What Is an EVM Wallet? Ethereum Virtual Machine Wallets Explained
An EVM wallet is a crypto wallet that works with Ethereum and all EVM-compatible blockchains, enabling you to store the digital assets they support.
The EVM abbreviation stands for the Ethereum Virtual Machine (EVM) – the virtual engine that runs smart contracts on Ethereum and makes decentralized applications (dApps) possible. An EVM wallet helps you store and manage all the tokens hosted by an increasing list of EVM chains. We’re speaking about millions of tokens (of which a few thousand are relevant) on the following networks:
- Ethereum itself
- EVM-compatible Layer 1 chains, including BNB Chain, Avalanche, Tron, and Sonic
- EVM-compatible Layer 2 rollups like Arbitrum, Base, OP Mainnet, and Polygon
Most EVM wallets can also be referred to as Ethereum wallets, and sometimes DeFi or Web3 wallets, since their features frequently overlap.
EVM wallets play a critical role in blockchain, especially in major trends like DeFi, NFTs, and decentralized gaming. You can hold tokens across multiple chains in a single wallet.
Key takeaways
Understanding EVM Wallets
An EVM wallet is a Web3 wallet that can interact with Ethereum and other EVM-compatible chains. It can store tokens and NFTs hosted by EVM chains.
Additionally, unlike traditional wallets, EVM wallets enable users to interact with smart contracts and engage with dApps, such as decentralized exchanges (DEXs), lending protocols, blockchain games, etc.
These wallets serve as your Web3 identity, allowing you to store, send, and receive digital assets like ETH, ERC-20 tokens, and the NFTs you love or need for gaming, as well as engage with DeFi and GameFi dApps like Uniswap, the Sandbox, or Aave.
With Ethereum dominating the decentralized finance (DeFi), non-fungible token (NFT), and Web3 markets, many blockchains adopted its EVM component to make it easier to migrate dApps across their networks. Today, EVM chains account for 82% of the total value locked (TVL) in DeFi, and an EVM wallet is a powerful tool to access all these chains and their dApps from a single interface. Ethereum dominates the DeFi EVM space with a 63% share, followed by BNB Smart Chain (BSC), Tron, Base, Berachain, Arbitrum, and Avalanche.
As a rule, EVM wallets are non-custodial, offering users full control over their private keys and assets.
EVM Wallet Features
The main functions of an EVM wallet are:
- Private key management – EVM wallets generate and store the private keys that are used to unlock crypto operations. Private keys are like the PIN code of a credit card.
- Address management – They manage one or several addresses, which can be shared with anyone to receive tokens. Therefore, the EVM wallet is your Web3 identity.
- Token storage and transfers – The main purpose of any crypto wallet is to store tokens and enable token transfers. An EVM wallet can store tokens hosted by EVM chains.
- Network management – An EVM should allow users to easily switch between different EVM chains.
- Transaction signing – Whenever a user initiates an on-chain action, such as token transfer or dApp interaction, the EVM wallet signs the transaction to authorize it.
- dApp interaction – EVM wallets allow users to connect to dApps or disconnect after ending the session.
Some EVM wallets offer additional features to improve the Web3 experience, such as built-in token swaps, staking, and yield farming.
How Does an EVM Wallet Work?
An EVM wallet ‘s primary function is managing one or more addresses and the private keys associated with them.
When interacting with EVM chains, the wallet addresses are treated as Externally Owned Accounts (EOAs), which are managed by cryptographic keypairs.
In EVMs, EOAs differ from contract accounts, whose data isn’t managed by private keys but is stored within the smart contract itself.
Private and Public Keys
As mentioned, an EOA is managed by a pair of keys:
- The public key is used to create an address that you can share with anyone to receive funds.
- The private key authorizes token transfers, swaps, and other transactions. Like your card’s PIN code, it must be kept secret.
The public key is cryptographically related to the private key, but you can’t use it to unlock the account.
This keypair lets you hold assets in an Ethereum account and make transactions.
Note that the account address that you share freely is not the public key; it is a hashed version, which is compressed for convenience. The address represents the last 40 characters of the Keccak-256 hash of its related public key — usually starting with 0x.
