How to choose an Ethereum wallet: an overview of solutions for different use cases
What types of Ethereum wallets are there?
Ethereum wallets are divided into two types: software and hardware.
Software or "hot" Ethereum wallets are applications for storing and managing crypto assets and, depending on the platforms used, are also divided into desktop, mobile, and browser-based wallets (websites or browser plugins).
A software Ethereum wallet provides fast access to assets, which is convenient when you need to send or exchange cryptocurrency quickly. However, software Ethereum wallets are vulnerable to online attacks, including the risk of malware infection.
The highest level of security is provided by a "cold" hardware Ethereum wallet, which stores crypto assets offline. These devices offer an isolated environment from online threats, eliminating the possibility of remote interference, but they are less convenient to use than "hot" wallets.
Hardware wallets are protected by a Secure Element (SE) chip, which prevents the extraction of private keys, and some devices are even protected by a self-destruct seal that wipes data in the event of physical tampering.
What to consider when choosing an Ethereum wallet?
Advanced security and backup features
The security of an Ethereum wallet is one of the top priorities for cryptocurrency users.
Ethereum wallets may include the following security features:
- Additional protection with a PIN code and biometric authentication (Face ID or Touch ID);
- Two-factor or multi-factor authentication (2FA)*;
- Built-in anti-phishing* protection;
- Advanced wallet backup protection: a passphrase for the mnemonic phrase*, Shamir backup (SLIP39)*;
- Multi-signature (Multisig)*.
* Two-factor or multi-factor authentication (2FA) — a method of account protection in which access to an Ethereum wallet requires not only a password but also additional confirmation (a one-time code, biometrics, a hardware key, or confirmation via a separate device).
* Phishing — a type of fraud in which attackers attempt to gain access to crypto assets, private keys, or a user's seed phrase by impersonating official services, websites, wallets, or dApp applications and misleading the user.
* Mnemonic password (seed phrase) — a sequence of 12, 18, or 24 words used to create and restore an Ethereum wallet and granting full access to its crypto assets.
* Shamir backup — a private key backup method in which the mnemonic phrase (seed phrase) is split into several parts, and a specified number of these parts is required to restore the wallet, significantly increasing storage security.
* Multi-signature (multisig) — a technology in which transaction confirmation requires approval from multiple private keys or participants.
Functionality
Almost any Ethereum wallet provides access to dApps through direct connections to DeFi applications or via the WalletConnect* feature, now known as Reown.
* WalletConnect (Reown) — a protocol for securely connecting an Ethereum wallet to dApp and DeFi applications, allowing users to sign transactions and interact with smart contracts without transferring private keys or seed phrases, including connections via QR codes or direct sessions between the wallet and the application.
Some Ethereum wallets also allow manual configuration of gas* parameters, which helps save on transaction fees in the Ethereum network. However, it should be noted that a large number of advanced features may affect the usability of an Ethereum wallet.
* Gas — a unit of measurement for computational resources in the Ethereum network, used to pay for transaction execution and smart contract operations. The gas fee determines the cost and speed of transaction processing on the blockchain.
Additional features
Both software and hardware wallets often include built-in features for earning income in the DeFi market, providing native staking* of cryptocurrency and liquidity pool* management directly through the wallet interface.
* Native staking — a mechanism for earning rewards by participating in blockchain network maintenance by locking cryptocurrency directly through the wallet interface, without using third-party services or transferring assets to third parties.
* Liquidity pools — smart contract-based repositories of crypto assets to which users contribute funds to facilitate swaps and other operations in DeFi protocols, receiving fee income or additional tokens in return.
Ethereum wallet: which one to choose?
An Ethereum wallet should be chosen based on the tasks the user needs to solve.
For example, a hardware Ethereum wallet is best suited for secure long-term storage of cryptocurrency. In contrast, software wallets are more convenient to use, which is essential for making regular small payments. A more detailed list of supported Ethereum wallets can be found on the project's official website in the "Find Wallet" section. Below are the most popular clients and devices.
Hardware Ethereum wallet
- Ledger — a wide range of hardware wallets, including both USB flash drive–style devices and touchscreen devices. These wallets support all EVM-compatible networks and interaction with decentralized applications (dApps).
- Trezor — a company that released the world's first mass-produced hardware wallets. The Trezor Ethereum wallet features the first verifiable TROPIC0 chip and supports a passphrase for enhanced security.
Mobile Ethereum wallet
- Trust Wallet — one of the first and most popular mobile multi-chain wallets with a built-in dApp browser and exchange, as well as the ability to create up to 20 crypto addresses.
- Exodus — a simple Ethereum wallet with support for two-factor authentication, multiple blockchain networks, and built-in cryptocurrency exchange services. Exodus is also available on mobile devices.
Desktop Ethereum wallet
- Atomic Wallet — a popular desktop Ethereum wallet with support for passphrases and advanced private key encryption, also available as a mobile application and compatible with DeFi services;
Browser-based Ethereum wallet
- MetaMask — the most widely used Ethereum wallet in the form of a browser plugin, with over 30 million users, supporting all EVM-compatible networks, including custom ones, and featuring a built-in swap function (on-chain exchanges). A mobile version of the MetaMask Ethereum wallet is also available.
- Coinbase — a simple multi-chain Ethereum wallet from the well-known cryptocurrency exchange of the same name, offering many DeFi options and also available as a mobile application.