A cryptocurrency, also known as crypto, is a unit of virtual or digital currency. It does not depend on any central authority, such as a bank or government, for its maintenance and regulation. Instead, it leverages a decentralized system to record transactions and issue new units. Moreover, it uses cryptography to secure transactions. Unlike traditional assets, like bonds and stocks, you do not have to store cryptocurrency assets in an online brokerage account. Instead, you store and maintain your cryptocurrency assets in a dedicated crypto wallet. A cryptocurrency wallet enables you to securely store your digital assets and tokens in a single place. In addition, many crypto wallets allow you to buy, swap, lend and earn cryptocurrency assets. You will find a long list of crypto wallets on the internet and may get perplexed in choosing the right one. However, there’s nothing to worry about as this article will help you find the best crypto wallet for you. Here, we will make you familiar with some of the most popular and widely used crypto wallets. Also, you will learn what exactly a crypto wallet is and the key factors that you need to consider while choosing a crypto wallet. So, without wasting any time, let’s get started!
What is a Crypto Wallet?
A crypto wallet is a software program or physical device that stores public and private keys used for cryptocurrency transactions. These public and private keys prove your ownership of a digital asset. If you lose keys, you lose your digital asset. Moreover, a crypto wallet enables users to store and manage their digital assets and tokens in a single place. In addition to storing keys, crypto wallets more often provide the feature of encrypting and/or signing information. Here, signing implies a cryptocurrency transaction, executing a smart contract , or legally signing a document. Encryption means encoding information, i.e., representing the information in plain text to other forms, such as ciphertext. Basically, there are two types of crypto wallets, namely hot and cold wallets. Hot wallets make use of the internet to operate and are user-friendly. On the flip side, cold wallets store keys in an offline mode. Hot wallets are software or online wallets, and cold wallets are paper and hardware wallets.
- Paper Wallets: This type of wallet is a physical means to store your keys. Public and private keys are written on paper and stored in a safe place. However, paper wallets are unreliable and obsolete.
- Hardware Wallets: In this type of wallet, keys are stored in a thumb drive device, and that device is connected to a computer only when you want to use your crypto. The primary objective of hardware wallets is to ensure security while providing convenience.
- Online or Software Wallets: Online or software wallets store keys in a computer program or software. These types of wallets make it hassle-free to send, receive, and use your crypto, just like you use online banking.
Factors to Consider While Selecting a Crypto Wallet
A variety of crypto hardware and software wallets are available. Choosing the appropriate and secure crypto wallet is essential since you are storing your digital assets and keys used for cryptocurrency transactions. Here are some essential factors that you must look into before choosing any crypto wallet.
- Self-Custody or Non-custodial Wallet: Self-custody means you control your private keys. With self-custody wallets, you can have control over your digital assets.
- Multi-cryptocurrency support: There are some wallets that are dedicated to only one cryptocurrency. Make sure the crypto wallet you choose supports multiple cryptocurrency assets.
- Cryptocurrency conversion: Choose the crypto wallet that provides the feature to convert one cryptocurrency into another.
- MultiSig Account: The MultiSig Account feature allows you to set up multiple keys for a single wallet. When you want to share a crypto wallet with multiple users, this feature comes in handy.
- Multi-platform: If you are an active crypto trader, choosing a crypto wallet that is accessible from multiple platforms is beneficial. Such wallets allow you to manage your crypto portfolio on different devices, including desktops and smartphones.
- Intuitive Interface: If you are new to the crypto world, you need to choose a crypto wallet that is beginner-friendly and has an easy-to-use interface.
Best Crypto Wallets to Use in 2023
Here is a curated list of the most popular crypto wallets that you can use to store and access your cryptoassets with ease.
Coinbase wallet is a self-custody wallet ideal for individuals with little to no knowledge of cryptocurrency. It gives users complete control of their cryptocurrencies, private and public keys, and data. Moreover, you can store and view all your non-fungible tokens (NFTs) securely in the Coinbase wallet. The industry-leading security of the Coinbase wallet enables you to store digital assets safely and securely on all your devices. You can download the Coinbase wallet for Android and iOS devices. Features
- Coinbase wallet supports over 5,500 tokens and all decentralized applications.