Each Ethereum account has this kind of address, which is like your email address.
Here are some examples of each:
- Private key: 0x4c0883a69102937d6231471b5dbb6204fe5129617082796fe2a37d5c2fcf0e16
This is an example only – private keys are not shared publicly! - Public key: 0x045a1593c5b2cb82af0c754eecb3cfa3bdf28b70a20ff27ae6a75ba269ddfe436dfb3c0a6e6aab0a9df2ed2be9eb92bb8abcced2a1c0b7b7f5e3c40c7f6b2f8c0f
- Ethereum address: 0x90f8bf6a479f320ead074411a4b0e7944ea8c9c1
Wallet Addresses and Interoperability
An EVM wallet generates a random private key, derives the public key from it, and then creates the wallet addresses by taking the last 40 characters from the public key’s Keccak-256 hash.
You can share your wallet address to receive funds and interact with dApps.
One great benefit of EVM wallets is that they can use the same address across multiple EVM chains, including Ethereum, BNB Chain, Avalanche, and many EVM-compatible Layer 2 rollups.
Therefore, you don’t need to create new wallets for each chain – you can easily switch networks inside the wallet, and you’ll see the same address. Meanwhile, token balances will differ depending on the chain.
Gas Fees and Transactions
Whenever you transfer tokens or interact with a dApp, the EVM wallet signs the transaction using the private key. These operations require gas fees paid in ETH or the native coin.
As a rule, EVM wallets calculate gas fees automatically and let you preview these before confirming a transaction. Many wallets also allow you to manually adjust the fee to speed up confirmation time.
Understanding gas is important when using an EVM wallet, as insufficient gas may lead to transaction fails.
Types of EVM Wallets
There are several types of EVM wallets, depending on how they’re accessed, how they store private keys, and the level of control they offer.
Most EVM wallets fall into two major categories: hot wallets and cold wallets. Let’s see how they work.
Hot Wallets (Software Wallets)
Hot wallets are connected to the internet and are ideal for regular, day-to-day use. These wallets can be in the form of browser extensions, mobile apps, or desktop applications.
The most popular hot wallets are browser extensions like MetaMask, Trust Wallet, or Coinbase Wallet.
Users prefer browser extension wallets due to their simplicity and flexibility when interacting with DeFi protocols, NFT marketplaces, and other dApps. They make it easy to sign transactions and switch between EVM chains.
However, using these online wallets exposes you to some risks, such as phishing or malware attacks.
Cold Wallets (Hardware Wallets)
Cold wallets are physical devices that connect through USB. They store private keys offline and are regarded as the most secure form of wallets.
The two most popular brands are Ledger and Trezor. The devices cost between $60 and $300+, depending on the model. The most expensive wallets come with a touchscreen to improve user experience.
Cold wallets are ideal for long-term holders, aka hodlers, who manage large amounts of crypto and require secure custody.
The great thing about these hardware wallets is that they connect with web apps like MetaMask to sign transactions without exposing the private key.
While Ledger and Trezor can be used as EVM wallets, they were initially created for Bitcoin and support a wider range of blockchains.
Here is a brief comparison between hot and cold wallets:
Custodial vs. Non-Custodial Wallets
Another way to classify wallets is to determine the way they hold the private key.
There are two main types of crypto wallets: custodial and non-custodial, also called self-custodial. Most EVM wallets are non-custodial, enabling users to have full control over their funds by holding the private key with them.
Let’s quickly review each of them:
Custodial Wallets
Custodial wallets are usually hot wallets offered by centralized exchanges like Binance or Coinbase. They manage your private keys. This type of wallet is often used by beginners who prefer convenience, but using it means trusting a third party with your most valuable information. Additionally, these wallets often limit access to dApps.
Custodial wallets are the least secure, and the latest $1.4 billion Bybit hack is a shocking example of the vulnerabilities of crypto exchanges.
Pros Cons
Non-Custodial Wallets
Non-custodial EVM wallets give you true ownership by enabling you to manage the private keys.
Many Web3 users agree with Bitcoin advocate and tech entrepreneur Andreas Antonopoulos, who often said: “Not your keys, not your coins.”
