Due to the decentralized and unique nature of digital coins compared to traditional financial assets, it is crucial that crypto holders take the safety of their funds into their own hands.
While conventional products involve protection from several laws, regulations, and insurances, that is not the case for cryptocurrencies as they are a relatively new class, free from the control of any central authority. Consequently, digital investors must ensure the security of their funds via multiple channels, crypto wallets being one of them.
In this article, we have discussed what exactly crypto wallets are, their types, and the best crypto wallets you should consider for storing digital assets.
What is a crypto wallet?
A crypto wallet is a secure storage system and digital wallet for managing and holding your crypto funds. While these wallets exist in many forms, their main function is to store crypto public and private keys. Most wallets also support crypto transactions, allowing the users to buy and sell assets or associate with several decentralized apps and NFTs.
As previously mentioned, crypto wallets do not practically hold the crypto “coins” like regular money wallets. Instead, they store the “private keys” necessary for accessing your digital coins while they are present on the network’s blockchain.
Private keys are basically a string of random numbers and characters that prove the ownership of assets and authorize digital transactions. Hence, a stolen private key would essentially mean that your crypto funds have been stolen. Best crypto wallets guarantee the safety of these keys by granting you full control of them, away from the grasp of hackers and scammers.
Basic types of crypto wallets
There are two main types of crypto wallets that cater to the needs of different investors or traders.
- Hot wallets: A hot wallet is a software-based wallet that is connected to the internet. These wallets are mostly free to use and often support additional services like trading and staking. Overall, they are relatively convenient to use but more prone to hacking attacks due to their “online” mode.
- Cold wallets: A cold wallet is an offline wallet with no connection to the internet, primarily existing in hardware form. Cold wallets are mostly deemed suitable for buy-and-hold investors as they do not support active trading like exchange-linked hot wallets. They are relatively less user-friendly and cost money to be bought but are significantly more secure than online storage systems.
Besides these two primary types, wallets are further divided into custodial and non-custodial types. The custodial wallets are controlled by a third-party while non-custodial wallets allocate the users full control of their private keys and funds.
5 best crypto wallets
Here is a list of the five best crypto wallets to help you decide on one according to your suitability:
1. Exodus – Best crypto wallet for active investors
Supported assets: 230+
Storage type: Hot, also compatible with Trezor hardware (cold storage)
Exodus is a non-custodial crypto and Bitcoin wallet supporting more than 225 cryptocurrencies. The wallet is available in three main versions: desktop, mobile app, and multichain Web3 wallet, where clients can efficiently manage and secure their assets.
Note that Exodus also supports the in-wallet exchange and sending & receiving of cryptocurrencies amid a user-friendly and well-designed interface. The offered transaction speed is super-fast as the wallet runs on SPV and does not download whole blockchains. Further, it integrates a hardware wallet (Trezor) to enact a next-level security structure.
2. Trust Wallet –Best crypto wallet for mobile
Supported assets: 4.5 million+ assets, 1 million+ cryptocurrencies.
Storage type: Hot
Trust Wallet is a non-custodial digital mobile wallet of the popular cryptocurrency exchange, Binance. With Trust Wallet, users can buy crypto with a card, swap or exchange coins, earn staking rewards, and track charts and pricing quite easily within the app. The wallet truly stands out with its vast range of cryptocurrency offerings and 65 supported blockchains.
Moreover, Trust Wallet also supports the storage of Ethereum and BNB smartchain NFTs and a dApp browser that can be used to interact with any decentralized application. The only major flaw of Trust Wallet is that it does not have a browser extension or a desktop version.
3. Guarda – Best crypto wallet for both beginners and experienced investors
Supported assets: 400k+ coins
Storage type: Hot, can be connected with Ledger Nano S (cold storage)
Guarda is a leading cryptocurrency wallet incorporating more than 400k assets amid a secure ecosystem. Besides crypto storage, Guarda also facilitates buying of over 50 crypto tokens with cards, staking with up to 40% annual yields, crypto exchange, and crypto loans. Note that the wallet is available in various versions, including Web, Desktop, and Mobile, that can be convenient for all types of crypto investors.
Guarda also offers an exclusive prepaid Visa card linked with your crypto wallet that can be used like a regular bank card anywhere. Moreover, Guarda can be linked with the Ledger hardware wallet to manage and store some cryptos like BNB, BTC, ETH, LTC, and CLO.
4. Trezor Model T – Best crypto wallet for ultimate security
Supported assets: 1200+ coins
Storage type: Cold
Trezor Model T is one of the best physical cryptocurrency wallets with a bright-colored LCD display and advanced CE and RoHS certifications. While the wallet is not cheap, costing around 300 EUR, it is a suitable choice if you have a security-focused mindset. With Trezor Model T, you recover your entire wallet using a 12-word recovery seed if you lose your device. It is also the first hardware wallet in the world to implement Shamir Backup (SLIP39) for even greater security.
Moreover, Trezor T is notably easy to handle and set up, integrates a user-friendly design, and has robust hardware.
5. Ledger Nano X –Cost-effective crypto wallet for offline storage
Supported assets: 5500+ coins
Storage type: Cold
Ledger Nano X is another popular crypto hardware wallet with Bluetooth compatibility and a sleek design. Nano X offers a great way to get started with cold wallets as it is more budget-friendly than the Trezor Model T, with a price tag of $149.
With this physical wallet, you can store and grow your crypto, exchange coins, & manage NFTs in a highly-secure environment. You also can easily handle and increase all assets by connecting your Ledger Nano X with the Ledger Live app.
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