Selecting an Ethereum Wallet
Recently, Saudi Arabia partnered with an Ethereum startup to host blockchain bootcamp. Ethereum is gradually gaining its popularity in Saudi Arabia and people now need to know the importance of a wallet.
Ethereum wallet, Bitcoin wallet, hot storage, cold storage and other similar terms will probably confuse you. However, you don’t need to worry because we will help you out.
In this guide, we will explain how you can choose the right kind of wallet for storing Ethereum. All the types of wallets that will be discussed here support both ERC20 tokens and Ether tokens.
For long-term storage, paper wallets can be considered as one of the best Ethereum wallets. If they are created appropriately, hackers will find it difficult to access these wallets as they are totally offline. They are a great storage space for large sums of Ether.
On the other hand, frequent usage of these wallets is not easy. Moreover, the set-up time is long so they are not good for storing less amounts of Ethereum.
These wallets are not as safe as paper wallets. Although, many people in Bitcoin trading use these wallets, still you should keep your Ethereum for only a little time in an online wallet. If you are not a trader, you should not leave your digital coins in these wallets.
The advantage of using an online wallet is that you can quickly sell a position. If you can accurately time the market, these wallets can be beneficial for you.
Software Ethereum wallets are good for people who need a balance between ease of use and security. It is easier and safer to make multiple transactions with them as they are more secure than exchange wallets.
Furthermore, you can keep your private key in a software wallet, which lowers the chances of being hacked. Still these wallets are not as secure as hardware or paper ones.
Some users find it simple and easy to store their digital coins in these wallets as they can use it even when they don’t have a computer nearby. On the other hand, a mobile Ethereum wallet is as risky as a software one.
Your mobile can get infected by keyloggers and malware. Moreover, someone who knows your smartphone’s password may access the wallet or see the private key.
Hardware wallets are commonly used in cryptocurrency trading. They are the combination of the usability of software wallets and the security of paper wallets. A hardware Ethereum wallet comes in the shape of a USB drive.
They are more secure than software or online wallets, but are more expensive.
Making a Choice
Now you know the security flaws, advantages and disadvantages of each wallet. Your choice depends on the length of usage time and how much Ether you want to store. Hopefully, you can confidently choose an Ethereum wallet now.