Where does the money go? Turning Your Phone into a Digital Cash Vault in 3 Easy Steps

Okay, so you want to take cryptocurrency at your business. You have come to the right place. This simple guide will walk you through the first part: creating digital wallets. When you are finished, this guide will walk you through the rest (setting up Anypay).

Estimated time: ~ 10 minutes.

You will need:

  1. iOS or Android device
  2. Pen and a piece of paper
  3. A safe place to store the paper

You need a place to store some coins. A digital wallet. There are lots of them, and they are all free. Wallets empower you to hold bitcoin and other digital cash like you hold cash in your pocket. You possess the coins on your phone. Not a bank. You are the bank. That means you are responsible. Fortunately, backing up a million bitcoins is as easy as writing down some words on a piece of paper and storing it someplace safe. It takes only a minute to do. So how to get started?

First, do a search in your phone or tablet App Store for “Coinomi”. Get it and open it. The app walks you through a quick 3-step setup: writing down your backup phrase, confirming the phrase, then selecting coins to store in your wallet.

When you first open the app, you will see you have the option to “Create a New Wallet” or “Restore from Backup”. If this is your first time, tap “Create a New Wallet”. The app will generate a recovery phrase. This is a list of about 20 words that are seemingly random. In fact, they represent a specially encoded key that is unique to you and only you. Think of it like a really long password. You don’t need to memorize it. You do need to write down the recovery phrase and put it somewhere safe. Later, if you lose your phone or get a new one, you can download the app again, tap “Restore from Backup”, type in the recovery phrase, and all of your money will magically be right there.

The app now asks you to tap the words you just wrote down to confirm that you actually wrote down the recovery phrase. Remember: you are responsible for your money. If you lose your phone and the recovery phrase, there is no one you can go to for help. It is as if you put a bunch of cash in the pages of a book and then lost the book. That cash is out there, but you lost it. No one can get it back. This is important. You can’t ask the people who make the app for this recovery phrase. If they had access to your recovery phrase, then they would have access to all your money. You don’t want that! So take personal responsibility, write down the backup phrase, and keep it somewhere safe. It’s easy. Do it.

Done that? Okay! Next, the app will ask you to create a password. My advice? Don’t do it! It’s super annoying, and if you forget your password (and you probably will), you will be locked out of your money forever. That’s no good. So please, please do not create a password. Instead, tap the “Skip” button. It will ask you, “Are you sure you want to skip this step?” YES!!! You are sure. Your phone already has a ton of security built in. You probably use a lock screen so that others cannot use your phone. That’s good enough. Your real life wallet doesn’t have a password on it. You just put it in your pocket, and take it out and open it when you want to spend money. That is how it should be with your digital wallet. No passwords keeping you from your money! Besides, Coinomi requires your password to be at least 10 characters. Do you want to type in 10 characters on your phone every time you try to spend money or create a new wallet? No! On the iPhone, it is a little tricky to find the “Skip” button. You have to tap the down-arrow to make the keyboard disappear, and then you will see the “Skip” button at the bottom.

Okay! The next step is to select the coins you want to be able to accept. This part is a little un-intuitive, but I will walk you through it. You will see a list of coins and the current price for a single one in your native currency. Tapping the coin name highlights it. You can highlight as many coins as you want. I recommend you choose Bitcoin (BTC), Bitcoin Cash (BCH), Dash (DASH), ZCash (ZEC), Litecoin (LTC), and Dogecoin (DOGE) and any others you wish to accept. (You can always add more coins later by tapping on the menu button in the top-left of the app and then selecting “+ Coin”.) When you have selected all the coins you wish to hold, tap “Next” in the top-right corner for iPhone, or “Finish” in the bottom-right corner for Android.

Congratulations, you can now store billions of dollars in cryptocurrency and take it with you anywhere in the world without anyone else knowing about it. Coinomi is a small but powerful app that enables you to cleverly hide your money even if someone got access to your phone. More on that in another blogpost. But for now, let’s have a look at the wallets you created. They are displayed on the main screen. Tapping on each one will bring you to a screen with the list of transactions you’ve made with that coin. You can also swipe left or right to see a receive screen and a send screen for each coin.

To set your payout addresses for Anypay, you will need to view the “Receive” screen for each coin, and then tap the address to copy it to the clipboard. The addresses for each coin are long strings of letters and numbers.

You start with a zero balance. What fun is that? To start having fun, you want to put some coins in your wallets. So go get some. It is money, so you get cryptocurrency the same way you would any other money. You can work for it, trade for it, or find it laying about. Think of it like a foreign currency. If you went to Canada, you would trade your American dollars for Canadian dollars. In the case of Bitcoin, you can trade your American dollars for Bitcoins by trading with someone who has some, or by going to a currency exchange in person or online.

The coolest way to get cryptocurrency is to offer a product or service that people value and asking to be paid in bitcoin. That way, you become a participant in a new economy: one that is independent of the old system — a system based on politicians printing money to reward their friends in the war business. You don’t need to depend on their system anymore. You have bitcoin. A global unit of account with a fixed supply that anyone can access without permission. In short, it’s money made for the modern world.

Every time you use bitcoin instead of government money, you empower people to be their own banks — and disempower politicians that rob your savings with inflation.

Learn much more about Coinomi from this blogpost.

derrickj

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