What is ERC-20?
Before discussing ERC-20 wallets, let’s quickly discuss ERC-20. A token can generally represent any asset that has a value attached to it. In this case, we are talking about tokens which represent a smart contract and use of the Ethereum blockchain. There are several tokens native to the Ethereum blockchain. These tokens can be traded, bought or sold. ERC-20 is a token protocol for all tokens implemented by the Ethereum blockchain (Token protocol means rules or standards that the token must follow). All tokens which implement the protocol become a compliant token of ERC-20. The technical specification of this protocol comprises six functions that ensure that all tokens based on the Ethereum system work anywhere on the platform. Most cryptocurrency wallets that support Ether tokens support ERC-20 based tokens. There are a few native wallets for these token a well. Here are a few of the best wallets for ERC-20 compliant tokens.
Most users prefer to use hardware wallets. A hardware wallet is the most secure storage unit for cryptocurrency. There are several expensive and inexpensive hardware wallets on the market. Here are a few which support the ERC-20 token:
Trezor is one of the most popular hardware wallets and costs only $99 USD. It is a cold storage device meaning it is always offline. Trezor can be used for Ethereum and any ERC-20 affiliated tokens with the MyEtherWallet web interface. Trezor is a small, key-shaped device and connects to a computer through a USB cable. It requires a pin code to access the device but also has a recovery 24-word seed which is created offline in case of loss or theft. Trezor supports many other cryptocurrencies as well, so it can serve its purpose for multiple uses.
- Ledger Nano S
Ledger Nano S makes our list of ERC-20 wallets. The Ledger Nano S costs $98 USD. It looks like a USB device and similar to Trezor, requires a 4 digit pin for signing in every time it is plugged into a computer. Transactions are safe as they are physically verified on the embedded screen with the press of a button. Ledger also uses the MyEtherWallet web interface to access ERC-20 tokens. What makes this wallet extra secure is the fact that it supports a second-factor authentication – FIDO (Fast Identity Online), on websites and their subordinates (like Google, Google Dropbox). It also has a 24-word recovery seed which is created during setup.
Wallets compatible with the iOS or Android platform are handy. They can be operated with ease and generally have a good GUI. There are significant worries over security issues, but good wallets are generally secure.
Trust makes ourmakes our list of ERC-20 wallets. Trust is open source and an official Ethereum wallet which supports all ERC-20 tokens. This application runs on both iOS and Android platforms. Private keys are stored locally and have multiple security layers. Trust has a partnership with Kyber Network. This allows for the instant purchase of coins on the exchange, and storage on the wallet. For those who prefer convenience and ease of access, this mobile wallet is for you,
MyEtherWallet is a web-based wallet. It is open source and allows for interaction with smart contracts. The GUI is user-friendly. The MyEtherWallet web interface is used to access and store ERC-20 tokens on Ledger Nano S and Trezor. As MyEtherWallet is essentially a hot wallet, it is best not to store large funds on it and make use of its compatibility with hardware wallets.
Parity makes our list of ERC-20 wallets. Parity is a desktop wallet that has native support for ERC-20 affiliated tokens. The wallet will support the new ERC-223 protocol for Ethereum based tokens, and is quite popular among cryptocurrency enthusiasts. It allows registered users to access all the features of the Ethereum network, including dApps. This is possible through the Ethereum GUI browser. It is best not to store coins on a desktop wallet as a hacked computer can lead to a loss of funds.
- MetaMask (ERC-20 Wallet)
MetaMask provides a convenient solution to store, manage and send ERC-20 tokens, as well as Ethereum coins. It serves as a browser to access the Ethereum and ERC-20 network. It is a plugin for Google Chrome and Mozilla Firefox users and is quite secure. Users are not required to download the entire blockchain as native Ethereum nodes can communicate with external Ethereum nodes. MetaMask does not store the private keys of users on its servers. They are stored on Chrome or Firefox and are password protected. MetaMask is really easy to use and setup with the MyEther Wallet as well.
We hope you enjoyed our article on ERC-20 Wallets!
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