Ever since the rise of cryptocurrencies such as Ethereum, there has been an exponential increase in the number of cryptocurrency wallet apps. These types of wallets are typically free and accessible through your smartphone. However, these wallets also come with a variety of features that you should consider before deciding on which one to use. This article will explain some of the most important features and struggles that users have in day-to-day use so that you can decide on what type to use more easily.
Ethereum is a decentralized blockchain platform for applications (smart contracts) that operates using Ether – a crypto token or cryptocurrency used by Ethereum. The first-ever software application built on top of Ethereum was the decentralized crowdfunding platform known as “The DAO”. This was a success and it managed to raise over $150 million in the pool called “The DAO”. However, before an independent Ethereum application could launch, an exploit was discovered that allowed the hacker group to steal half of The DAO’s funds. This was a giant blow to Ethereum’s credibility.
The aftermath left users with a sour taste in their mouths. They felt that Ethereum developers were malicious and took advantage of their trust for personal gain. However, this issue didn’t have to deter users from using Ether or Ethereum apps. In fact, the rise of Ethereum gave users more freedom to code their own applications that could have a positive impact on the platform(s) and benefit them in the process.
This was followed by an exponential rise in the number of cryptocurrencies and cryptocurrency wallets. These types of wallets are typically free and accessible through your smartphone (IOS and Android). The most important thing about using these wallets is that you will be able to access your Ether wherever you go! However, these wallets also come with a variety of features that you should consider before deciding on which one to use. This article will explain some of the most important features and struggles that users have in day-to-day use so that you can decide on what type to use more easily.
Ethereum wallet types:
There are two main types of Ethereum Wallets, and in this article, we shall be focusing upon these two.
The first type is known as an “online” or “hot” Ethereum wallet. This type of Ethereum wallet is the easiest to set up because it doesn’t require you to download any software or apps on your phone or computer, and you can access your Ether right away. This is sometimes called a “hosted wallet” because it is hosted on a central server, and the Ether can be accessed from any device that has access to the internet. However, this also means that you have little to no control over your private key and therefore your Ether. These wallets are provided by third-party services like Coinbase or Coinpayments.
The second type of Ethereum wallets is known as “paper” or “cold” wallets. These types of wallets are not connected to the internet, which means they are not vulnerable to hacking. This also means that you will need to download an app or program onto your phone or computer in order to use these types of Ether wallets. This is because the private keys are stored on your computer, and in order to access these Ether, you will not be able to transfer them onto a third-party service.
Due to their significant rise in popularity over the past couple of years, online wallets have become the go-to choice for investors new to cryptocurrency. These types of wallets are easily accessible through your smartphone and they store your Ether in a secure environment. Your funds are protected by private keys that are known only by you, which prevents malicious software from stealing your funds. Online Ether wallets also allow easily transferring funds between different accounts and even buying/selling Ether directly through your Ethereum wallet account on certain websites. The main advantage of online Ethereum wallets is that they are a lot more convenient and easy to use, however, the main disadvantage is that you don’t have access to your funds if you need them right away.
Paper Ether wallets are known as cold wallets because they are not connected to the internet. Due to their high level of security in comparison to hot wallets, paper Ether wallets are becoming more popular among cryptocurrency investors with large amounts of Ether. However, paper Ethereum wallets require users to download software on their computers or smartphones in order to access their funds and begin trading. This is the biggest setback for new investors who often want a quicker way to get into the market.
How to choose:
Don’t get confused by the various options that you have, and don’t be guided by the hype that some companies are trying to push you. The types of Ethereum wallets available range from free to very expensive ones. In fact, some of the most expensive types of Ethereum wallets even charge a yearly subscription fee for their service when you use them on a regular basis. One thing is for sure, there is no one perfect or ideal way to store your Ether on your smartphone or computer. It always depends on what you want to use them for, and this is why knowing the features of each wallet will be very handy for you. In this section, we shall explain some of the greatest features that are available in each type, as well as what they can do for you or how they make your life easier.
