Learn to Use Nami Wallet

Introduction

The Cardano blockchain is one of the crypto ecosystem’s most popular and in-demand projects. The Cardano blockchain has been under continuous development, with new decentralized applications (dapps) being built on the blockchain. The Cardano blockchain is not EVM-compatible. Hence, users cannot access the dapps built on Cardano with popular Web3 wallets such as MetaMask.

To access and interact with dapps built on the Cardano blockchain, we require a Web3 wallet that supports the Cardano blockchain. This guide will go through how to use Nami Wallet, a Web3 wallet used to store assets and interact with decentralized applications built on the Cardano blockchain.

What is Nami?

Nami is a Web3 wallet built for the Cardano ecosystem. Nami is a browser extension wallet supported on any chrome based browser such as Chrome, Brave, Microsoft Edge, and others. The Nami wallet can store, send, receive, and delegate (stake) $ADA tokens. There is no cost associated with using the Nami wallet; it is free.

Delegate – delegate here refers to staking your coins or tokens to earn interest on your stake.

 

Users can use the Nami wallet to connect and interact with decentralized applications (dapps) built on the Cardano ecosystem. When interacting with any dapp, a certain fee is required to be paid. This fee is paid in the underlying blockchain native token. Hence, to execute a transaction using the Nami wallet, a small fee must be paid in $ADA coins (Cardano’s ecosystem native currency).

Install Nami

Click here to visit Nami’s homepage. Nami is a browser extension wallet. Hence, we can install Nami by following the steps below:

1. On Nami’s homepage, select the browser of your choice.
2. Click on the Add to Browser button on the Chrome web store.
3. Click on the Add Extension button.

Once installed, you may choose to pin the Nami extension on your browser’s extension tab.

Creating and Importing an Account

Once the Nami extension has been installed, our next step would be to create an account for our Nami wallet.

Steps to Create a New Account: 

You may create an account by following the steps below:

1. Click on the Nami extension from your browser’s extension tab.
2. Click on the New Wallet button.
3. Check the checkbox to Agree to Nami’s terms and conditions.
4. Click on the Continue button.
5. Note down your wallet’s seed phrase and then check the checkbox (MOST IMPORTANT STEP)*.
6. Click on the Next button.
7. Verify your seed phrase by inserting the appropriate words of your seed phrase.
8. Click on the Next button.
9. Enter your wallet account name.
10. Enter and confirm the wallet password.
11. Click on the Create button.

Your Nami wallet has been successfully created. You can now access the Cardano ecosystem.

*Make sure your seed phrase is stored in a safe place because if someone gets access to the seed phrase, they will have access to your wallet’s funds.

Steps to Import an Existing Account:

What if you already have an existing Cardano wallet that is not Nami and wants to use the same account in the Nami wallet? You can do so by importing that account into the Nami wallet.

You can import your other Cardano account by following the steps below:

1.  Once the Nami extension is installed, open the extension and click on the Import button.
2. Select the seed phrase length from the dropdown option (generally 24).
3. Check the checkbox to Agree to Nami’s terms and conditions.
4. Click on the Continue button.
5. Enter your seed phrase.
6. Click on the Next button.
7. Enter your wallet account name.
8. Enter and confirm the wallet password.
9. Click on the Create button.
10. Click on close.

Your wallet has been imported into Nami.

Receiving Digital Assets

A Web3 wallet enables you to store your digital assets decentralised and securely. You need to receive these assets to store them. The public address of your wallet is used to receive assets.

You can receive digital assets by following the steps below:

1. On the wallet homepage, click on the Receive button.
2. Click on the public address to copy it or tell the sender to scan the QR code.

Once the sender sends the assets and the transaction is verified on the blockchain, your assets will be received in your wallet.

Receiving Assets from a Centralized Exchange:

I will demonstrate the above by sending assets from a centralized exchange (Binance) to my Nami wallet.

Follow the steps below to send your assets from a centralized exchange to your wallet.

1. Select the token you want to send to your exchange’s withdrawal page.
2. Enter your wallet’s public address (the address you copied as done in Step 2 above).
3. Enter the number of tokens you want to send,
4. Click on the Withdraw button.
5. Once the transaction is completed, the tokens will arrive in your wallet.

