In the world of information technology, one should be extremely careful with securing its personal data. Unfortunately, we tend to take the security for granted and, as a result, it might entail to very unpleasant consequences.
Thus, when it comes to e-wallets, we should make sure no one get an unauthorized access to your money. Therefore, it is highly recommended to choose a wallet which is able to provide maximum security to prevent malicious attacks. Below, we’ve gathered the best Ethereumwallets that can be used for storing other cryptocurrencies as well.
How does a digital wallet work?
Before we get down to figuring out how an e-wallet works, let us first define what it actually is. E-wallet (often called digital wallet) is basically an accounting ledger within which all transactions are recorded.
For us to understand how storing and accessing coins process occur, we would like to draw your attention to public/private key encryption, which, in essence, are the foundation of blockchain wallet. In case, you are familiar with SSH keys, you won’t have any problem with understanding this concept either. Basically, you obtain a pair of randomly generated keys: public and private ones. In most cases, this process is run by your wallet app. When it comes to public key, generally speaking, it is an address which can be given to different users so that they could send some money to your wallet. As regards the private one, no one can neither see it nor obtain it since it is secured with the help of password encryption. Thus, it proves your identity in the system.
However, the private key should never be shared with anyone else, because somebody might pretend to be you, and as a result, you might lose your money.
Types of wallets
Currently, there are four types of cryptocurrency wallets: web cryptocurrency wallets, hardware cryptocurrency wallets, mobile application cryptocurrency wallets, and desktop cryptocurrency wallets, paper wallets.
Hardware cryptocurrency wallets are those ones which store your keys inside of a hardware device.
Paper wallets are basically a QR-code which you print out and can store in a secure place. When you need to get your private key, you just need to scan it with your mobile device.
What is the most secure way of keeping your private key?
It is certainly one of the most frequently asked questions in the world of blockchain-wallet system. Fortunately, we do have an answer: hardware wallet.
So, what is it a hardware wallet? It is a secure hardware device in which you are able to store your private keys. In fact, there are lots of advantages of using this type of wallet:
impossible to get private keys out of your device in plaintext;
keeping all your private keys offline;
your keys find themselves in a microcontroller protected area;
computer viruses immunity;
Therefore, we do recommend you to get a hardware wallet for you to be able to decrease chances of malicious attacks and to save your money.
Digital Currency Trade Systems
Having learnt how digital wallets work and what are the best option to keep your crypto currency safe, we would like shed light upon different services which are considered as being the best ones to store your coins in.
The Ledger Nano S is a multi-currency hardware wallet which is renowned for its outstanding security and therefore enjoys high consideration among cryptocurrency users. With its help, you are able to ensure that your Bitcoin, Ethereum, and other Altcoins are in a safe place. The devices utilizes Universal Second Factor authentication (U2F) to make sure no one will get access to your data. Your data will never be exposed to any malicious attack since it is stored inside the device, which possesses PIN-code lock mechanism. The transaction confirmation occurs when you connect the Ledger Nano S via a USB cable, and built-in display offers either to confirm or reject a transaction. In essence, a physical interference is required to accomplish any transaction.
Apart from it, the Ledger Nano S is famous for its separate hardware security module. As a result, even if somebody gets physical access to your Nano Ledger S, he/she will not be able to take over the private keys.
entire on-device seed restoration;
separate hardware security module;
Entering the pin is not convenient;
Ledger Nano S is said to be one of the safest and widely-applied hardware wallets. Besides, it is not that expensive. It costs 58 € or $70 USD.
On its official website, the company claims to have it in stock until September 2017.
Coinbase is a popular trading system, in which you can buy, sell, exchange your money. In fact, it has already helped 9.2 million people to accomplish successful transactions. The system is aware of the significance as well as the complexity of cryptocurrency transactions, and, therefore, it possesses an intuitive design and yet, a powerful security mechanism.
The website also provide its users with an opportunity to create an e-wallet, however, you should be very prudent since many hackers channel their efforts towards cracking such systems.
However, the Coinbase website has something to offer to make sure your coins are in safe: vault protection. Basically, it is a cold wallet, and in order to make a transaction, you are to accomplish the following steps:
confirm via email (often and on several email addresses are needed);
confirm via phone;
wait for 48 hours to send your coins;
During this period, you are sent reminders on your email, and your transaction can be cancelled anytime. Thus, you are able to see what is going on in your coinbase account. Don’t forget to utilize 2-factor authentication, otherwise you will diminish the security measures. Download Google Authenticator or Authy to strengthen the security of your wallet.
MyEtherWallet is a web-service which provides you with an opportunity to create a cryptocurrency wallet. The specific feature about this website is that once you generated a wallet and downloaded it on your computer, you are the only one who holds the public-private key pair. The file you download is protected by a password which you insert during creating a wallet on MyEtherWallet. Thus, when you decide to send your ETH to anybody else, you will have to upload the file to the website.
Remember, if you lose your password or the file, no one will be ever able to help you restore it. Therefore, you should be very prudent and store it in a safe place.
works with ETH only;
compatible with other wallets;
website is open source;
Important: The difference between MyEtherWallet and Coinbase consists in the following: On Coinbase you do not have access to your private keys, it is securely stored on the website. So far, Coinbase hasn’t been exposed to attacks. However, if somebody manages to do it, he/she will basically have the access to your private keys, as a result, ETH as well.
As regards MyEtherWallet, no one but you are responsible for storing the keys since the website generates a file with public-private pair key and does not have control over it.
