Security is very important in the crypto world because we are dealing with values. Just like we jealously secure our high-valued items in the physical world, we also need to be extra careful about how we treat how digital assets. That means before you go into trading or investing in Ethereum, you need to know the best way to store the Ether coin.
The place you store your Ether and other cryptocurrencies is called your wallet. A crypto wallet is essentially a piece of software or physical device that allows you to store your token securely, seamlessly conduct transactions, and check your balance any time you need to.
A wallet will have two keys; the private and public keys. While the public key serves as your wallet “account number”, making it possible for people to send Ether into your wallet. It works just like your bank account number works. On the other hand, the private key is only known by you, and that is what you will need to sign off transactions and unlock coins sent to you. That is also what you will use to check the coin balance on your public address. This means that you will need to keep your private key secret so it doesn’t get into the wrong hands – that can cause you to lose all your Ether coins to theft.
If you are considering buying Ethereum into your wallet, you can purchase using Anycoin Direct for a seamless and fast purchase. Now, let’s look at some ways you can store your Ether securely.
What Are The Safest Ways to Store Ether?
Ether is the currency of Ethereum and there are different types of wallets that allow you to store them securely. While some are great for storing funds for a long time, others come in really handy for daily use. Let’s see some of these wallets.
#1: Paper Wallet
This is probably the option when it comes to storing Ethereum Ether. But it is not so common because of the technicality involved in setting it up. It is often used by highly advanced users because when one thing goes wrong in setting it up, it can result in all your coins been stolen by hackers.
However, the security this type of wallet provides by Ethereum is noteworthy. A paper wallet is essentially a piece of paper with a code written on it. It doesn’t need to be connected to the internet or be stored on your computer, making it very impossible to be hacked. You can decide to keep the paper with you at all times or save it away in a deposit box.
To set up a paper wallet for your Ether, you will need to create a new wallet on MyEtherWallet.com and download the keystone file, and hit the “print” button you’ll be provided. A piece of paper containing both your public and private keys and QR codes will be on the paper. You can also use other generators available online but make sure you are not connected to the internet when generating your new wallet address.
- Provides a very secure option when properly set up
- Great for storing a large amount of Ether
- Completely free
- It requires a long time to set up
- Not an option for daily use. Only great for long-term storage
- Susceptible to theft and destruction too
#2: Online Wallets
Online wallets or web wallets are those found on centralized services such as cryptocurrency exchanges. These types of wallet use the cloud storage and make it possible for you to access your wallet from anywhere. They are also generally much faster than other types of wallets. However, because these wallets’ keys are stored online, and most times on a third-party server, they are extremely susceptible to malicious and cyber-attacks. Hackers can easily hack into your wallet and steal your coin.
So if you will be using an online or web wallet to store your Ether, make sure you are not keeping too many funds in it, and don’t let your fund sit in there for a long term. There are a couple of online Ethereum wallets we can recommend. These include Coinbase, Binance, MyEtherWallet, Bittrex, and Lumi wallet.
- Great for traders
- Easy to use
- You don’t own your private keys, making them vulnerable to theft
- Exchanges are a good target for hackers
#3: Software Wallets
This wallet offers a middle ground between paper wallets and mobile wallets. It balances security and ease of use. It is easier to make daily and repeat transactions with software wallets than with paper wallets. At the same time, they are safer than exchange wallets because you will get to keep your own private key. That means if you are looking for a wallet that allows you seamlessly make daily spending while still offering a high level of security, the software wallet is the perfect option to consider.
There is a wide range of options available when choosing a software wallet. However, ensure you only go for one that has open-source code. This allows the crypto community to test for and verify that the code in the software is impermissible for hackers.
Some software wallets you can consider for storing Ethereum are Exodus, Jaxx, MetaMask, Atomic wallet, and Mist wallet. All of these are open-sourced and can be used on either your mobile phone or computer.
- Simple and user-friendly interface
- Easy to access Ether
- Great for beginners
- Can also be used to store other cryptocurrencies
- Can make users lazy about security
- Can also be hacked
- No 2-factor authentication
#4: Mobile Wallets
If you are also the type that will like to always have your wallet on your mobile phone, probably because you travel a lot and always from your computer, you will find this option interesting. However, while you are thinking of the flexibility this type of wallet offers, remember that it is only as secure as the mobile phone itself. You can have a mobile wallet on your phone whether you use an Android or iOS device.
Remember that your mobile device can be infected with malware or someone have the PIN code to the phone. This can make a third person have access to your Ether wallet and render your coins vulnerable. Therefore, if you are considering using a mobile wallet for storing your Ethereum, make sure you only keep small sums for daily use in it.
A few examples of recommended mobile wallets for storing Ethereum Ether include TrustWallet, Jaxx, Coinomi, Lumi Wallet, and Atomic wallet.
#5: Hardware Wallets
This is one of the safest ways to store cryptocurrency for a long time. They are much like those conventional USB sticks or external hard disks but designed specifically to be used for digital currencies. When you are about to use them, you simply plug them into your computer to make a transaction. These wallets also don’t make use of the internet to generate keys. Because of this, they provide a much safer environment for your funds against cyber-attacks and hacking.
Most hardware wallets also come with backup options and can be further secured with 2-factor authentication. However, these wallets don’t come free – you will spend close to a hundred dollars to get them.
Some recommended examples of hardware wallets for Ethereum are Trezor, Ledger, and KeepKey.
- Offer much better security compared to online wallets
- Allows funds to be sent to and from the device
- Portable and lightweight
- Supports hundreds of cryptocurrencies
- You need to install firmware
- The device can be used on infected devices
- Susceptible to damage and theft