Alternatives to Ethereum Mist Wallet
Hardware wallets are often thought of as the most secure way to store your digital coins.
Trezor and Ledger Nano S are the leaders of hardware wallets. The Ledger Nano S allows users to store listed ERC20 tokens and could be managed using Ledger Nano S using MyEtherWallet . If you have ERC20 tokens that are not supported by MyEtherWallet, you are able to manually add it. After adding the new ERC20 cryptocurrency to the Ledger Nano S, all you need to do is download the latest application or update the hardware wallet’s firmware.
In order to add ERC20 tokens and manage them using Ledger Nano S, you would have to:
Once of the downsides to the Ledger Nano S is that there is a price to pay for increased security. Currently, the Ledger Nano S costs around $90 on Amazon.com and 79 euros on the Ledger website .
TREZOR also offers integration with MyEtherWallet. According to TREZOR , “If a token has not been added to TREZOR firmware yet, you can still store it with TREZOR, by sending them to an Ethereum address generated by TREZOR. When sending this token away from TREZOR, you will be asked to sign a message, instead of seeing the transaction details.”
To receive ERC20 tokens, you should use your Ethereum address which is generated by the TREZOR device. If you want to send tokens, you would have to unlock your Ethereum wallet on MyEtherWallet and fill out the transaction details and token type.
You need to initialize TREZOR and use TREZOR Wallet, Electrum or Mycelium to configure your device. Thereafter, you could open MyEtherWallet and make sure you are using the correct currency. Once your TREZOR is initialized, the Ethereum wallet would be generated on the device and you would use MyEtherWallet to access your coins. Keep in mind you should not generate a new wallet on MyEtherWallet. TREZOR is your Ethereum wallet and if you do generate a wallet on MyEtherWallet, your coins would be sent there and are not saved with TREZOR.
The TREZOR comes in at 89 euros or around $120 on Amazon. This is the price you have to pay for increased security. Moreover, if you lose your Ledger Nano S or TREZOR, you can still restore your wallet and tokens.
Now, you could also use software wallets to store your ERC20 tokens. Software wallets are typically considered hot wallets because they need to be connected to the Internet. Although software wallets are vulnerable, they are easy to access and use. However, you should never store a large amount of cryptocurrencies on a hot wallet because you would be at risk of all your coins potentially being stolen.
Exodus is a multi-cryptocurrency desktop wallet and it’s free to use. You are able to send and receive ERC20 tokens using the Exodus wallet. The tokens would be stored at the wallet address. However, the Exodus wallet would not display your ERC20 tokens. Although this is one drawback, you could confirm your token balance by using Etherscan and pasting your ETH address and clicking on the Token Transfers.
If the ERC20 token is unsupported, you would need to export your Ethereum private key and use MyEtherWallet in order to manually add and send tokens. Now, this is another drawback because you need to be extremely careful with your private key. Exporting your private key leads to some vulnerabilities and you could potentially lose your Ethereum and ERC tokens. If you are looking to use Exodus to store ERC20 tokens, here’s a step-by-step guide provided by the company .
MetaMask is similar to Mist. It provides users with the same functions and features of other Ethereum wallets. Additionally, users are able to interact with smart contracts and decentralized applications. One of the main benefits is the fact that you would not need to download the entire blockchain or software. All you would need to do is install a browser extension, such as a Google Chrome extension. However, this could again lead to potential vulnerabilities.
If you want to use MetaMask to store ERC20 tokens, you could use the Firefox, Google Chrome or Opera addons. You could also download the Brave browser to use MetaMask. Once you add the extension to one of the supported browsers, you would need to create a new wallet. All you need to do is click on the MetaMask logo next to the search bar and read the terms and conditions (Agree to those conditions once you have read through and understand them). Thereafter, you would select “Create New Vault” and enter a strong password. Finally, MetaMask will show you your seed, so you should copy and store the seed just in case you need to restore your wallet.
By now, you should understand the ERC20 token standards, the Ethereum Mist wallet and alternatives to storing your ERC20 tokens. The ERC20 protocol drives users to continue innovating the cryptocurrency and blockchain industry. ERC20 allows for minimized risk, increased liquidity, robust tokens, uniformity and less complexity. If you are looking to invest or trade ERC20 tokens, you should consider one of the token wallets explained above. Keep in mind, there are some wallets that could be exposed to some vulnerabilities.