Ethereum is an open-source, decentralized blockchain-based software that integrate intelligent contract functionalities. Being the second -largest cryptocurrency, Ethereum enables developers to build distributed applications. Crypto miners mine tokens that buyers can use as currency.
To buy ETH, it is important to have an Ethereum account and fund it via bank transfer. To manage your Ethereum account, you need to hold a wallet. Your wallet allows you to view account balance and manage transactions.
There are different types of Ethereum wallet and understanding all of them might be helpful in managing your account more proficiently. Let’s learn about these wallets.
These electronic wallets are USB sticks that are used to sign and share Ether transactions. If you are using any of the hardware wallets, you are not connected to the internet which means you get top-notch security. Since the hardware wallets are challenging to hack, you can use them to store large amount of Ether coins.
If you are someone who has the habit of writing down any every single detail, paper wallet is for you. Using paper wallet means printing or noting down the key on the piece of paper. With paper wallet, you need to be extra careful as losing the key will prevent access to your Ether account. Store your key in a safe place with restricted access.
One of the least safe crypto wallets as it stores the key online. A wallet that works by connecting to the internet is referred to as hot wallet. On the other hand, the crypto wallet that is not connected to the web is known as cold wallet. For better security, crypto investors often combine cold crypto wallets and hot wallets.
Tips to Secure Crypto Wallet
So, when you know about the crypto wallets, let’s learn some tips to secure them.
Backup Your Wallet
Backup your wallet as soon as you create a new key. To give you complete control over your crypto account, the wallet providers usually do not save the key. If you lose access to the wallet, funds in your crypto account are most likely lost.
Implement 2-Factor Authentication
Leverage 2-way validation to ensure top-tier security for your crypto wallet. Not all the crypto platforms offer 2-factor authentication method, it’s important that you pick one that provides this security feature to enable top-notch safety.
Be Careful of Phishing Attempts
Similar to your email accounts, crypto accounts also receive links that make your account susceptible to hacking attacks. Avoid clicking any random links that you receive from untrusted source.