In the cryptocurrency world, Ethereum has long been the second most capitalized asset after Bitcoin. This means that users are not afraid to invest in this online asset. However, it is not enough to be confident in the liquidity of digital coins. It is also necessary to learn how to protect your electronic savings from hacking. Let’s get acquainted with those reliable methods of storing Ethereum used by experienced players of the cryptocurrency market.
Ethereum storage methods
There is no problem finding an Ethereum storage wallet. There is a huge variety of both online services for such purposes and physical medium for storing this information. However, not every one of them is reliable.
So, what distinguishes a secure wallet from a less secure storage? There are two important criteria for this:
- first and foremost is minimal access to it by malware;
- also, an important point is the wallet owner’s ability to extract his private keys.
Limiting attackers’ access to holders’ cryptocurrency addresses is not difficult by keeping them on mediums not connected to the Internet. Two types of wallets are ideal for this purpose:
These methods are suitable for so-called cold storage. They also have an advantage over others in that they put private keys at the cryptocurrency owner’s disposal.
For those Ethereum owners who wish to not only store their digital assets, but also actively use them, it will be more convenient to choose an online storage service. Unlike hardware devices, which are not cheap, maintenance of Ethereum wallets on special web resources is absolutely free. But when choosing a reliable one, you should also pay attention to the fact that the cryptocurrency owner has access to the private keys from the address of the Ethereum wallet.
Where to keep your Ethereum coins
Among the most popular hardware wallets for storing cryptocurrency are Trezor and Ledger Nano S. They come in the form of a small flash drive and are designed to hold the addresses and private keys of cryptocurrency wallets. On such a device you can store not only Ethereum, but also more than a hundred names of other digital coins and tokens.
These wallets are compatible with personal computers, have a high degree of protection, and are used mainly for cold storage of cryptocurrency. As for the disadvantages, the main one is that the device is expensive:
- Trezor sells for $89 – $149;
- Ledger Nano S can be bought online for $79.
The free equivalent of a hardware wallet can be an online service. This wallet does not require installation on the user’s device, and works under any operating system. You can use a simple and reliable ETH online wallet at this link. This is a multicurrency wallet. It can hold various tokens on the Ethereum blockchain. The wallet can be accessed using Keystore file, Private key and Mnemonic phrase. The login credentials are stored solely on the user side, which provides additional security. However, if they are lost, no one can help you restore access to your assets.
Another analogue of a hardware wallet can be a paper wallet. It is better suited for those users who do not need to store very large amounts of money yet. To open such storage, internet generators are used, which create an Ethereum address and a private key online. Then they can be printed out on a printer along with a QR code to be read by a mobile device. Or you can just write them down by hand on a sheet of paper and keep them in a safe place.
The only disadvantage of this way is the paper can be easily damaged and then the access to the money will be lost. To prevent this, when you create a document with the address and keys, you should additionally save it in the memory of your computer in PDF or JPG format. And if necessary, it can always be printed again.
One of the most convenient and reliable services, with the help of which you can create a paper wallet, as well as to register online storage is the online service myetherwallet.com.
Among its advantages is access to private keys. In addition to Ethereum, other cryptocurrencies can be stored and managed here. You can find the list on the service’s website.
So, you have already chosen the wallet for storage, whether online or paper. Let us give you one piece of advice – it will be wise to create several Ethereum addresses at once and store their information in different wallets. Small amounts that the holder uses for trading or exchanging are convenient to keep on online services. And some unburnable amount to place in cold storage.