Crypto wallets are used to store, buy and sell digital currency. Wallets might be hardware, software, an app, or the cloud. Many crypto users prefer non-custodial wallets since they allow the management of their own private data. With a non-custodial wallet, you don’t have to trust a third party with your private keys.
The bankruptcy of crypto companies FTX and BlockFi has many consumers wondering if their funds are lost forever. Non-custodial wallets aren’t risk-free; they’re less forgiving of mistakes like lost passwords. and thus, knowing the wallet’s password is crucial.
What are Crypto Wallets & Why Do You Need One?
A cryptocurrency wallet is a software/hardware device that allows you to store your cryptocurrency. Cryptocurrencies do not exist in any physical form. Technically, cryptocurrency can only be stored in coin wallets. This crypto savings plan is simple to use yet is secure and quick.
Before We Dive In, You Need to Understand This About Crypto Wallets
People are afraid to invest in cryptocurrencies because of security threats, especially since it’s the investor’s obligation to protect the investment. Unlike FDIC-insured bank accounts, Crypto is unregulated by most governments.
It’s tough to recover lost or stolen cryptocurrency, therefore you must secure it. While there is a risk with online transactions, many of the same habits will keep your Bitcoin safe. Crypto wallet security is similar to online banking security. You may do a few things to protect your cryptocurrency investment. Below are various ways of keeping your cryptocurrency safe in wallets.
First, store your crypto wallet in a “cold” (hardware) wallet.
Only keep what you need online for transactions and store the rest offline. A USB-sized cold crypto wallet carries a private key to access your funds. Losing your private key means losing your investment.
Buy/sell on a trustworthy exchange
Some exchanges are safer than others. Do your investigation to find out which cryptocurrency exchanges have been hacked. If an exchange is hacked, it reveals weak security methods or vulnerabilities, putting your money at danger.
Use a password manager to manage your passwords.
In today’s world, it’s likely that your passwords may be compromised. Setting a complex password, storing it carefully, and changing it often will protect it. Don’t repeat passwords for your crypto wallet or other sensitive sites.
Multiple Factor Authenticator (MFA)
MFA protects your account with a password, security token, and/or biometrics. MFA is “knowing and having”: you know your password and have a token, push notification, or biometrics.
The 10 Best Crypto Wallets by Function
1. Best Crypto Wallet for beginners: Coinbase Wallet
Coinbase Wallet was chosen as the best crypto wallet for beginners because it is an easy-to-use and extremely secure wallet supported by a well-known exchange. Coinbase Wallet is a fantastic wallet for those who are new to cryptocurrency. The software connects to the majority of major bank accounts, and the user experience was meant to be straightforward and simple to use, with a simple three-tab layout and easily recognized functionality.
2. Best mobile wallet: Trust Wallet
Trust Wallet was chosen as the best crypto wallet for mobile because it has the cleanest, scannable user interface, built-in support for dApps and NFTs, and the most supported assets on our list.
Trust Wallet is a popular mobile online crypto wallet as well as the official mobile app of Binance, one of the world’s largest cryptocurrency exchanges. Despite its connections to Binance, the wallet is non-custodial, which means it does not hold your private keys and you are responsible for keeping them safe. It supports over 40 blockchains, which allows it to hold a diverse range of digital assets — over 4.5 million coins and tokens, the most on our list.
3. Best Hardware Cryptocurrency Wallet: Ledger Nano S Plus
Because of its vast number of supported assets, rigorous security framework, and trading capabilities via the integrated Ledger Live app, we chose the Ledger Nano S Plus as the best crypto hardware wallet.
Ledger is a well-known brand in the cryptocurrency industry, offering hardware wallets that are popular among crypto enthusiasts. Its products are distinguished by the use of a Secure Element component — a sort of chip often used on passports, credit cards, and payment systems — to add an extra degree of protection.
4. Best Ethereum Wallet: MetaMask
We selected MetaMask as the best Ethereum crypto wallet because its user-friendly design allows quick and easy access to hundreds of currencies and decentralized apps on the Ethereum network.
With over 30 million monthly active users, MetaMask is one of the most popular Ethereum wallets. This could be owing to its simplicity and accessibility: The wallet is appealing and simple to use for new investors who want to store and send Ethereum-compatible currency and connect with decentralized apps (dApps).
5. Most Secure Non-Custodial Wallet: ZenGo
By addressing the private key vulnerability, ZenGo is the most secure non-custodial wallet in Web3, making it the simplest yet most safe wallet to invest in bitcoin. Create an account in under 60 seconds and become the genuine owner of your cryptocurrency.
