Ether doesn’t leave the Ethereum blockchain, so it isn’t physically stored anywhere. If you want to use Ethereum, you’ll need a ‘wallet’ (sometimes called an Ethereum ‘address’).
Your Ethereum wallet won’t contain any Ether, but it will contain the codes needed to access it. These codes are called private keys. If you lose your private keys, you lose your Ether. So choosing a good wallet is very important! There are four main types of wallets available.
These are physical storage devices, like USB sticks. The Ledger Nano S is one of the more-expensive hardware wallets, and it offers safe offline key storage. However, just like a real set of keys, a hardware wallet can get lost. So, be careful where you put it!
Store your public and private keys directly onto your computer. This option uses a password that you mustn’t lose. It also takes up a lot of space on your device. We recommend using the Exodus desktop wallet.
Similar to desktop wallets, but use much less space — they are ideal for storing your public and private keys on your smartphone. Jaxx offers its users key storage for up to 13 different cryptocurrencies.
Store your private keys online — an example of this is the Coinbase wallet. These are the least-safe type of wallet and we do not recommend using them to store any amounts of Ether that you cannot afford to lose.
These are the most old-fashioned storage option — they are just pieces of paper with your access codes written on them. They can’t be hacked, but you need to remember where you put them!
If a wallet is connected to the internet, it is called ‘hot storage’. If it isn’t connected to the internet, it’s called ‘cold storage’. When storing private keys, it’s recommended that you use a combination of both hot and cold wallets for maximum security. Now you have a pretty clear idea of what is Ethereum storage and which wallet to choose.