Crypto Wallets are an essential tool for buying, trading, and selling Cryptocurrencies. Traders need them to store Cryptocurrency securely and to protect or validate transaction information. Be it hardware or software, also called hot and cold Crypto storage, custom Crypto wallets offer traders dedicated solutions compared to those from Cryptocurrency exchanges.
It is more important than ever to have a reliable and secure way to store your digital belongings as cryptocurrency usage rises. This is where cryptocurrency wallets can be useful. Crypto wallets, also known as digital wallets, allow you to safely store and manage your money. The three main types of cryptocurrency wallets are hardware, software, and paper.
Some people searching for Crypto Wallets are looking for a Crypto exchange, which is why we’re going to include Public.com in our comparison table. Perse, if you’re more interested in learning where to buy and sell Cryptocurrency, as well as, the pros and cons of centralized vs decentralized exchanges, you might consider reading about the Best Crypto Exchanges in detail.
With that in mind, note that in this guide, we’ll choose Coinbase Wallet as the best Crypto Wallet to make our reference for beginners. Obviously, this is because it’s an intuitive and highly secure wallet backed by a well-known exchange. In addition, we will also go into further detail about each of these pocket kinds. Plus a few chops to help you get started…
Why Coinbase Wallet Outshines Other Crypto Wallets
First of all, Coinbase Wallet is an excellent wallet for beginners with little to no experience with Crypto. One thing is for sure, the application connects to most major bank accounts. Not forgetting, that the user interface was specifically designed to be intuitive and easy to navigate. In particular, with a simple three-tab layout and clearly identifiable functions.
It’s important to make a distinction between the Coinbase exchange and the Coinbase wallet. The Coinbase exchange is one of the oldest and most well-known crypto trading platforms in the US. Holding your digital assets on the exchange’s web wallet makes it easier to trade, but leaves your coins exposed to more dangerous cybersecurity threats.
The Coinbase wallet may be used without opening an account with the exchange and it’s non-custodial, meaning the private key is stored in your device — not in Coinbase’s servers. This means you don’t need to worry about your currencies being locked for any reason or exposed to a cyberattack on the website. Need help choosing the right device for your needs?
More so, to secure, manage, and swap Cryptocurrency on desktop, mobile, and hardware wallets. You can discover the characteristics, specific features, and uses associated with the topmost products offered by Ledger in the marketplace. And then, select the one that best meets your expectations. The good news is that setting up either Crypto wallet is totally free!
Choosing The Right Crypto Wallets Type Plus Tips To Get Started
In simple terms, a Crypto Wallet is a place where you can securely keep your crypto. Today, there are many different types of Crypto Wallets, but the most popular ones have hosted wallets, non-custodial wallets, and hardware wallets. Overall, which one is right for you depends on what you want to do with your crypto and what kind of safety net you want to have.
Along with Ledger, Trezor is one of the two most well-known brands of hardware wallets in the world of Crypto trading. Not to mention, this is a unique Crypto coin that was developed by SatoshiLabs. Technically, Trezor was the first hardware Crypto Wallet, and both of its current models feature excellent security measures and support many assets.
Unfortunately, Trezor didn’t make our topmost list (down below) since the models offered by Ledger outmatched the former’s feature options — regarding its build and the number of supported currencies. But, we still highly recommend Trezor for anyone who uses the Exodus wallet as their main crypto wallet due to its native compatibility with Trezor devices.
The topmost wallets include:
- Coinbase Wallet – Best for Beginners
- MetaMask – Best for Ethereum
- TrustWallet – Best for Mobile
- Ledger Nano S Plus – Best Hardware Crypto Wallet
- Electrum – Best Desktop Bitcoin Wallet
- BlueWallet – Best Mobile Bitcoin Wallet
- Exodus – Best for Desktop
- Crypto.com – Best deFi wallet
As we mentioned, Coinbase Wallet can store popular coins, such as Bitcoin, Litecoin, Dogecoin, and Ripple, as well as all ERC-20 tokens and tokens on EVM-compatible blockchains. Eventually, which amounts to more than 5,500 supported digital assets — one of the biggest numbers on our list. So, before we can proceed, it’s worth mentioning some of its key competitors.
On that note, there are various Crypto Wallets that help power up the Online Marketplace when trading Cryptocurrencies or any other digitally-related coins. Below are some of the most common ones that you should know about. It’s good that you learn about each one of them and then bear in mind how to know what’s right for you to avoid losing your Crypto assets.
