The first cryptocurrency was created in 2009 by Satoshi Nakamoto, a Japanese software developer.
It was called Bitcoin, and it was an electronic payment system based on the blockchain database (a chain of blocks).
Since then, several other cryptocurrencies have emerged, each with its own unique features and properties.
Ethereum, the second largest cryptocurrency after Bitcoin, is often compared to Bitcoin since the two share some common qualities.
1) To access your Ethereum ETH
To access your ETH, you'll need to import the key into an Ethereum wallet. That could be a desktop wallet, mobile wallet, or web-based one.
All of these wallets will have different ways for importing the key and securing it with a password.
Some wallets will require you to create your own private key, while others may come with one already created and stored on the server.
For beginners, it is recommended that you use a mobile wallet like Jaxx. It is easy to use, has decent security features, and allows you to trade from within the app.
Desktop wallets are another good choice, but only if you don't plan on trading any coins through them often as they are not as efficient in terms of transaction speed as web-based ones.
If you're looking for something lightweight and cross-platform compatible, we recommend using Exodus.
It's fast, supports a lot of cryptocurrencies, and comes with all the necessary bells and whistles such as built-in exchanges.
But if you want to store large amounts of money on a hardware device (cold storage), we recommend using Trezor One.
2) Cold vs. hot storage
Cold storage wallets are best for long-term storage and security, while hot wallets are best for short-term trading.
This is because cold wallets offer a higher level of security and take up less space on your computer.
Hot wallets, on the other hand, can be accessed from anywhere with an internet connection. They provide rapid access to funds, but there is also a risk that they could be hacked.
These types of wallets are also susceptible to human error, such as forgetting one’s private keys or sharing them without proper protection like two-factor authentication.
Many wallet providers have solutions for this issue by encrypting information about private keys so that only the user has access to it.
They also generate additional private keys and store them offline, which reduces the risk of being hacked.
Another type of wallet is called hardware wallets. In these cases, data about private keys never touches any form of digital device; rather, transactions are confirmed through physical button presses on a device connected to your computer. Some popular options include Ledger Wallet and Trezor.
3) Desktop wallets for Windows and Mac OS
Desktop wallets are the most secure option for storing ETH.
These wallets run as a program on your computer and have the ability to store your coins offline, making them immune to hacks and fraud.
These wallets are known to be a little more time-consuming when it comes to syncing with the blockchain, but are worth it for their security features. Some popular desktop wallets include Mist, Parity, Geth, and Exodus.
Web-based wallets: Web-based wallets can also be used to store ETH and are accessible from any browser that has an internet connection.
These wallets offer some great benefits in terms of accessibility but often lack the robust security features found in desktop wallets or hardware wallets.
Popular web-based wallets include MyEtherWallet and Metamask.
Hardware wallets: Hardware wallets are perhaps one of the best options for those looking to invest in digital currencies long-term.
4) Mobile wallets for Android users
One of the best wallets for Android users is Jaxx. It has both a desktop and mobile version, and it's available on all major platforms, including Windows, Mac, Linux, iOS, and Android.
The great thing about this wallet is that you can use it with any currency you want to store, not just Bitcoin or Ethereum.
You can trade from one type of currency to another very quickly with this wallet.
Another good option is Coinbase (Android).
This app offers an easy way to buy Bitcoin and other cryptocurrencies.
As a beginner in the crypto world, this might be a good choice for you as well.
If you have your own Ethereum mining rig, then Exodus might be worth checking out as well.
The interface looks quite clean and neat, so it should be easy to use even if you're new to digital currencies.
And last but not least - Trezor. It is among the oldest and most popular hardware wallets there are at the moment, but they also make high-quality products, which will help you keep your funds safe.
What makes Trezor unique is that it supports many different currencies, including Bitcoin, Ethereum, and more than 20 others. They also offer two versions - Trezor One, which costs $99, and Trezor Model T, which costs $249 .
Although their prices are on the higher end of the spectrum, they are cheaper than buying a Ledger device and definitely more affordable when compared to some other models out there.
5) Hardware wallets - top 5
A hardware wallet is a physical device that stores your crypto private keys.
This keeps your coins secure and offline, in some cases providing extra security against hacking or physical theft.
For storing large amounts of cryptocurrency, the Ledger Nano S is one of the most popular options, as it's affordable and easy to set up.
The Trezor Model T is another popular choice, with support for 24 cryptocurrencies.
If you're looking for an inexpensive option for securely storing your cryptocurrency with recovery seeds and open source software, consider buying a Keepkey Wallet. It supports 12 major currencies, including Bitcoin Cash, Litecoin, and Dash.
You'll also need to download their Chrome extension for access via computers. Another good option if you want to store different currencies is the Exodus Wallet.
It supports eight different currencies, including Bitcoin (BTC), Litecoin (LTC), and Dash (DASH).
Unlike other wallets on this list, which work on desktops only, this wallet also works on Android devices and iPhones
6) Web wallets
One type of wallet, a web wallet, is an online storage system that lets you access your coins from any device with an internet connection.
You can use it to store your private key and send or receive digital currency without downloading any apps.
The downside is that the private keys are usually stored on a third-party server and often under someone else's control, which makes them vulnerable to hacking.
So if this option seems like too much risk for you, then we suggest sticking to software wallets below.
There are two types of software wallets: desktop and mobile.
A desktop wallet is typically installed on your computer or laptop by clicking on the corresponding link in a downloaded file.
Mobile wallets, however, require no installation at all - all you need to do is download the app onto your smartphone or tablet.
There are also hybrid wallets that offer both functions as well.
They work either as a stand-alone service or as an extension of other software such as a browser plug-in.
So what kind of wallet should you choose?
It really depends on what works best for you personally, so don't hesitate to experiment until you find one that suits your needs best.
Make sure to read our reviews of each type of wallet, where we've tried to highlight their strengths and weaknesses. We hope you'll find it useful!
7) Paper wallets - the safest way to store cryptocurrency offline
Paper wallets are the safest way to store cryptocurrency offline.
The paper wallet is a document that contains all the information necessary to generate and access your bitcoin or other cryptocurrencies.
Paper wallets are generated by either printing out your private key or by writing it down on a piece of paper.
They're called paper wallets because they consist only of public and private keys on a single sheet of paper.
What's interesting about paper wallets is that you can generate them yourself at home without needing any special software.
As long as you keep your private key secure in some kind of vault (a sealable container), you should be able to access your funds whenever you want with just the QR code or address printed on the front side of the paper wallet.
You can scan this code or enter the address into any crypto app or website, and the crypto will show up in your account.
The downside is that if someone else gets hold of your private key, they will also have full access to all the cryptos stored on your paper wallet.