Ethereum is a decentralized platform that runs smart contracts. These contracts are written in codes into a blockchain between two or more parties, which helps in exchanging content, money, properties, share, or anything that has a value and these details are stored on blockchain ledger in a transparent way.
What is an Ethereum Wallet?
An Ethereum or a cryptocurrency wallet allows users to easily store and manage public and private keys. These wallets can also store various types of cryptocurrencies, perform transactions and check balances.
How Do These Wallets Work?
A digital currency wallet is different from the conventional wallet as digital wallets do not store a physical form of currency. An online blockchain ledger helps users to interact directly with the blockchain and then enables them to send and receive digital currency – making transactions. When someone transfers Ether coins, they are transferring their ownership of these digital coins by sharing them to another person’s wallet. Kept in these wallets are private keys. To unlock the coins (send coins), each unique public address and private address (keys) contained in the wallets, should match. This transaction is then logged or shared on the blockchain.
Hardware wallets are similar to USB devices and they can be plugged into a computer to perform transactions. These wallets offer excellent security as they are not connected to the internet.
Trezor is a hardware wallet which is designed to store bitcoins offline. With high flexibility and enhanced security, Trezor holds private keys and signs a transaction without an internet connection. Trezor is connected to a computer just like any other USB and has an ability to work efficiently both online and offline. This portable device gets activated by logging in with an appropriate password and makes secured transactions. These transactions occur between a computer and the wallet and vice versa. This light device interacts safely with infected computers too. The price of Trezor is around $99.
Ledger Nano S is another popular hardware wallet that stores private keys. Once the device is setup, a user can choose a password to protect it from unwanted access. This lightweight wallet has a design similar to a conventional USB and it provides a small OLED screen and a user-friendly interface to make transactions visible and easier. Ether coins are stored offline in the Ledger Nano S wallet and it allows the user to sign off on transactions with private keys. Creating a “recovery seed” is another important feature offered by Ledger Nano S, which helps to recover the coins in case a wallet is lost or misplaced.
It supports the storing of various cryptocurrencies, which include bitcoin, Ethereum, Ethereum classic, Litecoin, Dogecoin, Zcash, Dash, and more. It is available at a reasonable price of $65.
KeepKey is a simple cryptocurrency hardware wallet, which stores Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Dogecoin, Dash, and Namecoin. KeepKey generates a private key by using its hardware-based random number generator. Each transaction on KeepKey must be approved manually using a confirmation button. KeepKey is designed for secure offline storage, while the small screen displays every digital transaction. KeepKey is designed to be compatible with PC, Mac, Linux, and Android.
Software wallets are available in three types – mobile, desktop, and online wallets.
Exodus is a multi-cryptocurrency desktop wallet with appealing features and an interactive user interface. Exodus stores private keys on machines and is not shared on an external server. Exodus is designed to be compatible with Mac, Windows, and Linux. Though Exodus is not completely an open source, several components within Exodus are open source. Exodus uses ShapeShift platform, which offers a built-in exchange of altcoins for bitcoins. This desktop wallet helps users to buy coins with fiat. Bitcoin, Ethereum, Dogecoin, Dash, and Litecoin are some of the cryptocurrencies accepted by Exodus.
Coinbase develops and supplies both Ethereum and Bitcoin wallets. It offers an easy-to-use platform and supports the selling, buying, and exchanging of cryptocurrencies. It has set few limitations: the private keys are hoarded on Coinbase server and users are not in control of funds, Coinbase can shut down any account anytime, Coinbase Ethereum wallet do not store Ethereum Classic (ETC). It is less expensive.
Once an account is a setup with Coinbase, an ETH wallet appears under the “accounts” tab. A user can enter ETH account and click on “wallet address” to get Ethereum public address.
Jaxx is an advanced software wallet that stores various cryptocurrencies. Jaxx doesn’t store private keys on its server but on the machine. This Ethereum wallet software is designed to be compatible with platforms like Android, Mac OS, Windows, Chrome (extension), iOS, and Linux. Focused to provide enhanced security, users of Jaxx are allowed to create a new address for every transaction. Jaxx is not an open source platform but the wallet’s website provides code freely for all users. This rich user interface helps novice users to use Jaxx without any difficulties.
Paper wallets are perfect for individuals who prefer to keep their Ether as “cold-storage”, which means these are not connected to the internet, and stored safely and need not have to worry about market fluctuations.
MyEther wallet is a unique web wallet, which operates on open-source and is used for physical storage purposes. Ethereum paper wallets are recommended due to its enhanced security for storing cryptocurrency safely. MyEther Wallet safely records Ethereum wallet’s public and private keys, which are used to access wallet and make transactions. As soon as a user generates a wallet on the website, it creates a public-private key pair, which is password protected. This key pair can be downloaded for further uses. Transactions of bitcoins can be through website or combining other wallets Trezor or Ledger and by uploading the key pair.
ETHAdress is a cold storage wallet, which means it creates Ethereum paper wallets. It generates both public and private key pair, which needs to be printed and stored in a safer place to avoid being hacked. Another option is to encrypt private keys to protect bitcoins and a password is required to decrypt to use these coins. ETHAdress is one of the most secure methods to store Ethereum. To send coins, one must import the keys to an online wallet to make it active and use it for a transaction.
Ethereum has been on the market for a few years. As Ethereum’s price is rising constantly, cryptocurrency experts are expecting more revolution in Ethereum wallets and exchanges. To save coins from hackers and protect wallets, an individual must have a constant backup for Ethereum wallets, upgrade the software frequently, and need to keep updated with the latest security measures.
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