The most basic requirement for getting started with Ethereum (ETH) is having an Ethereum wallet. Wallets don’t just store cryptocurrency—every transaction on the Ethereum network, from simple storage and fund transfer to executing complex decentralized finance (DeFi) strategies, begins and ends with an Ethereum wallet.
Because they’re such a critical component of the crypto landscape, an enormous variety of wallets is available. Wallets come in several different types, each with unique features and distinct strengths and weaknesses.
In this guide, we’ll review the basics of how Ethereum wallets work, where to store Ethereum, and the different kinds of wallets out there.
What are Ethereum wallets, and how do they work?
Ethereum wallets store user credentials—addresses that act as different accounts and the private keys used to authenticate transactions from them—and offer an interface for managing funds. Anyone with access to the private key for an Ethereum address can access the funds stored there, so wallet developers work hard to make their software as safe from attackers as possible.
Wallets are the gateway to the Ethereum network: Every Ethereum transaction originates from a wallet. The most widely used wallets are available as mobile apps, desktop software, and browser extensions. Some users opt for dedicated hardware devices with stringent security protocols.
In addition to essential storage, sending, and receiving features, every interaction with a decentralized application (dApp) requires a wallet. dApps are software applications that leverage the Ethereum network to offer powerful tools, services, and functionality that run without a central managing party and the risks that centralized ownership entails. This is achieved through smart contracts, which are self-executing programs that run autonomously on the Ethereum blockchain.
The benefits of decentralization include censorship resistance, transparent insight into a dApp’s operations, permissionless access, interoperability between different dApps, and non-custodial fund management. Some of the most popular dApps offer decentralized trading, peer-to-peer (P2P) lending and borrowing, and digital collectibles in the form of non-fungible tokens (NFTs), among others.
Types of Ethereum wallets
Broadly, wallets fall into two broad categories: hot wallets and cold wallets.
Hot wallets are continuously connected to the internet, making them quick and easy to access but more vulnerable to hacking attempts. Cold wallets, on the other hand, store credentials entirely offline, meaning they’re more secure.
While cold wallets can often be connected to internet-enabled devices, the process can be cumbersome for activities like frequent trading or engaging in play-to-earn crypto games, making cold wallets best suited for long-term asset storage.
Each type of Ethereum wallet comes with its own security profile and user experience. And within the broad categories of hot and cold wallets, the most common types of Ethereum wallets include:
- Browser extensions: Browser extension wallets are among the most popular wallets available for Ethereum. Because working with dApps generally occurs in a web browser, browser extensions are a natural target for Ethereum wallet development.
- Mobile wallets: Users can download and install mobile wallets from mobile app stores like any other mobile app, making them a great entry point for those new to Ethereum.
- Desktop wallets: Desktop wallets are designed for laptop and desktop machines. These wallets can be a good choice for frequent traders or DeFi users who spend a lot of time working on their laptops.
- Hardware wallets: A hardware wallet is a physical device designed for storing and managing crypto. It’s one of the most secure ways to access the Ethereum network and interact with dApps.
How to choose an Ethereum wallet
Deciding on an Ethereum wallet depends primarily on a user’s security needs and intended usage.
For example, a hardware wallet is an excellent option for simple long-term storage due to its durability and robust security profile. Frequent traders and DeFi users, however, may be willing to sacrifice some security for the sake of convenience and flexibility. Most of today’s wallets have intuitive interfaces and are easy to set up, so crypto newcomers have many options to choose from.
Ultimately, it depends on users and their personal preferences around security, convenience, self-custody, and transaction frequency, which help them narrow down their options and find the right fit.
8 Ethereum wallets to consider in 2024
Although answering how many Ethereum wallets there are is somewhat difficult, the wallet finder tool on the official Ethereum website alone lists more than 50. With so many options, finding the right wallet can feel daunting.
Here are eight popular Ethereum wallets to help traders streamline their decisions. Each of these wallets offers a unique blend of security, convenience, and flexibility so anyone can find a solution to match their priorities.
MetaMask
With millions of users worldwide, the MetaMask browser extension is one of the most popular Ethereum wallets. To get started, users install the extension in their browser of choice, choose a secure password to protect their account, and save a series of words called a seed phrase to restore account access if the device is lost or compromised. This process is mirrored by many other wallets on this list. From there, users access the interface to manage funds and interact with dApps. MetaMask is also available as a mobile wallet.
The MetaMask wallet offers advanced features, including buying and swapping tokens directly from the browser extension and installing customization and functionality extensions called Snaps. It can also be used with a hardware wallet to combine the convenience of a browser extension with a hardware wallet’s security.
It stores the private keys on the local machine, encrypted with a password, which users can easily export to transfer credentials to another wallet.
