Learn to create and configure your own wallet in just a few steps. Let’s get to work!
What is an Ethereum wallet?
A wallet is a digital space that allows you to store cryptocurrencies safely. Having a wallet on a cryptocurrency network would be equivalent to having a bank account at a bank.
Just as you use your bank account to receive, send and save money, Ethereum wallets give you all these possibilities, but to manage Ether (ETH).
What can you do with your Ethereum wallet?
- Buy and sell ETH
- Send and receive ETH from anywhere
- Store your funds
- Check your account balance
- Manage your cryptocurrencies in one safe place
- Control your own private keys (the passwords that allow you to access your digital assets).
- Interact with username instead of long alphanumeric public key addresses.
- Explore Dapps (decentralized finance applications)
- Shop at stores that accept cryptocurrencies.
Why is an Ethereum wallet necessary?
You need an Ethereum wallet to interact with your Ethereum account, otherwise you will not be able to do so.
It is important to mention that, unlike a bank account that is used to save money, the Ethereum wallet does not technically store your digital assets. These are stored on the blockchain, but can only be accessed with a private key.
What is stored in your wallet is this private key, a code of letters and numbers that will allow you to make the transactions and unlock the cryptocurrencies (ETH) you have.
Which Ethereum wallet should you choose?
Knowing which Ethereum wallet is best for you will depend on your level of experience and your knowledge of the cryptocurrency market. The main aspects you should take into account are:
- The security they offer to protect your assets
- How much commission they charge
- Customer service
- Which access you feel more comfortable with according to your user experience
As we have already mentioned in our Ethereum Wallet Beginner’s Guide, in general there are two types of Ethereum wallets, physical (hardware) and digital (software).
Physical wallets (hardware)
They are physical devices that look like a USB memory. The private key to access the cryptocurrencies is stored within this device. As it is not connected to the internet and is a tangible device, many consider this wallet to be the safest option.
Digital wallets (software)
There are three main types.
they are applications that run on your computer. The private keys are stored on the computer, no intermediary is involved. As the computer is always online, it is recommended to have a complete antivirus to protect your codes.
They are applications that allow you to manage your account from your phone. They are easy to operate and have very friendly functions, for example, they use QR codes to speed up transactions. The private keys are stored on the device.
It can be accessed simply from a phone or a computer online, so they allow you to operate from anywhere. The private keys are stored on online servers, so they are extremely less safe than other alternatives.
What is an Ether receiving address?
The Ether receiving address is a unique alphanumeric code that identifies each Ethereum wallet.
To send Ether you will need to ask for the address to which to transfer, and to receive you will need to provide your own wallet address. You will usually find this code below the “Receive” button of your wallet, you will see that it always starts with “0x” for example: 0x2b4d87eff06f22798c30dc4407c7d83429aa9abc.
The receiving address is also called the public key, and it does not work autonomously, but it acts together with the private key that is stored in your wallet. In order to be able to make any transaction, the two keys must match.
How to get an Ether wallet for mobile?
Having an Ether wallet on your mobile is very easy!
First of all, there are many alternatives on the market, so we recommend that you first do some research on the web to find out their characteristics and references. Once you have the one you want, you will need to follow these simple steps:
- Enter the mobile app store.
- Download a wallet to manage Ethereum.
- Once you open the application, the wallet is automatically created!
- Enter the security codes that will protect your account (a recovery phrase and a private key).
- Your wallet is ready to use! You can now buy or receive Ether immediately.
What do you need to know when setting up an Ethereum wallet?
There are different ways to set up an Ethereum wallet, here we will see the two most popular.
Set up physical wallets (hardware)
The first step is to buy a device. Then you must follow the manufacturer’s instructions to connect it to your pc and perform its installation. As security mechanisms you will have to enter a PIN code and then a security phrase to recover the PIN in case of theft or forgetfulness. Finally, you must install the complementary applications and ready!, Your wallet will be ready to use.
Set up digital wallets (software)
Although there are variants (mobile, computer, web), the installation process is usually similar. First you must download the corresponding software according to the type of wallet you want. Then you can create your wallet and insert the security mechanisms, such as the private key and the recovery phrase (in the case of a web wallet this will be done through a downloadable file). Now all that remains is to add ETH to your wallet to start operating!
So, do you know which wallet is best for you?. If you want to know more about Ethereum wallets we recommend that you read this guide that we have prepared for you.