TREZOR is another hardware cryptocurrency wallet which is said to be the original one, and therefore, provides a extremely-high level of security. Having run a quick installation, you will not find any difficulty with using it since TREZOR is really intuitive and easy to utilize . To optimize the communication process for Trezor hardware, the company has developed a Google Chrome module.
TREZOR is also known for being a multi-currency wallet and protecting your data with SSH login. Apart from it, the device does cooperate with many trustworthy services (MyEtherWallet e.x) to guarantee you maximum convenience and security.
ERC-20 coins supported;
Physical approval needed to confirm important decisions;
SSH Admin access;
Multiple wallets by adding Passphrases;
However, you should take into account the fact that, in comparison to Ledger Nano S, in case your TREZOR is stolen, your data can be physically extracted from its chip.
Trezor comes in black and white colors.
Price: 89. €
However, provided you order 3 Trezors, you will be able to get 22€ off.
StrongCoin is a hybrid digital wallet which provides you with an opportunity to safely transfer/receive coins in your account. The particularity of the hybrid wallet is that before sending your private key to StrongCoin, it is first encrypted in your browser. Thus, the company receives only encrypted private keys and consequently, the access to your wallet has no one but you.
StrongCoin is said to be the longest running company in this domain. More than 110 000 users have already put trust in this platform. Even though, wallet creation on StrongCoin is free of charge, however, you might have to pay some small fees during transactions (depending on the sum).
Ledger Blue is a king when it comes to hardware wallets because of its great amount of features as well as extended functionality. It is considered as being the most advanced hardware security device.
Ledger Blue offers a rechargeable battery, Bluetooth, and a large touch screen. For it is extremely light, you won’t find any difficulty with transporting or storing it. It provides a multi-currency support and can be integrated with different applications.
However, you should be ready to pay quite a lot to enjoy all the features it offers. Ledger Blue costs 229.00€ (around $270 USD).
dual-chip architecture (secure element and microcontroller);
enterprise level usage;
operates with smartphones and computers;
Incorporated WYSIWYS (What You See Is What You Sign);
Exodus is a considered as being the first desktop wallet which incorporated the ShapeShift system in its interface for us to be able to have a fast conversion. Apart from it, Exodus enjoys high consideration due to its beautiful design, which is extremely intuitive and simple, making sure a normal person would be able to easily understand how to use it. With the help of this multi-asset wallet, it is possible to keep your private keys in one app, the interface of which you can customize to improve your experience.
built-in ShapeShift exchange;
encrypts data with a user-provided password;
For you to see what is going on with your coins, Exodus offers beautiful live charts that demonstrate how diversified your wallet is.
In case you need any help, Exodus support is available 24/7. Simply contact them in the application or you can send them an email to come up with a solution.
Exodus can be downloaded with free of charge on Mac, Windows, and Linux.
Jaxx Ice Cube is a multi-asset hardware wallet which has been recently introduced to enhance the security of your coins. This cold storage device offers integration support for ShapeShift, includes a camera and cellular chip as well as is said to be water and fire proof. To guarantee a higher level of security, the developed device never gets connected to the Internet to ensure no one can get access to your private keys.
To accomplish a transaction, you need to do the following actions:
build a transaction on your connected to the Internet device (ex. phone)
scan a QR-code with Ice cube (it pops up right when the transaction is built);
confirm the transaction on the ice-cube screen;
when transaction is confirmed, the cube signs it with private keys and encodes it in a QR code;
You are to scan the QR code with your mobile device;
and wait for Blockchain to accept the transaction;
If this article was about the “the best mobile applications for cryptocurrency”, the Mycelium wallet would be definitely at the top. In fact, Blockchain.info called it the best mobile app back in 2014. Basically, Mycelium is a multi-asset cryptocurrency wallet which has gained the trust of many users due to its outstanding performance, simplicity, and security. Currently, it allows integration with various third-party services to make user experience as great as possible. Among the companies which cooperate with Mycelium are Trezor, Ledger, Coinpult, Cashila, and Glidera. Being a constantly improving Android-based application (iOS is also available), Mycelium is up to date of all tendencies in the blockchain world. Thus, it utilizes hardware wallets to be able to guarantee a secure place to store your coins.
DApps (decentralized applications) is another domain the company has been lately focused on. Nowadays, a personal finance instrument is being developed to be able to simplify the process of finance management.
decently developed android application;
compatible with hardware wallets;
extensive back up options;
The mobile application wallets themselves are said to be the least secure way of storing your coins. However, in combination with hardware wallets, you get a powerful tool which increases dramatically the security level of your cryptocurrency wallet.
Electrum is a desktop cryptocurrency wallet application which was developed by a German developer Thomas Voegtlin in 2011. It is said that 10% of all Bitcoin transactions occur in the Electrum world. With the help of this software, you are able to freely manage your funds as well as store your private keys in a secure place.
When it comes to hardware wallets compatibility, Electrum also provides an opportunity to cooperate with cold storage devices to guarantee maximum security to your coins. To reduce downtime to zero, the software applies decentralized servers.
compatible with hardware wallets;
multisignature and 2-factor authentication support;
As you have noticed, there are lots of great cryptocurrency wallets out there, and each one has its specific features. Our recommendation would be to combine the power of different types of wallets to make sure your coins are in a safe and secure place.
If you have any question regarding the aforementioned topic, please, do not hesitate to contact us or leave your feedback in comments. We would be extremely glad to answer your questions or just talk what our heart is passionate about.