- It stores all your crypto and NFTs in one place.
- It supports buying crypto with credit and debit cards in 90 countries.
- Coinbase stores its private key in your device and not in Coinbase servers.
Electrum is one of the oldest crypto wallets that only supports Bitcoin. It is a fast, secure, and easy-to-use Bitcoin-only wallet. It caters to the needs of a broad range of users. Moreover, Electrum is free software released under the MIT License. Anyone can run an Electrum server, and no single entity runs the network. This crypto wallet uses two-factor authentication provided by Electrum and Trusted Coin, which ensures secure crypto transactions. Features
- Your private keys are encrypted and stored on your system.
- It enables you to export your private keys and use them in other Bitcoin clients.
- Since Electrum uses servers that index the Bitcoin blockchain, it is fast.
- The Electrum wallet uses Single Payment Verification (SPV) to verify all the transactions in your history.
- It supports third-party plugins, such as Hardware wallets, Multisig services, etc.
- With Multisig services, the Electrum wallet splits the permission to send your coins among several wallets.
Mycelium is another crypto wallet that focuses on Bitcoin. It is an open-source, mobile-only, and non-custodial software wallet that serves to be the best option for Android and iOS users. Along with Bitcoin, Mycelium also enables users to manage Ethereum and ERC-20 tokens. The two major highlights of this mobile crypto wallet are security and transaction options. More interestingly, it is a reproducible wallet, which means that you can duplicate the wallet’s code and compare it with the original one to identify potential security issues. Features
- Supports inter-wallet operability through the FIO network.
- It comes with BIP-70 support that enables payment requests and execution of external payment requests.
- Provides several blockchain explorer options.
- The advanced transaction history provides complete details like block height, number of confirmations, input/output, timestamp, miner fee, incoming/outgoing transaction indication, and transaction hash.
- Supports HD spending accounts and Single Address saving accounts.
- It provides you with an option to display the derivation address path for BIP44 HD accounts.
- Comes with TOR network support to mask IP address and location.
4. Ledger Nano X
Ledger Nano X is a hardware wallet. It is a well-known offline crypto wallet because of its high-security standards, a large number of supported currencies, and mobile trading capabilities. It is a Bluetooth-enabled hardware wallet that allows you to store your digital assets in one place securely. Features
- Ledger Nano X supports over 5,500 coins and tokens, including Bitcoin, Ethereum, and ERP.
- Ledger Live is a computer program that enables you to manage your crypto with a Ledger hardware wallet.
- You can also use Ledge Live to lend and stake crypto to generate revenue.
- It has a Secure Element Chip for high-end security solutions and protects your crypto from various attacks.
- Ledger Nano X has a 100 mAh battery, which lasts for several hours.
- You can use this wallet with any USB-compatible Windows, macOS, and Linux desktops.
Exodus is the best software crypto wallet for desktops. Though originally it was a desktop-only wallet, it has apps for Android and iOS devices and is now compatible with Trezor wallets, a hardware crypto wallet brand. Therefore, it is a desktop, mobile, and hardware crypto wallet. Features
- Exodus supports more than 155 cryptocurrency assets, including well-known altcoins, such as Ether, Litecoin, Tether, and Dash, and meme coins, such as Dogecoin and Shiba Inu.
- You can send and receive any supported cryptocurrency asset using an address or scannable QR code.
- Built-in exchange enables you to buy and sell one cryptocurrency for another.
- It enables you to control your digital assets on your mobile and sync them to your desktop using a 12-word backup phrase.
Guarda is a highly-secure software crypto wallet that enables you to buy, sell, store, and earn via staking a variety of crypto assets. It is non-custodial, multiplatform, and decentralized cryptocurrency storage. Originally, it was a desktop-only crypto wallet. Later, it added a web version and Android and iOS versions. This crypto wallet is an all-in-one app that enables you to earn with staking, purchase cryptocurrencies, exchange cryptocurrencies instantly at best rates, get crypto loans, and use Multisignature to add extra security. Features
- Supports over 50 blockchains and 400k tokens.
- You can use over 10 coins for staking.
- Comes with a built-in exchange, i.e., you can exchange one cryptocurrency for another.
- Purchase cryptocurrency with your Visa or MasterCard.