Non-custodial wallets give users full control over their funds, but this control implies greater responsibility. Losing the private keys or the recovery phrase will make it impossible to recover the funds.
On the upside, these wallets don’t require users to pass through KYC verification processes while offering easy access to dApps.
Pros Cons
Popular EVM Wallets
Let’s explore some of the most popular EVM wallet options today:
MetaMask – The Most Widely Used EVM Wallet
This is the most popular EVM wallet. It is available as a browser extension for Chrome, Firefox, Brave, Opera, and Edge. The wallet can also be accessed as a mobile app on Android and iOS devices.
MetaMask supports thousands of ERC-20 tokens and NFTs and is compatible with all EVM chains, including Ethereum, BNB Chain, Avalanche, Arbitrum, OP Mainnet, Base, Polygon, Linea, and others. It also provides additional functionality, enabling users to swap and bridge tokens.
Features
- Compatible with multiple browsers.
- In-app swaps and portfolio management.
- Easy access to DeFi.
- MetaMask Snaps allow you to customize your wallets with extra features built by community developers.
Trust Wallet – Mobile-Friendly EVM Wallet
Trust Wallet is a non-custodial wallet offered by Binance, the largest centralized crypto exchange by trading volume. However, this doesn’t mean it is centralized. Like MetaMask, it gives users full control over their funds.
While Trust shares many similarities with MetaMask – being available both as a mobile app and browser extension – it places greater emphasis on mobile use.
Unlike MetaMask, Trust supports several non-EVM chains, including Cosmos and Solana.
Launched in 2017, Trust Wallet claims to be used by over 200 million users.
Features
- Supports over 100 networks, including EVM and non-EVM chains.
- In-app swap, stake, and DeFi access features.
- Built-in risk monitoring for risky address and dapp connections.
Coinbase Wallet – A Custodial and Non-Custodial Option
Coinbase, the largest crypto exchange platform in the US, also provides a non-custodial wallet solution. Users connect to Coinbase Wallet through their Coinbase account, benefiting from both custodial and non-custodial options.
Coinbase Wallet, which is available as a mobile app and browser extension, offers easier access to DeFi and Web3 apps compared to its custodial counterpart.
The non-custodial version supports multiple EVM chains along with Bitcoin, Solana, and Dogecoin. Support for Bitcoin Cash, Stellar, and Ripple’s XRP was discontinued in 2023.
Features
- Support for multiple EVM and non-EVM chains.
- Multiple security measures, including dApp blocklist, token approval alerts, spam token management, phishing attack tips, Ledger integration, and more.
- Convenient transfers between custodial and non-custodial versions.
Ledger & Trezor – Secure Hardware Wallets for EVM Chains
As mentioned earlier, Ledger and Trezor are the most widely used hardware wallets. These wallets keep private keys offline, which is the most secure way to store crypto assets.
Unlike the EVM-oriented MetaMask, Ledger, and Trezor are universal wallets compatible with all major blockchains, including Ethereum, Bitcoin, Litecoin, and Ripple.
Interestingly, despite its security features, Ledger experienced a hacking attack at the end of 2023, which targeted a security breach in the Ledger Connect Kit. Elsewhere, Trezor’s software has never been hacked so far, remaining one of the safest wallets.
Both Ledger and Trezor offer intuitive desktop and mobile apps to help users connect with DeFi.
Features
- Multi-chain wallets supporting Ethereum, Bitcoin, and many other chains.
- Both wallets integrate with MetaMask and Trust Wallet.
- Both wallets come with intuitive applications offering token swaps and staking.
How to Use an EVM Wallet
EVM wallets have added more features and integrations over the years, but most of them still remain user-friendly thanks to well-designed interfaces.
Here are some short guides showing you how to use an EVM wallet, from setting it up to conducting basic operations:
Setting Up an EVM Wallet
Here is how you can set up your first EVM wallet:
- Choose a wallet app like MetaMask or Trust Wallet and download the mobile app or browser extension.
- Follow the setup instructions to create the wallet account. Here, you can set a strong password to access the app whenever you open it.
