There are a number of Ethereum wallets around today, but it is important that investors choose the best and most secure wallets available to them.
Ethereum is a decentralised smart contract platform. Just like Bitcoin, Ethereum has a token called Ether, a blockchain, nodes, and miners. However, Ethereum’s blockchain maintains a consensus for a virtual computer called the Ethereum Virtual Machine (EVM).
Ether is the native token on the Ethereum network. There are around 100 million Ether (ETH) on the network, with these tokens being used to incentivise miners to run their mining hardware for Ethereum. These miners and the token help to keep the network decentralised.
The Ether tokens can be used for payments between users and to power smart contracts. To run a smart contract, Ether is turned into ‘gas’ which powers the smart contract on the EVM.
Different types of wallets
A cryptocurrency wallet refers to a place or device where users can store their cryptocurrency. To find the right Ethereum wallet for your needs, you will need to have a basic understanding of how storing crypto works.
There are different types of ETH wallets, including hardware, desktop, mobile, and paper. There are also wallets that just hold Ether and some that hold an array of cryptocurrencies and tokens. Here we will go through some of these different wallets to give you an idea of the best Ethereum wallets to use.
Trezor – hardware wallet
The Trezor wallet was the first ever hardware wallet developed for Bitcoin and now provides support for Ethereum. In fact, the wallet now supports all ERC-20 tokens on the Ethereum network.
To control the tokens that are stored on the Trezor wallet, users will have to use an Ethereum web wallet. Trezor recommends MyEtherWallet, where users can control the use of their Ether in the online wallet’s browsing platform. Similarly, if a user wants to create or deploy smart contracts, they will also need to use MyEtherWallet combined with the Trezor wallet.
One of the biggest advantages of this hardware wallet is its security features. Offline (hardware) wallets have major advantages over online wallets as they are less likely to be hacked. But Trezor has added benefits to secure Ethereum holdings. These include two-factor authentication, a screen that allows users to check their transaction details, and advanced cryptography.
MyEtherWallet – online wallet
MyEtherWallet is an online wallet, meaning it is run on the cloud and can be accessed from anywhere at any given time as long as there is an internet connection. Even though online wallets are the simplest to set up and provide convenient access to ETH, they are not as safe and secure as other types of wallets.
MyEtherWallet is a web wallet with a difference though. It allows users to store Ethereum keys on personal computers rather than on third-party servers. This enables users to have an added level of security compared to other online wallets.
Users do not need to provide or insert any personal information to create a wallet, and they have access to a handy feature that allows them to write and access smart contracts. This accessibility and easy-to-use system makes the wallet extremely popular within the Ethereum community.
Atomic Wallet – desktop wallet
Desktop wallets are known for being extremely user friendly and provide a higher level of security than online wallets. Atomic Wallet allows users to easily hold all ERC-20 tokens in a simple and highly-explanatory wallet. It is ideal for beginners who wish to use a single wallet to hold all of their Ether or ERC-20 tokens.
Atomic Wallet also allows users to exchange and trade all Ether tokens directly through the wallet. This is due to its integration of ShapeShift and Changelly. This factor again makes this desktop wallet a clear winner for beginners who want all of their holdings and processes to be done and kept in one safe place.
Jaxx – mobile wallet
Mobile wallets such as Jaxx run via an app that users can download on their smartphone. They are easier to use than desktop wallets, but there is the added risk that if a phone gets lost or stolen, your cryptocurrency could be stolen.
Jaxx is a free, multi-currency wallet that offers Ether holders the ability to store their tokens safely. It also has a user-friendly interface that ensures beginners are able to work it. All information and data is set out in an easy manner, meaning users will only have to use the one app for their holdings.
You now know some of the top Ethereum wallets on the market today. However, it is important to remember that cryptocurrencies and tokens can be extremely volatile, so it is important you do your own research before investing in Ethereum.