There's a high chance that, in one way or another, you've encountered mentions of Ethereum blockchain, cryptocurrencies, or ICOs. Even if these terms are unfamiliar, Ethereum and its digital counterparts have been making headlines due to considerable financial stakes involved.
Ethereum is recognized as a 'decentralized framework' capable of executing smart contracts. Smart contracts These contracts function as programmable scripts within the blockchain, facilitating the exchange of assets or information when specified conditions are met. use smart contracts Whether it's content, properties, shares, or money, you can effectively transfer anything valuable through Ethereum under particular stipulations.
Though commonly referred to as a digital currency, the truth is that Ethereum is a blockchain network utilizing its own currency system called Ether, powered by its 'gas'.
Presently, its market worth hovers around the $45 billion mark, while a single Ether was valued as high as $1400 at it’s all time high.
Considering investing in Ether is a great idea, but we remain in an era of uncertainty when it comes to the security of digital assets, particularly with threats such as phishing and hacking always present. As cryptocurrency value climbs, stories where hackers have gotten hold of a lot money is becoming common.
To securely house your Ether, you'll require a trustworthy wallet. In this article, we’ll explore the variety of Ethereum Wallets available and highlight our top selections.
What is an Ethereum Wallet?
For those new to this landscape, the prospect of storing digital currency might seem daunting. Imagine the challenge of securing a substantial amount of cash physically. Most often, wallets are our go-to solution for managing money and accessing it when needed.
A cryptocurrency wallet operates under similar principles, whether it’s for Ether or Bitcoin , NEO or other cryptocurrencies.
In essence, it's a software solution that aids in the efficient management of your private and public keys. Through it, you can store multiple currencies (as per your wallet's compatibility) and manage transactions and balances at your convenience.
So how do they work?
Although previously likened to regular wallets, digital currency wallets function differently. A critical point: Your digital wallet doesn’t actually 'store' anything, as digital currency has no physical form.
Everything exists on an online ledger system known as the 'blockchain'. Your wallet connects with it, streamlining the process of sending and receiving digital coins. This requires that your wallets act as safes, keeping private addresses secure and public addresses accessible. Upon receiving Ether, the sender transfers ownership through your wallet's public address.
For a transaction to be effectively completed, your public and private addresses need to correspond, after which it's validated on the blockchain.
Hot and Cold Wallets
Essentially, there are two wallet categories: hot and cold.
Hot wallets refer to those that keep your keys online, enabling easy access provided there's internet connectivity. Nevertheless, they pose significant risks as they can be infiltrated, leading to potential coin theft.
Cold wallets, in contrast, store private keys offline, often within hardware. They're touted for superior security since they only connect online when necessary, minimizing hacking risks.
Having addressed hot and cold wallets, the discussion moves to hardware versus software wallets:
Hardware vs software wallets
Hardware wallets, by virtue of their name, possess a tangible aspect. They resemble external hard drives but are customized for cryptocurrency, earning them the title of cold wallets in the industry.
Hardware Wallets
The appeal of hardware wallets lies in their heightened security, limited online connectivity, and the flexibility to keep them wherever it suits you best.
Fashioned after USB gadgets, they connect to your computer for transactions, swiftly generating keys as needed.
Pros of using hardware wallets:
- Their design guards against malware infiltration by key generation offline.
- Featuring intuitive interfaces, they are particularly beneficial for those new to cryptocurrency.
- Typically, they encompass backup features, safeguarding you against coin loss.
- They support added security with device-integrated pin passwords.
- Their storage is flexible—housing them in your dog’s kennel or beneath your pillow is entirely up to you.
Cons of using hardware wallets:
- Compared to software wallets, they come with a heftier price tag.
- They are often elusive, frequently sold out.
Software Wallets
Software wallets, however, are available in three variations: Mobile, Online, and Desktop, collectively identified as hot wallets.
Desktop Wallets
For desktop wallets, download and installation on your chosen laptop or personal PC is necessary.
They're functional solely on the computer where installed. Desktop wallets are considered among the safest, as long as your device remains free from hacking or malware.
Pros of using desktop wallets:
- They boast user-friendly operations apt for beginners.
- Private keys are stored locally, not on third-party servers.
- Coupling it with 'TOR Network' offers more privacy and secure wallet creation.
Cons of using desktop wallets:
- Their internet connectivity makes them susceptible to cyber threats.
- As your device-based wallet lacks permanence, theft from technicians is a possibility.
- Neglecting backups could mean key loss if your computer collapses.
Online Wallets
Online wallets operate on cloud systems, granting access from varied locations, enhancing convenience. However, storing private keys online escalates cybersecurity hazards.
Pros of using online wallets:
- Online wallets offer impressive speed, outperforming other wallet types.
- They’re ideal if handling smaller sums.
- Some integrate with exchanges, making multi-currency management hassle-free.
Cons of using online wallets:
- Using them online makes your wallet vulnerable to malware, DDOS attacks, hacking, and phishing.
- Ownership might feel tentative, with security largely dependent on the overseeing company.
- Computers don't provide the safest online wallet access due to potential keyloggers or viruses.
Mobile Wallets
Mobile wallets function as apps on your smartphone, offering easy balance tracking and coin transactions on the move. Their design prioritizes compactness for minimal device space consumption.
Pros of using mobile wallets:
- A mobile-based wallet is an advantageous, straightforward choice, facilitating quick payments on the go.
- These apps often come loaded with features missing in other wallet types.
Cons of using mobile wallets:
- Losing a phone could lead to coin loss.
- Android devices are vulnerable to hacking or malware that might jeopardize your wallet.
