Where to Store Etherium?
Ethereum is a popular asset among cryptocurrency investors. Some exchange users buy ethers for thousands of dollars. Such amounts in cryptocurrency coins need to be stored somewhere. Investors usually use digital wallets for this purpose. Some of them allow storing Etherium with minimal risk.
1. Characteristics of ETH
2. Types of storage wallets
3. Hardware wallets
4. Mobile wallets
5. Desktop wallets
6. Browser wallets
7. Optimal non-custodial vaults for etherium
8. A guide to using online wallets
9. Securing your savings
Characteristics of ETH
Ether or ETH is an Ethereum blockchain coin. It does not comply with the protocol of the cryptocurrency network: it is not its ERC-20 standard token. Because of this, Ether cannot be used in some decentralized applications (dApps). They require the use of Wrapped Ether – tokenized digital coins.
As of June 25, 2022, Ethereum has an average price of $1225. The cryptocurrency’s capitalization is $149 billion. The coin’s trading volume is $5.5 billion.
Types of storage wallets
There are five types of them:
The concept of hardware wallets is similar to the model of using paper-based cryptocurrencies. The former are only needed to record keys and digital numbers. They do not store coins within themselves.
Hardware cryptocurrencies are physical digital devices. They are only storage media. The devices themselves do not allow cryptocurrency transactions. Developers of such vaults usually create separate applications to access transactions. Software applications allow users to connect to the Etherium blockchain and operate their investments.
Hardware-based cryptocurrencies are considered the safest.
Their reliability is ensured by:
- Lack of Internet connectivity.
- The need to confirm transactions in the program used with hardware.
- Protective algorithms against attacks. Some devices have mechanisms for destroying data when tampering attempts are detected.
Examples of hardware crypto storage models:
- Trezor Model T
- KeepKey Wallet
These vaults belong to the category of software. They are downloaded and installed on clients’ phones. Usually developers of mobile cryptocurrency software create versions for iOS and Android operating systems (OS) only.
User wallet information can be stored:
- On developer servers. This is a custodial type of key storage.
- On users’ smartphones and tablets. This is the non-castodial type (more secure).
Mobile cryptocurrencies are convenient. They are stand-alone products. You don’t need hardware or third-party software to use them. That said, some of them allow you to store Ethereum securely.
Pros and cons of mobile cryptocurrencies.
|Mobility||Presence of phishing apps|
|Usability||The possibility of losing or breaking your phone|
Examples of mobile cryptocurrencies for Ethereum:
- Enjin Wallet
This type refers to software-based vaults. They can be downloaded and installed on personal computers (PCs). The developers of desktop crypto-purses often create three versions of software – for Windows, Linux, macOS.
Desktop cryptocurrencies come in a variety of forms. Non-castodial ones are considered the most secure. This is because of the high risks of custodial software clients being hacked.
Desktop vaults are usually used by users who spend a lot of time at their computers. At the same time, it is often more convenient for them to operate with cryptocurrency investments just via PC. This fact is due to the high resolution of the interfaces of desktop software.
Pros and cons of cryptocurrency software for desktop operating systems.
|User-friendly interface||No mobility|
|Non-castodial storage||Computers have no reliable protection against malware (except macOS devices)|
|Convenient investment management|
Examples of desktop cryptocurrency wallets for storing ethers:
- Atomic Wallet.
- Jaxx Wallet.
This type is often referred to as a web wallet. In technical terms, these are software wallets. Such cryptocurrency products do not need to be downloaded and installed. They are available in popular browsers: desktop and mobile.
Web wallets are often custodial. Their customers cannot manage their private keys and mnemonic phrases. Because of this, custodial solutions do not allow for secure storage of Etherium cryptocurrency. But there are also secure non-custodial web wallets. One example is MyEtherWallet.
In the cryptocurrency community, web wallets are considered the least secure. This is because of the low reliability of browsers and custodiality of many vaults in the category in question. Also, attackers often steal cryptocurrency from investors using phishing sites.
|Ease of use||Low safety|
|High working speed||Custodiality (often)|
|Easy registration||Low level of anonymity or complete lack of confidentiality of personal information (often)|
Examples of browser-based cryptocurrencies for ETH:
- CoinPayments Wallet
- Guarda Wallet
Optimal non-custodial vaults for etherium
According to the AroundCrypto.net editorial board, the top 3 cryptocurrency wallets for ETH for 2022 are:
- Trust Wallet.
