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Ethereum is the best known blockchain platform in the world. Ethereum is the most popular decentralised blockchain platform for Web3.0 and open-source decentralised applications (dApps), which offers interaction with the Ethereum network through smart contracts. The Ethereum platform supports various use cases related to DeFi, cryptocurrency exchanges, wallets and NFT.
Any cryptocurrency needs a wallet to store it so that it can be accessed quickly and securely. In this article, we'll explore which wallets are best suited for storing Ethereum(ETH), the advantages and disadvantages of each wallet, and which storage method is the most secure.
What is a cryptocurrency wallet?
Cryptocurrency wallets are software tools that allow users to interact with a cryptographically secure blockchain. In particular, Ethereum wallets allow cryptocurrency users to interact with the Ethereum blockchain. The primary function of any cryptocurrency wallet is to allow users to store, send and receive cryptocurrency from other wallets via the blockchain.
List of best cryptocurrency wallets for Ethereum
1)Ledger Nano X.
The most popular and advanced wallet for Ethereum is the Ledger Nano X hardware wallet. Ledger is the market leader and sets the standard for reliability for all other companies. Ledger Nano X is a USB-type drive with a small screen and buttons that allows you to store cryptocurrency and perform transactions securely and offline. The wallet supports over 1,100 cryptocurrency assets.It has a built-in battery that allows you to use it even without connecting to a computer, and it supports Bluetooth to sync with your mobile device.
Benefits of
Support for over 1100 cryptocurrencies
Can be accessed from a mobile device
Comfortable software
Very good security
Disadvantages
Limited wallet storage
Relatively high price
Wallet type: cold wallet, hardware wallet
Mobile application: Android and iOS.
Price: $149
2)Ledger Nano S Plus
Ledger Nano S is a cheaper version of the Ledger series cold storage wallet, which is not a bad solution for Ethereum storage. Ledger Nano S Plus supports more than 5,500 tokens and different coins, just like its big brother Ledger Nano X. Yes, there won't be chips like the big display or Bluetooth like the premium Ledger models. However, this device has all the same security features as the more expensive models.
Security
The Ledger Nano X uses the ST33 chip, while the Ledger Nano S -ST31. However, the two chips have received an EAL 5+ hardware rating from ANSSI, the French cybersecurity agency, and are considered equivalent to each other.
Advantages
Highest level of safety
Low price
Support for over 1100 cryptocurrencies
Compact and lightweight design
Great functionality
Disadvantages
No Bluetooth
No big display
Operation can be tricky for some users
Wallet type: Cold wallet, hardware wallet
Mobile App: Android and iOS.
Price: $79
3)Metamask
MetaMask is one of the most popular cryptocurrency wallets for Ethereum. Originally available as a browser extension, it now also has a mobile app. To get the most out of Metamask, you can connect a hardware wallet such as Ledger or Trezor. This way, you keep your wallet secure and protect yourself from hackers.
Security
The private keys are password encrypted and stored on your computer, which you can export at any time. MetaMask Wallet uses complex passphrases that are extremely difficult for even the most sophisticated hackers to decipher. This keeps your MetaMask wallet accounts secure at all times.
Advantages of
Simple and user friendly interface
Automatic account backup
Integrates with hardware wallets
Disadvantages
Not as secure as hardware wallets
Supports ERC 20 and Ethereum tokens only
Wallet type: Program Wallet, Web Wallet, Mobile Wallet
Mobile application: Android and iOS.
Price: Free of charge
4)Guarda
Guarda Wallet is a hot crypto wallet for Ethereum with great emphasis on user security and privacy. It offers access to over 400,000 digital assets and over 50 blockchains on both mobile and desktop devices. Guarda has integration with hardware wallets such as Ledger, which increases its security. The wallet has a quite user-friendly and straightforward interface, making it attractive to newcomers.
Security
Guarda has some features that add security, including support for multiple signatures for Bitcoin and Ethereum. Multi-signature requires multiple users to approve a transaction, which adds a hurdle for those trying to steal your assets. Your private keys are not stored on the server, reducing the likelihood of hacking.
