Ethereum is one of the most well-known and important blockchain networks in the world, second only to Bitcoin in scale. It was launched in 2015 by Vitalik Buterin and a team of developers, becoming the foundation for thousands of applications in finance, art, gaming, and other fields. The network introduced smart contracts and decentralized services that operate without intermediaries. Today, it has over 300 million unique addresses, and the total value locked (TVL) in the ecosystem exceeds $50 billion. A key element of the ecosystem is ETH (Ether) – the network’s native token.
ETH: The Power Behind Ethereum
ETH (Ether) is more than just a digital currency – it is the backbone of the entire Ethereum ecosystem. It is used for transaction fees, transferring crypto, and running smart contracts. Unlike Bitcoin, which has a fixed supply of 21 million coins, Ethereum has no set limit. Its supply changes over time as new coins are issued (emission) and some are burned. Currently, ETH has a low inflation rate, but during periods of high network activity, it can become deflationary.
Ethereum Tokenomics:
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Total supply: 120.57M ETH
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Circulating supply: 120.57M ETH
Initial distribution:
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83.33% – Sold to investors during the 2014 crowdsale ($18M raised).
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16.68% – Allocated to developers and the Ethereum Foundation for ecosystem development.
To fully utilize Ethereum and manage ETH, you need an Ethereum Wallet, which provides a secure and convenient way to access digital assets.
Unique Ethereum Addresses. Source: etherscan.io
What Is an Ethereum Wallet?
An Ethereum Wallet is a digital app or device that allows users to store and manage ETH securely. But it’s more than just a “digital safe” for your coins - it gives access to the entire world of decentralized applications. With an Ethereum Wallet, you can invest, trade assets, participate in DeFi protocols, interact with NFT marketplaces, and use bridging.
What Is an Ethereum Wallet Used For?
An Ethereum Wallet provides extensive opportunities to interact with the blockchain ecosystem. In addition to the main token Ether (ETH), the Ethereum network supports ERC-20 tokens.
ERC-20 Tokens
ERC-20 is a token standard on the Ethereum network that sets common rules for creating and using tokens. The most popular ERC-20 tokens are stablecoins like USDT, USDC, and DAI, which are widely used for payments, transfers, and storing value.
Keep in mind that to send or interact with ERC-20 tokens, you need a small amount of ETH to cover transaction fees (gas fees).
Meme Coins on Ethereum
Besides stablecoins, ERC-20 tokens also include meme coins, which are actively used by users - cryptocurrencies created for entertainment or to support online communities. The most well-known examples are Shiba Inu (SHIB) and Pepe (PEPE), which started as jokes but later gained huge market capitalization. With Ethereum Wallet, you can easily buy, sell, and store these assets while staying within the reliable Ethereum ecosystem.
Ethereum NFTs
Ethereum is the leader in the NFT space, with a total trading volume of over $44.6 billion all-time. With an Ethereum Wallet, you can easily interact with NFTs, buy, and store them securely. One of the most famous NFT collections, CryptoPunks, started as an experiment but later became iconic, with some of these pixel avatars selling for millions of dollars.
Top NFTs on the Ethereum Blockchain. Source: crypto.com
Access to Decentralized Exchanges (DEX)
Ethereum supports many decentralized exchanges (DEX), where users can trade tokens without intermediaries. One of the most well-known platforms is Uniswap, the largest Ethereum DEX. With an Ethereum Wallet, you can easily connect to Uniswap and make trades in just a few clicks.
Access to DeFi Protocols
The DeFi ecosystem on Ethereum gives users access to financial services without intermediaries. With an Ethereum Wallet, you can easily manage ETH and ERC-20 tokens, take part in staking, yield farming, lending, and token swaps. The wallet lets you connect directly to DeFi platforms, earn interest, and make secure transactions while keeping full control of your assets.
Ethereum Bridges: Connecting Blockchain Networks
Bridges play a crucial role in the Ethereum ecosystem, enabling the transfer of assets and data between networks, expanding user possibilities. With an Ethereum Wallet, you can bridge ETH to Layer 2 networks like Arbitrum and Base, reducing fees and speeding up transactions while maintaining Ethereum’s security. If needed, you can transfer your assets back to the main Ethereum network, ensuring flexibility and full control over your cryptocurrency. Using Ethereum bridges helps reduce costs and makes it easier to navigate Ethereum and its ecosystem.
Top Layer 2 Solutions on Ethereum by TVL: Arbitrum, Base, OP Mainnet. Source: l2beat.com
Ethereum Staking
Ethereum not only allows you to store ETH but also to stake ETH and earn rewards for supporting the network. By staking their coins, users help maintain blockchain operations while generating passive income. This means you’re not just holding ETH - you’re also gaining extra benefits from it.
When staking or withdrawing assets, a small ETH fee is required, so always keep some ETH in your balance to cover transaction costs.
Ethereum Swaps
With Ethereum Wallet, you can swap not only ERC-20 tokens but also ETH directly, without using centralized exchanges. The exchange happens within the wallet through decentralized protocols, providing a secure and convenient way to convert assets.
Swap ETH to an ERC20 Token. Source: Gem Wallet
How to Create an Ethereum Wallet
To access all the features of Ethereum, you need to create a wallet. Follow these steps for a quick and secure setup:
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Download an Ethereum Wallet: First, download Ethereum Wallet from the official app store for iOS or Android.
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Set Up an Ethereum Wallet: After installation, open the app and follow the on-screen instructions. Pay special attention to the security steps, as your wallet will store digital assets.
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Save the Recovery Phrase: During setup, a seed phrase will be generated. Write it down on paper and store it in a safe place. This phrase is the only way to restore access to your wallet if you lose your device or forget your password.
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Create a Password: Set a strong password for extra security. You will need it to log in and confirm transactions.
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Generate a Public Address: Your wallet will create an Ethereum address, which you can safely share to receive ETH and tokens.
Now your wallet is ready to use! The easiest and most convenient way to add crypto is to purchase ETH directly in the wallet using a credit card, ensuring a quick and error-free deposit. You can also transfer ETH from an exchange or receive it from other users. Once your wallet is funded, you can easily manage your assets and take full advantage of Ethereum!