- Now, we reach one of the most important steps – the wallet will generate a 12 to 24-word seed phrase, which will be your recovery phrase. You should write it down and store it in multiple offline locations. With this phrase, you can access your wallet in the case of losing the mobile device or when switching to another laptop. You should never share it or save it online. If you lose it, you won’t be able to recover your wallet.
- Now you can start using the wallet by switching between different chains and depositing tokens by copying and sharing the wallet’s address.
Connecting to dApps and DeFi Platforms
Non-custodial EVM wallet apps like MetaMask and Trust Wallet can easily connect with dApps. Here is how you can start your Web3 journey with them:
- Whenever you enter a dApp, search for a “Connect Wallet” or “Connect” button on its homepage. EVM dApps are compatible with MetaMask and other EVM wallets. Examples of popular dApps are Uniswap, Aave, and OpenSea.
- Next, click on “Connect Wallet” and choose your wallet provider. Approve the connection in your wallet extension or app.
- Once connected, you can interact with the platform directly — swap tokens, provide liquidity in DeFi pools, trade NFTs, or vote in decentralized autonomous organizations (DAOs). Make sure to use the official dApp to avoid scams.
With their ability to integrate with EVM dApps, wallets like MetaMask serve as your Web3 identity, eliminating the need to create a new account for each service.
Sending and Receiving Crypto
To receive crypto, simply click on “Receive” on your MetaMask or any other wallet extension, copy your public address (it starts with 0x), and share it with the sender or paste it on your custodial wallet from which you want to make the deposit.
Most EVM wallets also generate a QR code for convenience.
To send tokens, click on “Send” and follow these steps:
- Paste the recipient’s wallet address.
- Select the token and the amount you want to send.
- Review the gas fee and check the amount, token, and network again.
- Confirm the transaction.
Always make sure to double-check the network before sending. Even a small mistake can result in permanent loss.
Security Best Practices for EVM Wallets
With an EVM wallet, you have full control over your funds. This is great, but it also comes with full responsibility—you are on your own.
Here are some best practices to enhance your crypto security:
- Protect your seed phrase: Never share it, and never store it on your social media sites. Store it offline only.
- Avoid phishing: Fake websites and wallet pop-ups abound in the crypto markets. Bookmark your preferred dApps and check URLs.
- Use a hardware wallet: For large amounts of crypto, use a cold wallet like Ledger or Trezor for additional protection.
Conclusion
EVM wallets are your gateway to the Web3 world, unlocking access to hundreds of dApps, including DEXs, blockchain games, yield farming protocols, lending platforms, and liquid staking and restaking apps.
These wallets enable interaction with Ethereum and a growing ecosystem of EVM chains, which account for over 80% of the DeFi market. With the rapid growth of Layer 2 rollups, EVM wallet adoption is increasing as crypto holders seek lower fees and higher speed.
There are many EVM wallet options, and choosing the right one depends on your needs—whether you’re a beginner seeking convenience, a trader looking for multi-chain access, or a hodler prioritizing security.
MetaMask remains the most popular EVM wallet option due to its simplicity and broad features. Crypto holders prioritizing safer storage prefer to use a cold wallet like Ledger or Trezor, which keep private keys offline. These hardware wallets have evolved and can now easily connect with MetaMask, offering easier access to DeFi.
EVM wallets will continue to play a major role in blockchain because they can enhance interoperability in a fragmented market.
FAQs
What does EVM-compatible mean for wallets?
Which blockchains support EVM wallets?
Is MetaMask an EVM wallet?
Can I use one EVM wallet for multiple blockchains?
What happens if I lose my wallet’s seed phrase?
Are EVM wallets safe?
How do I reduce gas fees when using an EVM wallet?
References
- EVM Chains TVL (DefiLlama)
- EVM Account Types (Ethereum EVM Illustrated)
- Coinbase Wallet Interface (Coinbase)
- Ledger Live Interface (Ledger)
- Wallet Setup Sample (Ethereum)
Why Trust Cryptonews
Best Crypto ICOs
-
Solaxy (SOLX)
-
BTC Bull Token (BTCBULL)
-
Mind of Pepe (MIND)
-
Best Wallet Token (BEST)
-
SUBBD (SUBBD)
in numbers
