Where to store etherium?

4 weeks ago 0 18

Ethereum is a popular asset among cryptocurrency investors. Some exchange users buy thousands of dollars worth of ether. Such sums in cryptocurrency coins need to be stored somewhere. Usually, investors use digital wallets for this purpose. Some of them allow you to store Etherium with minimal risks.

Characteristics of ETH

Ether or ETH is a coin of the Ethereum blockchain. It does not comply with the protocol of the cryptocurrency network: it is not its token of the ERC-20 standard. Because of this, Ether cannot be used in some decentralized applications (dApps). They require the use of Wrapped Ether – tokenized digital coins.

Types of storage wallets

There are 5 types of them:

Hardware.
Mobile.
Desktop.
Browser-based.
Paper.

Hardware wallets

The concept of hardware wallets is similar to the model of using paper cryptocurrencies. The former are only needed to record keys and digital numbers. They do not store coins inside themselves.

Hardware crypto wallets are physical digital devices. They are only storage media. The devices themselves do not allow for cryptocurrency transactions. For access to make transactions, developers of such vaults usually create separate applications. The software allows users to connect to the Efirium blockchain and operate their investments.

Some developers make arrangements with partners to implement support for their devices. This allows them to save time creating software and focus on updating their devices.

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Hardware cryptocurrency wallets are considered the safest. Their reliability is ensured by:

Lack of internet connection.
The need to confirm transactions in the program used with hardware.
Protective algorithms against attacks. Some devices have mechanisms for destroying data when hacking attempts are detected.

Examples of hardware crypto vault models:

Mobile wallets

Such vaults belong to the category of software vaults. They are downloaded and installed on clients’ phones. Usually, developers of mobile cryptocurrency software create versions only for iOS and Android operating systems (OS).

Information about user wallets can be stored:

On the developers’ servers. This is a custodial type of key storage.
On users’ smartphones and tablets. This is the non-custodial type (more secure).

Mobile cryptocurrencies are convenient. They are standalone products. You don’t need hardware or third-party software to use them. At the same time, some of them allow you to store Ethereum securely.

Pros and cons of mobile crypto wallets.

Advantages	Disadvantages
Mobility	Presence of phishing applications
Ease of use	Possibility of losing or breaking the phone
Non-customized storage (often)
Simplicity

Examples of mobile cryptocurrencies for Ethereum:

Desktop wallets

This type refers to software-based vaults. They can be downloaded and installed on personal computers (PCs). Developers of desktop cryptocurrency wallets often create 3 versions of software – for Windows, Linux, macOS.

Desktop cryptocurrencies come in different versions. Non-custodial ones are considered the most secure. This is because of the high risks of clients of custodial software being hacked.

Desktop vaults are usually used by users who spend a lot of time in front of their computers. At the same time, it is often more convenient for them to operate cryptocurrency investments exactly through a PC. This fact is due to the high resolution of desktop software interfaces.

Pros and cons of cryptocurrency software for desktop operating systems.

Advantages	Disadvantages
User-friendly interface	Lack of mobility
Non-custodial (often)	Computers have no reliable protection against malware (except for macOS devices)
Wide functionality
Convenient investment management

Examples of desktop cryptocurrency wallets for storing ether:

Browser wallets

This type is often referred to as web storage. From a technical point of view, 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 clients cannot manage their private keys and mnemonic phrases. Because of this, custodial solutions do not allow secure storage of the etherium cryptocurrency. But there are also secure non-custodial web wallets available. 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 the custodial nature of many of the vaults in the category in question. Also, attackers often steal cryptocurrencies from investors using phishing sites.

Pros and cons of browser-based digital vaults.

Advantages	Disadvantages
Ease of use	Low security
High speed	Custodiality (often)
Ease of registration	Low anonymity or complete lack of privacy of personal information (often)

Examples of browser-based cryptocurrencies for ETH:

Paper wallets

Paper wallets do not store the coins themselves. They only involve recording cryptocurrency keys and numbers on sheets of paper. You can create a paper vault with the help of special services. They generate keys and addresses that need to be printed on sheets.

An example of a service for creating paper etherium wallets is MyEtherWallet. There are no other reliable platforms for 2023.

What are the best wallets to store ethereum in?

