Ethereum was the first blockchain to utilize smart contracts and enable its large-scale adoption through an open-source network for developers, making it a key player in the internet’s current decentralized landscape. After a years-long slumber, it recently picked up momentum—amid this year’s cryptocurrency gold rush—with the sudden interest over non-fungible tokens, which are minted through the ERC-721 standard on the Ethereum blockchain. Naturally, Ether (ETH), the network’s native cryptocurrency, followed suit with one of its greatest rallies yet—up by over 2,000% since 2020.
While the crypto market has been slowing down with a regulation-fueled sell-off, the interest in Ethereum currency(ETH) remains high as the network endures its transition to Ethereum 2.0 without a hitch. And as retailers, corporations, and entertainment platforms continue to explore NFTs, ETH is also expanding its roster of use cases. Owning the best Etheruem wallet is a no-brainer for investors looking to participate in this robust blockchain ecosystem. Learn the most highly-rated options and the best Ethereum Wallet Australia.
What is an Ethereum Wallet, And How Does it Function?
An Ethereum wallet is essentially software or hardware that can store Ether. Much like Australian dollars, cryptocurrencies need to be kept in a secure location to prevent theft, thus the importance of owning a dedicated wallet. A crypto wallet isn’t a world away from third-party payment providers you may be familiar with, such as PayPal. The interface is similar: you can view, send, and receive any supported cryptocurrency.
The biggest distinction in the best Ethereum wallets is that they generate a unique address that the sender needs to input to route transactions onto your wallet. The wallet address comes in a string of letters and numbers or a QR code, replacing the “contacts” list in more familiar payment gateways. This feature heightens the anonymity of blockchain-based transactions, essentially ensuring that your personal information isn’t leaked in any step of the process.
On that note, Ether wallets don’t require your name, phone number, or email address to create, so the only way to recover lost funds is by inputting the 12 to 24-word recovery seed generated upon creation. Studies show that approximately 20% of all BTC is lost in abandoned wallets—likely due to lost recovery seeds—so it’s pertinent to remember the sequence of words that act as the overarching “password” to your wallet.
Types of Ethereum Wallets
Before deciding on the best Ether wallet for your needs, it’s important to be familiar with the forms they come in and how each can offer varying use cases.
Paper Wallets. These are generated through applications like MyCrypto, which allows you to create a Keystore file to print out and store in physical storage, like a safe. Paper wallets can be accessed by inputting the wallet address or scanning a QR code and entering a “password” (in the form of a recovery seed). As these are not tied to software or hardware, they’re incredibly secure but can be difficult to protect, as the paper is easily lost to tangible calamities.
Online Wallets. These are wallets that can be downloaded from a website or the App Store or Google Play Store. As they’re essentially applications that require the internet to open, you run the risk of losing funds through hacks, but greater security measures in recent years have toughened up the best Ethereum wallet Android and iPhone services.
Offline Wallets. These offline ETH wallets are hardware wallets, often in the form of a USB, that can be accessed without the internet. While they need to be connected to a device to open, the opportunity to store funds out of the advantage field for hackers significantly improves your security.
Popular ETH Wallets in Australia
Some cryptocurrency wallets only operate in specific regions or support limited coins and exchanges, so it’s pertinent to choose one that flows with your choice of a crypto ecosystem. These options operate locally, so you don’t have to download a VPN to run them.
Exodus Wallet is one of the best Ethereum wallets in Australia due to its beginner-friendliness and ease of use. It can house thousands of cryptocurrencies, making it ideal for active traders and long-term investors alike. One of its biggest advantages is the ability to connect to a Trezor hardware wallet, enabling you to switch between online and offline functionalities without having to go through lengthy connection processes. Using these two in conjunction will guarantee maximum security while making it easy to close short-term trades within the day.
If you prefer managing funds on a smartphone, then Coinomi wallet is one of the best options with a simple UI that isn’t intimidating even to first-time HODLers. The app supports over 1,700 cryptocurrencies, including popular picks like BTC and ETH. It also has a built-in exchange that you can take advantage of for fast trades and fewer transaction fees between withdrawals. However, as Coinomi is an online-only wallet, it’s not ideal for holding a large amount of ETH. If you intend to make a big investment, consider picking a hardware option like the Trezor or Ledger wallets instead.
Jaxx Liberty is the path less taken by most investors, but it offers a good range of functionalities that simplify your investment journey. The online wallet is accessible through desktops and smartphones. It offers a plethora of resources, from crypto news to detailed price data and the ability to connect with coin swappers to switch your coins without large transaction fees. Its block explorer is also a feature that most wallets don’t offer—it allows you to search for specific transactions from a range of supported blockchains.
There isn’t a single best wallet for Ethereum, as each offers various features to attract investors that value specific areas of crypto ownership. However, it’s important to remember that hardware options are ideal for long-term storage among all ETH wallets—especially if you own a large pool of funds.