The Best Crypto Wallets
Choosing a crypto wallet can become an unnecessarily tedious task, but it really doesn’t have to be. At their core, crypto wallets are just ways for you to store and protect vital information that contains your digital assets.
So why exactly do people get frustrated when trying to choose the best ones? Well, the first and perhaps most crucial culprit is versatility. And by this means, we’re talking about the vast array of options available.
Crypto Wallet Options
Because there are so many wallets to choose from – all falling into different categories – it often becomes tiring to pick just one. If you’ve ever found yourself in these shoes, the first thing you have to know is that it really doesn’t have to be that stressful – so long as you understand what to look out for.
For this reason, we’re going to take a look below at some basic concepts you need to understand to make your wallet decision easier, and touch upon a few tips that’ll put you in a position to make a decision you’ll be proud of.
Custodial vs Non-Custodial Wallets
First thing you have to decide when choosing a wallet is whether you want a custodial wallet or a non-custodial one. In simple terms, a custodial wallet is one where the private keys are controlled by a centralized party, while a non-custodial wallet is one where you’re in complete control of your own private keys.
Centralized exchanges usually provide opportunities for users to own custodial wallets on their platforms. The advantages here is that you have easy access to the exchange and you don’t have to worry about securing your private keys.
Of course, the disadvantage is that if the exchange happens to get hacked or compromised, you’re bound to lose all your funds. For non-custodial wallets, however, your security is in your hands.
Non-Custodial Wallets: Cold vs Hot
Thanks to the collapse of popular centralized exchanges, many have been forced to consider owning non-custodial wallets, and as such, our article will be more focused on this kind of crypto wallets.
For non-custodial wallets, there are usually two alternatives – hot wallets and cold wallets. While hot wallets are stored on devices connected to the internet, cold wallets are usually stored on hardware disconnected from the internet, thereby making them safer.
Also, while hot wallets are often free to use and offer in-app trading options, cold wallets tend to cost money because users have to pay for their own hardware.
Choosing the Best Wallets
In this article, we’ll be focusing on the best hot wallets. Generally, there are a few factors you want to be on the lookout for when selecting the perfect hot wallets for you. These include:
- Range – how many digital assets the wallet supports.
- Ease – how easy it is to transfer your assets offline into a cold wallet.
- Add-ons – how many additional features such as in-app staking and reward programs the wallet offers.
To that end, below is a list of some of the best crypto hot wallets that excel in the majority of these criteria.
Top 5 Crypto Hot Wallets
If you ever want to consider going with a non-custodial hot wallet, our picks below should be on top of your list.
Crypto.com Defi Wallet
Crypto.com’ wallet is currently one of the best alternatives you’ll most likely come across anywhere. Optimized for decentralized finance, this wallet offers a ton of exciting features while also being very sound in terms of security.
It supports more than 1000 asset storage and can be easily converted to cold storage via desktop.
Just like our number one option above, Guarda boasts of multiple functionalities and security. It is free to use and can be accessed directly through a browser, as a mobile app, and as a browser extension.
Documentation shows that the wallet supports more than 450,000 assets. Users can also convert their assets into cold wallet storage via integration with Ledger, a popular cold wallet.
A free-to-use wallet that comes with a lot of interesting features, Exodus wallets allow users to store their assets securely while also buying and trading cryptocurrency directly.
Cold storage conversion is easy as it can be integrated with Trezor wallet. Exodus supports more than 250 assets.
Backed by the popular crypto exchange, Coinbase, Coinbase hot wallet is worth mentioning on our list thanks to its free applications and integration with the company’s interface.
Basically, it allows you some of the luxuries of custodial wallets without the security risk.
Coinbase wallet supports more than a thousand assets.
Metamask rounds up our list of the best hot wallets thanks to its popularity, versatility, and simplicity. It supports more than 700,000 assets and is especially popular among Ethereum users.
What is a crypto wallet?
A crypto wallet is a digital wallet that stores your cryptocurrencies. It allows you to send and receive cryptocurrencies, view your transaction history, and manage your balances.
Why do I need a crypto wallet?
If you want to own and use cryptocurrencies, you need a crypto wallet to store them. Cryptocurrencies are not physical coins or bills, but digital assets that exist on a blockchain. A crypto wallet allows you to access and manage your cryptocurrencies securely.
What are the best crypto wallets?
The best crypto wallets are those that offer a high level of security, ease of use, and compatibility with the cryptocurrencies you want to store. Some popular crypto wallets include Ledger Nano X, Trezor Model T, Exodus, Coinbase Wallet, and MyEtherWallet.
How do I choose a crypto wallet?
When choosing a crypto wallet, consider the level of security it offers, its compatibility with the cryptocurrencies you want to store, its ease of use, and its reputation in the crypto community. You should also consider whether you want a hardware wallet, a software wallet, or a mobile wallet.
What is a hardware wallet?
A hardware wallet is a physical device that stores your private keys and cryptocurrency offline, providing a high level of security. Examples of hardware wallets include Ledger and Trezor.