Ethereum is the second largest and most valuable cryptocurrency in the world, even though it’s only been 6 years since its launch in 2015. Let’s go over the basics before we dive in.
according to wikipedia, “a digital wallet, also known as an electronic wallet, is an electronic device, an online service or a software program that allows one of the the parties carry out electronic transactions transactions with another party by exchanging units of digital currency for goods and services.”
Reading: Ethereum bitcoin wallets
let me simplify it again. Some people spend money and accumulate gold as it is precious and they can resell it when the price is high and they can store it and wait for a better price to sell it and make a profit. Similarly, instead of gold, we buy virtual currencies like ethereum, bitcoin, dogecoin, etc. and money. the wallet makes the process easy.
This increase in popularity leads many investors to buy this ethereum coin and make a fortune with it. when you buy a digital currency like ethereum, you get a private key that represents your ownership.
To manage these transactions and keys associated with each coin, crypto wallets are used. A wallet is a software application or electronic chip used to store, purchase, and manage your cryptocurrencies.
Wallets store the details associated with each transaction and the keys that can be used to exchange the coins. So, let’s break down the topics we’ll cover in this blog about the best ethereum wallets in 2021:
- list of the 7 best ethereum wallets of 2021
- trezor one
- ledger nano
watch our video to learn more about ethereum:
what is ethereum?
is an open source blockchain platform that comes with its cryptocurrency known as ether(eth). ethereum is a blockchain network where users can create, monetize and use ether, the cryptocurrency for payment.
this decentralized public ledger was launched by vitalik buterin and joe lubin in july 2015. they developed ethereum based on blockchain technology which makes it difficult or almost impossible to hack, change or cheat the system.
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what is the ethereum wallet?
Like an internet banking app, ethereum wallet is an app that allows you to manage your ethereum account. ethereum is the second most popular and valuable cryptocurrency after bitcoin and is now accepted as a form of payment by various merchants around the world.
the ethereum account is like an email account with some balance and is used to send funds to other accounts. the wallet allows you to manage your ethereum account and perform operations such as viewing the account balance, making transactions, etc.
There are different types of ethereum wallets, such as hardware wallets, ethereum software wallets, paper wallets, and web wallets.
also read: what is hyperledger?
how do ethereum wallets work?
every ethereum wallet you hold your coins in is a private key that gives you access to the coins. there are two keys here, public and private. the public key is the address you get when transferring money from one account/wallet to another. while the private key proves your identity on the network, which means that it tells you that you are the owner of those coins.
wallets that have the private key are password protected, which you must have available to access the ether coins. ethereum keeps track of the number of eth coins associated with each private key on the blockchain. therefore, as a user, you only have to have that password protected key to access your coins.
the secure wallet for ethereum keeps these encrypted keys that can be decrypted with a password decided by the user. because there is no ‘forget password’ function.
It is important that you do not forget your password or write it somewhere in a book and keep it in a safe place. You can also back up your private keys and save it to a USB drive, a piece of paper, another server, or another digital ledger.
read more: blockchain wallet
the 7 best ethereum wallets of 2021
Below is the list of best ethereum wallets with all the featured wallets with some unique features used by millions of people around the world:
1. trezor one trezor is the oldest hardware wallet used to store cryptocurrencies on a secure electronic chip. The chip can be activated with a unique pin that protects your private keys from being compromised. it is one of the best hardware wallets for cryptocurrencies as it keeps them away from the internet.
This single-purpose computer chip will keep your funds safe even if you’ve connected to an infected computer. Trezor supports multiple currencies like Bitcoin, Ethereum, Litecoin, Nash, Dash, etc, and can be connected with other hot wallets for better accessibility.
- main highlighttrezor one’s security code system makes brute force entry impossible. Every time you enter an incorrect pin code, the waiting time to enter a new code increases by a power of two. in addition, it generates a random pin every time you connect it to the system. the new pin will be displayed after the correct one has been entered.
