Ethereum wallet starter guide
If you buy Ethereum or any other cryptocurrencies at our platform, you will still manage these yourself. This may seem a bit overwhelming at first, but once you get the hang of it, you will never want anything else. Need some help setting up your personal wallet? Feel free to contact our support team. You can reach out to us directly trough the live chat at the bottom of this page.
Lesson 1: get your own Ethereum wallet
Cryptocurrencies like Bitcoin are fully digitalised; Ethereum poses no exception to this rule. The cool thing about Ethereum and other cryptocurrencies is that you can retain complete control over your assets. Storing them does not require banks or financial institutions. When you own an Ethereum wallet, you are in charge of your hard-earned ethers. We at SATOS find this particular aspect of cryptocurrencies extremely important, and that is why we do not manage our clients’ assets ourselves.
What is an Ethereum - ETH wallet?
You can compare a cryptocurrency wallet to a digital bank account. The main difference between the two, however, is that a bank manages your account, whereas you manage your wallet. With an Ethereum wallet, you are in complete control over your own assets. You act as your private bank. There are different types of Ethereum wallets, and on this page, we will briefly discuss their uses.
How can I add Ethereum to my wallet?
We already briefly discussed this, but a wallet mainly consists of two parts: the public key and the private key. The public key acts as your recipient address; you hand it to people so they can transfer Ethereum to you. Compare it to your email address. The private key forms another component of your wallet. It serves as the verification mechanism for outgoing transactions. It also lets you keep track of the Ethereum linked to your recipient address. As such, it is the most critical element of a wallet, and you should always store it in a safe location.
Sending and receiving Ethereum with a wallet application is very straightforward. To receive Ethereum, people will need your recipient address, your public key. But what does this address look like? You can recognise an Ethereum address by the fact it always starts with ‘0x’. You should copy-paste this address if you are on the receiving end. A small typo may already prevent your ethers from arriving. Here is an example of an ether address: 0x304D8bb04DFca102c978C65c525bf44fabdeC833. Of course, this is merely an example. Always use the address displayed in your wallet to receive Ethereum.
Sending and even selling Ethereum is just as easy. You copy the recipient’s address and paste it in your wallet application. You then select how much Ethereum you like to transfer and click on the ‘send’ button. It’s easy as that!
What is the difference between different Ethereum wallets?
A quick look on the internet and you will find out that there are many different Ethereum wallets available. How do you know which one suits you best as a starting investor? In this section, we will provide an overview of the different wallets and briefly discuss the pros and cons of each type. When considering different wallets, you need to take a couple of factors into account. How much experience do you have trading crypto? How much are you planning to invest? How much is security worth to you? Do you always want to keep your cryptocurrencies with you? What cryptocurrencies do you want to store on the wallet? There are differences between Ethereum wallets, Bitcoin wallets, Ripple wallets, Bitcoin Cash wallets and Litecoin wallets.
Generally, four types of wallets can be used to manage Ethereum. These are the mobile wallets, software wallets, hardware wallets, and web wallets. Every type boasts different features and has its advantages and disadvantages. We will briefly discuss each of them.
Do you consider it essential to have your cryptocurrencies with you at all time? A mobile wallet may then be to your liking! Mobile wallets are generally free of charge and easy to install. If you have just started trading in cryptocurrencies, a mobile wallet is a solid choice. However, if you are planning to make more significant investments, you might want to look a bit further. After all, you do not want to carry large amounts of money with you. Managing your crypto assets from your mobile phone makes you more vulnerable, so pay attention to this!
A software wallet, installed on your computer, is more secure than a mobile wallet. Once installed, you can directly receive and send cryptocurrencies from your laptop or desktop computer. This type of wallet is usually also freely available, which makes it an excellent choice for those who have just started investing. It provides a bit more security than a mobile wallet, with the drawback that you do not always carry your cryptocurrencies with you. Are you considering to trade in relatively sizeable amounts? A software wallet may fit you just well!
Do you want the highest degree of security? Then we advise you to purchase a hardware wallet. A hardware wallet is a physical device made for the sole purpose of managing cryptocurrencies. The disadvantage of a hardware wallet is that you will need to purchase one, which only makes it an interesting option once you start trading more significant amounts. Therefore, hardware wallets are primarily a good option for more experienced investors.
The final option we review here is the web wallet. It allows you to manage your crypto assets on the internet. Although these wallets might be quite easy to obtain, we do not recommend our clients to use them. They often involve third parties responsible for securing your cryptocurrencies. Do you want to buy Ethereum? Then always opt for one of the three types of wallets discussed before.
How can I securely store my Ethereum?
Cryptocurrencies can quickly ramp up. Hence, it is essential to make sure your wallet is secure. You are in charge of your assets, but that also entails responsibility for their security. We have listed a couple of tips here to help you out a bit.
- Always ensure that the device you are using is free of any viruses. Installing a good virus scanner is by no means a luxury. You will not regret spending a few euros on a robust virus scanner.
- Before you start using your wallet, always make a backup. We provide this service for you if you create a wallet using our platform. Otherwise, do make a backup, because it would be regrettable if you do not just lose your phone but also all your cryptocurrencies.
- Ensure that 2FA (Two Factor Authentication) is enabled, in case your device or application offers this option. This extra layer of security provides you with a bit more certainty.
- When transferring crypto, always double-check the addresses. It is advisable to copy-paste the addresses, and not to try to re-type them. Unfortunately, blockchains are designed in such a way that you cannot reclaim currency lost to typing in the wrong public key.
- Finally, see if you can find someone close to you that you trust and hand this person access to your crypto inventory. No one likes to think about their inheritance, but it would certainly be unfortunate if your cryptocurrencies remain out of reach of loved ones after you have passed away.