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Ethereum Wallet Choosing Guide

Ethereum Wallet Choosing Guide

So you bought some Ethereum (ETH) or a token built on the Ethereum blockchain. Congratulations! You’re not a part of the new digital economy. But simply buying ETH was the easy part. Now you need to figure out where to store it. That’s right, ETH requires a wallet just like any other cryptocurrency and there are hundreds, if not thousands to choose from. So where does one begin? Thankfully, you’ve come to the right place. This ETH wallet choosing guide will help you find the best ETH wallet for your needs. Let’s get into it. 

Key talking points:

  • Learn what an ETH wallet is and how they work
  • Understand the main features of an ETH wallet
  • Learn about ETH wallet security
  • Compare different types of ETH wallets
  • Discover what ETH wallets are best for you

What is an Ethereum wallet?

An Ethereum wallet is hardware or software that enables users to interact with the Etheruem blockchain. Unlike the leather wallet in your pocket, an Ethereum wallet doesn’t physically store currency. Instead, it just represents an account that belongs to someone and helps him and or her initiate transactions, manage a balance, use decentralized finance (DeFi) applications, create smart contracts, and much more. All Ethereum wallets are controlled using a private key that users need to move funds from the wallet. This private key is critical to the wallet’s security and users should do whatever they can to keep those private keys secret. 

How does an ETH wallet work?

In general, there are two main types of Ethereum wallets. There are externally owned accounts--called EOAs--- and contract accounts. EOAs use public and private keys in order to prove the sender approved the transaction and prevent any forgery. When a user has full control over their private keys, it means they have full control over their ETH wallet and whatever funds it represents. As said before, the funds don’t truly exist in the wallet itself but instead, lie on Ethereum’s distributed ledger. The private keys just give the user permission to interact with that ledger. The Ethereum ledger keeps track of all ETH balances and records all transactions between users across the network. 

Main features you need in an Ethereum Wallet

When researching your Ethereum wallet, make sure it comes with the following features:

  • Security and privacy
  • Low or custom ETH transaction fees
  • Two-factor authentication (2FA)
  • Fiat onramps and offramps
  • Low minimum deposit amount
  • The ability to lock and unlock withdrawals at will
  • Complete crypto exchange capabilities
  • Customer support
  • Multi-chain support
  • Multisig
  • Bonus features like savings accounts, trading tools, and loans. 

Do I need an Ethereum Wallet to Buy or Trade ETH?

The short answer here is “yes.” If you buy ETH on a crypto exchange, then that exchange will have a built-in ETH wallet for you to hold ETH until you decide to trade it or withdraw it. Even if you manage to buy ETH with cash from your friend, you still need a wallet to store Ethereum.

Are all ETH wallets secure?

Unfortunately not. Some wallets are built by criminals. These wallets have backdoors for hackers to easily steal your private keys and take off with your money. Other wallets are just built by bad developers who leave vulnerabilities in the wallet unbeknownst to them. Then, you have perfectly well-made wallets that just happen to lack high-quality security features like 2FA, security audits, etc. That being said, there are plenty of secure ETH wallets out there so don’t be afraid. Some wallets even come with insurance to protect your funds in the event of a bad event (e.g. like YouHodler wallets for example).

Are all ETH Wallets Free? How Much Does It Cost to Use an Ethereum Wallet?

Any good Ethereum wallet should be free. If someone is trying to sell you an Ethereum wallet, be careful. All the best wallets out there are 100% free. It doesn’t cost anything to use an Ethereum wallet aside from the blockchain fees associated with every transaction. Some wallets choose to cover those fees for you while others let you choose the fee (higher fees result in faster transaction time).

How to deposit and withdraw from Ethereum Wallet

The crypto industry has come a long way over the years. Nowadays, Ethereum wallet apps are so user-friendly, anyone can figure it out. To deposit or withdraw Ethereum using your wallet, just open up your app and find Ethereum in the wallet section. You should then see buttons to deposit or withdraw Ethereum. Simply choose an option and follow the instructions. If you want to deposit, a deposit address will be provided. Just copy and paste that address so the person sending your Ethereum can do so. If you are withdrawing Ethereum, then you need to copy and paste the address from the wallet on the receiving end of the transaction so you can send the Ethereum there. 

Types and differences of Ethereum wallets - How to choose the right one for you?

Ethereum wallets come in all sorts of lovely shapes and sizes. So finding the best one for you should be a relatively easy task. Here are a few different types you can explore. 

Desktop ETH wallet

As its name suggests, a desktop ETH wallet is one that’s installed on a desktop computer or a laptop. Users get complete control over the wallet just as they would with a mobile wallet, just in a desktop environment. The main difference is that some desktop wallets have more advanced functionality like the ability to operate a complete node or full crypto exchange integration. 