ZenGo is the first Web3 wallet to use encrypted biometrics to protect its private keys. While this technology has been utilized by billion-dollar institutions for years, ZenGo is the first crypto wallet to include these advanced security features. Because of private key mismanagement, millions of dollars in NFTs have been lost or stolen. ZenGo’s wallet eliminates the main vulnerability that leads to NFT theft, which is a hacker’s worst nightmare.
6. Best Wallet with Multiple Features: Binance
Binance is a major cryptocurrency exchange platform that offers a wide range of crypto trading services. Changpeg Zhao, a software developer, created Binance in 2017.
This crypto wallet includes cutting-edge crypto features such as auto-invest, staking, Defi, Futures and Options, and peer-to-peer trading. Their typical 24-hour trading volume is $100 billion, demonstrating customers’ trust in their system. Their native coin, BNB, is one of the top five cryptos in the world. The Binance Chain is the Blockchain used by this cryptocurrency exchange.
7. Best Non-Custodial DeFi Wallet: Crypto.com
Crypto.com, one of the fastest-growing crypto exchange platforms, offers over 250 coins. It allows users to sell, hold, purchase, and exchange a wide variety of coins while charging modest trading costs. It also provides decentralized exchange, bitcoin credit cards, an NFT marketplace, and a standalone crypto wallet.
8. The Best Wallet for High Deposit and Withdrawal Limits: Kraken
Kraken is a cryptocurrency exchange platform where you can sell, purchase, invest, exchange, create limit orders, and do a variety of other things with cryptocurrency assets like Bitcoin and Ethereum. It is one of the first Bitcoin exchanges. It offers over 120 different coins in over 150 different countries, making it one of the largest crypto marketplaces. Kraken also offers spot trading and cryptocurrency futures contracts.
9. Best Wallet for Trading Bot: Pionex
Pionex is a cryptocurrency exchange with trading bots built in. You can use 16 trading bots for no extra charge. It enables you to automate your investment approach in order to avoid continual monitoring of the cryptocurrency market. When compared to the majority of the main exchanges, it has the lowest trading charge.
10. Best Wallet for Desktop: Exodus
Exodus was chosen as the best crypto wallet for desktops due to the speed of its transactions, ease of use, and diverse client capabilities.
Exodus is one of the most graphically stunning and user-friendly wallets available. Exodus was originally a desktop-only wallet, but it now offers iOS and Android apps and is compatible with Trezor wallets, a prominent hardware wallet brand. Nonetheless, the desktop wallet application, which is available for Windows, Linux, and Mac, remains the wallet’s main product and is updated every two weeks.
Here’s How to Choose the Best Crypto Wallet for You
Security is one of the most important considerations when selecting the most secure crypto wallet. Both hardware and software wallets provide great security, and you may have additional points to consider while deciding on the best solution. The following ways are how you can determine which wallet is the best for you:
Step 1: Cost Effectiveness
The vast majority of cryptocurrency wallets are available at no cost; however, certain wallets, such as hardware wallets, do demand a modest upfront expenditure.
Step 2: Security
When selecting a wallet, the safety of your money should be your number one concern because it is of the utmost significance and because it should be at the top of your list of priorities.
It is essential to do a significant amount of study on the aspects of the wallet that pertain to its safety. Investing in a hardware wallet is the best course of action to take if you want to be absolutely certain that you have done everything in your power to protect the safety of your money. Here are some of the most secure crypto wallet practices:
Step 3: Mobility
Wallets that are accessible online or through a web browser are your best ally when it comes to portability and ease. You are able to access them whenever and wherever you choose, independent of the device you are using.
Step 4: User-friendliness
The ease of use is one of the most important criteria to consider when selecting a cryptocurrency wallet. It is possible that this factor will determine whether or not utilizing the wallet will be a pleasurable experience for you.
Wallets for mobile devices and desktop computers are typically relatively simple to use, and their correct configuration does not need a lot of effort on the user’s part.
Step 5: Convenience (Supports Multiple Currencies)
It is imperative that you select a wallet that supports multiple cryptocurrencies if you intend to accumulate more than one cryptocurrency in the future. In most cases, it is suggested that you choose with a well-known wallet that has a lot of customer ratings and provides quality assistance.
Before You Choose a Crypto Wallet, Remember
You should now be confident enough to select your first cryptocurrency wallet app, or possibly your next one. The top digital wallet apps are constantly evolving, and support for new cryptos is expanding.
There is no single best cryptocurrency wallet, and many investors utilize many wallets for various objectives. Regardless of how you use cryptocurrency, having a hardware wallet is a good idea because it may serve as your digital asset vault for storing the majority of your assets.