Choosing Between Hot Wallets Vs Cold Wallets
Non-Custodial Wallets are the storage option preferred by many Crypto enthusiasts because they place you in control of your own private data. Unlike when you keep assets on a Cryptocurrency Exchange, with a non-custodial wallet, you don’t have to trust a third party to secure your private keys. Let’s consider the collapse of Crypto Platforms like FTX and BlockFi.
Essentially, which have left customers wondering whether their funds are lost forever, and show some of the potential pitfalls of leaving your crypto in someone else’s hands. That’s not to say Non-Custodial Wallets are without risk. They are less forgiving of errors such as lost passwords, and you have to trust that your wallet’s hardware and software will work as intended.
If you’re going to use a Non-Custodial Wallet, the first question is whether you want a Hot Wallet or a Cold Wallet. These terms may sound unfamiliar, but the main difference between them is whether it is connected to the internet.
Here is what you should know:
- On one side, a Hot Wallet is on a device that is connected to the internet. These are often free to use, offering add-on services such as trading or staking in exchange for fees. A hot wallet makes it relatively easy to carry out transactions using crypto, but it may be more vulnerable to hackers who could theoretically reach your crypto over the internet.
- On the other side, a Cold Wallet is on a device that is disconnected from the Internet. These tend to cost money because you have to buy a piece of actual hardware that’s set up to store your crypto. Because they are not connected to the internet, they may be harder for other users to reach. But if you lose the actual device, recovery could be very difficult.
Notably, moving assets between wallets regularly can become costly — because of transaction fees imposed by underlying Blockchain Technology service networks. For these reasons, some Crypto users have multiple types of wallets:— some for long-term safekeeping and others for active trading. This paves the way to the topmost best wallet options.
1. Hosted Wallets
This is the most popular and easy-to-set-up Crypto Wallet. When you buy crypto using an app like Coinbase, your Crypto is automatically held in a hosted wallet. It’s called hosted because a third party stores Crypto for you, similar to how a bank keeps your money in a checking or savings account. You’ll hear of people “losing their keys” or “losing their USB wallet.”
But, with a Hosted Wallet, you don’t have to worry about any of that. The main benefit of keeping your Crypto in a Hosted Wallet is if you forget your password, you won’t lose your Crypto. A drawback to a Hosted Wallet is you can’t access everything Crypto has to offer. However, that may change as hosted wallets start to support more features.
How to set up a hosted wallet:
- Choose a platform you trust. Your main considerations should be security, ease of use, and compliance with government and financial regulations.
- Create your account. Enter your personal info and choose a secure password. It’s also recommended to use 2-step verification (also called 2FA) for an extra layer of security.
If you want to buy or transfer Crypto, most Crypto Platforms and exchanges allow you to buy crypto using a bank account or credit card. If you already own Crypto, you can also transfer it to your new hosted wallet for safekeeping.
2. Self-Custody Wallets
A self-custody wallet, like Coinbase Wallet, puts you in complete control of your crypto. Non-custodial wallets don’t rely on a third party — or a “custodian” — to keep your crypto safe. While they provide the software necessary to store your Crypto, the responsibility of remembering and safeguarding your password falls entirely on you.
If you lose or forget your password — often referred to as a “private key” or “seed phrase” — there’s no way to access your Crypto. And if someone else discovers your private key, they’ll get full access to your assets. Is there a non-custodial wallet? In addition to being in full control of the security of your Crypto, you can also access more advanced Crypto activities.
Like yield farming, staking, lending, borrowing, and more. But, if all you want to do is buy, sell, send, and receive Crypto, a Hosted Wallet is the easiest solution.
How to set up a non-custodial wallet:
- Download a wallet-based application tool. Popular options include Coinbase Wallet
- Create your account. Unlike a hosted wallet, you don’t need to share any personal info to create a non-custodial wallet. Not even an email address.
- Be sure to write down your private key. It’s presented as a random 12-word phrase. Keep it in a secure location. If you lose or forget this 12-word phrase you won’t be able to access your crypto.
- Transfer Crypto to your wallet. It’s not always possible to buy Crypto using traditional currencies (like US dollars or Euros) with a non-custodial wallet, so you’ll need to transfer crypto into your non-custodial wallet from elsewhere.
If you’re a Coinbase customer, you have your choice of a hosted wallet or a self-custody wallet. The Coinbase app, where you buy and sell crypto, is a hosted wallet. You can also download the standalone Coinbase Wallet App to take advantage of the benefits of a non-custodial wallet. To buy Crypto with traditional Currency as well as participate in advanced Crypto tasks.
