Ethereum Wallet | Types, Use Cases, and Safety
Ethereum wallet is a special program that allows you to receive, send, or just store Ethereum with the help of public and private keys for transactions. There are storages that work with ETH only, and there are the multi-currency ones, where ETH is one of the supported coins.
The Best Ethereum Wallets 2023:
- Ledger
- Trezor
- KeepKey
- MyEtherWallet
- MetaMask
- Coinbase Wallet
- Exodus
- Trustee
- Atomic Wallet
- Edge
- Jaxx
- ETHAddress
Every person that deals with Ethereum in this or that way - trading, investing, or HODLing, should find safe storage for his assets. To be completely fair, your assets are nothing more than Blockchain records, and your storage interacts only with Blockchain to conduct transactions.
So if you want to send or receive this currency having an Ethereum wallet like
MyEtherWallet is a necessity. The first thing you should remember is that you need to choose the Ethereum wallet not only thinking about the fact that it supports Ethereum or not, but you also need to pay the most of your attention to its security and reliability.
But before we move on to storage options to see which of them is the safest one, let us first discuss the main types of wallets’ features in terms of their usage and safety. This will greatly help you to choose the best Ethereum wallet and will surely deepen your understanding of the topic.
Let’s go!
Hot Wallets VS Cold Wallets
There are two main types of Ethereum wallet: hot and cold ones.
Hot wallets store your keys online, so you can get access to your assets literally from any place in the world. You just need to make sure that there is a solid Internet connection.
This type of wallets is more popular because it gives users additional freedom and flexibility.
However, hot wallets have one major drawback: they can be easily hacked and you will lose your money. It’s hard to call such storage the best Ethereum wallet, especially if you operate large sums.
On the other hand, there are cold wallets. They store keys offline and connect to the Internet only if you need them. Of course, such wallets are more reliable in terms of security.
The type of ETC wallet you choose (a hot or cold one) greatly depends on your regular activity: if you often make small transactions, you can choose hot wallets. But if you need to store big sums for a long period, it is better to have cold storage.
This will help you to have untroubled sleep!
Private Key
To get access to your Ethereum wallet and to send or receive Ether you will need to enter a private key.
Keep in mind:
If you lose the key or it somehow ends up in someone else’s hands, you will lose all the cryptocurrency you have on your account.
Rather unpleasant, right?
That is why you need to keep the key from your ETC wallet in a safe place that no one else knows about.
Some of the
best bitcoin cash wallets store these keys online, while others – offline, so it’s up to you to decide how you want to store your keys.
The best Ethereum wallet is always the one that suits your needs and ensures the safety of your transactions!
Multi-Signature Wallets
The next type of Ethereum wallet is a multi-signature one. It requires the involvement of all participants in order to conduct a transaction.
To put it simply, all sides must enter their own code to make a transaction.
This is the best Ethereum wallet for family use, as well as for enterprises.
After we published this article, we started to receive a lot of questions like:
What if my colleague will betray me and withdraw all the crypto without my concern?
Here is the key: to send the transaction (any - withdrawing or sending crypto to another storage), all of the parties, including you, should “sign” it. That is why this type of service is absolutely safe for business - no one will move the funds without you seeing it.
Multi-Currency Wallets
There are also different wallets depending on the number of cryptocurrencies they are able to store.
For example, some of them process only Ether, while others (like Exodus wallet) allow storing Bitcoin, Dash, EOS, and other currencies.
Moreover, some wallets allow converting one cryptocurrency into another.
So if you want to get Ether and then convert it into Bitcoin, the best Ethereum wallet will be a multi-currency one.
I assume that there is a 99% chance that you will use the multi-currency service because now, to my mind, it is impossible to work with a single crypto. I should say that such storages give you the freedom to invest in every crypto you want.
ETC wallets of this kind are Trustee, KeepKey, and Ledger Nano.
Custodial Wallets VS Non-Custodial Wallets
The ETC wallet can be either custodial or non-custodial.
Custodial wallets don’t give access to your private data and simply store private keys on servers. A big advantage of such wallets is that you can regain access to your account if the password was lost.
However, your account may be frozen in case of any interference. Moreover, you can lose all your money during cyber attacks on your ETH wallet.
This can happen because of the following fact:
The custodial storage keeps all your data (keys, transactions info, etc.) on its server. So, when hackers come and hack the server, they receive access to all the accounts that are made on this program.
Unfortunately, cases of such hacker interventions have drastically increased.
Non-custodial ETC wallets operate in a different way – they give you all the control over access to the service without using any servers, and they do not store the valuable info on its server.