Cryptocurrency wallet was created in 2016. The developer of MetaMask is ConsenSys. At first, the program was available only as a browser extension. Later the developers of the application created a mobile software compatible with popular operating systems.
The idea of cryptocurrency is to interact with dApps in the digital network of Etherium. At first, only this blockchain was available in the software. Later support for other virtual networks was added.
MetaMask allows you to work with 37 blockchains. The program supports tens of thousands of cryptocurrencies. Clients can add tokens inside the wallet.
Among the additional services available to MetaMask users are:
- Swap exchange
- A service for buying cryptoassets for fiat
Pros and cons of MetaMask
|Availability of mobile software||Many phishing sites|
|Open Source Software||No desktop software|
|Storage import function|
|A large number of blockchains and cryptocurrencies|
This wallet was launched in 2015. It was developed by Taylor Monahan and Kosale Kemachandre. At first, the crypto wallet was browser-based only. But by 2022, the developers released a program for mobile OS.
The idea of the web wallet is to work with Ethereum. At the same time it allows you to safely store ETH. After its release, MyEtherWallet became one of the first wallets with Ethereum support. Because of this, the developers of the vault did not increase the functionality of the software at first. However, by 2022, the cryptocurrency wallet’s capabilities were expanded.
MyEtherWallet supports 3 networks – Ethereum, Polygon and BSC. At the same time, clients of the program can store all digital assets from these three blockchains.
Among the tools available to MyEtherWallet users:
- Service for using applications of the Etherium network
- Option to buy cryptoassets for fiat currencies
Pros and cons of MyEtherWallet
|Translation of the interface for users from several countries||Low number of supported blockchains|
|Availability of storage versions for iOS and Android|
|Convenient program design|
Crypto Storage was created in 2017. The main developer is the programmer Victor Radchenko. His friends helped him with the project. The investor of the development was a fund from Binance. At the same time in 2022, the crypto exchange owns Trust Wallet. The wallet is supported only by iOS and Android.
The idea of the software is to provide customers with a convenient service for storing digital assets with open source software. The cryptocurrency wallet in question has competitors. However, Trust remains a unique program.
The software supports 53 cryptocurrency networks in the summer of 2022. In total, users can store more than 160,000 virtual assets. These include tokens of popular standards, such as ERC-20.
Trust customers have access to the following integrated services and investment tools:
- Browser for working with dApps
- Binance’s DEX connectivity service
Pros and cons of Trust
|Ease of use||No two-factor authentication (2FA)|
|Availability of service to connect to a decentralized exchange from Binance||No storage version for desktop OS|
|A large number of supported networks and cryptocurrency assets||No option to withdraw investments into fiat|
|Having a dApps browser||Translation to other languages only in the iOS version of the wallet|
A guide to using online wallets
It is often difficult for newcomers to use web wallets due to lack of experience. The instruction will simplify the process of mastering such cryptocurrencies.
Before using an online wallet, you need to create an account in it. Algorithm of one of the registration methods using MyEtherWallet web wallet as an example:
- Open the official website of the project.
- Click Create A New Wallet on the main page.
- Click on Software.
- Click on Mnemonic Phrase.
- Add an extra word (if necessary) and write the seed phrase of 12 words.
- Click on I Wrote Them Down below.
- Verify the seed phrase by selecting the words with the suggested numbers.
- Click on Verify.
- Click on Access Wallet.
After registering the wallet the welcome page of the service will open. Authorization will become available:
- Click Access My Wallet.
- Click Software.
- Select the mnemonic authorization method.
- Enter the words from the seed phrase and click Next.
- Choose 1 of 5 suggested cryptocurrency addresses to store ethers.
- Specify the blockchain to work with, if necessary.
- Tick To access my wallet, I accept Terms and click Access My Wallet.
After the algorithm is executed, authorization is complete. Then the initial MyEtherWallet interface will open, where you can view information about the selected network, balance and some other data.
Securing your savings
Investment security is a characteristic with several determining factors. To increase the security of your investments or keep it already high, you need to:
- Keep any virtual wallet data secret.
- Use the storage only on 1 device.
- Make multiple copies of information to authorize and restore the cryptocurrency wallet.
- Keep account details on multiple devices without an Internet connection.