3. Hardware Wallets
To enumerate, a Hardware Wallet is a physical device, about the size of a thumb drive, that stores the private keys to your Crypto offline. Most people don’t use Hardware Wallets because of their increased complexity and cost. But, they do have some benefits — for example, they can keep your Crypto secure even if your computer is hacked.
However, this advanced security makes them inconvenient to use compared to a software wallet and they can cost upwards of $100 to buy. In most cases, Hardware Wallets allow you to retain your money offline. Because they are not online, these accounts are generally seen to be the safest option because they are less vulnerable to hacker efforts.
With Hardware Wallets, which are common in the form of USB sticks, a PIN code is normally required to access your digital assets. Among the popular versions are the Trezor, Ledger, and KeepKey electronic wallets. These devices provide additional security features including two-factor authentication, backup and recovery options, and several Cryptos compatibility.
How to set up a hardware wallet:
- Buy the hardware. The two most well-known brands are Ledger and Trezor.
- Install the software. Each brand has its own software that’s needed to set up your wallet. Download the software from the official company website and follow the instructions to create your wallet.
- Transfer crypto to your wallet. Similar to a non-custodial wallet, a hardware wallet typically doesn’t allow you to buy crypto using traditional currencies (like US dollars or Euros), so you’ll need to transfer crypto to your wallet.
Hardware Wallets offer a high level of safety, but they can be expensive and may not be as useful as other wallet types. In addition, if you lose your hardware wallet or forget your PIN code, you run the danger of losing access to your digital assets.
4. Software Wallets
Software wallets are Digital Wallets that are downloaded to your computer or mobile device. To conduct transactions and store your Cryptocurrencies in these wallets, you may use the internet connection on your smartphone. Software Wallets are typically very convenient and cost nothing to use. Software wallets are available in a range of formats.
Including but not limited to desktop, mobile, and online wallets. Desktop wallets installed on your PC offer a high level of security because they are not online. Mobile wallets, on the other hand, are installed on your mobile device and provide you immediate access to and control over your digital assets while you’re out and about.
You may access your digital assets from any location with an internet connection thanks to web-based online wallets. Other well-known software wallet examples include Exodus, Electrum, MyEtherWallet, and Coinbase. These wallets provide a wide range of features. Including two-factor verification, compatibility for several currencies, and backup and restore options.
They are very practical, but because they are online, they could not as secure as Physical Wallets. In the event that your computer or mobile device is compromised or infected with malware, your digital valuables are also endangered.
5. Paper Wallets
You may store your digital possessions offline by using cold storage techniques like Paper Wallets. In a nutshell, Paper Wallets are a piece of paper that has your public address and private key. To access your digital assets, just input your private key and scan the QR code on the paper wallet. They offer a high level of security for they are offline and hence unhackable.
Since they can be created using free software, paper handbags are typically seen as the most affordable option. They could also be the least convenient option because you need to physically maintain the Paper Wallet in a secure area. In addition, if your paper wallet is misplaced, stolen, damaged, or destroyed, you might not be able to access your digital belongings.
So, we can clearly say that a Paper Wallet removes the element of internet accessibility. As such, there will be no avenue for hackers and other malicious parties to exploit your Crypto holdings. It’s almost impossible to steal assets stored in a paper wallet — unless a person gets hold of the physical paper you printed when creating the wallet.
Realistically, the use of Paper Wallets has decreased over the years because digitally secure devices like Hardware Wallets have replaced them. But, they still get some traction among Bitcoiners because of their security and affordability. Today, they are mostly used as Bitcoin ATM receipts among other related Crypto marketplace transactions.
Some Guidelines For Choosing And Securing Your Crypto Wallets
On one hand, when choosing the finest Bitcoin storage solution for your needs, there are several factors to note. Some of the most important factors are cost, usability, and security. Still, if security is your main priority, a Hardware Wallet could be the best option for you. Nevertheless, if you’re looking for a more practical option, a software wallet could be a better fit.
On the other hand, Paper Wallets can be a respectable choice for people who are on a small budget and do not frequently need access to their digital possessions. It’s critical to consider the distinctive qualities and capabilities of each wallet. Some wallets could handle a wider range of currencies than others, and some might include additional security features too.
