Are you new to crypto and want to know about Ethereum wallets? Well, we have got you covered. This article talks about what exactly Ethereum Wallet is, its types, and a list of few popular wallets.
Curious to learn? So let’s get started.
ABC of Ethereum Wallet
Just like other applications, Ethereum wallets are a piece of software that allows users to interact with their Ethereum account. These wallets are essential because before you can start trading Ether, you need to store it somewhere, and there comes the role of wallets. They allow you to store your and manage your money, conduct transactions, read your balance, and connect to applications when needed. Many wallets also let you manage multiple Ethereum accounts from one app. The best way to understand crypt wallets is to think of it as an internet banking application but without the bank. An Ethereum wallet is an app for managing your funds, your Ethereum account, and your login for Ethereum applications.
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Types of Ethereum Wallets
As we have understood the basis of Ethereum wallets, let’s explore its types.
This type of crypto-wallet is assumed to be the safest one for storing your Ether. It is user-friendly as this wallet is just a piece of paper that does not require any internet connection, nor does it require to be stored on your PC. Once you have created your Ethereum account and generated keys, one way to store these keys is by simply printing them on a piece of paper. Such wallets make your funds protected from malicious activities and hackers attacks as well as from physical theft.
Such wallets are often considered as ‘light’ clients that make your funds accessible anytime, anywhere, as long as you have a cellular connection. They are considered light because of the fact that they don’t demand you to download the entire Blockchain. They simply rely on miners for sending detailed information regarding the current state of the network. Since these are light, the only concern associated with this wallet is that they are easy to hack.
Atomic, Lumi Wallet, Coinomi are a few of its examples.
Desktop wallets are those that run on operating systems such as Microsoft Windows, macOS, or Linux. These are perfect for all those who prefer to manage their money on desktops. With such wallets, you can either use a light client or download a full client with the entire Ethereum Blockchain. The choice is yours. Downloading a full client is considered to be a better option as it doesn’t need miners to send them accurate information; instead, they themselves validate transactions, hence provide better security. While using these wallets, the only point to keep in mind is to make sure that your computer is not infected by malware and is not hacked.
Exodus, MetaMask, Mist are a few examples of such wallets.
These wallets are also known as online wallets as they allow you to interact with your account through a web browser. These wallets use cloud storage and can be accessed irrespective of any geographical location. They are best known for their high speed compared to other types of wallets. The major risk associated with such wallets is that they are notably sensitive to malicious malware, cyber-attacks scams, etc.
MyEtherWallet is a perfect example of such a wallet. It is a free, easy-to-use, open-source platform that helps users generate wallets, interact with smart contracts with many other functionalities.
Hardware Ethereum Wallets
If you want a high level of security, consider using this wallet. These are more secure because they store private keys on a physical chip. Since these wallets do not require an internet connection, they make your funds completely immune from all types of cyber-attacks and hacks. Moreover, such wallets offer multiple ways to access the keys.
The other benefit with such wallets is that they come with backup options to ensure you won’t lose your funds, and they can be further secured using two-factor authentication along with a PIN password.
Trezor One, Ledger Nano S, Metamask, Exodus, Mist are a few well-known Ethereum wallets, each having their own features, advantages, and disadvantages. To state which is the best among all won’t be justified as the best Ethereum wallet depends on your preferences and requirements.
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