Sending Assets

The assets you have stored in your wallet can be sent to another wallet or crypto exchange. The private address of your wallet is used to send assets.

You can send digital assets by following the steps below:

1. On the wallet homepage, click on the Send button.
2. Enter the receiver’s public address.
3. Enter the number of tokens you want to send.
4. Input a message (optional).
5. Click on the Send button.
6. Enter your wallet’s password.
7. Click on the Confirm button to confirm the transaction.

Once the transaction has been completed, the respective asset will be deposited in the receiver’s wallet.

Delegating

The Cardano blockchain operates on the Delegated Proof-of-Stake (DPos) consensus model. I do not want to go into the technicals, but with this DPos consensus model, users can stake any amount of $ADA tokens and earn interest. By staking your tokens, you help validate transactions and contribute to the overall security of the blockchain.

Stake – locking up your crypto assets to secure the blockchain and earn interest.

Requirements – To delegate your $ADA tokens, a delegation registration fee of 2 $ADA is required along with the gas fee.

You can delegate your ADA tokens by following the steps below:

1. Click on the Delegate option on your wallet homepage.
2. Enter your wallet’s password.
3. Click on the Confirm button.
4. You can notice once the delegation is confirmed, the respective fees have been deducted from my Nami wallet.

Digital Assets (NFTs)

The Nami wallet allows you to store all digital assets, including Non-Fungible tokens (NFTs). Once you purchase or mint a Cardano NFT, you can view them in your wallet by following the steps below:

1. On the wallet homepage, click on the game icon.
2. Here you will find all the Cardano collectables you own.

Transaction History

The blockchain is a digital ledger where all the transaction executed on the blockchain is recorded and stored. All the transactions done by you from your wallet can be easily accessed.

You can view your transaction history by following the steps below:

1. On your wallet homepage, click on the Clock icon.
2. Here you will find a list of all the past transactions performed on and by your wallet.

Creating Another Account

One wallet can contain multiple accounts. Each account may serve a different purpose, depending on your need. One account you may use for storing only coins/tokens, another account for storing only NFTs, and another account you may use as a burner wallet. There is no limit to creating accounts.

You can create another account by following the steps below:

1. On the wallet homepage, click on the Wallet avatar.
2. Click on the +New Account button.
3. Create a name for your new account.
4. Enter your wallet password.
5. Click on the Create button.

Conclusion

There you go; you now know how to use Nami wallet, a Cardano Web3 wallet; hence, you can store, send and receive digital assets built on the Cardano ecosystem. Furthermore, you can also connect your Nami wallet to decentralized applications built on the Cardano ecosystem. But take note the applications on the Cardano ecosystem are all new. Hence they may have several associated risks, such as smart contracts exploits, software bugs, and many more. Consider the risks associated with decentralized applications before connecting your wallet to an application.

Key Takeaways

• To access and interact with dapps built on the Cardano blockchain, we require a Web3 wallet that supports the Cardano blockchain.
• Nami wallet is a browser extensionWeb3 wallet built for the Cardano ecosystem.
• The Nami wallet can store, send, receive, and delegate (stake) $ADA tokens.
• Ensure your wallet’s seed phrase is stored in a safe place, as if someone gets access to the seed phrase, they will have access to your wallet’s funds.
• The public address of your wallet is used to receive assets.
• The private address of your wallet is used to send assets.
• By staking your $ADA tokens, you help validate transactions and contribute to the overall security of the blockchain.

All the content in this article is purely for educational purposes and does NOT provide any financial advice. If you have enjoyed this article, please let me know in the comments and consider following. Thank you for your time.

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Myron

A crypto research analyst, algorithmic trader who is passionate about cryptocurrency, finance, investing and data analytics.
In this blog, I will be mainly focusing on how to use python programming language to derive meaningful insights from datasets in order educate and develop various investing strategies for assets.

In addition, I will be uploading "how to" guides on various decentralized applications running on a number of blockchains and "Top 5" guides. Furthermore, research articles on blockchain projects will be a part of the content.