To save Ethereum, it is safer to use machines. Any such wallets are non-castodial. Also, hardware storages belong to the category of “cold”. It includes paper cryptocurrency wallets. “Cold” means that they do not connect to the internet. This feature increases the security level of Ethereum storage. It is very difficult for attackers to hack “cold” cryptocurrency wallets.

There are also “hot” storages. This category includes browser-based, mobile and desktop wallets. They are connected to the Internet. This is necessary for continuous interaction with supported blockchains.

Comparison of “cold” and “hot” cryptocurrencies.

Characterization	“Cold”	“Hot”
Internet connection	No	Yes
Price	Starting at $50 for hardware wallets only	Usually free
Need to use third-party applications	Yes	Usually not
Security	High	Medium to low (for web wallets)
Convenience level	Low	High

Optimal non-custodial vaults for etherium

According to the editors, the top 3 best crypto wallets for ETH for 2023 are:

MetaMask

The cryptocurrency wallet was created in 2016. The developer of MetaMask is a company called ConsenSys. At first, the program was available only as a browser extension. Later, the application developers created mobile software compatible with popular OSes.

The idea of the cryptocurrency vault is to interact with dApps in the Etherium digital network. 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. Customers can add tokens inside the wallet.

Among the additional services available to MetaMask users are:

Swap Exchange.
A service for purchasing cryptoassets for fiat. It was created thanks to ConsenSys partners.

Pros and cons of MetaMask.

Advantages	Disadvantages
Presence of mobile software	Many phishing sites
Open source program code	No desktop software
Technical support service
Vault import function
Large number of blockchains and cryptocurrencies

MyEtherWallet

This wallet was launched in 2015. It is developed by Taylor Monahan and Kosale Kemachandre. At first, the cryptocurrency 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. Upon release, MyEtherWallet became one of the first wallets with support for ethereum. Because of this, the developers of the storage did not increase the functionality of the software at first. However, by 2022, the capabilities of the cryptocurrency wallet 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.

The tools available to MyEtherWallet users include:

Exchange.
A service for using applications of the Etherium network.
Option to buy crypto-assets for fiat currencies.
Staking.

Pros and cons of MyEtherWallet.

Advantages	Disadvantages
Availability of interface translation for users from Russia	Low number of supported blockchains
High anonymity
Availability of storage versions for iOS and Android
Convenience of the program design

Trust

The crypto vault was created in 2017. The main developer is programmer Viktor Radchenko. He was helped with the project by friends. The investor of the development was a fund from Binance. At the same time, the cryptocurrency exchange owns Trust Wallet in 2023. The vault 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 code. The cryptocurrency wallet under consideration has competitors. However, Trust remains a unique program.

In the summer of 2022, the software supports 53 cryptocurrency networks. In total, users are available to store more than 160 thousand virtual assets. These include tokens of popular standards, such as ERC-20.

Trust clients have access to the following integrated services and investment tools:

A browser to work with dApps.
Binance’s DEX connection service.
Staking.

Pros and cons of Trust.

Advantages	Disadvantages
Ease of use	Lack of two-factor authentication (2FA)
Availability of a service for connecting to the decentralized exchange from Binance	No desktop OS versions of the storage
Large number of supported networks and cryptocurrency assets	No option to withdraw investments in fiat
Availability of dApps browser	Availability of Russian translation only in the iOS version of the wallet

Rating of custodial wallets for storing Ethereum

According to information from the editors, the safer software among the considered are:

Guarda

The cryptocurrency wallet was launched in 2017. It was created by enthusiast Paul Sokolov together with his team. At first, the software worked only on desktop operating systems. Later, they created versions for mobile platforms.

The idea of Guarda is to create an interface for interacting with ETH cryptocurrency. But by 2022, the number of features and supported digital assets is increased by developers.

Guarda users have access to 50 blockchains. In total, it supports more than 10 thousand cryptocurrencies. There is a function of adding tokens inside the software.

The following tools and services are integrated into Guarda:

Staking.
Cryptocurrency lending.
Affiliate program.
Purchase of digital currencies for fiat.
Cryptoasset exchanger.
Creating tokens.

Pros and cons of Guarda.

