Security is an underestimated area in the new field of cryptocurrencies, many people just don’t know how to understand Ethereum wallet security. In this report I will help you understand the Ethereum blockchain and what Ethereum wallet to use.
Ethereum Blockchain Wallet Basics
A cryptocurrency wallet is a software program that stores private and public keys and interacts with various blockchains to enable users to send and receive digital currency and monitor their balance.
The Ethereum Wallet is the official wallet of the Ethereum Foundation and is developed by Parity Technologies and Mist. The official version of the wallet was released in July 2016, whereas versions for Windows, Linux, macOS, and Android are available since February. A web-based version of the wallet was released in August 2016.
How to choose an Ethereum wallet
When choosing what Ethereum Wallet to use, you should consider the following questions:
- How do I want to access my Ether?
- How safe do I want my Ether to be?
- What features do I want out of my Ethereum Wallet?
- How much Ether do I currently have?
What you are planning on doing with your Ethereum Wallet will determine what Ethereum wallet to use. Below we have listed the different types of Ethereum Wallets and described their pros and cons. These wallets will be broken down into three categories: Hot Wallets, Cold Storage, and Online Wallets.
Hot Wallets are cryptocurrency wallets that are typically work on servers on the internet. They are the fastest and easiest way to access your Ether. Common hot wallets include the Ethereum Wallet, MyEtherWallet, and Metamask.
A cold-storage Ethereum wallet is the opposite of a hot wallet. These wallets are not connected to the internet and cannot be accessed easily. They are thought to be more secure than hot wallets. Common cold storage wallets include Hardware Wallets, Paper Wallets, and Brain Wallets.
An online Ethereum wallet is very similar to a hot wallet. Like their name suggests they are depending on the internet and have easy access to your Ether. Common online Ethereum wallets include Coinbase and Jaxx Blockchain Wallet.
Factors to Consider
You should always consider the following points before choosing a wallet.
- Security – No matter whether it is a wallet, desktop client, or web- depending one it must be reliable. The most secure way to keep your funds is hardware wallets with isolinux OS. It will take you a bit longer to set up and master but it is worth every penny.
- Reliability – This is a relatively new kind of wallet while it may not be as secure as a hardware wallet you can use it from anywhere at any time.
- Usability – You will have to master every single time you open the wallet, but once that happens you would not need to ever open the wallet again.
- Popularity – It is a trend to use a mobile wallet so you will be able to access your Ethereum while it is charging.
What Ethereum Wallet To Use?
Here is a list of the best Ethereum wallets to use.
Trezor is a popular hardware wallet with excellent security features that requires no setup. It generates all the private keys on the device and never gives out details to any third party. Trezor has been around since 2013 and has a high rate of security and reliability. The Trezor One is the new version of this popular hardware wallet. You can find them available in various versions, including Nano, Free, and Model T (which looks like a flash drive).
Ledger Nano S
Ledger Nano S is one of the best hardware wallets to store your Ethereum. It is more secure than other hardware wallets. It connects to any computer via USB and embeds a built-in OLED display to double-check and confirm each transaction with a single tap on its side buttons.
Metamask is a full-fledged online server Ethereum wallet. It enables its users to interact with the Ethereum blockchain easily without any hassles. Using Metamask you can send, receive, and store your Ethereum in a safe and secure way.
Exodus is a popular desktop Ethereum wallet. It does support the entire Ethereum ecosystem and all ERC20 tokens. It has a hierarchical deterministic architecture and is available for Windows, Mac, and Linux.
Jaxx is an open-sourced multi-asset cryptocurrency wallet that supports Bitcoin, Litecoin, Ethereum, and more than 300 other coins in the world. It allows its users to have a 12-word backup seed key. This makes it easier to regain access to funds. Jaxx is also available on mobile devices and is highly compatible with desktop wallets.
Electrum is a known bitcoin wallet. It is a very popular desktop wallet that is compatible with Windows, Mac, and Linux. Electrum offers many unique features such as a shared wallet, which has the ability to store funds for multiple users connected at the same time. If you wish to store funds on your desktop computer, Electrum is an ideal choice.
MyEtherWallet (MEW) is an open-source client-side interface for generating Ethereum wallets & more. It was developed by the Ethereum Foundation in March 2016. MyEtherWallet is also known as a free and secure wallet. It is one of the best and easiest ways to access your Ethereum wallet.
Mist is an official Ethereum wallet developed by the Ethereum blockchain team, it is somewhat a medium between a hot and cold wallet. Unlike other hot wallets, it does not connect to the internet directly. It offers another layer of security on top of your hardware wallet or private keys in cold storage. The interface looks much like MyEtherWallet and supports Ethereum tokens, but it can hold any Ethereum-based token.
Coinbase Wallet is another excellent mobile app for ETH storage. It allows its users not to only view their Ether but also will enable them to buy and sell Ether. The app can offers a function that works with Coinigy, a trading platform for Ethereum.
The Coinbase Wallet is available free of charge for both Android and iOS devices. Take note that the app might have security vulnerabilities such as phishing attacks. And we suggest that you use the official Coinbase wallet rather than one from a third-party app providor.
What is Ethereum Blockchain? How does It work?
The Ethereum Blockchain is a new type of blockchain that includes a decentralized virtual machine called the Ethereum Virtual Machine (EVM). It allows you to run apps in a similar way to what you do with a normal computer. [Please read: How does blockchain work?]
Ethereum blockchain offers many third-party apps that you can use in the economy, commerce, society, and more. They are known as Dapps (Decentralizion technology apps). And you can use them to create your own e-commerce website, chat app, game, online wallet, and more.
How to buy Ethereum?
If you are wondering how to buy Ethereum then this detailed step-by-step guide is for you. Let’s look at, how to buy Ethereum through exchanges, how to transfer Ethereum out of exchanges, and how to maintain Ethereum Wallet security on the Ethereum blockchain.
Register on any known Ethereum or crypto exchange that supports Ethereum. We have a detailed Exchange review here or you can pick on of these recommended exchanges.
This article will not discuss the best crypto exchanges to use but will assume you picked an exchange.
Create an account and verify your email address if you have not done so already. You’ll need to supply the name, email address, and password of your choice for the exchange account.
Go to the deposit section of your exchange and search for a cryptocurrency like ether. Ether is the Ethereum currency and users can use it to buy Ethereum. Ether can be thought of as the fuel that powers Ethereum. The moment you start using any Ethereum-based application, you’ll need either to cover gas fees for every computational step that takes place in the transaction/application.
Click on the ETH/BTC pair you want to deposit and then hit the buy market link.
Set the amount you want to buy above the current market price. Click on buy and then confirm your transaction by clicking purchase.
Your Ethereum is now sitting inside your exchange account ready to be used for trading, or withdrawal. If you want to transfer Ethereum out of an exchange you can send or pay to any other wallet.
Choosing an Ethereum wallet can be a daunting task. The above guide will show you a few options that are easy to use and reliable. All of these Ethereum wallets are safe and secure options for storing your ether.
Let us know in the comments bellow which Ethereum Wallet you settled on. I look forward to collaborating together!