- No registrations, limits, or verification approvals are required to exchange Bitcoins and other cryptocurrency assets.
- Send your crypto to anyone and anywhere using their address.
Trezor is a commonly-used hardware crypto wallet for Bitcoin and other cryptocurrency assets. It lets you securely store over 1000 crypto coins. You can control and use Trezor with its desktop and browser application. You can buy, exchange, compare the rates, and spend coins securely with the desktop and browser applications. Features
- The case of Trezor is ultrasonically welded.
- The desktop application of Trezor is available for Windows, macOS, and Linux operating systems.
- You can access your public and private keys from Trezor only for user authentication via PIN.
- The bootloader always verifies the firmware signature. It erases the device memory if the firmware signature is invalid.
- It supports BIP39 passphrases, which provide protection against local hardware attacks.
8. Trust Wallet
Trust Wallet is yet another secure software crypto wallet that allows you to buy, store, and collect non-fungible Tokens (NFTs). Also, it lets you exchange and earn crypto. It is a multi-currency, mobile-only crypto wallet compatible with Android and iOS. Moreover, this crypto wallet supports major blockchains with the Ethereum ecosystem. Features
- Trust Wallet supports more than 53 blockchains and over 1 million assets.
- It enables you to buy, swap, trade, and hold multiple cryptocurrencies.
- You can earn interest for the crypto that you store in your wallet.
- Added support for Binance Smart Chain.
- Supports buying bitcoins with a credit card or debit card.
- Supports EIP-1559 for Polygon (MATIC) and xDai (xDAI) transactions.
Kraken is a software crypto wallet for everyone, from beginners to individuals wishing to take their crypto investments to the next level. It is a mobile-only crypto wallet compatible with Android and iOS. Even if you are new to the crypto world, Kraken’s resource center will help you understand the basics of crypto trading. Features
- Kraken enables you to buy more than 65 crypto assets.
- The high-liquidity exchange of Kraken makes sure that your trade orders are executed quickly.
- Provides one-on-one support for advanced clients with the Kraken Account Management service.
- Provides accurate, aggregated pricing for cryptocurrencies with real-time and reference rate indices.
ZenGo is a secure, non-custodial, and keyless software crypto wallet. Using this wallet, you do not require any password, private keys, or seed phrases. You can easily control your funds with facial biometrics. Features
- With ZenGo, you can buy, earn, and trade Bitcoin, Ethereum, and other 70+ crypto assets.
- You can lend and stake your crypto and earn interest.
- Gain 8% (APY) Annual Percentage Yield on USD Coin, Tether, Dia, and TrueUSD, and 4% APY on Bitcoin, ChainLink Token, and Ethereum.
- The Chill Storage feature of ZenGo provides an e-wallet service. It ensures that your funds are accessible even if the company stops operating.
- You can buy Terra coins for 0% processing fees. Also, it is possible to purchase Bitcoin with MasterCard, Visa, and Apple Pay.
- You can choose from three network modes, namely economy, regular, and fast.
This brings us to the end of the best crypto wallets. Make sure your crypto wallet provider supports a wide range of crypto assets, provides a high level of security, and lets you trade crypto seamlessly. Our list of the best crypto wallets consists of both hardware and software crypto wallets. Ledger Nano X and Trezor are the two hardware crypto wallets, while all others are software crypto wallets. We hope this article has helped you gain better insights into crypto wallets. Also, let us know which crypto wallet have you chosen by posting a comment below.
1. What are crypto tokens?
A crypto token is a special virtual cryptocurrency token; it refers to how cryptocurrencies are denominated. Crypto tokens are created, distributed, sold, and circulated using the standard initial coin offering (ICO) process. Moreover, they are tradable and fungible assets and reside on their own blockchains.
2. What are non-fungible tokens (NFTs)?
A non-fungible token is a non-interchangeable unit of data stored on a blockchain . They are cryptographic tokens that exist on the blockchain and can’t be replicated. They represent real-world artifacts, like in-game stuff, art, video, or music.
3. How do crypto wallets work?
Crypto wallets have public and private keys that crypto users need to interact with their digital assets stored on blockchain networks. A public key is a wallet address to which you receive funds, while a private key is a key you use to access your funds or make transactions.
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