Ledger hardware wallets
Hardware wallets are among the safest ways to store cryptocurrency, and Ledger is one of the leading companies in the industry. It offers two different models, the Nano S Plus and the Nano X. Both models connect to the intuitive Ledger Live app for easy setup and management, and Nano X incorporates Bluetooth functionality for connecting to the Ledger mobile app.
Once set up with a secure recovery phrase, Ledger users can store, send, receive, trade, stake, and interact with supported crypto assets directly within the Ledger Live interface. Advanced built-in features include easy access to dApps, NFT marketplaces, DeFi platforms, and exchanges without compromising security.
With a blend of offline protection, intuitive software, mobile connectivity, and advanced features, Ledger devices are a popular hardware wallet option. Users who prefer open-source software, however, will want to explore other options.
Trezor hardware wallets
The Trezor One and Trezor Model T hardware wallets from Trezor are great options for crypto users who want an open-source solution. The Trezor One is a budget-friendly option with all the standard functionality, while the Model T adds advanced features like a touchscreen and support for additional cryptocurrencies.
In addition to public auditability enabled by its open-source code base, Trezor wallets boost security with support for two-factor authentication.
Like Ledger, Trezor’s desktop and web interfaces offer straightforward setup, usage, and integration with third-party services. However, Trezor notably lacks the mobile app and built-in features for staking and NFTs offered by Ledger devices.
Overall, Trezor hardware wallets prioritize security and simplicity in a minimalist package. Trezor is an excellent choice for security-focused users who don’t trade or engage in other DeFi activities frequently.
Argent
Argent is a mobile app that offers storage of Ether and Ethereum-based tokens and allows users to interact with Ethereum dApps.
In addition to standard wallet functionality, one of Argent's distinguishing features is the option to designate "guardians" to recover access in the case of lost credentials. With many wallets, lost private keys or mnemonic seeds result in permanent loss of access. Argent solves this problem by allowing users to designate a guardian in the form of a hardware wallet, trusted associate, or third-party service to recover lost accounts.
The Argent team also offers Argent X, the most popular wallet for Starknet, a layer-2 network built on Ethereum that enables trading and dApp use with much lower costs and faster transaction speeds. Argent X is open-source and audited.
Trust Wallet
Trust Wallet is an open-source option that provides users with intuitive mobile and desktop apps for securely storing and managing Ether and Ethereum tokens, in addition to supporting more than 60 other blockchains. It offers the same core storage, sending, receiving, and dApp interaction functionality as most Ethereum wallets, besides trading capabilities, NFT storage, and Ether staking to help secure the network and receive rewards.
Like many other wallets on this list, Trust Wallet uses client-side encryption to secure private keys, storing them locally on the user’s device.
Rainbow
Rainbow offers open-source browsers and mobile wallets with a distinctive, colorful user interface that’s easy to use without sacrificing security or functionality. With access to a wide variety of blockchains, Rainbow provides a unified platform for monitoring and interacting with users’ complete crypto portfolios, no matter how diversified. Browser extension power users will enjoy a flexible system of keyboard shortcuts to streamline on-chain interactions.
Other noteworthy features include hardware wallet connectivity, cross-chain crypto swaps, and customizable alerts about users’ on-chain activity. Rainbow is also known for its prompt and helpful support team.
MyEtherWallet
MyEtherWallet, often shortened to MEW, was one of the earliest Ethereum wallets to achieve widespread use. The popular open-source wallet offers intuitive interfaces in web, mobile, and browser extension versions.
MEW balances usability with advanced features like dApp connectivity, smart contract deployment, and message signing, making it a good choice for beginners and experts alike. It also enables users to swap tokens directly within the wallet interface.
Guarda Wallet
Guarda is a versatile, closed-source wallet that supports hundreds of thousands of digital assets for desktop, mobile, and browser users. It comes with a quick and easy setup. All users need to do is download the app, create a secure password, and store the recovery seed somewhere safe.
Users can securely store, send, receive, buy, sell, and swap a wide range of cryptocurrencies using the intuitive interface. Guarda also enables connection to hardware wallets like Ledger or Trezor, especially for security-focused users. Traders looking to spend crypto in physical locations like restaurants or brick-and-mortar stores can obtain a prepaid Visa card linked to their Guarda wallet and easily top it up with more crypto when funds run low.
Private keys are stored and encrypted on the user’s device and are easy to export.
Begin your trading journey with dYdX
After choosing the perfect Ethereum wallet, the next step is using it with dYdX. Eligible traders with any of the wallets mentioned above can take advantage of the low fees, deep liquidity, and up to 20x buying power offered on the dYdX decentralized exchange and get trading today. Learn more about our platform and products on our official blog.
Traders looking to brush up on other fundamental topics in crypto can check out dozens of easy-to-understand, beginner-friendly guides on dYdX Academy.
Start trading on dYdX today.
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