What is a Wallet?
Resembling fiat currency bank accounts, Ether wallets are used for holding, storing, and transferring Ether.
The Ethereum platform allows you to create a wallet for yourself, but it is easier to use a third party to do this.
Third-party wallet providers are available through a software application, website, or other mechanism. Wallet providers give the user their “public key,” which is their Ether “address.” The wallet also utilizes the user’s private keys, which “unlock” the wallet and allow the user to spend the Ether that’s allocated to that address within the blockchain.
Also similar to a fiat bank account, these wallets hold a user’s balance and provide storage and transaction history. As a part of the Ethereum platform, entities can view your balance and transaction history – but not access it, and your identity is kept anonymous.
Which Wallet Do I Use?
Wallets can come in different forms such as a mobile wallet, a desktop wallet, a wallet that is stored on the web, or even a tangible hardware wallet. These various wallets fall into two categories: Hot Storage Wallets and Cold Storage Wallets (there can be hybrids of hot and cold, as well).
A hot storage wallet refers to a wallet that’s kept online. Hot wallets are generally more vulnerable to hacking and theft due to internet access.
A cold storage wallet refers to an offline wallet (something that’s not connected to the internet, and can be in a tangible form). Cold wallets are intended to help protect the stored Ether against hacking and theft, due to the inaccessibility of the internet.
Exchanges may offer built-in wallets with their services or a user may select their own from a different provider.
There are many wallets available for virtual currency users. Listed below are a few of the more popular wallets used for storing just Ether.