What is an Ethereum wallet and how does it work?

Node Ethereum (ETH), the wallets are objects fundamentaljust like with Bitcoin or any other cryptocurrency. They will serve as ways of store and transfer your ETH. Therefore, choosing a good ETH wallet It is essential so that you do not have problems when making transactions.

Every wallet works like a softwarea program that saves the possession of the ETH that are under the control of that address. They have public addresseswhich are used to receive cryptocurrencies, and private addresseswhich are used to send them. They also store the record of all the transactions made on the blockchain with those addresses.

However, ETH wallets are not just for storing Ethereum tokens. As we saw in the text about the What is Ethereumits blockchain allows other applications. Therefore, wallets also serve to store ERC-20 tokenswhich are tokens originating from other projects created on Ethereum.

Therefore, knowing what the best wallets for ETH requires a little more study and patience. In this text, we will learn about the differences between ETH wallets, the types of wallets and which are the best for each objective. And, of course, indicate which are the main wallet options.

Ethereum Wallet and its types

An Ethereum wallet, like a Bitcoin wallet, has different types and functions. It can also be used in several devices different – ​​or even more than one. In Ethereum, there are two major categories of portfolios in which five are distributed types of devices. The categories are below, followed by their respective types:

Hot or online wallets

• Desktop Wallets: A desktop hot wallet is usually used on a website. As the name suggests, the wallet is connected to the internet, which makes it easier for hackers to break into it, for example;
• Mobile wallets: mobile wallets are those available for smartphones in the form of an application and, although they are a little more secure than desktop wallets, they also present the risks of internet connection;
• ERC-20 wallets: These are the wallets required to transfer Ethereum and tokens based on its blockchain. ERC-20 is the name given to the token standard issued on the Ethereum blockchain, but which is not Ether.

Cold or offline wallets

• Paper wallets: A paper wallet is when the keys to an Ethereum wallet are recorded on paper. Although they are secure because there is no internet connection, the risk of paper wear and tear and the effects of time can cause the cryptocurrencies to be lost;
• Hardware Wallets: Considered by experts to be the safest, hardware wallets store investors’ assets outside the internet and on a physical device.

Online wallets

To the online wallets they are applications or computer programs, which have an internet connection. These wallets are more suitable for everyday use, for example, when spending your cryptocurrencies. They are also called hot wallets (in English, hot wallets). The main examples of these are wallets mobile and desktop. These are the most common hot wallets on Ethereum:

MetaMask

THE MetaMask is a hot wallet that works like a extension from the browser. When installed, it runs directly in the browser, like the Chrome or the Brave Browser. It allows you to store ETH and ERC-20 tokensin addition to other tokens originating from smart contracts. Its use is quite practical and safe and it has mobile versions for Android and iOS.

Jaxx

THE Jaxx Liberty is another wallet that serves both desktop as for mobile. It is a device that allows the storage of various cryptocurrencies, including ETH. Although no allow to save ERC-20 tokensit is an excellent option for those looking for safety and practicality. It is also available for Android and iOS.

Trust Wallet

THE Trust Wallet is another good option for storing ETH, being exclusively for use in smartphone. In addition to storing and enabling transactions, the wallet offers the option of buy and sell cryptocurrencies directly on your device. This eliminates the need to open an exchange account and allows for more privacy without compromising device security. Available for Android and iOS.

Cold wallets

Unlike hot wallets, cold wallets are made to possess little or no contact with the internet. These devices store cryptocurrencies in an extremely safevirtually attack-proof hackers. In the case of ETH, there is a specific wallet (MyEtherWallet) which is both “cold” and “hot”. Here are the top cold wallets for ETH.

Ledger Wallet

THE Ledger needs no introduction, as it is one of the best-known manufacturers of cryptocurrency wallets. Its devices are among the most insurance and reliable on the market. It works on computers and has support for ETH and more than 1,500 cryptocurrencies and ERC-20 tokenswhich makes it a true digital bank to store your cryptocurrencies safely.

Trezor Wallet

Ledger’s main competitor, Trezor was the first hardware wallet to be created. It also works on your computer and offers security for the use of your cryptocurrencies. Its support is also broad, allowing you to store ETH and more than 1,000 cryptocurrenciesincluding the main ones ERC-20 tokens.

MyEtherWallet

THE MyEtherWalletalso called MEW, is a rather peculiar wallet. It is a paper walletbut it can also be used as a wallet onlineas it has versions mobile and of desktop. It allows you to save ETH and the ERC-20 tokens and also be able to access and transfer them whenever you want. Both the paper version and the online version are quite secure. It can be found in mobile versions for Android and iOS.

Be careful when handling your wallet

One of the main slogans of cryptocurrencies is: “be your own bank”. With wallets, you no need a enterprise to save your money. However, this advantage also comes with a great responsibility. Knowing how to take care of a wallet is essential. Therefore, here are some tips: tips to improve the security of your device, whatever type it is:

• Never leave your password or private key close to where your wallet is. Whoever has access to both can steal all your money;
• By doing the download of online wallets, be careful. Always look for the official links both from wallet websites and app stores. Avoid clicking or opening links falseas they can steal your cryptocurrencies;
• Hardware wallets may be tough, but their passwords no. And they cannot be recovered. Therefore, avoid writing down words and passwords on pieces of paper. Record them on some material resistantlike stone or metal;
• Never I left your cryptocurrencies stored in exchanges. These platforms can be hacked and your money stolen. Only leave on them what you will use to carry out your operations.

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