How To Choose An Etherium Wallet

Etherium is the cryptocurrency of choice for many investors. Since 2017, the price of Ethereum has increased by over 50,000% making it one of the most valuable cryptocurrencies. Purchasing Ethereum is a wise decision. It is also important to find the right ethereum wallet to store it.

Selecting the best ethereum wallet for your investments can be a little confusing. Should you go with hot or cold storage? This is the big question that you should ask yourself. Which is the best: hardware or software wallets? This article gives you key factors to consider when making that decision.

  1. Security

When selecting where to store your cryptocurrencies, security is an important factor to consider. Of course, it is not possible to say a particular storage solution is completely secure but there exist options that are more secure than others. Security however can be affected by factors like how often and how easily one would want to access their funds. A more secure option will most likely not provide an easy user interface or access.

In terms of security, cold storage solutions such as paper wallets top the list while online storage locations are the riskiest and most susceptible to hackers.

  1. Control over Funds

The level of control you will have matters. By creating a wallet from scratch, you have complete autonomy. With third-party options, control is restricted. The company that manages the server will be able to see the keys of all customers. Therefore, you should consider alternatives that involve hosting everything on your PC. You can’t trust anyone with your private keys. You need to be the only person who can access them.

  1. Ease Of Access

Ease of access is an issue that shouldn’t be ignored.  Hot wallets are web-based. That makes them easily accessible from anywhere there is a reliable connection. With easy accessibility, you will have to sacrifice some level of security. Therefore, you should select a hot wallet provider that has a history of secure services.

Cold wallets are offline. Thus, they are not easily accessible. If you are someone who frequently does transactions, you might not like this option. That is because doing any transaction will be a major hassle.

You can strike a balance between ease of access and security. This will require you to have some of your ethereum in cold storage and others in hot storage.

  1. Period of Storage and How Much you Want an Ethereum Wallet to Handle

Long-term storage is best done by a paper wallet while short-term storage by a digital ethereum wallet. As a rule of thumb, a mobile or PC wallet shouldn’t handle a large sum of money. A software wallet is ideal for only a small amount. If your Ethereum investment is worth much, you might want to consider an offline wallet without internet access such as a paper wallet.

Large institutional investors normally choose paper wallets. Small-scale investors who don’t have investments worth thousands of dollars will do fine with an app or desktop application. This will allow for real-time trading.

The Bottom-Line

When choosing an Etherium Wallet, security is the most important factor to consider. You need a wallet that will give you peace of mind about the security of your investment. Other factors that you should consider include reliability, convenience, user-friendliness, and the size of your investment.  You should choose a wallet that will be suitable for your personal needs and circumstances.

 

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