Choosing the best cryptocurrency wallet requires some careful thought around your needs involving storage, buying, selling and trade of cryptocurrencies. So essentially, you’re picking the safest crypto wallet which also allows easier and straightforward crypto transactions. While some cryptocurrency wallets support just a single cryptocurrency, many others allow users to hold multiple cryptocurrencies, including Bitcoin, Bitcoin Cash, Ethereum, and Litecoin etc. The owner of the cryptocurrencies is the only person who can access the funds through passwords and other security measures. Most cryptocurrency wallets can be accessed from smartphones and computers.
Cryptocurrency wallets do not actually hold any crypto; instead, the wallets store your public and private keys. These are simply digital codes associated with a decentralized blockchain, akin to a bank account number and an ATM PIN. These keys prove ownership of and facilitate all the transactions with the cryptocurrency that you own.
Here’s a rundown on various types of cryptocurrency wallets available out there:
Web or Online wallets are mostly offered and configured by cryptocurrency exchanges as part of the trading account setup. You only require an email address and a password to create an account and it's accessible from any computer with an Internet connection. However, being online these are also lucrative targets for hackers.
✅ Easy to use ✅ Convenient ✅ Quick access from any computer ✅ Usually free to use ❌ Security risks
Desktop or Software wallets are downloaded and installed on your computer. These are easy to set up and maintain available for Windows, Linux and Mac. Many cryptocurrencies offer a desktop wallet specifically designed for its coin. Desktop wallets provide a relatively high level of security, since they’re only accessible from the machine on which they’re installed.
✅ Easy to use ✅ Secure ✅ Plenty of choices ✅ Free to download ❌ Risk of computer viruses and malware ❌ Inconvenient to manage your crypto on the go
Hardware wallets are similar to USB drives in appearance, and offer the highest level of security. You’ll need to connect a hardware wallet to a computer in order to access your crypto assets. When the wallet is not connected to a computer, it’s completely isolated and virtually unhackable.
✅ Most secure option ✅ Offline storage ✅ Easy to set up and use ❌ Most expensive option ❌ Inconvenient for quick access to your funds
Mobile wallets are mobile versions of desktop wallets, run as an app on your smartphone. Mobile wallets are often easier to use than desktop wallets being able to scan other wallet addresses for faster transactions.
✅ Easy to use ✅ Convenient ✅ Many options ✅ Free to download ❌ Losing your phone could cause problems ❌ Risk of hacking
Paper wallets are simply print outs of your public and private keys and use that piece of paper as a wallet. To transfer money from a paper wallet, the printed keys have to be manually entered or scanned into the payment software or a software wallet.
✅ Secure ✅ Free from risk of malware or hackers ✅ Free to set up ❌ Can be damaged, lost or stolen ❌ Confusing for beginners
Most types of crypto wallets are free. Hardware wallets however cost generally based on security and technology features being offered. In addition, for every type of wallet, users are required to pay a network fee for using a blockchain for a transaction, known as the ‘gas fee’.
Consider how you want to use your crypto. Say, if you are planning to buy and hold your investment for the long term, a hardware wallet is the safest crypto wallet for you. However, if you’re a daily trader, then a web wallet can be the best cryptocurrency wallet for you.
2-factor authentication, also known as 2FA, allows you to verify your identity when logging into the crypto wallet by sending a verification code to your mobile, which needs to be entered into a sign-in field before granting access.
Additionally, find out if your private keys are stored online or offline and if there’s been any reports of wallet hacking incidents in the past.
Your portfolio may have diverse cryptocurrencies and managing a separate wallet for every currency can be cumbersome. Therefore, you should select a wallet that supports multiple types of currency.
Especially when accessing mobile crypto wallet, then a QR code scanner is used to generate and scan a QR code for coin transfers.
The crypto wallets should provide an option for backup. So, in the case your laptop, pc, or phone device stops working, your keys are not lost.
So now that we’ve covered the basics of what the best cryptocurrency wallet and the safest crypto wallet should be like and how they work, let’s have a peek at the best options on the market!
MetaMask extension is a browser-based wallet which can be downloaded onto mobile devices. It is available on Chrome, Brave, and Firefox. Binance smart chain metamask connection enables making payments on any dApp on the blockchain. MetaMask is fully open source and its code is regularly vetted and improved by the community to ensure security and regular updates. MetaMask is easiest to use for beginners and it has a supportive community which promptly assists with questions.
As a downside, private keys in MetaMask are always online. This poses significant security risks and it wouldn’t be ideal to store large amounts of crypto indefinitely, though good for quick small transactions.
|Easy to use||Only supports ERC-20 tokens|
|Best way to transact with websites and web applications|
TrustWallet is a mobile-only bitcoin wallet that supports over 160 digital assets and allows users to stake certain cryptocurrencies to earn interest. TrustWallet was originally developed to only store ERC-20 tokens. However, it has since been improved to store other cryptocurrencies including Bitcoin, Litecoin, XRP, and Polkadot. Users can also purchase and trade cryptocurrencies through the native decentralized exchange integrated into the application via Trust Wallet Login.
|Supports a wide range of cryptocurrencies||Less secure than hardware wallets|
|Easy to use||Only available on mobile devices|
|Mobile wallets are convenient||Constantly carrying mobile around poses security risks|
Exodus is a software wallet for laptops, desktops, and now mobile devices that features easy-to-use and attractive user interface. It supports access to multiple applications, including an exchange that enables users to trade directly in their wallets. Exodus automatically generates graphs and charts based on investors’ portfolios to track and manage funds. There is also no need for KYC verification and the wallet even provides users with live chart prices and updates which allows them to monitor and trade market movements all under one easy-to-use platform.
|Supports a wide range of cryptocurrencies||No two-factor authentication|
|Integrates with hardware wallets||Limited cryptocurrency support (compared to hardware wallets)|
|High-quality and attractive user interface|
|No KYC verification required|
|Built-in applications, including an exchange|
|Ability to stake cryptocurrencies and earn interest directly within the platform|
|Ability to stake cryptocurrencies and earn interest directly within the platform|
The Jaxx Wallet , better known as the Jaxx Liberty Wallet, offers much more than a conventional Bitcoin or Ethereum wallet. The Jaxx Wallet is a cross-platform, multi-currency wallet that also makes crypto prices, crypto news and links to third-party services accessible - all in one simple and intuitive app.
The Jaxx Wallet is available for a variety of operating systems. In addition to Linux, Mac, Windows and a Google Chrome add-on, the app is also available for Android and iOS, so that users can conveniently access their digital currencies from home and on the go - the possibilities are more extensive than almost any other provider.
|A desktop and mobile wallet for almost all operating systems||No customer support over the phone or live chat|
|Over 80 cryptocurrencies are supported|
|High security standards|
|Beginner-friendly menu navigation|
No matter which wallet you use, it’s only safe if your private keys were generated offline, are stored securely, and remain a secret — under your full control. When trading or buying cryptocurrency, it’s best to only store cryptocurrency on exchanges or software wallets temporarily while in use. Long-term cryptocurrency holdings should be stored in dedicated crypto hardware wallets.
It depends on your needs, technology savviness and your financial activities. Beginners should consider software wallets, like Exodus as these are easy to use and secure for a small portfolio. Experienced users and those with a significant portfolio, should go in for hardware wallets that offer the best security and peace of mind.
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