Best Ethereum Wallets

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Contributor, Benzinga
January 5, 2023

Ethereum is the most well-known altcoin in the cryptocurrency sector and the second-largest cryptocurrency by market capitalization. Its leading position in the programmable blockchain sector, future upgrades, deflationary economics and growing institutional adoption put Ethereum in a class of its own.

 The following discussion reviews the best Ethereum wallets you can use today. 

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Best Ethereum Wallets

To participate in the Ethereum ecosystem and securely store, receive and send Ether (ETH) and other Ethereum-based assets, you need an Ethereum wallet. In addition to managing your  Ethereum balance, the best Ethereum wallets will allow access to Ethereum decentralized applications (dApps) by connecting your wallet to the smart contracts of the dApps. 

Crypto wallets fall into two categories: hardware wallets and software wallets. Hardware wallets refer to wallets that generate keys without any Internet connection, which makes them extremely resistant to cyber-attacks. Alternatively, software wallets are wallets that are somehow connected to the Internet and, therefore, are more prone to hacking attacks. 

While hardware wallets offer an extra layer of security, software wallets are far more convenient because they can be accessed quickly through a web extension or an app. For this reason, hardware wallets are better suited for short-term storage of private keys, whereas hardware wallets are better suited for long-term storage of private keys.

When choosing a cryptocurrency wallet, the following features should be considered:

  • User-friendly interface: How easy is it to set up and use?
  • Security: What features ensure security?
  • Price: How much does the cost compare with competing wallets?
  • Portability: How easy is it to carry around on a daily basis?
  • Reputation: Does the wallet provider have a strong reputation?
  • Multi-cryptocurrency support: Are the coins and tokens you want to store supported?

Best Ethereum Software Wallets

Ethereum wallets make using your cryptocurrency easy while providing better security than letting an exchange maintain custody of your digital assets. Check out some of the best  Ethereum software wallets that are now on the market.

ZenGo

Mobile wallet ZenGo successfully meets the requirement for security and simplicity in the crypto wallet market. ZenGo is far more secure than conventional crypto wallets because it does not require a private key thanks to MPC technology. Instead, users can benefit from the wallet's three-factor authentication (3FA).

ZenGo is available in 180+ different countries and supports over 70+ cryptocurrencies including Ethereum (ETH). Despite having a smaller selection of supported coins than other platforms, ZenGo is still a fantastic option for beginners to experienced traders thanks to its special ability to take the complexity out of crypto storage. Users can earn 4% annual percentage yield (APY) on up to $100,000 worth of Ethereum and 1.5% APY for any amount of ETH greater than $100,000. 

Omni

Omni is a multi-chain Web3 wallet that is simple to use and extremely functional and includes built-in staking capabilities. Users can display non-fungible tokens (NFTs) based on different blockchains and stake and collect tokens through more than 25 blockchains on its mobile application. Several seasoned investors, including MEXC Ventures, Eden Block, Shima Capital, Spartan Group, GSR Ventures and Lattice Capital support Omni.

Unlike traditional Web3 wallets, Omni app is a one-stop shop that supports over 20 different wallets, enabling users to do everything from one single application. In three taps, users can earn up to 4.77% annual percentage rate (APR) on ETH through staking, liquid staking or yield vaults. Liquid staking, unlike conventional staking, offers the advantage of liquidity by enabling users to use tokens that have been liquid-staked in the same way as ordinary tokens without the requirement for lock-up periods.

Best Hardware Wallets for Ethereum

Hardware wallets are the industry standard for storing cryptocurrency. They are classified as cold wallets since they are made up of physical components that store and produce keys without a network connection. They provide an additional degree of security from phishing sites, malware and cyber-attacks because they remain offline.

Ledger

Ledger’s hardware wallets are some of the most reputable hardware wallets in the world. Users can choose from the Ledger Nano X wallet ($150) or the Ledger Nano S Plus wallet ($79). Ledger wallets support over 1,000+ cryptocurrencies including Ethereum, Bitcoin, Cardano, all ERC-20 tokens and many others.

Trezor

Trezor hardware wallets are created by Satoshi Labs, the world's first significant hardware wallet manufacturer. The most recently developed hardware wallet was the Trezor Model T, which differentiates itself from other wallets through its touchscreen interface. Like Ledger, a Trezor Wallet enables users to store countless coins and tokens including Ethereum, Bitcoin and Dogecoin.

Do You Need to Use a Crypto Wallet?

Cryptocurrency wallets are not always required, despite the additional security they provide. This is especially true for traders who only plan to hold cryptocurrency briefly for speculative purposes. Many cryptocurrency exchanges, including Crypto.com, allow users to store their ETH in an exchange wallet, and some people choose to leave it at that.

Where to Earn Interest on Ethereum

Investors can generate passive income on their idle Ethereum in a number of ways. Your level of risk tolerance and preferred platform will largely determine the approach you use. The most profitable ways to earn interest on Ethereum are listed below.

Crypto.com

The U.S. cryptocurrency exchange Crypto.com is a one-stop shop for all your crypto needs and a good fit for investors at all ends of the spectrum. The platform supports 250+ cryptocurrencies, including Ethereum, with reasonable trading costs and a wide range of advanced trading features.

Investors can earn up to 4% APR on idle Ethereum with Crypto.com. The interest rates vary depending on the length of the lock-up period, the amount of ETH held and whether or not a user holds CRO (the native token of the Crypto.com exchange). 

Nexo

Nexo is a centralized blockchain system that supports crypto lending, borrowing and staking for a wide range of cryptocurrencies. Since its inception in 2017, Nexo has processed over $130 billion in transactions, and over 5 million users in 200+ jurisdictions trust the platform.

With Nexo, investors can earn a competitive interest rate of up to 8% for idle Ethereum. The interest will vary depending on the lock-up duration and the amount of NEXO (the platform's native cryptocurrency) tokens you hold in your wallet.

Cryptocurrency Wallet Best Practices

Safeguarding your cryptocurrency is a common concern among investors. Just as people hold cash in the bank, it’s equally important to secure cryptocurrency as best as possible.

Because of the unique and primitive nature of crypto, many inexperienced investors fall victim to fraud, theft and loss of assets. In 2022, investors lost more than $3 billion to hackers in 125 separate attacks. 

Here are some best practices to help keep your digital assets safe:

  • Use cold wallets for long-term storage and hot wallets for short-term storage.
  • Know the current regulations that apply to you and your vendors.
  • Be cautious on mobile devices and keep your software up to date.
  • Be aware of trending scams and complete due diligence. 
  • If possible, utilize two-factor authentication.
  • Never post your 24-word recovery sheet online if you use a hardware wallet, and pick a pin code that is challenging to decipher.

Are Cryptocurrency Wallets Worth It?

Overall, crypto wallets are pivotal for ensuring the safety of your crypto assets. They are essential for securing stored crypto and for protecting and validating transaction information. Hardware wallets are a fantastic option for more cautious investors since they add an extra degree of protection from viruses, phishing websites and cyberattacks.

Consider using one of the Ethereum wallets suggested above if you intend to hold Ethereum for a long period of time. While wallets may appear unneeded, they are worth the investment because they give you peace of mind that is not possible when relying on exchanges.

Disclosure: ²Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts
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