Ethereum Wallets 101
Using Ethereum might not sound exciting to everyone, especially since cryptocurrencies are still making their way into society. But the reality is that using this currency can come with numerous benefits altogether. If everything goes according to plan, Ethereum is expected to stir a major buzz in the future, with platforms that people can use on a daily basis.
Besides, the platform does not have to be as interesting as the web is, but if you have a computer or smartphone, you can always invest in it. All you need is ‘ether,’ which is a code that helps in updating the blockchain ledger. Crypto wallets are ideal for keeping your ether, and losing it can be worse than forgetting the password.
Remember, since there are no third parties in Ethereum, you won’t have anyone to turn to if you need help, but there is a bright side. These wallets come with numerous options, from web wallets to desktop, paper and hardware wallets as well. You can always choose the best one for you as far as security and convenience are concerned.
However, remember that ensuring convenience for your key can compromise the security, and the same applies to ensuring its security, which can deter the convenience.
Mobile wallets also known as, “light” clients, mobile clients do not require downloading much data to connect to the chain or carry out transactions. Hence, they can always go for mobile downloads and still get the best out of the network. This option is convenient but not that safe as compared to the full Ethereum offer since, in the latter, the participants keep an eye on everything rather than depending on the miners.
Paper wallet option is also useful, whereby you can handwrite a private key or print it and lock it securely. This method is safe since it is not vulnerable to hack attacks, as is the case with online storage options. But remember to make multiple copies, just in case you misplace your key, once it’s lost it will be gone forever.
Desktop wallets can run on your laptop or PC, which you can get by downloading a copy of the Ethereum blockchain. Remember, multiple Ethereum clients can offer diverse performance tradeoffs, and can be written in several programming languages.
The process might continue for several days and can probably increase as blockchain grows. Therefore, you need to keep your wallet synchronized with the latest transactions on the Ethereum chain.
Hardware wallets can be detached from an internet connection and still store data as well as carrying out transactions. But it might not be as great if you are looking into using ether on the move or often. Buying ether can vary depending on the country or the currency you are using.
You can connect with someone who has ethers that you want to sell, and you can carry out the transaction online or in person. This can be useful if you are in a well-populated area with a high number of sellers, and you can always buy using Bitcoins or dollars.
After getting your ether, you can always send it to another person of your choice with a small fee to the miners for the transaction. Once you have ether, you can join others to create smart contracts or decentralized apps, also known as “Dapps.” And with the system of Ethereum as simple as how a credit card works acquiring it is that easy.