Such as Two-Factor Authentication (2FA) or even a backup and recovery option. It’s important to thoroughly research each wallet option before selecting one to ensure that it meets your specific needs and preferences. If you’re interested in decentralized applications and the growing Web3 ecosystem, a Web3 Wallet can be a smart option for you to begin with.
For one thing, it allows you to interact securely with these applications straight from your wallet. All in all, whichever type of Cryptocurrency wallet you use, it’s essential to follow safe wallet best practices and advice that will help you.
How to keep your Bitcoin cash safe:
- Never divulge your secret passphrase to anybody.
- Use strong passwords and turn on two-factor authentication.
- Update your wallet and security software.
- You should keep your paper wallet in a secure location.
- Utilize only trusted platforms and wallets.
Always remember, that Bitcoin is an innovative payment network and a new kind of money. It uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network. Thus, it’s open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part.
Resource Reference: How To Mine Bitcoins For Free | Tools To Use & Trade With
Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment system. Be that as it may, to get started, all you’ll need to do is select a wallet to store your Bitcoin — so you can start transacting on the network. But, sometimes, even though it’s quite safe, you may still find yourself stuck between the cracks.
By following these best practices, you may help to ensure the security and protection of your digital belongings. Be that as it may, Exodus is the only Web3 Crypto Wallet that you’ll ever need. In particular, that’s if you want to connect to thousands of Web3 apps and dApps across multiple networks including Ethereum, Solana, BSC, and more… Swap Anytime Anywhere!
As a matter of fact, with Exodus, you can easily and quickly buy or sell Cryptocurrency from the comfort of your mobile crypto wallet app, in seconds — no signup required. Send and receive safely, using a QR code or address, knowing Exodus automatically checks all addresses for errors. This means, that you’ll have more control as long as you are ready to get started!
With Exodus, You Can…
- Keep Your Data Private: Exodus Mobile encrypts private keys and transaction data on your mobile device for your eyes only. Your data remains private — no registration or account setup is required.
- Desktop Sync: By using your 12-word backup phrase codes, you can control your wealth on your mobile device and sync to your desktop. Swap in seconds on your mobile device with transactions that mirror your desktop.
- One-Touch Easy: Now you can trade your Cryptocurrency in a few taps. Want to swap Bitcoin for something new? Exodus hides the complex details while assets are swapped behind the scenes in seconds.
- Friendly And Trusted: Exodus makes it fun and easy to learn and use cryptocurrencies. No “tech speak” or confusing steps. Control your wealth with ease — and have fun doing it!
- Buy Crypto On The Go: Purchase your favorite cryptocurrencies within Exodus mobile, anytime, anywhere. Pay with a credit/debit card, bank transfer, and Apple Pay. Once purchased, your Crypto is yours to own.
Equally important, given their 24/7 human support, they won’t leave you out on your own. Exodus provides an online help desk and 24/7 customer support to get your questions answered, in a simple, precise, and fast way. Moving on, besides Exodus, you can also heavily rely on other trading platforms like Electrum — a free software — as well as MyEtherWallet too.
NB: Until April 18th, Electrum has an offer for you to upgrade your Crypto journey with a hardware wallet and they’ll send it your way. Meaning, that if you want Crypto today, you can just go ahead and Get Ledger as soon as you are ready. Whilst, allowing you to secure your assets & wear them in style with the Ledger Nano X OnChain bundle. Sounds cool, right?
Cryptocurrency Wallets come in many forms, but at their core, they all provide a way to protect secret information that gives you control over your digital assets. This is not something you want to leave to chance; if you lose access to these “private keys,” you may never get your cryptocurrency back. The numerous types of Crypto Wallets that are available, yes.
But, their capabilities must be fully understood by everyone who intends to store and manage their digital assets safely. Regardless of whether you use hardware, software, or paper, you should stress security and follow best practices to keep your crypto assets secure. Choose the correct wallet and the right mindset so as to easily make money with Cryptocurrencies.
One way to choose a wallet is by looking at the website of the cryptocurrency you’re hoping to store. Notwithstanding, there are many single-purpose solutions built for individual Cryptocurrencies. However, if you’re planning to protect multiple kinds of Cryptocurrencies in one place, it’s a good idea to shop around and mind our tips as shown above.
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That’s it! You now have an idea of how Crypto Wallets work, how to trade safely, and where you can get started, right? Well, if you think that there is still something that we can add to this guide, kindly let us know in our comments section. You are also welcome to Contact Us at any time if you’ll need more help, or rather, Donate in order to support and motivate our work.