Currently, Ethereum is second only to Bitcoin in market cup. This has attracted many investors to it. This in turn has created an overwhelming demand for Ethereum wallets that are very secure. A secure cryptocurrency is wallet should have the following features:
- Compatibility – This means that it should be compatible with various operating systems.
- Security and backup – This means that it should have backup and restore features.
- Development community – The wallet’s development community should be very active.
- Usability – The user interface should be elegant to promote ease of use.
- Private keys – The wallet should allow the user to have control over their private keys.
Such features secure coins.
Generally, there are 4 types of wallets, these are:
These are pieces of paper that have private keys. They have a high risk especially when the piece of paper gets misplaced. This is because the chances of accessing coins in future are slim. Paper wallets are not good for Ethereum because of the lack of worthwhile options.
These are simply downloaded and easily installed on computers and laptops. However, once it is installed the wallet will only be accessible through that particular computer.
These exist on online platforms. They are regarded to be quite secure but their exposure to the internet limits that security to some extent. Online wallets can be utilized on numerous devices.
These physical wallets have the private keys of the users encrypted in them. Hardware wallets have the highest level of security. This is because it enables users to store cryptocurrencies offline (cold storage) where they are not accessible to vicious online hackers.
The best Ethereum Wallets
The following are some of the best Ethereum wallets available on the market:
It is a desktop wallet and the leading desktop wallet to accommodate multiple cryptocurrencies. It has a clean user interface that resembles a pie chart and is seamless in operation. It always has an internet connection but does not access the private keys of the user from their device. In addition, it features one-click email recovery as well as backup seed keys that simplify the restoration process of a wallet. It allows for easy cryptocurrency trade compared to the lengthy process of hardware wallets.
Ledger Nano S
This is a highly rated hardware wallet. This is because it has good compatibility, security and backup, an active development community, an elegant user interface and it allows for control over private keys. It is equipped with a tiny OLED screen that simplifies transactions. It facilitates the offline storage of ether and prompts users to use their private keys in signing transactions to spend ether. There is a 4-digit PIN that users can set on the Ledger Nano S, this is an additional element that has been incorporated to avoid keylogging.
It is not just a wallet, MetaMask browser extension allows users to operate Ethereum dApps directly in their browsers. It achieves this without running a complete Ethereum node. Its availability is currently limited to Chrome browser or the Brave browser. The account information of the user is locally stored on the user’s browser but is encrypted. Furthermore, the user is in full control of their private keys.
This hybrid desktop wallet features a web interface. It is still in beta thus a few issues might arise when utilizing it. This wallet is available on Windows, Linux and Mac. It provides protection to wallets via an unchangeable password. It offers complete anonymity. Mist allows users to have full control of private keys that are held on the device used in downloading it.
It is a software wallet that is available on Chrome (extension), Linux, Windows, OS X, iOS (mobile and tablet) and Android (mobile and tablet). It features an intuitive interface and is easy to use. All keys are generated on the local device and are not sent to servers. This means that the company lacks access to the user’s funds. It is the ideal wallet in regard to privacy.
This is an open-source type of web wallet. It is different from traditional web wallets because it grants the user full control of their private keys on their computers. This allows them to create new wallets for the storage of ether but not necessarily on the servers of MyEtherWallet. It is a great product because it enables users to write smart contracts and access them. Check out this crypto intro.
The above list is not exhaustive as there are many more Ethereum wallets. It is advisable to keep up with the latest security in Ethereum wallets to protect your cryptocurrency investment.