Advantages	Disadvantages
Support for many cryptoassets and 50 networks	Lack of interface in Russian
Anonymity	High transaction fees for cryptocurrency exchange through partner services
Security
Variety of services
Availability of browser, mobile, desktop versions

Enjin

This vault was launched in 2018. It was created by the leading specialists of Enjin Pte. Ltd. For the first time, the wallet became available on phones. But no other versions of the cryptocurrency program were released by 2022.

The idea of Enjin is to create simple mobile interfaces to work with NFT standardERC-1155 in the etherium network. At the same time, the functionality of the wallet increases. Developers release vault updates once every 4 months on average.

Cryptocurrency wallet clients can only be participants of the Ethereum chain. The program supports ERC-20 tokens, more than 100 coins and NFT. There is an option to add cryptoassets.

The developers have built such services into Enjin:

NFT trading platform.
Coin and token exchanger.
A tool for monitoring cryptocurrency rates.

Pros and cons of Enjin.

Advantages	Disadvantages
Integration with blockchain games	Closed source code
Availability of Russian language and many other localizations	Lack of multiple software versions
Presence of ENJ service token	Lack of cryptoasset purchase function
Anonymity
Integration with useful services

imToken

The first version of the program was created in 2016. The developer of the crypto wallet is imToken Pte. Ltd. During the development stage, the company received investments from IDG Capital. The creators released the software only for mobile devices. There are no plans to develop versions of the storage for other platforms.

The goal of imToken developers is to provide users with a secure wallet for saving Ethereum and other cryptocurrencies. Therefore, the released updates concern only the reliability of the software and a part of important functions.

The program allows customers to work with ethereum. The vault supports NFT, ERC-20 and TRC-20 standard tokens (TRON network), 12 popular coins – BTC, ETH, LTC and others. The function of adding cryptocurrencies is also available to users.

ImToken has additional services:

DEX TokenIon.
Application Browser.
A service for working with imKey hardware storage.

Pros and cons of imToken.

Advantages	Disadvantages
Availability of interface localization for clients from the Russian Federation	Absence of 2FA (many custodial wallets have it)
Availability of integrated application browser	Closed code
Presence of synchronization function with imKey

Guidelines for using online wallets

It is often difficult for beginners to use web wallets due to lack of experience. The instructions will simplify the process of mastering such crypto wallets.

Before using an online vault, you need to create an account in it. Algorithm of one of the registration methods on the example of MyEtherWallet web wallet:

Open the official website of the project.
Click Create A New Wallet on the main page.
Click Software.
Click Mnemonic Phrase.
Add an additional word (if necessary) and write a 12-word seed phrase.
Click I Wrote Them Down below.
Verify the seed phrase by selecting words with the suggested numbers.
Click on Verify.
Click on Access Wallet.

After wallet registration the welcome page of the service will open. Authorization will be available:

Click on Access My Wallet.
Click on Software.
Select the mnemonic authorization method.
Enter the words from the seed phrase and click Next.
Choose 1 of the 5 cryptocurrency addresses offered to store ether.
Specify a blockchain to work with, if needed.
Check the box To access my wallet, I accept Terms and click on Access My Wallet.

Once the algorithm is done, the authorization will complete. Then the initial interface of MyEtherWallet will open, where you can view information about the selected network, balance and some other data.

Ensuring the safety of savings

The reliability of investment storage is a characteristic with several determining factors. To increase the security of the investment or to 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 for authorization and cryptocurrency wallet recovery.
Save account data on multiple devices with no internet connection.

Frequently Asked Questions

❓ Where is it recommended to store Ethereum?

To save ethereum, it is better to use a hardware wallet. In its absence, it is worth choosing a non-custodial mobile storage for an iOS smartphone with a high rating.

❗ Why is saving private keys on servers insecure?

When custodial vault databases are hacked, customer funds are jeopardized. Hackers can steal keys to gain access to users’ cryptocurrency investments.

💲 What is Mist?

It is an official wallet from the creators of Etherium. It includes a browser to connect to Ethereum and work with applications inside the blockchain.

💻 What hardware stores support ETH?

Many popular wallets of this type allow you to work with etherium: Tangem, KeepKey, SafePal S1, Ledger Nano X, Trezor Model One and so on.

📱 What can be used to save ETH instead of vaults?

Some members of the crypto community apply trading accounts on exchanges. However, this method of storage is unreliable due to the risk of digital platforms being hacked.

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Author: Saifedean Ammous, an expert in cryptocurrency economics.