Cold wallets have the utmost level of security, but it comes with a drawback. The main setback about these types of Ether wallets is that if you don’t need to make a transaction immediately then you might have trouble finding a place that supports them. Although there are apps available for almost everything, it is important to check if your application supports cold Ether Wallets before purchasing any type of Ethereum wallet.
Online wallets are the most convenient type of Ethereum wallet to use, but you do not have control over your private keys. You also can’t send and receive funds right away, and in order to make an order on some websites, you will need to download a software or app. However, you can easily access your funds no matter where you are by having multiple accounts in various forms.
Hot wallets are similar to online Ethereum wallets, but they are connected to the internet. This means that if your device is hacked or someone tries deleting your private key; the hacker would still have access to all the Ether that you had stored in your account.
Because of these drawbacks, it is highly recommended that all users use cold wallets for storing their Ether. As for choosing a particular type, it all depends on the type of wallet you want to use. We have already explained what each type can offer, but in order to help you decide which is the best, we shall provide you with some of the most important features.
The main selling point of paper Ethereum wallets is that they are completely safe and don’t require you to download any software or app on your computer or phone. For this reason alone, paper wallets are better suited for long-term storage compared to online wallets and hot wallets.
Another great feature of these types of wallets is that you can send and receive funds easily. This is because you do not have to create any accounts in order to achieve this and this also minimizes the risk of sharing your private keys. Although it requires a bit more time, each transaction can be done the old-fashioned way.
Although paper wallets offer a high level of security, they are also somewhat complicated when it comes to storing Ether, but they are still useful for some users since paper wallets provide good anonymity and flexible access for everyone.
Hardware wallets are often considered the safest way to store Ether. These wallets operate as flash drives that you plug into your computer or phone, but unlike them, these wallets are completely offline. This is one of the most important features that make hardware wallets very popular among users who want to get started in the crypto world.
By being offline, the risk of hacking or malware attacks is reduced, and since you cannot connect these devices to your computer; it becomes impossible for hackers to access them remotely. Another great thing about hardware wallets is that they can store a wide range of digital assets including Bitcoin and Ethereum.
Popular Hardware Wallets
I personally use the Ledger Nano S. This is a very popular hardware wallet and you can find it both online and in physical stores. It comes with a USB cable that allows you to connect the wallet to your computer or phone.
If you’re interested in getting one, I would definitely recommend getting at least the most basic version since it’s rather inexpensive at $65 (cheaper if you buy directly from their site). If you want to get a more advanced version of the Ledger Nano S, it will cost $125. The device works well for storing Ether as well as other tokens like Bitcoin or ERC-20 based tokens.
The device takes a small amount of time to sync with the blockchain and requires a PIN code for each transaction. The process is very easy and it only takes a couple of minutes to get through the initial setup process.
Moreover, if you are looking to store Ether in paper wallets, you have to make sure that you are storing them in cold wallets.
Best Ethereum Wallets For Mobile Devices (iPhone, Android)
- Coinomi (Mobile Wallet)
Coinomi is one of the leading cryptocurrency mobile wallet apps around. It is available for free on android or iOS smartphones and is used by over 3 million users worldwide. The app is secure and very easy to use. It is a multi-asset wallet that supports both Bitcoin (BTC) and Ether (ETH) as well as numerous altcoins. The wallet also has two primary functions: it is a cryptocurrency exchange and an e-commerce payment solution. It doesn’t require users to create any accounts or enter additional information, all that the user needs to do is download the app and start using it.
The Coinomi wallet protects your private keys using industry-standard encryption practices, it also offers two-factor authentication (2FA), which prevents your account from being hacked/stolen on a compromised device or even one infected with malware. The wallet also has a built-in exchange feature, which allows users to directly trade Bitcoins and Ether for any type of altcoin that the wallet supports without having to complete a withdrawal.
Although Coinomi is often considered one of the most secure wallet apps in its class, it is not without its drawbacks. One of these is that users cannot access their funds if they need them right away. Since the Ledger Nano S doesn’t have an iOS app and doesn’t support Apple Pay, you’ll have to manually input your private key or scan a QR code when sending money. So, if you want to be able to access your funds on demand then you should go with the Ledger Nano S instead.