Mobile ETH wallet

More or less, a mobile ETH wallet performs the same functions as a desktop wallet but on a mobile device such as a smartphone. Mobile ETH wallets are often more convenient due to their portable nature and the ability to scan QR codes for quick crypto transactions in stores or between peers. There are ETH wallets for all types of operating systems like Android or iOS. 

Web ETH wallet

Web ETH wallets are wallets that exist on a website or online service that allow users to send and receive cryptocurrency in addition to storing it. These wallets can be accessed anytime, and anywhere as long as there is the internet. Some of the most popular crypto services in the world are web wallets such as Coinbase, Kraken, Binance, and YouHodler. Security is a concern for web wallets but that can be managed with due diligence to make sure the web wallet you choose has a good history of high-level security and insurance. It’s also wise to use web wallets in tandem with the more secure hardware wallets. 

The Best Ethereum Wallets

There are countless articles out there dissecting different crypto wallets, trying to decide what is the “best Ethereum wallet.” To be honest, there is no “best ETH wallet” for us as a collective whole. However, there is an Ethereum wallet that is best for you and that depends on your wants and needs. At YouHodler, we tried our best to create a diverse, multi-faceted wallet that appeals to all sectors of the crypto industry. Is our wallet the best Ethereum wallet? Well, that’s for you to decide. 

Best Ethereum Wallet for Beginners

When asking what the best Ethereum wallet for beginners is, it’s important to first dissect what a beginner demands from an Ethereum wallet. Most importantly, is a user-friendly interface. Beginners who are new to crypto are taking in tons of information every day and they don’t need a complicated app on top of that to learn. Clean, simple interfaces are best for beginners with minimal navigation required. That’s why we designed YouHodler’s interface to appease beginner users with simple designs, clear buttons, and plenty of information databases to dig into. 

Best Ethereum Wallet For Advanced Ethereum Users & Investors

Advanced Ethereum users and investors also appreciate clean simple interfaces on their Ethereum wallet however, they also want something flexible enough that meets their high demands. Advanced crypto traders want a wallet with low transaction fees, built-in crypto exchange capabilities, advanced security, staking features, and advanced financial services like loans and crypto trading. Advanced users are busy people and they can’t be bothered using multiple apps for different activities. That’s why we designed YouHodler to be the true one-stop-shop solution for advanced users with a wide array of FinTech services to fit their every need. 

Best Ethereum Wallet  for Mobile Users

Data suggests there will be over 18 billion mobile devices in use around the world by the year 2025. Suffice to say, we live in a mobile world and that’s only going to increase. Hence, mobile Ethereum wallets are perhaps the most important wallets in development. There are thousands to choose from and the key is to find one with maximum efficiency and security. YouHodler’s mobile wallet has 2FA, 3FA, and the ability to lock your funds from withdrawal--requiring ID verification to unlock it. On top of that, the team runs regular security audits to ensure all wallets are secure from malicious actors. For people on the go in a mobile economy, they want to make sure their digital wallets are present, protected, and easy to use. Not all Ethereum wallets match this quality but YouHodler tries its best to. 

Best  Ethereum Hardware Wallet

As mentioned earlier, it’s a smart idea to buy an Ethereum hardware wallet to use in cooperation with your mobile or web wallets. Ethereum hardware wallets are ideal for the long-term storage of crypto assets. Ideally, you want to keep some on a mobile or web wallet for payments, trading, and staking while keeping the rest safely in a secure hardware wallet. The Ledger series of hardware wallets are extremely popular and recommended by most advanced crypto users. Trezor is another brand worth mentioning. 

Best Ethereum Wallet for software storage

Once again, this comes down to the idea of “not your keys, not your crypto.” The best Ethereum wallet for long-term software storage are wallets where you fully own the private keys. It’s best to use this in combination with more diverse web wallets to enjoy the benefits of both worlds. 

Best Ethereum Wallet For Security

The best Ethereum wallets for security are the ones that prioritize security. Stay away from wallets that don’t have PIN options, 2FA, or basic security features. YouHodler has a PIN or thumbprint required to enter the app in addition to 2FA and 3FA upon request. We also run regular security audits to ensure our walls are strong and impenetrable. Lastly, we are backed by Ledger Vault and Fireblocks for insurance and secure crypto transaction management solutions.

Best Ethereum Wallet for Android Users

While the battle between iPhones and Android phones wages on, it’s nice to know that crypto doesn’t pick sides. Most--if not all--of the most popular Ethereum wallets, can be found on both Android and iOS operating systems. 

Click here to download YouHodler for Android. 

Best Ethereum Wallet for iOS Users

We’re also at the Apple store too! Click here to download YouHodler for iOS and ready all about our Ethereum wallet functionalities for your iPhone. 

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