According to our data, most of the new wallets are non-custodial because users start to respect their privacy more and more and want to be the only owners of their keys.
The main disadvantage of such wallets is that if you lose your key or seed phrase it will be impossible to regain access to your account. For example, if you have lost your laptop or broken your cell phone, it will be possible to enter your storage only via the seed phrase.
Of course, if you weren’t storing this phrase on the same laptop or phone!
The best wallets for Ethereum in this niche are Trustee, Copay, and Jaxx. Actually, there are many other non-custodial representatives, so you have all the freedom to choose the one you like the most.
Ways To Store Ethereum Safely
There is a variety of Ether wallets and it is one of the reasons why we love them so much! At the moment there are five types of wallets:
- Web or online;
- Ethereum hardware wallet, as a separate device;
- A mobile storage that is installed on smartphones;
- Desktop, which is located on a personal computer or laptop;
- Ethereum paper wallet.
Below we will provide maximum details on each of the types above to help you choose the best Ethereum wallet Android. You can thank us later!
You should always choose storage depending on the field of your interests. For example, if you are planning to store a big sum of money, it is better to choose hardware wallets but if you want to complete speedy transactions or to research potential opportunities, you can turn to
best bitcoin wallets like Trustee or Blockchain.info.
Hardware Wallets
Hardware wallets are devices designed to securely store private keys. They are considered more secure than desktop or mobile storages, mainly because they are not connected to the Internet all the time. This property significantly reduces the possibility of a malware attack since hackers cannot remotely hack a device.
Such hardware wallets as Trezor, Ledger Nano S, and KeepKey provide a convenient solution for accessing crypto with a high level of protection because private keys are stored only in the memory of the Ethereum wallet.
Even though the fee for using such wallets may reach 100 dollars, they allow conducting transactions without the risk of cyberattacks.
Wallets of such protection levels are perfect for receiving or keeping Ether.
Once it lands in your ETC wallet you can transfer its part any place you want for permanent use, while the main sum will be safely hidden in your hardware tool.
Desktop Wallets
They look like a program installed on a personal computer. It has access to the owner's account information. Despite its huge advantage in security, there is also a huge disadvantage - the need to constantly update information. They will take up a lot of hard drive space.
The software for such wallets can be divided into 2 types: "hard" and "light". Hard programs will download all of the blockchains and update them every time. Light programs will download only the necessary information from third-party services. The key remains strictly on your computer.
Thin desktop storage occupies only a few megabytes of space and is installed in a matter of minutes. This client program doesn’t require downloading all the Blockchain. It allows for creating Ethereum addresses and completing transactions.
Thin wallets interact with networks indirectly (unlike thick ones): through program developers’ servers. That is why they are considered less secure but yet more convenient.
To name a few thin desktop wallets: Exodus, Electrum, and Jaxx.
Online Wallets
Online wallets are very convenient and user-friendly, and you don’t need to download all blocks of the network, like in the situation with desktop wallets. This saves lots of your time because you don’t have to download them both during the first and all the next runs of a switched-on local service.
You can manage your online ETC wallet from all types of devices not depending on where you are: just make sure there is a proper Internet connection.
The option of using online wallets is perfect for novice users, since they, as practice shows, are not always capable of ensuring the safe storage of coins at the proper level, as well as working with "light" or "hard" cryptocurrency wallets on their computer.
Most online services offer users a set of additional features.
For example, you can complete transactions with other users via email or phone. You may even send notifications and use Ethereum address books.
But there is always a fly in the ointment: entrusting your money to online wallets is quite risky. The safety of assets will also depend on others: when such services are hacked, your coins can be stolen.
The most popular online wallets include Coinbase, Cryptopay, Blockchain.info, Xapo, Bitpay, and Matbea.
Mobile Wallets for Smartphones
Mobile wallets are very popular today because they give us the freedom to manage our cryptocurrency everywhere and every time.
Such wallets are installed on a smartphone, which runs on iOS or Android.
Operations can be conducted using QR codes or NFC (near field communication) technology not depending on your location or time of the day!
Mobile wallets are in demand, but are they so secure?
It depends on the storage and you - as the potential user. Mobile storages can be custodial and non-custodial, and these features affect security. Also, you need to remember that certain responsibility lies on you - you need to store all the information (PIN, seed phrase, private keys, etc.) in a safe place.
Here are a few popular representatives: Airbitz, Mycelium, and Trustee.
Paper Wallets
Are you surprised that such a type of Ethereum wallet also exists?
