What Is an Ethereum Wallet? How to Create & Use an ERC-20 Wallet (2025)

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Ethereum has revolutionized the digital world by introducing a decentralized, open-source blockchain platform that supports smart contracts. These innovations have paved the way for groundbreaking applications such as decentralized finance (DeFi) and non-fungible tokens (NFTs). To fully participate in this ecosystem, you need an essential tool: an Ethereum wallet.

This guide provides a comprehensive walkthrough on how to create and use an Ethereum wallet, focusing on ETH and ERC-20 tokens. Whether you're new to blockchain or looking to deepen your understanding, this article will help you navigate securely and confidently.


What Is an Ethereum Wallet?

An Ethereum wallet is a digital tool that allows you to store, send, and receive ETH and ERC-20 tokens—standardized digital assets built on the Ethereum blockchain. Beyond simple transactions, these wallets enable interaction with decentralized applications (dApps), DeFi protocols, and NFT marketplaces.

Unlike traditional bank accounts, Ethereum wallets are non-custodial, meaning only you control your funds. No third party—neither governments nor financial institutions—can freeze or access your assets. Your ownership is secured through cryptographic keys.

Key Components of an Ethereum Wallet

Every Ethereum wallet contains three critical pieces of information:

👉 Discover how to protect your digital assets with advanced security practices.

Think of your wallet like a personal bank vault: the address is where others deposit funds, while the seed phrase and private key are the only ways to unlock it.


Top Ethereum Wallets in 2025

Several reliable wallets support Ethereum and ERC-20 tokens. Here’s an overview of leading options:

Coin98 Super App

A powerful gateway to DeFi and Web3, offering full asset control without third-party interference.

MetaMask

One of the most popular decentralized wallets, available as a browser extension and mobile app. Ideal for interacting with Ethereum dApps.

Exodus

A multi-currency wallet featuring built-in exchange capabilities and an intuitive interface for beginners.

Coinbase Wallet

A centralized solution supporting over 4,000 cryptocurrencies and NFTs, ideal for users seeking simplicity and integration with major exchanges.

While each has its strengths, Coin98 stands out for its all-in-one approach to Web3 exploration.


How to Create an Ethereum Wallet

Creating a wallet is fast and free. We’ll walk through setting up a secure Ethereum wallet using the Coin98 Super App, but the principles apply across platforms.

Step 1: Download the App

Coin98 supports both iOS and Android devices:

After installation, open the app and select Create New Wallet.

Step 2: Choose Ethereum Network

During setup, choose the Ethereum icon to generate a wallet compatible with ETH and ERC-20 tokens.

Step 3: Name Your Wallet

Assign a recognizable name (e.g., “Main ETH Wallet”) for easy management if you plan to create multiple wallets.

Step 4: Secure Your Seed Phrase

You’ll be prompted to write down your 12-word recovery phrase.
⚠️ Critical Security Note:
Store this phrase offline—on paper or a hardware device. Never save it digitally or share it with anyone. Losing it means losing access to your funds permanently.

Once confirmed, your Ethereum wallet is ready to use.

👉 Learn how to safely back up your wallet and avoid common mistakes.


How to Use Your Ethereum Wallet

Now that your wallet is set up, here’s how to manage your assets.

Receiving ETH or ERC-20 Tokens

  1. Open your wallet and tap the Receive option.
  2. Share your wallet address directly or via QR code.
  3. The sender uses this address to transfer funds.

Always double-check the network—sending tokens on the wrong blockchain may result in permanent loss.

Sending ETH or ERC-20 Tokens

  1. Tap Send in your wallet interface.
  2. Select the token type (ETH or specific ERC-20).
  3. Enter the recipient’s address and amount.
  4. Review gas fees and confirm the transaction.

Transactions are irreversible—ensure accuracy before confirming.


Security Best Practices

Your Ethereum wallet is only as secure as your habits. Follow these guidelines:

Remember: if someone asks for your seed phrase, it’s a scam.


Frequently Asked Questions (FAQ)

Q: Is it safe to store ETH and ERC-20 tokens in an Ethereum wallet?
A: Yes, especially with non-custodial wallets like Coin98 or MetaMask. You retain full control over your assets without relying on third parties.

Q: Are there fees when transferring tokens?
A: Yes. Every transaction on the Ethereum network requires gas fees paid in ETH. These vary based on network congestion but typically range from 0.00063 ETH to 0.05 ETH during peak times.

Q: Can I create multiple Ethereum wallets?
A: Absolutely. You can manage multiple wallets with different addresses and seed phrases—ideal for organizing funds or separating investments.

Q: What happens if I lose my seed phrase?
A: Without the seed phrase, recovery is impossible. Always store it securely and consider making multiple backups in separate physical locations.

Q: Can I use my Ethereum wallet on different devices?
A: Yes. By restoring with your seed phrase, you can access your wallet on any compatible device or app.

Q: Do Ethereum wallets support NFTs?
A: Yes. Most modern Ethereum wallets allow you to view, send, and receive NFTs directly within the app interface.


Final Thoughts

Understanding and using an Ethereum wallet is essential for anyone entering the world of blockchain, DeFi, or digital collectibles. With full control over your assets and seamless access to thousands of decentralized applications, your wallet is more than storage—it’s your passport to Web3.

As the crypto landscape evolves in 2025, staying informed and security-conscious ensures you make the most of this transformative technology.

👉 Start exploring decentralized finance today with trusted tools and resources.