Before you rush into trading Ether or Ethereum tokens, you need to choose the best Ethereum wallet that will tick all the right boxes. That’s not an issue one can take lightly as the destiny of your cryptocurrency literally depends on it. And if you’re planning to use the Ethereum wallet regularly, you shouldn’t forget about convenience as well.
Picking the right Ethereum wallet is almost like picking an apartment: you want it to be safe, squeeze in all of your belongings, have all the right amenities, and it might as well be comfortable and look good.
The primary function of an Ethereum wallet is, obviously, to interact with the Ethereum blockchain so you can manage your ETH and tokens and execute transactions. Now, here’s the thing — you might want to trade Ethereum now, but chances are that sooner rather than later you will have eyes for Ethereum tokens as well. Which leads us to the first major point: you don’t want to have a wallet just for Ethereum, in order to be the best it has to support Ethereum tokens as well.
Even if you’re the biggest Ethereum believer, at some point you will probably be interested in diversifying your portfolio with Bitcoin or another cryptocurrency, your best option is to pick a multicurrency wallet (for Ethereum and its tokens) right from the start.
Ethereum wallets, just like Bitcoin or any other cryptocurrency wallets, can be divided into 5 main types.
Types of Ethereum Wallets
- Ethereum hardware wallets
- Ethereum paper wallets
- Ethereum desktop wallets
- Ethereum online wallets
- Ethereum Android & iOS wallets
1. Hardware Wallets
If you’ve done your research already, you know that hardware Ethereum wallets are considered the most secure ones. They store your Ethereum assets offline which makes them almost invisible. Two popular options for Ethereum are Ledger and Trezor. Their price varies from $50 to $200, and keep in mind that you need to use an additional Ethereum wallet to manage your ERC20 tokens.
Security is important, we won’t argue with that. However, those wallets are not exactly the best option in terms of convenience. You won’t be able to trade Ethereum ‘on the go’ as you have to connect them via laptop. Hardware wallets might be a good option for long-term hodlers, but in reality a lot of modern software wallets are also very secure.
2. Paper Wallets
Cryptocurrency paper wallets are the old-fashioned way to store your Ethereum and its tokens and, trust us, you don’t want to use them. This method suggests generating your private key and public address online, printing it out, and using it when necessary.
So what’s wrong with that?
Well, first of all, it’s about as safe as storing your savings under a mattress.
Secondly, a paper wallet allows you to use one single Ethereum wallet address for all of your transactions, which is unsafe and you shouldn’t do it. Of course, you can print out as many wallets as you wish, but then again, is this what cryptocurrency should really be about?
Which leads us to the final point. Paper wallets are not your cup of tea if you’re planning on trading or looking for some basic comfort when dealing with cryptocurrency. Now, let’s move on to Ethereum desktop wallets.
3. Desktop Wallets
Desktop Ethereum wallets store your private keys on your hard drive. Exodus is one of the best examples of desktop wallets. Although it may be a reasonably safe way of storing Ethereum, Bitcoin, and other cryptocurrencies, it’s hardly a convenient one.
Hardware wallets, paper wallets, and desktop wallets for Ethereum might be a safe option, but won’t give you much room to maneuver.
If you’re considering using your cryptocurrency assets on a regular basis and trading Ether, get a wallet with a mobile or web alternative instead.
4. Online/Web Wallets
Web wallets for Ethereum are just like any other website, all you need is a browser and an internet connection in order to use them. Usually, they support Ethereum tokens as well. However, there are not so many online wallets available. If we eliminate the exchange-based Ethereum wallets from the web wallet list, there won’t be many options left.
One universal piece of advice: never keep your Ethereum (as well as Bitcoin or other cryptocurrency) on an exchange wallet. It is the riskiest option for that matter, as exchanges constantly get hacked.
5. Android & iOS Wallets
Mobile wallets like Lumi Wallet come in the top places when it comes to user-friendliness. Your funds are always next to you as long as you have your mobile. These wallets are usually multicurrency (allows you to manage Bitcoin, Ethereum tokens, and other cryptocurrencies) and are very easy to handle. Some say these wallets lack security, but that only means that you have to be more careful choosing the best product on the market.
The best mobile wallets allow you to recover your Ethereum wallet account in case you lose or damage the phone.
So which Ethereum wallet type is the best?
Desktop and paper wallets are probably not the best case scenario for you. All things considered, it’s wise to get an Ethereum wallet that is available on multiple platforms and supports Ethereum tokens. In this case, you can always use the web version of your Ethereum wallet even if you cannot access your phone, and vice versa.
On top of all of this, when your Ethereum wallet comes in several types you know there is a strong team of developers that are constantly working on making your cryptocurrency experience better.
Lumi Wallet is available as an app for Android and iOS, as well as a web version. It supports Ethereum, Bitcoin, EOS, and 1000+ Ethereum tokens.
What Else to Consider
Your keys, Your Ethereum
Always use client-side Ethereum wallets like Lumi Wallet that do not store any of your data on servers. You want to control your private keys and funds yourself, don’t you?
A mnemonic phrase is a set of words you will use to restore your Ethereum wallet account in case you lose or damage your phone or want to log in elsewhere. Very often beginners forget to write it down and may eventually lose access to their wallet permanently.
It is always a good sign when your Ethereum wallet reminds you to write down your mnemonic.
Check if the wallet that you’ve chosen is an open-source software: in the cryptocurrency space this is a good courtesy. The open source model makes the wallet code transparent and lets the community review it.
Nowadays it’s a usual practice to protect your Ethereum wallet with an advanced security level such as fingerprint or Face ID. Make sure your wallet supports this option.
Cryptocurrency and anonymity go hand in hand with each other. Your wallet should never ask for your private information for registration.
Although there is one exception. If you use your credit card to buy cryptocurrency with your wallet, a KYC procedure is unavoidable.
If you’re thinking about trading coins and tokens, active investing, or taking part in airdrops, you probably expect your Ethereum wallet to be easy to use. And that’s totally understandable. After security, usability is the second most important feature of any wallet.
The ability to check your balance in your local currency is not a must-have feature but it’s useful. In Lumi Wallet we allow switching between 11 fiat currencies.
Manual Transaction Fee
Nobody likes transaction fees (except for miners), but we don’t have much of a choice. However, it comes in really handy when the wallet allows us to set the amount ourselves.
Tech support is crucial, you don’t want to be left alone with your problems. If you have difficulties with your Ethereum, drop us a line at [email protected] and we will answer you promptly.
The next level of convenience is when you can exchange your crypto, especially Ethereum tokens, directly in the wallet or even buy some Ethereum or Bitcoin with a credit card. If you’re not a big fan exchanges, consider giving Lumi Wallet a try.
The ability to interact with Ethereum dapps, storing other Ethereum token standards like ERC721 tokens (crypto collectibles) could become a serious argument for some users, especially if they are passionate about gaming.
So what is the best Ethereum wallet on today’s market? Although at the end of the day we must all decide for ourselves, there are certain requirements that best of the wallets should meet.
The best Ethereum wallet should support multiple currencies, it should be available on several platforms so you can switch between them whenever one is more convenient. Your best wallet should be secure, anonymous, easy to use, and have a set of additional features like an in-built exchange that make your crypto life easier.
If you’re still contemplating, download Lumi Wallet and join our big community!