Ethereum is famous for its cryptocurrency, Ether (ETH), which has become incredibly popular over the past several years. As you probably know, you must have a wallet to store, access, and secure your crypto assets. How do those wallets function? Are there different types of wallets for Ethereum? What is the best one?
You can use three different types of wallets for Ethereum, and we will present them below.
Unlike regular wallets, these only contain cryptocurrencies – you cannot store anything else in them. They are convenient and secure, and every Ethereum user should have them. However, how to choose the right one?
It is vital to note that there might not be one best option that suits everyone – it solely depends on your preference. You might find some wallets superb and others not as much. Still, it doesn’t mean that one wallet is worse than the other.
Without further ado, let’s jump into the different types of wallets for Ethereum.
Software wallets
As the name suggests, software wallets are wallets that you do not own physically. They come in a digital form and are an excellent way to keep your cryptocurrency safe.
Software Ethereum wallets are pretty straightforward to use. All you need to do is create an account or, in other words, create a form of personal identification for your wallet. That means that you will need to create a password so only you can access the wallet and its private keys.
No need to worry, these wallets are protected from the eyes of intruders. Still, you can always use a proxy if you need more safety.
These types of wallets come in the form of applications. That means that you will be able to access your assets just like you would with e-banking. Everything you need is only a click away.
The best part about software wallets is that you don’t have to worry about losing them and not being able to find them. You can always access your software wallet, no matter where you are.
These wallets have different subtypes, including mobile, desktop, and web wallets. You can choose whichever you find the most convenient.
Hardware wallets
Hardware wallets use chips to keep your cryptocurrency safe and secure. They are physical wallets that use software to work.
These wallets store your private keys on a physical chip to keep your digital currency safe. That means that they almost function as a safe.
You can access crypto on a hardware wallet using a USB port or Bluetooth, so make sure that your device supports either of these.
If you choose to use this wallet, you will be worry-free because someone would need to steal it physically to access your crypto. You can easily prevent that by storing it in a secure place.
These wallets are perfect for users who don’t consider storing private keys online safe. Like with software wallets, you will always be able to access your crypto assets; you only need a computer that supports the hardware.
However, you need to make sure that you always have a copy of your hardware wallet, just in case.
Paper wallets
Paper wallets might be the most convenient wallets for some users. They do not take up much space, and you can carry them around and easily hide them anywhere.
As the name suggests, these wallets are just a piece of paper. Once you set up your Ethereum account, all you need to do is print your public and private keys. The paper wallet will also feature a QR code for each.
QR codes are some of these wallets’ unique features. You only need to scan them, and you are good to go.
This physical copy of a crypto wallet is ideal if you don’t feel that software or hardware wallets are safe enough.
You can always carry your paper Ethereum wallet and put it into the wallet you already have for fiat currencies. The best part is that you can hide it anywhere, and it will become undetectable to potential stealers.
It is also essential to note that you need to make a copy of this wallet, too, because you may forget where you put it. It is small and easy to lose, so you always need to make sure that you know where it is.
Conclusion
Ethereum has gained worldwide popularity, featuring the second-most popular cryptocurrency, right after Bitcoin. To use its cryptocurrency, Ether, you must store it somewhere, just like any other currency.
For that reason, wallets for Ethereum exist, and you must use them if you plan to buy Ether.
There are three types of wallets available: software, hardware, and paper. The difference between these wallets is only in their form, and you can choose the most convenient one for you.
Whichever you choose, it will keep your Ether safe and secure. Still, you must do your part to keep your assets safe, primarily if you opt for a hardware or paper wallet.
So, which one will you choose to keep your Ether away from potential intruders?
Comments are closed, but trackbacks and pingbacks are open.