If you want to check out Coinomi, here is the link: https://www.coinomi.com/
- ETH Wallet (Mobile Wallet)
The ETH Wallet app is developed by the Ethereum Foundation and has the support of all other popular Ethereum wallets such as MyEtherWallet (see above), Mist, and Parity. It allows users to send, receive, and store Ether on their smartphone or computer. All of your funds are secured using private key encryption techniques that make sure that none of your money leaves your device unless you want it to. This way, no one can hack into your account and steal it without any possibility of recovering it from unauthorized sources.
The interface is very easy to use for both new and experienced users and the developers also made it extremely convenient for users to exchange Ether for other altcoins. You can also quickly convert your altcoins back into Ether without any hassle.
The ETH Wallet app was released in 2017 so, it is still pretty new and most of the available cryptocurrencies are not supported by this app yet. However, its user base is growing steadily as more people start using the app to store their digital assets securely.
If you want to check out ETH Wallet, here is the link: https://www.myetherwallet.com/
- MyEtherWallet (Mobile Wallet)
MyEtherWallet is an open-source (free) cryptocurrency wallet for the Ethereum platform. It allows users to create Ethereum wallets that are compatible with their smartphones, computers, or online accounts. It is also considered one of the safest and most popular ways to store your Ether and other digital assets. The wallet is very user-friendly and people who have used it for a while say that it’s really easy to use and understand.
The primary feature of this wallet is that you can use it to access your funds from any computer or smartphone where you have an internet connection. Another great thing about this app is that it is open-source, so anyone can download and inspect the code.
The wallet also promotes its adoption by offering users a super-easy user interface that is really easy to understand even if you are new to cryptocurrency and Ether. The main selling point of this mobile wallet is that you do not need to enter any private information or create any login account in order to use it. This makes it very appealing to new users who are not experienced with Altcoins and other cryptocurrencies. However, the main drawback of this wallet is that it offers no security measures whatsoever. It is also important to mention that, unlike the Ledger Nano S, it does not have a recovery option and you can’t access your funds if your device gets stolen.
You can check out MyEtherWallet here: https://www.myetherwallet.com/
- BTC Wallet (Mobile Wallet)
BTC Wallet is another handy app for users who want to store Ethererum. It is developed by Bitcoin Suisse AG, which develops software that exchanges Bitcoin for other cryptocurrencies and fiat money in over 50 countries worldwide.
The BTC Wallet app is available for iOS and Android devices and allows users to store Ether on their smartphone or computer. The wallet also has a built-in exchange feature that supports dozens of Altcoins including Bitcoin, Dash, Bitcoin Cash, Bitcoin Gold, etc.
If you want to get this app click here: https://www.btcsuisse.ch/shop/en/btc-wallet
- Jaxx (Mobile Wallet)
The Jaxx wallet is one of the most popular password-protected digital wallets available for both Apple and Android devices. Jaxx is constantly being improved and has a lot of features. You can use it to store your Ether, but also to scan QR codes, send and receive Ether, or any other crypto asset. The wallet also supports 30 tokens including Dash, Stratis, and even Bitcoin Gold.
It has a very simple and user-friendly interface, which makes it easy for users to navigate even if they are new to the cryptocurrency world. It is important to note that Jaxx does not have any mobile application because it is available directly from the browser and doesn’t require you to install any app. This way you can have full control over your private keys since there is no need to store them on the cloud or in any third-party service.
Jaxx also offers support for 2-factor authentication, which makes it highly secure even though it is not as safe as the Ledger Nano S. That being said, one of the drawbacks of this application is that you cannot access your funds during the reset process of your private key.
You can check out Jaxx here: https://jaxx.io/
The right wallet app for you should depend on your needs and what features you are looking for in the app. We have presented some of the most popular and highly rated wallets, but there are also a lot of great alternative wallets that offer all the same features as those we have mentioned. You can always check them out by visiting their websites or reading their reviews, which are easily available online or on various discussion boards. The best part about Ethereum wallets is that you can choose from multiple types as per your preference and usage preferences and store them in any manner that works best for you.