Learn About Cryptocurrency

Learn the essentials of cryptocurrency: setting up secure trading accounts, obtaining hardware wallets, and protecting your investments with SLIP-39 mnemonic recovery cards.

This guide covers the three key steps to getting started with cryptocurrency: establishing an exchange account, securing your funds with a hardware wallet, and creating SLIP-39 protected seed backups for maximum security. (PDF, Text)

Setting Up Your Cryptocurrency Exchange Account

Just like you need a stock trading account to buy and sell stocks with CAD$, you need a cryptocurrency exchange account to convert between fiat currency and cryptocurrency.

Recommended Exchanges: Netcoins.app, Crypto.com

Netcoins.app is a registered Canadian "Money Services Business" that provides a reliable experience for buying and selling cryptocurrency. The Crypto.com exchange in Canada has many more coins available, as well as a crypto-funded credit card that works in Canada.

As regulated entities, they all require KYC (Know Your Client) verification:

  1. Proof of Identity: Passport or driver's license
  2. Proof of Residency: Recent utility bill or bank statement with current address

Once verified, you can:

  • Deposit CAD$ via e-transfer
  • Buy cryptocurrency (BTC, ETH, etc.)
  • Withdraw to your personal wallet

Recommended Crypto Credit/Debit Card: Ether.FI

Your ether.fi account and cash card allows you to transfer crypto to your account, and spend it (or even borrow against it at low rates) like a regular credit/debit card. It works with your Apple Wallet or Android, or you can get a physical card.

Security Essentials

Password Manager

Use a unique, strong password generated by a password manager. Never reuse passwords between accounts.

Two-Factor Authentication (2FA)

Enable 2FA on your exchange account and primary email using an authenticator app like Twilio Authy. This significantly reduces the risk of account compromise.

Obtaining a Hardware Wallet

Hardware wallets provide the highest security for storing cryptocurrency by keeping your private keys offline.

Recommended Hardware Wallets

Trezor Safe 3/5 (Recommended)

The Trezor Safe 3 directly supports SLIP-39 mnemonic recovery, making it the ideal choice for maximum security. It also supports standard BIP-39 recovery.

Ledger Nano X

The Ledger Nano X is an excellent alternative that supports BIP-39 recovery. While it doesn't directly support SLIP-39, you can use the SLIP-39 App to convert between formats.

Do You Need One Immediately?

If you're just buying and holding cryptocurrency, you don't need a hardware wallet right away. Your SLIP-39 paper backup is actually the most secure storage method. Hardware wallets are primarily needed when you want to actively spend or trade your cryptocurrency.

Creating SLIP-39 Protected Seed Backups

SLIP-39 provides superior security over traditional BIP-39 by allowing you to split your seed into multiple recovery cards with threshold requirements.

Generate Your Seed

  1. Download the SLIP-39 App for your computer
  2. For existing wallets: Enter your 24-word BIP-39 mnemonic and click "Save"
  3. For new wallets: Select "Create", choose "256-bit" seed source, and click "Save"

Print and Secure Your Cards

The app generates a PDF with your recovery cards containing:

  • Multiple mnemonic shares (typically 2-of-3 or 3-of-5)
  • QR codes for major cryptocurrencies (BTC, ETH)
  • Clear instructions for recovery

Security Best Practices

  • Save the PDF to a USB drive, print from there, then securely destroy the USB drive (macOS supports printing directly to a printer)
  • Store printed cards in separate secure locations
  • Share cards with trusted family members according to your threshold scheme
  • Never store digital copies on your computer or cloud storage

Recovery Process

Hardware Wallet with SLIP-39 support, eg. Trezor

  1. Connect your hardware wallet and open the companion app
  2. Select "Recover wallet" during setup
  3. Enter your SLIP-39 mnemonic shares when prompted
  4. Set up PIN and select cryptocurrencies

Hardware Wallet with BIP-39 support

  1. Open the SLIP-39 App (or follow instructions at github.com/pythyn-slip39)
  2. Select Recover, then SLIP-39 Seed Source, then Using BIP-39
  3. Enter your SLIP-39 shares, and see the recovered BIP-39
  4. Enter your BIP-39 Mnemonic Phrase when prompted, to recover your hardware wallet

Hidden Wallets (Optional; differs for each hardware wallet vendor)

Consider setting up hidden wallet sub-accounts for different purposes:

  • Default wallet: Small decoy amount
  • Hidden wallet 1: Personal funds
  • Hidden wallet 2: Long-term savings

Getting Started

The complete process involves:

  1. Exchange Setup: Create and verify your Netcoins.app account
  2. Security: Enable 2FA and use a password manager
  3. Backup Creation: Generate and print SLIP-39 recovery cards
  4. Hardware Wallet: Set up your Trezor or Ledger device
  5. First Transaction: Buy crypto, withdraw to your personal wallet

This foundation provides you with secure, self-custodial cryptocurrency storage while maintaining the ability to convert between fiat and crypto as needed.