Handling money required that you take caution, as there are many people out there who have no problem taking what does not belong to them. As such, you have to understand how to store your ethers safely. Ethers are the native currency when using ethereum.
For you to protect these coins, you require to have a wallet, and you have many options on this.
The wallet allows you to be in charge of your coins and monitor transactions while purchasing more coins when necessary. This article will take a deep dive into ethereum wallets and your options on this:
The ether wallet
The word wallet may have you confused as to what you might be getting yourself into when investing in crypto. A wallet is much like what you would expect of your online bank account. It allows you to monitor your transactions from the comfort of your phone.
As such, you can send, receive, and keep track of your money. The platform does not control how you spend your money, and this responsibility lies with you.
There are many wallets available, allowing you to have a choice when making a decision. This choice will depend on which features appeal most to you.
For example, with the mobile wallet, you can make your transactions from the comfort of your phone.
For the software wallet, you need to download this on your computer, from where you can use it. And then there’s the hardware wallet, which is a physical option.
The mobile wallet
This wallet comes in the form of an app that you install on your phone, allowing you to keep track of your coins. It is available on the app store as well as the Google Play store. A common question is whether the coins remain in the user’s phone. That is not the case, as the coins are in the blockchain.
The phone only acts as a means to access these coins. Once you create a wallet, you get what is known as a private key, which suffices as proof that you own some coins on the blockchain. There are many mobile wallets available in the app store and the Google Play store, operated by different providers.
You should ensure that you read reviews on such options before investing in them. Otherwise, you can end up with an unreliable wallet or one that exposes your private keys and PIN codes.
The software wallet
You can think of this kind of wallet as a digital bank account where you store your cryptocurrencies. It comes in the form of a program that you need to install on your computer.
Again, the coins are not actually in your computer, but you use your device to access the money in the blockchain. As is the case with mobile wallets, there are many types of software wallets.
For privacy and security reasons, ensure that you download the wallet from the provider’s official website.
Otherwise, you could download compromised software containing malware that hackers can use to gain access to your money. Note that as much as this wallet stores the private keys in the application, you are still vulnerable to losing your money.
Take an example of if someone has access to your computer and get the password right. This information will allow them access to your coins. You should have a backup comprising a recovery seed which should not be stored online or in any digital space.
The hardware wallet
A hardware wallet is physical and is one of the safest ways to store your money. Access to the crypto has encryption from the device, making it better than the two options above.
Take an example of the online wallet. Suppose the website were to get hacked, you will run a risk of losing your money. That is not the case with hardware wallets as they store their information offline.
Also, they come with an extra pin, making it harder for people to access your money even when they have the device.
Obtaining a hardware wallet is as easy as getting it off the website of the manufacturers. Ensure that you go for a trustworthy retailer, lest you get swindled.
While operating a wallet may seem like an uphill task, that is not the case. In most cases, all you have to do is go to the app store or Google Play and find the wallet you want.
Once the app is ready, you can write down your recovery sentence, as this serves as the backup. From here, you should set up a strong password that would be very hard to guess, before adding ethereum.
Finish up by using your receiving address – which is like a bank account number.
Note that you are responsible for your safety when conducting any transactions using any of these wallets. If you do not secure it as needed, you can get hacked. Stay safe!