Walkthrough · 7 min read
Your first steps: from exchange to wallet to deposit
A generic beginner walkthrough: buy a stablecoin on an exchange, set up a self-custody wallet, move funds on the right network and make a small first deposit.
Education, not financial advice. Rates change; DeFi carries smart-contract and depeg risk. Do your own research.
Before you start
- Only use money you could afford to lose. Start small.
- Read what a stablecoin is and wallet security first.
- Check that the services you plan to use are legal and available where you live, and how interest is taxed.
1. Buy on a regulated exchange
Most people start at a centralized exchange that is licensed in their country. You’ll create an account, verify your identity and link a bank account or card. Then buy a major stablecoin, such as USDC, or a little ETH.
Also buy a small amount of the gas coin for the network you plan to use (ETH for Ethereum and most of its layer 2s), or you won’t be able to move anything once it’s in your wallet.
2. Set up a self-custody wallet
Install a well-known wallet app or browser extension from its official site or your phone’s app store. Popular examples include MetaMask, Rabby, Coinbase Wallet and Phantom; this isn’t an endorsement. Create a new wallet, write down the seed phrase on paper, store it safely and never share it.
Copy your wallet’s receiving address from the app.
3. Send a small test amount
- On the exchange, choose withdraw, pick the coin and paste your wallet address.
- Choose the network carefully, and make sure your wallet is set to the same one. A cheap layer 2 such as Base or Arbitrum often costs much less than Ethereum, if the exchange supports it.
- Send a small test first. When it arrives, send the rest. Exchanges charge a withdrawal fee, so check it.
4. Choose a pool and make a small deposit
- Shortlist pools on the stablecoin leaderboard for your coin and network, then run them through the safety checklist.
- Open the protocol from the link on our details panel or a bookmark, not from a search ad. Connect your wallet.
- Deposit a small amount. You’ll usually sign an approval and then the deposit. Check you receive the expected receipt token or position.
- Try withdrawing a little, so you know how it works before you need it.
5. Keep an eye on it
Rates change. Come back to check the trend, watch the peg monitor for your stablecoin, and keep a simple record of deposits and withdrawals for taxes.