The Best Ethereum Wallets
Having navigated through wallet essentials, the time is ripe to delve into the finest Ethereum wallets of 2017.
Being selective with wallets mandates criteria consideration. Here’s ours for choosing Ethereum or any digital currency wallet.
- Private Keys: They are critical, as mentioned, in pairing with public keys to confirm coin ownership. Prioritize wallets allowing personal key storage decisions.
- Intuitive interface: Whether seasoned or novice, a straightforward wallet interface is essential.
- Track record and support: A wallet backed by a robust development team is vital. Avoid companies with a history of abandoning wallets.
- Security and Backup: Human error means wallets can go missing. Opt for ones with solid security and backup solutions.
Let’s move on to the top Ethereum wallets without further delay.
The Ledger Nano S
Ledger Nano S is undoubtedly among the leading hardware wallets. It’s beloved for encompassing the four features from our criteria.
Typically a hardware wallet resembles a USB with a compact OLED display. Lightweight and resilient, its interface simplifies transaction execution, confirmed by tapping its buttons, a safeguard against malware.
Device safety is enhanced with a 4-digit pin, adding an extra protective layer during usage.
Ether holdings remain offline within the hardware, with private keys at your disposal for signing transactions. For backups, the Ledger Nano S presents a 'recovery seed', facilitating coin recovery if misplaced or lost. It’s compatible with both Ethereum and Ethereum Classic. With a weight of merely 16.2g and a price point of $67 (58 Euros, check exchange rates), the Ledger Nano S presents itself as the premier hardware wallet for Ether.
Trezor
Crafted for premium portability and USB connectivity, the Trezor this remains a wise investment for those desiring a well-tested solution for Ether storage. MyEtherWallet .
Its design features a sleek OLED screen for transaction visibility and confirmation. Buttons are incorporated to offer a tactile confirmation experience.
Top Ethereum Wallets of 2019: A Comparison of Hardware, Software, and Paper Options
Dive into our Comprehensive Guide to 2019's Best Ethereum Wallets - Explore the Pros and Cons of Hardware, Software, and Paper Wallets: Which One Fits Your Needs?
We're confident that you've come across the buzz about
, blockchain, digital currencies, or ICOs. Regardless of your expertise, you've likely seen Ethereum and other cryptocurrencies making headlines due to their skyrocketing value.
Ethereum stands out as a 'decentralized platform' capable of executing smart contracts. These are essentially scripts designed to facilitate the transfer of assets via the blockchain. You can utilize them .
Atomic Wallet
for sharing digital content, assets, stocks, or currency once predefined conditions are met.
Although Ethereum frequently gets lumped together with cryptocurrencies, it’s more than that: it’s a robust blockchain platform that operates using its own 'gas' or currency known as Ether.
At present, its market capitalization hovers around $45 billion with a single
MyEtherWallet
MyEtherWallet In the quest to purchase Ether, caution is key given the rampant online scams and hacking risks threatening your digital peace of mind. As cryptocurrency values soar, the vulnerabilities are becoming all too familiar, be mindful with ERC-20 tokens securely offline, it allows you to print out a paper wallet which you can store safely The key to securely storing your Ether is a dependable wallet, and in this article, we'll delve into various Ethereum Wallet types to highlight the top contenders.
We have written a full guide on how to use MyEtherWallet so take a look at that.
Jaxx
For newcomers, managing cryptocurrency might feel like an uphill battle. Imagine juggling a stack of cash—how do you intend to manage it? Typically, a wallet is everyone's go-to for organizing money, ensuring security and ready access.
Cryptocurrency wallets operate similarly, regardless of whether they're for Ether or another currency.
In its simplest terms, a cryptocurrency wallet is a software application that helps you manage your crypto keys, both private and public. It's your central hub for multiple currencies if supported, making transactions and checking balances a breeze.
However, don't mistake these wallets for the conventional ones; a digital currency wallet doesn't store currency in a physical form. Here's an important tidbit: Digital wallets interact with the blockchain ledger, not holding currency themselves.
Exodus
The blockchain, a digital ledger, is where everything lives. Your wallet interfaces with it, letting you effortlessly send and receive digital coins. Meanwhile, it keeps your private keys hidden and makes your public address accessible. When someone sends Ether to you, they're transferring ownership by targeting your wallet's public key. Exodus To access those coins, your public and private keys must align, and the blockchain will verify the transaction.
There are essentially two kinds of wallets: hot and cold.
Coinbase
Hot wallets are online, letting you access your keys wherever internet is available. Despite their convenience, they are susceptible to hacking. Coinbase Cold wallets, on the other hand, store private keys offline, nestled safely in hardware. They are vastly more secure as they only connect online upon your command, substantially reducing hacking risks. purchasing Ethereum Having explained hot and cold wallets, it’s time to discuss hardware versus software wallets:
First up are hardware wallets that, as the name suggests, are physical devices akin to portable hard drives but tailored for cryptocurrency. They epitomize the cold wallet category.
Hardware wallets shine in terms of security due to their intermittent internet connection, keeping them easily protected wherever you choose.
Read our full review of Coinbase to find out more.
6Comments
Whether you store it under your pillow or elsewhere, it's your call how you manage it.
Price-wise, hardware wallets come with a heftier tag compared to their software counterparts.
They might be tricky to source, given their high demand and frequent sellouts.
Software wallets include three categories: mobile, online, and desktop, all characterized under hot wallets.
Desktop wallets require installation on your personal or laptop computer.
Which wallet can I use for this?
They remain restricted to the computer where installed. In terms of security, desktop wallets rate high, provided the computer is free from malware and hacking threats.
Simple to navigate, they're a solid choice for beginners.
Private keys are not stored using third-party servers.