Safe storage of Ethereum

hardware wallet
A Hardware Wallet is a device you have to buy. These devices are considered to be the safest wallet if ethers are to be used actively. Even malware on your PC cannot harm your Ether. Initially, the Hardware Wallet creates a seed of 12 to 24 words, which then creates your receiving addresses. In addition, the Hardware Wallet can store multiple digital currencies and not just Ethereum.

Advantages:

Safe storage of the ethers
Active use of the ethers possible
Other digital currencies (ERC20) can be stored
Disadvantages:

acquisition cost

The best Ethereum Hardware Wallets:

Hardware Wallet User-friendly Open Source Currencies
Trezor* Yes Yes Bitcoin, Ether and ERC20 Token, Litecoin etc.*
Ledger Nano S* Yes No Bitcoin, Ether and ERC20 Token, Litecoin, Ripple etc.
Ledger Blue* Yes No Bitcoin, Ether and ERC20 Token, Litecoin, Ripple etc.

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A Desktop Wallet is an Ether Wallet for the computer that you can download. On the ethereum.org website you will find several options for a desktop wallet, depending on your operating system. With a desktop wallet, the environment is very important, i.e. whether your computer Bitcoin Profit a free Software┬áis free of malware. Ensure a secure environment and keep your computer free of malware – at least install a permanently good antivirus program*.

Advantages:

Active use of the ethers possible

Disadvantages:

Vulnerable environment
Developer-dependent (updates, security, etc.)

smartphone wallet
You can also download an Ethereum Wallet for your smartphone, depending on your operating system. For all operating systems the Jaxx Wallet. It also applies to the Smartphone Wallet that you must keep your Smartphone free of malware, possibly with an antivirus program*.

Advantages:

No costs for creation and use

Ether can be taken anywhere
Disadvantages:

Vulnerable environment
Developer-dependent (updates, security, etc.)

online wallet
An Ether Online Wallet is a wallet that you create online at a website or service. The website creates the private keys for you and usually holds your private keys for you. For this reason, you should only use Online Wallets in emergencies or for small quantities.

Because as you learned earlier: You do not own your Ether until you have the private keys and keep them safe. Or would you buy a car and leave the keys and papers at the dealership?

Advantages:

Quick and easy creation
Useable anywhere in the world with email and password
Disadvantages:

Vulnerable environment (including phishing)
Holds your private keys
Depends on the service of the provider

Ethereum Wallet | What you need to know

A wallet is software or hardware that manages all Ethereum addresses and the associated private keys. With an Ethereum Wallet, ethers can be held, received and transferred.

An Ethereum Wallet is thus a kind of bridge, an interface that manages its own public keys and private keys.

Public Keys and Private Keys
What is a public key?
A public key is a public address, also called the receive address, to which Ether is sent. This receive address can be used to receive Ether. For this purpose, the public address is passed on to a stock exchange or a third party.

An ether receive address always starts with 0x and looks like this, for example:

0xC6D16CBDf1e9C0ed1BdFab42342AE68ADbD24806
The recipient address is a kind of account number for your Ethereum account. And there is an associated private key for each public address.

What is a Private Key?

The private key is a secret access code for the corresponding receiving address. The private key is therefore a kind of PIN for the Ethereum account. And this private key should always remain private!

If you have a private key, you always also have the ethers on the corresponding receive addresses.

A private key then looks like this, for example:

c50721616c4c520a2dc4522d9c3bbf46770ec15189bac1fd9cc3df14e06a61166e
This private key is the access code for the upper ether receive address. If ethers were stored on the receive address, anyone could steal the ethers with this private key.

Never store ethers on a PC
Once the basics of the private and public keys have been understood, another misconception must be corrected. Ether does not “store” on the PC or smartphone. If the PC is destroyed, for example, you could still access the Ether if you have the private keys.

Remember: You only own your Ether if you have the private keys and keep them safe.

Types of Ethereum Wallets

There is not one Ethereum Wallet. Ethereum is decentralized and open source, everyone can participate and work in it. That is why different types of wallets develop over time.

paper wallet
A paperwallet is the “simplest” form of a wallet and can also be very secure. The paper wallet consists of a single Private Key – Public Key – Pair, which can be created in different ways. Paperwallets are usually only used for long-term storage. With this wallet the ethers cannot be used actively. If you want to use your Ether later, you will need some technical understanding and a desktop or smartphone wallet.

Advantages:

Safe storage of the ethers
Low production costs

Disadvantages:

Secure creation is complex and time-consuming
No active use of the ethers