Benefits of
Integration with Ledger
Simple and clear interface
Good security measures
Disadvantages
Closed source
Does not support all tokens
No 2FA security protection
Wallet type: Wallet software, web wallet, mobile wallet
Mobile application: Android and iOS.
Price: Free of charge
5)Exodus
Exodus is another popular cryptocurrency wallet for Ethereum. It is a multi-currency wallet for desktops. There is also a mobile version for Android and iOS. The creators of Exodus emphasized simplicity and usability, so that even beginners can easily figure out what's what.
Security
As with Guarda, the wallet is custodial, which means it doesn't collect user personal information or other wallet information, so everything is stored locally on your devices. The wallet is password protected and automatically locks the wallet after a specified period of time.
Advantages of
Simple and user-friendly interface
Support for almost 300 cryptocurrencies
Good support
Disadvantages
Closed source code
No 2FA security
No ability to convert to fiat
Wallet type: Wallet software (desktop and mobile)
Mobile application: Android and iOS
Price: Free of charge
6)Atomic Wallet
Atomic Wallet is a wallet for Ethereum and ERC20 tokens. The wallet allows you to store, exchange and buy ETH with your bank card. Atomic Wallet supports over 300 cryptocurrencies and offers an interface for all ERC20 tokens.
Security
The wallet encrypts your private keys on your device, giving you full access and control over your funds. However, the user must be vigilant during trading and not keep money in the wallet for a long period of time.
Benefits of
Support for over 500 coins
Simple and clear interface for beginners
24x7 online customer support
Cross-platform
Disadvantages
No hardware wallet support
Not as reliable as hardware wallet
Wallet type: cold wallet, desktop wallet
Mobile App: Android and iOS
Price: Free
What are custodial and non-custodial wallets?
If reading this article you haven't figured out the difference between these wallets, don't worry, we'll explain it all now.
The main difference between these wallets lies primarily in the security of these wallets. Custodial wallets have a third party tied to them, such as an exchange that keeps the private keys on its server. Hot wallets are an example of such a wallet. The risk of losing money on such an exchange, you understand, is quite high. Working with a non-custodial wallet, you shift all the responsibility for keeping your private keys to yourself. Non-custodial wallets include cold wallets.
Basic types of wallets for Ethereum
So that you don't get confused about the different types of wallets that have been presented above, we've left a cheat sheet for you below.
Cold wallets: Cold wallets use digital keys created on a device that does not have access to the internet. Cold storage wallets are physical devices on which cryptocurrencies are stored.
Hot wallets: These are wallets that use keys created or stored on a device with internet access. Hot wallets offer high functionality but are less secure than cold wallets. Compared to cold wallets, users do not have the option of recovering assets if they lose access to them.
Hardware wallets: Hardware wallets are a type of cold wallets. They are physical items (e.g. a USB drive). Ledger and Trezor are the most popular representatives of these wallets. They are considered the most secure wallets on the market.
Software wallets: These online cryptocurrency wallets or trading platforms do not require a download and can be accessed through an Internet browser.
Web-based wallets: These are wallets that can be accessed through internet browsers. Locked keys are stored in some web wallets and are vulnerable to DDOS attacks. These are the least secure wallets. However, they are not the same as hot wallets. They are ideal for small investments and allow for quick transactions. Some of them are MetaMask and Coinbase.
Mobile wallets: These are a type of web wallets. I think it is clear from the name that these are wallets for mobile phones. They are quite convenient because they use QR codes for transactions. They are suitable for everyday transactions but are vulnerable to malware infection.
Conclusion
The safest type of cryptocurrency storage has always been cold wallets. So, if you need a wallet with maximum security, you'll have to shell out money for a wallet like Ledger Nano X or a simpler option like Ledger Nano S Plus. However, you should always keep in mind what you need the wallet for. It could be a wallet for long-term storage or you need quick access to your cryptocurrency on an exchange. As for the other wallets we've reviewed, we strongly advise against storing all your assets in just one of these free wallets, as the risk of losing your assets on such wallets is many times higher than on hardware wallets. If you want to take advantage of different wallet types, you can use different bundles of hardware wallets and, for example, Metamask.