to your funds. Ensure you have entered a secure password or passphrase, then click \"Create/Open wallet.\"
\nNow you have your wallet. We want to get our monero-denominated exchange credits out of the exchange and into our wallet. Navigate to the \"Receive\" tab.
\nOn the next screen, enter your seed from Feather. You may wish to use the same wallet name you used in Feather to avoid confusion.
\nNotice the bit at the top that says \"[some number] Blocks Remaining.\" Monero.com downloads the transactions from each block in the blockchain, which may take some time. You may have also noticed a similar indicator in the bottom-left of your Feather main screen.
\nYou do not have to set up a Feather wallet on your PC to use Monero.com. Follow this section if you want to setup a new wallet on your phone. First, download Monero.com from the Apple App Store or the Google Play Store.
\nThe steps to follow are effectively a combination of the above instructions for Feather and Monero.com. Instead of selecting \"Restore Wallet\" on the first Monero.com screen, select \"Create new wallet.\"
\nOn the next screen, name your wallet (\"wallet_2\" would be a suitable name), then select \"Next.\" The next screen will be the main screen for your new wallet: By following along this (poorly-organized) tutorial, you should have by now monero wallet with one or more corresponding addresses. The tricky part is over. Now you can go back to Kraken, and follow their instructions for withdrawing cryptocurrencies from your Kraken account. Note the section about adding a withdrawal address. Use the public address we got from the wallet. If you used Feather, any one of the addresses will do. If you use Kraken for to exchange your USD for monero, they have excellent chat support and will be able to help anywhere you get stuck on their platform. We have live chat; do not hesitate to contact us with any questions you may have about Kraken or setting up your wallet. After following this tutorial, you should have a wallet with your monero in it.Adding Your Withdraw Address to Kraken
\nExecuting the Withdraw
\nSummary
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