The Ethereum Wallet allows you to access and manage your Ethereum account, as a cultural Lego connected with DEFI and NFT, a DAO for on-chain identity management, and a gateway beyond bankless financial services.
Therefore, the way you set up your wallet will shape your experience in the crypto economy. This strategy will show you how to manage your Ethereum wallet process using today’s top wallets like a professional, highlighting useful features and other key considerations.
Choose the right wallet process for you
As the old stupid pun said: A stupid empty wallet has no money. Today, however, we will explore how to make our Ethereum wallet management practice intelligent, so that we can surf the wave of Web3 like professionals.
The Ethereum wallet is your key to all the best things the crypto economy can provide.
Picture from ethereum.org
Of course, there is no single “right way” to establish these management practices. You can use multiple wallets and services in combination, in fact, many people do because such combinations provide additional security and UX advantages.
In addition, Ethereum’s wallet ecosystem has never been as diverse as it is today, so both cryptocurrency veterans and novices will feel confused when determining the best wallet settings.
The name of the game is to develop your favorite and best-suited process for you. However, your first priority should be security (that is, how to create the foundation of the wallet system as safely as possible)!
Since your wallet process can rely on multiple wallets and services at the same time, it is very important to make your setup core as secure as possible. Doing so will ensure that your wider wallet system is durable and easy to use for years to come.
In other words, the three main foundations to be considered here include hardware wallets , multi-signature wallets, and social recovery wallets .
Hardware wallets like Ledger Nano X and GridPlus Lattice1 are devices that provide users with “cold storage” to ensure the safety of their cryptocurrency. These wallets keep your private keys offline at all times , ensuring that hackers cannot easily steal your funds from your computer or mobile phone.
Hardware wallets can also be used with other wallet services, such as the MetaMask browser extension, to improve and simplify the user experience when interacting with the Ethereum network.
Image source: GridPlus
Multi-signature is a more advanced and safer wallet because they require a minimum number of addresses to approve transactions , such as 2 out of 3, 4 out of 7, etc.
Since these special smart contract wallets require multiple signatures, this multi-signature system is ideal for groups (whether enterprises or DAOs) and individuals who want high-level security. In addition, multi-signature solutions like Gnosis Safe allow individuals to easily customize their wallet parameters and daily spending limits.
Increased bonus security level? Use a hardware wallet as one of your Gnosis Safe signature devices!
Gnosis safe allows you to use any wallet as a multi-signer.
Image source: Gnosis
Social recovery wallet
By now, you may have heard some painful stories about people who have been unable to use their old crypto wallets for years.
The social recovery wallet strongly advocated by Ethereum creator Vitalik Buterin is a practical solution to this accessibility problem.
This type of wallet will have a single signing key that users will use to send transactions and interact with dApps. However, it is multiple “guardians” that support this signature key, that is, other Ethereum addresses. These can be kept by family or friends, and can even be maintained by your other wallets. With social recovery, if enough guardians approve, the user’s signature key can be updated when they lose or forget how to access their original key.
To understand the practice of this model, you can look at Argent, Ethereum’s leading social recovery wallet provider so far!
Image credit: Vitalik Buterin
DeFi and NFT portfolio manager
Once you have established the basics of the wallet system, you can consider inserting one or more of your new wallets into the portfolio management dashboard. Just search for your address or connect to your wallet, and these services will provide a simple one-stop center for visualizing and managing all your DeFi and NFT activities.
Some of the strong competitors here include:
- Zapper — a portfolio management dashboard that allows you to track multiple addresses at the same time, and trade and invest in top DeFi opportunities through an easy-to-use UI.
- Zerion — Similar to Zapper, Zerion is a user-friendly one-stop wallet management suite that can easily master all Web3 activities.
- NFTBank — NFTBank is a portfolio management dashboard, specifically for NFT users, including novices and advanced users!
Pro Tips for Wallet Management
1. Use smart contract wallets for advanced operations
The functions of the basic Ethereum address are limited. However, when you turn the Ethereum address itself into a smart contract, the functions of the address will become more advanced and diversified.
Therefore, two projects that allow you to initiate smart contract wallets to interact with them include Instadapp and DeFi Saver. According to this wallet model, these DeFi management protocols can easily perform advanced on-chain activities, such as merging two Maker Vaults with just a few clicks.
2. Browser and mobile wallet = suitable for dapps
The two easiest ways to interact with dapps are browser wallets and mobile wallets.
The so-called browser wallet refers to the extensions you download for web browsers such as Chrome, Firefox, and Brave, which allow you to perform wallet operations directly in the browser (even operations linked to hardware wallets!). MetaMask is the most popular provider in the field, but other noteworthy projects include WalletConnect and Coinbase Wallet extensions.
In addition, MetaMask and Coinbase Wallet both have mobile applications that smartphone and tablet users can download. These applications come with a “dapp browser” that can be used to interact with popular DeFi and NFT projects (such as Compound and OpenSea ) directly and on the move . Other rising stars in the Ethereum mobile application ecosystem currently include Dharma, Rainbow, and Argent (the aforementioned social recovery wallet).
Once you have your favorite wallet process, please consider setting up an Ethereum Name Service (ENS) username for your primary address to create your Ethereum profile, and then start developing your on-chain resume for the future.
Also, keep in mind that there is no single “right way” to set up your wallet flow. Maybe you prefer GridPlus over Ledger, Zerion over Zapper or Rainbow over Argent.
All this is good: do what suits your taste. The ultimate goal is to create your wallet flow as intentionally and safely as possible so that you can make the most of it in the long term!
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/beginners-guide-how-to-manage-your-ethereum-wallet-like-a-professional/
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