A Guide Into Choosing an Ethereum Wallet
By Space Coast Daily // July 15, 2021
An Ethereum wallet is an application that allows users to interact with their Ethereum account. It is akin to an internet banking app – but without the bank. The wallet allows the user to view balance, see transactions through, and connect to applications.
Cryptocurrency is unique as it is decentralized. What that means is that there seems to be no single point of failure. Besides this, there is no single point of attack for anyone with an illicit agenda to harm the users or the network. This ensures the strong security of the system itself. This is similar for the users – only if they store their coins properly.
Getting a wallet is important
A wallet is needed to send funds and manage your ethereum account. In other words, you can swap wallet providers at any time. Many wallets will also allow you to manage several Ethereum accounts from one application.
In the crypto world, security of funds and details is of high priority. In the real world, people are often careful about how they treat their top valued items. This is no different in the digital world. For instance, when a car owner leaves his car on a busy street, he locks it up, ensuring its security. Similar to this, when you enter your card pin number at an ATM, you ensure it is hidden from other people.
Security in cryptocurrency is the user’s responsibility and it is essential. There is no bank customer support system to call if the security is breached. In the world of cryptocurrency, once the coins leave a wallet, they are gone forever. That is the reason why the best Ethereum wallets are very secure.
Choosing the right Ethereum Wallet
Much like in the Bitcoin system, the importance of security cannot be stressed enough when it comes to choosing the right cryptocurrency wallet. With that in mind, some of the types of ethereum wallets will be discussed below:
Currently, paper wallets have become one of the best wallets for long-term storage. When they are designed properly, they are offline and impossible for anyone to hack. This great level of security that Ethereum offline wallets provide ensures that they are great for storing large amounts of cryptocurrency for the long-term.
It does not stop there. Before choosing where to store the wallet, it is important to note that the Ethereum paper wallet has its security weakened by fire, water, other people, and you. Storing more than one copy of the paper wallet seems wise. Also, if someone else can see the private key, it can be used to access the Ethereum. Because of this, it is best to hide it in a safe spot. It is also important to remember the code to the safe where the wallet is kept.
The paper wallets are very secure once they are properly set up. Besides this, they are also ideal for storing huge amounts of Ether and they are completely free. However, the major downside of using paper wallets is that they are difficult to be used again and again.
Ethereum online wallets are those that can be found on centralized services, including cryptocurrency exchanges. They are useful for those trading on digital currencies and little else. It is only wise to keep funds for as little time as possible in an online wallet.
There are several types of online Ethereum wallets. These include Binance, Coinbase, Kraken, and Bittrex. It is good for traders and can help in selling a position really quickly. However, one of the major shortcomings is that with an online Wallet, users do not own their private keys. Consequently, they do not own their Ether.
Some cryptocurrency users prefer to store their Ether on a mobile wallet. This provides an easy option for storage as users can often use their Ether once they are away from their computer.
However, the major downside associated with mobile wallets is that they are only as secure as the mobile phone itself. Both Ethereum wallet android and iOS Ethereum wallets are readily available.
Before trading Ether, there must be a safe place to store it. In cryptocurrency, that place is a wallet. It ensures the easy storage of funds, quick transactions and checking of balance at any time.
Furthermore, Ethereum wallets work in different ways compared to how conventional physical wallets do. Ether is not stored in your wallet, or anywhere else for that matter. Instead, Ether, just like any cryptocurrency, does not exist in any tangible shape or form. All that exists are the records on the Blockchain, and the wallet will only interact with the Blockchain to ensure transactions.