Cryptocurrencies have been gaining popularity these recent years; hence a subsequent demand in the wallets that store the currency ETH is rising. Ethereum is one of the popular cryptocurrencies whose demand is growing daily.
Ether (ETH) is the digital currency used in Ethereum. Ethereum is a blockchain platform whereby investors can monetize, create, modify, or use Ether. Investors will need an Ethereum wallet to store their digital currency and make transactions.
Since there are several wallets, like the ones from this site, you need to know which ones are the best and how to use them. It will help you choose the best Ethereum wallet for your needs.
If you’re thinking of joining the world of cryptocurrency and feel like you’re not well informed, you’re in the right place. This article provides the knowledge you need about Ethereum wallets and storing ETH.
What are Ethereum wallets?
Before you start storing ETH, it’s essential to understand what Ethereum wallets are. Ethereum wallets are hardware or software pieces allowing users to interact with the Ethereum blockchain. By having an Ethereum wallet, you can manage your account, track the transactions of funds you send and receive, and balance it. However, you need an Ethereum address to perform these transactions. An Ethereum address is a string of numbers and letters that usually start with ‘Ox’ and is used to connect users.
Here are the steps to storing your ETH in an Ethereum wallet:
Step 1: Know the types of Ethereum wallets
As stated above, there are various Ethereum wallets. Therefore, you first want to know the different types of Ethereum wallets available in the market.
The difference comes from their sizes, features, and shapes. You can choose to have a cold or hot wallet.
-
Hot wallet
Hot wallets allow you to keep your keys on the internet, access your funds effortlessly, send or receive funds, and perform other operations. However, hot wallets have disadvantages, such as not being suitable for storing large amounts of cryptocurrency because they can be hacked easily.
-
Cold wallet
While cold wallets need to use hardware storage to store your key, offline, they’re more reliable and secure. You can also use them to store large amounts of currency.
Moreover, there are three major types of cold wallets: hardware, software, and paper. Hardware wallets keep keys on physical chips found in devices, while software wallets are used to store keys in data files that you can easily access. Lastly, paper wallets have keys printed on paper.
Based on the advantages and disadvantages of both wallets, it’s best if you use both. You can use cold wallets to store your currency for a long while you use hot wallets to meet your short-term obligations.
-
Ethereum software client
You also need to decide which type of Ethereum software client you’ll be using. You can choose web wallets, desktop wallets, or mobile wallets.
A web wallet is a wallet software that you use a web browser to access. Desktop wallets are the ones that run on a computer. Microsoft Windows, Linux, and macOS are used in desktop wallets. Mobile wallets are Ethereum wallets that can be used on mobile phones. Android and iOS are the operating systems that are used in mobile wallets.
In addition, there are other types of wallets that you can use. These wallets include:
- Metamask
- Trezor One
- Exodus
- Ledger Nano S
- Coinbase
- Electrum
- Mist
- Atomic Wallet, and many more.
These wallets have different features; you can choose which one seems best for you after understanding what they offer and how they’re operated.
After choosing the type of wallet you’d like to use, you should proceed to create an ETH wallet.
Step 2: create your Ethereum wallet
The process of creating a wallet differs depending on the wallet chosen. For instance, the following is a procedure for setting up a MetaMask ETH wallet:
- The first step is using your browser to find the official site of MetaMask.
- After finding the official MetaMask website, click the download button.
- You’ll be directed to the download page, where you’ll be required to select between Android, iOS, and Chrome.
- If you choose Chrome, you’ll again be directed to Google Chrome, where you’ll have to add an extension.
- After completing these steps, you’ll be welcomed to the MetaMask site and be provided with the option of creating your wallet.
- You will need to come up with a strong password that you’ll use for your wallet’s safety.
- Next, you should reveal your recovery phrase and note it down. You’ll need this recovery phrase when trying to access your wallet using another device.
- The last step is confirming your recovery phrase by entering it on the site and clicking on the confirm button.
Step 3: Fund the Ethereum wallet
After choosing the wallet to work with and setting it up, the next thing you should do is fund your ETH wallet. It would be best if you had Ether to interact with other users. You can buy Ether on centralized exchanges and withdraw it to your wallet. However, you should note that every transaction you make on Ethereum involves a transaction fee. This transaction fee is used to pay network validators who maintain the integrity of Ethereum. You can use the funds you have to make various transactions on Ethereum.
After funding your wallet, you can use the funds to trade by either sending or receiving Ether. You will need your wallet’s receiving address to carry out these transactions. For example, you’ll have to provide a sender with your receiving address if you’re the one receiving funds, and the opposite applies the other way around.
Step 4: Make sure your Ethereum wallet is safe
It’s vital to ensure that your wallet is safe. You can ensure the safety of your wallet by confirming whether you have the correct addresses, bookmarking your web wallet, and noting down private keys.
In addition, you can opt to store your recovery seed offline. Recovery seeds are also known as seed phrases. These seeds are a sequence of twelve or twenty-four words used as a backup for your wallet. In addition, you should write down your seed phrase on paper and avoid storing it on any digital platform. It is because hackers might manage to access it. By doing so, you can protect your funds and, thus, prevent hackers from stealing them.
Wrapping it up!
In conclusion, it’s crucial to have basic information about Ethereum wallets before storing your ETH. First, you have to find a reliable Ethereum wallet to store your ETH. There are various types of wallets that you can choose from in the market. Once you have selected your wallet, set it up and fund it. Lastly, ensure that the wallet is safe from hackers. If you have been wondering where to start with storing Ethereum, consider following the steps detailed in this article. All the best as you begin on your cryptocurrency journey!