Even though it is not that convenient, it still has many benefits if you are not planning to make transactions and want to store cryptocurrency for a very long time.
Paper storage is a piece of paper, which contains private and public keys in the form of a QR code.
To use these keys you will need to scan the QR code displayed there.
Usually, paper wallets are better and more secure than any other type of wallets.
Here are a few reasons to use them:
They are rather simple.
Creating a paper Ethereum wallet doesn’t require specific skills or technical background unlike trying to master hardware wallets.
A few simple steps will greatly secure your coins.
They are autonomous.
Hackers and scammers won’t be able to access it online, because it rests in your drawer.
All your assets are presented in a piece of paper form with printed out keys.
Your storage is like a valuable cash receipt, which is used for transferring money.
There have no problems with the equipment.
Paper wallets are much safer than hardware ones, which can be damaged or have software malfunctions.
Paper wallets are the simplest form of storing cryptocurrencies.
Easy to pass on to people you trust.
If something happens to the cryptocurrency owner, friends or family members will hardly have access to his hardware or exchange wallets.
But paper wallets can be easily stored as a part of valuable assets in a locker or on a physical space.
The Best Ethereum Wallets 2023 | TOP List
We know that many people like our guides exactly because we always offer lists of good services with the theory provided. Today we are going to show you the list of, to our mind, good Ethereum storages that are safe and convenient. There are going to be different types of them - hardware, desktop, online, and mobile, so you will be able to choose the best one based on your needs.
Ledger
Ledger is a well-known hardware storage with a lot of years of presence on the market and a huge amount of fans. First things first - this tool is very good but we would advise you to choose another one if you are a newcomer, because it may feel difficult for you to use it.
In general, Ledger supports more than 1,000 cryptocurrencies, and Ethereum is, for sure, one of them. Also, you may like the device because of the multi-signature function presented there.
Every new model of Ledger has more and more features to offer. And this fact makes us always say that the price of this device is absolutely affordable!
P.S. The price of the last Ledger model at the beginning of 2023 is 170 EUR.
Trezor
Trezor is the next representative of hardware Ethereum wallet and is no worse than Ledger. It supports fewer coins than Ledger but the main thing that it works is the popular coins, including Ethereum.
Trezor is more expensive than Ledger - at the beginning of 2023, the price for Trezor Model T is 192.39 EUR.
The advantage of Trezor is that it was not mentioned in hack attacks or data leaks - and Ledger did, at the end of December 2020.
In our opinion, Trezor is easier to use because of the bigger screen. But the final choice is up to you, of course.
KeepKey
KeepKey is one of the cheapest hardware wallets. At the beginning of 2023, the cost of the latest KeepKey version is 70 EUR.
Keepkey certainly has a larger screen than the competitor, but that makes it heavier. Although it has a good reputation in the market, the device is not considered the best storage for Ethereum.
So, shortly speaking, if you are looking for the hardware device to store Ethereum, you will better choose between Ledger and Trezor in case you can afford them, of course.
MyEtherWallet
And here is the main Ethereum wallet, and not because it is the best one, but because its main purpose was to store ETH only.
The storage was launched at the beginning of 2015, so the team behind it is very experienced already. Now the tool supports more than 30 different coins.
I like this tool because it allows its users to buy Ethereum with a fixed 1% commission - not every service offers it, and today it is very convenient.
More information about this storage you can find
here.
MetaMask
This service is not reviewed by Safetrading but we decided to put it here because it has a huge amount of satisfied users, so let’s see what is so special about this wallet.
MetaMask is cryptocurrency storage that works as an extension for Firefox, Google Chrome, and Brave browsers. It allows users to:
- store and transfer digital coins that exist on the Ethereum blockchain network: Ethereum, ERC-20 tokens, and ERC-721 collectibles;
- interact with smart contracts and decentralized applications (DApps);
- work with cryptocurrency exchanges and Defi services - decentralized financing through which traders can build lending relationships with digital funds.
The program does not guarantee the security of data and transfers all responsibility for storing coins to the user as every non-custodial service does, providing a mnemonic phrase and access to the private keys of the storage.
Coinbase Wallet
Coinbase online Ethereum wallet is the simplest service on this list. This is both an exchange and storage, which allows you to buy Ethereum, Bitcoin, and Litecoin with fiat currencies and keep your coins safe.
Since private keys are stored on platform servers, you do not have full control over them. We will remind you one more time - all the wallets presented by exchanges are custodial, which means they store all of the data, including private keys, on their servers.
