Bitcoin uses a “bitcoin address” where bitcoins are sent and stored. Similarly, ethereum has 2 types of accounts or addresses:
- Accounts that hold ETH - This account is called “Externally Owned Accounts (EOAs)”. You can make an ETH transfer or payment by signing transactions with a private key in this account.
- Accounts that hold ETH and smart contracts – This account is for smart contracts. Remember, smart contracts can only be activated by sending ETH into it. After the smart contract has been coded and uploaded, it will sit in this account and wait to be activated.