2. metamaskif you are new to cryptocurrencies and don’t know how to buy, sell and manage ethereum or other currencies, metamask will be a great option for you. you can download it as an app and browser extension and interact with the ethereum network and other cryptocurrencies.
here, the private key is stored on your computer, which you extract with the help of a password. unlike trezor, metamask allows you to create your password, in case you forget it or tell someone else.
highlightsif you are a developer and have metamask, you can interact with ethereum testnets and develop blockchain applications. in addition to ethereum, metamask can also access other cryptocurrencies, which lowers the barrier for people who want to buy or transact in multiple currencies.
3. ledger nano ledger nano is probably the best ethereum wallet to mine and store your ethereum coins. Similar to trezor, it is a hardware wallet that allows you to store the private keys of your coins in a physical wallet. In ledger nano, you can hold 1000+ coins like bitcoin, cardano, litecoin, ethereum, dogecoin, stellar, ripple and more.
No technical knowledge is required to access and use ledger nano. even a person with little or no experience can access and use other applications in this wallet.
the highlightthe highlight of ledger nano is its security. provides you with a recovery sheet that you would need in case you forget the pin. and because it’s a hardware wallet, you don’t have to worry about hacking or other issues.
4. exodusexodus is another crypto wallet for beginners that comes with a simple interface and built-in trading features. Exodus is compatible with multiple operating systems, including Windows, MacOS, and Linux. In addition, you can download its mobile application and check the value of your coins in real time.
exodus allows you to sync your trezor wallet with its interface and use your hardware wallet as software. In addition, you can have an additional security option to make sure your keys are safe and secure from external threats.
highlightsin exodus, you can switch between different cryptocurrencies and also trade them with regional ones like usd, inr etc. With Exodus, you can have full control over your data and private keys, which you can export and store a copy on other sources to prevent data loss.
5. Electrum Launched in 2011, Electrum is one of the oldest bitcoin hot wallets, where you can manage your cryptocurrencies and connect with hardware wallets like ledger, trezor and many more. it is not the best application for beginners due to its complexity. options and basic user interface. however, electrum is famous among medium and advanced users as it excels at primary features like custom transaction fees.
Main HighlightCreate standard or multi-signature wallets with 2-factor authentication and make them more secure.
6. coinbasecoinbase is another hot wallet where users can buy, sell, store and transfer their digital currencies. is an open financial system that helps people around the world convert their local currencies into digital currencies and vice versa
coinbase makes it easy to buy and sell cryptocurrencies, including bitcoin, ethereum, cardano, dogecoin, and more. it is a one-stop solution for all crypto wallets as you can link your hardware wallets, exchange different currencies and make payments from a single interface.
main highlightback up the public and private keys of your cryptocurrencies and keep them safe in case you lose your account or cannot access the wallet.
mist is the official ethereum wallet created by ethereum developers, where users can buy ether or bitcoins directly through flat coins. There are various benefits and drawbacks of this hot wallet. it is available for free in the form of a desktop application, where you can have the entire blockchain of the ethereum network. however, it only supports erc20 and eth tokens and takes a long time to load as it syncs with the entire blockchain.
highlights the only highlight of mist is that it is an open source application and allows you to download the entire 1tb+ ethereum blockchain to your device.
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In recent years, ethereum has become the second most valuable cryptocurrency in the world after bitcoin. From the year it was launched in 2015 to today, the price of Ethereum has continued to grow from $1.25 to over $2,500. This means that if you bought $5 worth of ether coins, it would have been worth more than $12,500 today.
An Ethereum coin is predicted to be worth more than $14,000 by the end of this decade. So if you are thinking of buying some ethereum coins, now is the perfect time to do so. Unlike bitcoin, at the moment, ethereum does not have an emission limit or a clear monetary policy. ether set a restriction of 18 million per year in its inaugural pre-sale in 2014.
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Almost all of the ethereum wallets discussed above have some pros and cons. some of them are hardware based while others are active wallets or software applications. It depends on your preferences and needs which wallet works best for you. hot/soft wallets provide an easy way to manage multiple cryptocurrencies from one app for free. while cold storage/hardware wallets cost a certain amount of money and only accept a few cryptocurrencies.
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