How to choose the best Ethereum Wallet
Ethereum is one of the top cryptocurrencies available on the market, representing an open-source network which enables the creation of decentralized applications and smart contract operations. Ethereum was launched back in 2015, and this event also served as the premiere for smart contract technology that was soon adopted by other networks as well. Just as is the case with other cryptocurrencies, if you decide to buy Ether (ETH), you will need to find a safe environment in which to store your ETH. That's why finding the best Ethereum wallet is of integral importance.
The Importance of Finding the Best Crypto Wallet
In today's world we use money for everything we need. Protecting financial assets by keeping them safe in your wallet, in your bank account or in secure storage is considered a priority. While most of us treat our fiat currency in this way, the same attention should be paid to protecting digital values, such as your investment in cryptocurrency. Cryptocurrency represents a carrier of value equal to money as money is what's used to buy the crypto units you're interested in. Once you purchase a cryptocurrency of your choice, you need to make sure that you find the perfect storage solution for your digital investment and treat it as you would treat any other form of currency that holds material value.
Cryptocurrency differs from the regular currency stored in your wallet or in a bank account in that with cryptocurrency, you are the only one holding the key to your crypto wallet. This means that the only way you can access and manage your crypto wallet account and the funds it contains, in this case Ethereum, is by using the unique key that matches your crypto wallet.
If something happens to this unique key and you decide to report your lost funds, chances are that your issue will never be resolved and the funds will never be recovered, as would be possible if someone had stolen your wallet. Additionally, if you lose your crypto wallet keys, you won’t be able to retrieve them or get new ones as there is no central authority taking care of your funds. It's also important to note that crypto holds a certain value, which means that hackers may try to steal it. These are all compelling reasons why choosing safe storage for your crypto is extremely important.
When choosing the perfect crypto wallet and researching your options, you'll need to choose between a hardware wallet, a paper wallet, an online wallet, a software wallet and a mobile wallet. Each type has its own advantages and disadvantages.
Ethereum Online Wallets
Online wallets might be a handy choice for ETH users who would like to have the option of securing their funds through a third party as cryptocurrency exchanges essentially keep your funds for you. Online wallets are perfect for crypto traders as it allows easy access to the market of cryptocurrencies. The chances that your account and online wallet may be hacked depend on the security of the service provider, so exercise caution.There are a great number of storage options for Ethereum available today, each with its pros and cons. Whichever option you choose, finding the right Ethereum wallet for you will help keep your cryptocurrency safe and secure.
Ethereum Software Wallets
Software wallets are definitely easier to use for making transactions and trades compared to paper wallets, and they're also more secure than online wallets, with you representing a sole central authority for your Ethereum funds. Software wallets may store your keys for you and will offer a safety phrase that you need to copy and keep safe. We also recommend making a copy of your keys and keeping them out of reach. You can have an Ethereum software wallet installed on your computer, but take note that software wallets are easier to hack than unhackable paper wallets and safe hardware wallets. Some of the best Ethereum software wallets are of an open-source nature and are frequently tested for flaws and bugs. You can try Jaxx wallet, Mist, or Exodus; these three wallets are the most popular software wallets for storing ETH units.
Ethereum Mobile Wallets
Mobile wallets are very similar to software wallets, while software wallets such as Jaxx also have versions for mobile wallets, making your cryptocurrency available even when you are away from your computer. Although the main advantage of mobile wallets is precisely the mobility itself, these wallets can also be hacked depending on the security of your phone. That is why mobile wallets are not recommended for long-term storage of Ethereum or other cryptocurrencies.
Ethereum Paper Wallets
Choosing a paper wallet for keeping your Ether (ETH) safe might be one of the best options as hackers won’t be able to reach sensitive information such as the keys to your wallet. You will be the only one with access to your wallet, as the keys will only be available physically, offline and on paper. When it comes to long-term storage, a paper wallet makes an exceptional choice. You can use MyEtherWallet, one of the most used Ethereum wallets, for safely printing out your private keys and creating a paper wallet. Make sure your computer is not vulnerable while you are doing so. You also need to make sure that you keep your paper wallet safe. We recommend making more than one copy and keeping them out of reach of others.
Ethereum Hardware Wallets
Owners of hardware wallets will probably tell you that this type of software solution has priceless security safeguards when it comes to keeping your funds secure. This is most definitely true as hardware wallets combine the safety of paper crypto wallets with the easy accessibility of software wallets. One of the top wallets for Ethereum (which also supports a great number of other cryptocurrencies) is Trezor, alongside the Ledger series.