With the financial world changing so fast, crypto-currencies are getting accepted all around the world. However, when crypto is mentioned, everyone instantly thinks about Bitcoin. While, Bitcoin is the first digital currency, it’s certainly not the only one. The coin that’s right next to Bitcoin is Ethereum. In this article we will explain “how to get a Ethereum wallet”, among other things.
Ethereum (ETH) is the second largest cryptocurrency by market capitalization. It’s popularity and high liquidity makes it a perfect entry point for those getting started in the diverse and exciting world of cryptocurrencies. Regardless of the cryptocurrency, the very first step is always about setting up a digital wallet to store them. Ethereum, just like Bitcoin, can be used to purchase any types of goods or services.
To learn more about the comparison between Bitcoin and Ethereum, make sure to check this Bitcoin Dictionary section. On the other hand, in this article we will cover the process of creating an Ethereum Wallet.
What is an Ethereum Wallet?
Cryptocurrency wallets are how users interact with their funds. Wallets are similar to an account with a bank, but with very important differences. Like a bank account, they can receive and send funds and assets that they have inside them. Unlike a bank account, if you lose access to your account, it is gone permanently, along with all the assets inside. There is no central authority that can help you get back your wallet. So, even though having absolute control over your finances is good, you responsibilities increase drastically as well.
Before we explain how to get an Ethereum wallet, you must know that there is a variety of different purses. Choosing one is the first step to start interacting with the world of digital money. It is not too complicated, but there are many options. We can divide these wallets in 4 groups.
- Web Wallets;
- Computer Coin Wallets;
- Mobile Wallets;
- Hardware Wallets;
- Paper Wallets.
At the moment, Ethereum is used for purchasing all kinds of goods and services. However, Ethereum Gambling is on top of the list. Placing bets online has massively increased in popularity since cryptocurrencies appeared on the market. That’s the reason we are explaining How to Get an Ethereum Wallet.
How to Get an Ethereum Wallet?
Depending on the type of wallet you pick, the procedure for activating it will be different. For instance, web Ethereum wallets are the easiest to use. You can register online from any PC or mobile. Some of these wallets even have an app which can be used. Usually, web wallets are free. The computer purses are similar as well. All you need to do is install a program on your PC. That program will hold your Ethereum wallet. Jaxx and Exodus are good examples of computer coin wallets.
The mobile wallets are pretty much applications which you can install on your phone. These apps work with both Android and Apple. Blockchain is an example of a mobile wallet. All of the above mentioned types are usually free of charge. However, they are also lacking in security. On the other hand, hardware and paper wallets are a much safer option. The paper wallet is a record of the private and public keys you need to access your wallet and make transactions. Paper purses are not on the Internet and therefore no hacker can access your cryptocurrencies.
However, when it comes to hardware Ethereum wallets, the procedure is a bit different. They offer a way to store crypto-currency offline. Unlike the other options where you just need to download a program, the hardware wallet is a device that needs to be bought. They are otherwise known as “cold storage” portfolios.
Type of Wallets
There are three types of Ethereum wallets: software, hardware and paper wallets. As you would imagine, each of these offer advantages and disadvantages. Going for one or another will come down to your lifestyle and goals regarding cryptocurrencies.
- Do you consider ETH an investment or payment method?
- Are you going for a long-time or short-time investment?
- Would you like to buy and cash out ETH straight from your new wallet?
Formulating and answering these and other questions should help you out with the decision. In case you’re not aware of the pros and cons of the above-mentioned wallet types, make sure to read this before jumping into one:
- Software wallet: your private key are stored in data files online (hot wallets) or offline (cold wallets). Hot wallets tend to be a bit more risky to store your private key due to potential cyber attacks.
- Hardware wallet: instead of keeping your private key on a data file, a hardware wallet stores them in a physical device that requires a password or fingerprint to unlock your wallet.
- Paper wallet: don’t let your imagination go wild — a paper wallet is nothing more than a piece of paper that has your public address and private key printed on it. The obvious advantage is that it’s literally un-hackable.
Setting Up Your Ethereum Wallet
All you need to know about how to get an ethereum wallet is that the wallet consists of two things. First, it’s a public address which is where you send the funds to. The second part is the keys you need to have. Those keys can be public or private. A public key operates like an Email address, Home address, Mailbox, or a Bank account / routing number. You can share these things, but sharing this doesn’t give access to what is inside. However, a private key is something completely different.
A private key is the secret password that has control over the funds inside a public address. This key works like an account password, key for your front door/mailbox/safety deposit box. You do not share these! Basically, the private key controls the funds in your account. Essentially, who ever has your private key can get all your Ethereum wallet funds.
Funding Your Wallet
Once you get the wallet, you need to fund it with Ethereum before you can make any transactions with it. You can always send any asset to any wallet, but if you want to send tokens out or from a wallet, that address needs to have Ether in it to pay the network fee. There are websites that can make this process much easier. The most popular one is known as Coinbase and is used my millions of people around the world.
After the funding is done, make sure you secured your account. Depending on what type of wallet you get, the security can be different. However, the most universal way that’s offered by everyone is connecting your phone to the account. Once you do that, every time you log in to your wallet, you will get a text message. So, if someone else tries to get in your account, the text message will notify you and you can take appropriate measures to protect your account.
How to get your own Ethereum Wallet?
Creating your own wallet is relatively easy, especially since the Ethereum platform provides an official wallet service called MyEtherWallet. Here’s how to set it up. Once you open the website, you will be greeted by several safety reminders. Take your time to read through them, as those are very helpful for your understanding of how the whole thing works and what you should and shouldn’t do to protect your funds.
As soon as you’re done reading, you will see an option to create a password and set up a new wallet. Once you’ve created a strong enough password, you will have an option of downloading your keystore file. You can never be too safe in the world of cryptocurrency trading, so it is recommended you do so and store it a safe place. The next step is of utmost importance: save your private key. Back it up, memorize it, write it in on a piece of paper and put it into a safe deposit box. Do whatever you need to do to ensure you won’t lose it and no one will be able to get their hands on it.
Then, you can copy and paste your private key or upload your keystore file to unlock your wallet. There are several other options for unlocking it, but those are the most suitable for first-time users. Now you’re all set up. Next time you want to access your wallet, all you need to do is to authorize yourself on the website again. There, you will be able to see the public address of your wallet, as well as your balance. For more information on the matter, make sure you check the Coinbet24 Blog.