Exodus
People who read our Exodus review, know that we adore this service for its cool and user-friendly design.
Except for it, the storage has a lot of useful functions, and, of course, supports Ethereum, so as 110+ other coins. It can be downloaded to your mobile phone or laptop/PC.
The program offers the Exchange feature. The process of exchanging one crypto to another is held with the help of ShapeShift.
Here is the information for people who want to have additional funds protection while working with Exodus:
It is compatible with Trezor.
Trustee
Trustee is the young but very convenient storage. This Ethereum wallet is very good for people who prefer to have every-day transactions, so as to exchange crypto.
The storage supports many cryptocurrencies, including Ethereum, and popular tokens like USDT ERC20 and USDT TRC20.
Among the advantages of the tool are:
- the possibility to buy and sell crypto using VISA or Mastercard;
- low fees on depositing, withdrawing, and exchanging of coins;
- user-friendly design;
- very fast and good support.
Atomic Wallet
The multi-currency desktop service Atomic Wallet has versions for all known desktop operating systems: OSX, Windows, Debian, Ubuntu, Fedora. There are also mobile versions for iOS and Android.
Atomic ETH Wallet supports over 300 cryptocurrencies and tokens and, of course, it works with Ethereum. This tool securely stores private keys in encrypted form and they never leave the device, because the service is a non-custodial one.
One of the features of Atomic ETH Wallet is an atomic swap between blockchains, which means exchanging one coin for another without intermediaries, which saves you money. For those pairs of coins that do not have an atomic swap, the service can offer the familiar to you ShapeShift.
Edge
Edge is good mobile storage and trusted security provider for crypto traders. Available on iOS and Android devices, this app will allow you to buy cryptocurrency, including Ethereum, with fiat money within the app. That is, you can use your own money to buy cryptocurrency, rather than exchange cryptocurrency for cryptocurrency.
The app also boasts the ability to buy 30 different types of cryptocurrencies on its merged exchange. Security is of utmost importance to Edge, which is commonly used by other online sites as an authentication system and includes automatic backups.
But you should not forget that online wallets are vulnerable to hack attacks, and a lot of security things depend on you as well.
Jaxx
One of the last but not the worst representatives of Ethereum storages is Jaxx.
Jaxx Liberty is multi-currency storage for digital coins that is popular among users. The service can store over 80 different coins, including Ethereum, that can be traded and exchanged on the built-in exchange.
You can use the tool on different operating systems - Windows, Linux, Android, IOS, browser extensions.
According to our data and users’ reviews, Jaxx has some important drawbacks:
- The storage was hacked before, and this fact calls into question the security of the service;
- Jaxx has high exchange fees, so for most users, it is absolutely unprofitable to exchange one crypto to another using this service.
ETHAddress
And finally, let's talk about another popular and safe type of wallets - paper.
If you are well versed in paper storage techniques, then trust us that ETHAddress is the option for you.
ETHAddress is an open-source project that allows you to create private and public keys with a single click. Then you can print them out on paper and put them in a safe place.
This is a great option if you want to store Ethereum for a long time. But if you lose the paper, then all the money will disappear.
If you want to add another layer of security, you can encrypt the private keys.
Summary
The market offers a lot of storages that work with Ethereum, but quantity does not always mean quality. You need to pay attention to the following moments while looking for the best Ethereum wallet:
- the service has to be secured and to have an experienced team of developers behind it, because they are people who will solve all the problems;
- fees should be at least average on the market because it will be not profitable to lose $100 while exchanging $1000 in Ethereum to Bitcoin or Litecoin;
- never forget about the ease of use - all of the features and functions should be understandable for you, so you do not make mistakes during making transactions;
- always check the users’ reviews because they can show you the real experience, and may warn about some problems that are not visible at once.
I suppose you have the following questions now:
You guys wrote about plenty of wallets, so which one is the best for you?
Here you go:
- if you do every-day transactions, we recommend you to choose hot, non-custodial and mobile or online storage;
- if you store big sums and want to have high security and are ready for not simple use, you can choose hardware or hard desktop storage;
- if you are planning to hold crypto for a very long time, the paper tool will be the best choice for you.
There are different types of wallets, so you can always choose the best Ethereum wallet considering your kind of activity and the quantity of cryptocurrency that you are planning to store.
However, if you are only getting familiar with the world of cryptocurrencies, we recommend turning to the
following article,
where you will find information on providers, crypto signals, and much more.
We are sure that after reading today’s article you can start writing your own Ethereum wallet Reddit posts and to become real ETH experts!