This post will show you the three best options to choose from, sorted by lowest price to highest price.
The Ledger Nano S is the cheapest of the three hardware wallets for Ethereum.
At 58 euros, it comes out to about $65 not including shipping.
The Nano S stores your Ether offline in a secure environment. When you want to make a transaction sending Ether, the device signs your transactions and transmits the signed transaction to your computer.
The good thing about the S is that is has a screen. This means you can verify all outgoing transactions on your S’s screen. Even if your computer is hacked, your S’s screen will remain secure and verifies that the address and amount you’re sending are correct.
TREZOR costs $99 and like the S, TREZOR stores your Ether offline in its secure environment.
TREZOR also offers a really cool password manager feature. The device encrypts your passwords in its secure environment and then decrypts when you want to login online.
One thing I like about the TREZOR is it appears to me to be the most drop-prone hardware wallet. It is very light and made from plastic, although still offers an elegant design.
Like the Nano S, KeepKey stores your Ether offline in a secure environment.
The main difference is the Nano S uses smartchip technology, while the KeepKey is more like a mini computer.
Another difference is KeepKey has a larger screen and a more “premium” feel. The KeepKey’s screen is glass and it has a sleek aluminum body. Although it looks nicer and feels more secure, the KeepKey may be more easily broken if dropped although we have not tested.
If you are on a budget, there is no doubt that the Ledger Nano S is your best option for an Ether hardware wallet.
The added features of the TREZOR make it somewhat different than the other two. While the KeepKey’s “premium” feel is the only thing really separating it from TREZOR.
If you are mining Ethereum, then a hardware wallet will be your best bet for secure payouts.
This section will answer the most common questions about Ethereum wallets and Ether hardware wallets.
The Ledger Nano S has full support for ERC20 and more coins than the other two options. TREZOR has support for all ERC20 tokens. KeepKey only has beta support for ERC20.
MyEtherWallet is a free open-source Ether wallet. Just remember that online, software wallets are much less secure for storing Ether than hardware.
Once you download or buy an Ethereum wallet, you will be presented with an address in the wallet software.
To fund your Ether wallet, you need to buy Ethereum from an exchange. Once you buy, you can withdraw the Ether to your wallet.
This is a step you should always take! NEVER store your Ether on an exchange!!!
Once you have Ether in your wallet, you just need to get the address you want to send to and make the payment.
Ether payments are fast although less secure than Bitcoin payments.
You can get a confirmation in maybe 12 seconds, although ideally you should wait a bit longer than that for more confirmations.
Cold storage means that your Ethereum private keys are stored and created offline. The easiest way to do this for beginners is to use a hardware wallet or paper wallet.
Using something like Ethaddress you can make a paper wallet. A paper wallet is an Ethereum private key printed and stored offline. This is a form of cold storage.