An ethereum wallet is a piece of software or hardware that allows users to interact with the Ethereum blockchain. Wallets allow users to manage their accounts on the Ethereum network. An Ethereum account is a type of account that can send transactions and keep track of its balance, with as many Ethereum addresses as it wants to send and receive funds, create smart contracts, interact with decentralized applications and more.
An Ethereum address is a public string of letters and numbers starting with “0x.” The balance of every Ethereum address can be seen on the blockchain, although who controls which address is not known because an address on the network is represented through a string of numbers and letters. Wallets are software or hardware that allow users to control as many addresses as necessary.
Ethereum wallets are controlled through a private key, or a “password,” that allows users to move the funds within the wallet. These private keys are only supposed to be known to the wallet’s creator, as anyone who knows them can access their funds.
There are several types of Ethereum wallets to choose from including some that are held on your desktop or mobile device and some that are held offline through a piece of paper, titanium, or hardware.
Ethereum wallets come in all shapes and sizes, but not all of them have the same features. Some wallets only allow users to send Ether (ETH) between addresses, while others have more functionalities and even let users create smart contracts, which are self-executing agreements written in code.
Setting up an Ethereum wallet often involves either downloading or writing down a private key or seed phrase. Private keys allow users to send or spend their crypto, and seed phrase gives them access to their wallet and all the private keys in the wallet. Private keys or seed phrases are crucial for securing funds, and a crypto wallet acts as a password manager for users’ cryptocurrency holdings. As long as users know their master password (the seed phrase), they can access their crypto funds.