Did you know that crypto wallets can even be a better choice to store your funds than a bank savings account? They’re cryptographically protected, require a unique digital private key to access and manage funds, and are mostly available on your smartphone. Let’s find out how to choose a crypto wallet and what are the best of them you can start using today.
How to choose a crypto wallet
Digital wallets vary depending on the token you want to store, how you can access it, level of privacy, built-in services, etc. Here is a short guide on how to choose the one that suits your needs.
1. Decide how you want to access your crypto funds
If you trade every day or need quick access to your funds, the online or hot wallet will be helpful. It requires just an internet connection and your login credentials. Offline wallets or cold storages are mostly flashcards. You need some more effort to access it as you should connect a cold wallet to your computer or laptop. Still, experts find the cold type of storage more secure as internet hackers can not reach them.
2. Check the security level
When evaluating crypto wallets, pay attention to these points:
- Who is your wallet provider? Whether you are going to use the hot wallet or hard wallet, study who is the issuer. It should be a company with a good reputation and enhanced security measures.
- Does your wallet use multi-factor authentication? A reliable crypto wallet should require you to provide a one-time code (like 2FA code) or seed phrase in addition to your login credentials.
- If it’s a web wallet, check the certificates. It should be an HTTPS site with a lock symbol near the URL and with valid security certification.
- Is the interface easy to use? A robust crypto wallet should have understandable navigation and transparent fees.
3. Explore the supported crypto assets
Remember that every cryptocurrency runs on a separate network and has a unique wallet type. For instance, you can not send ETH to a Bitcoin wallet, because these two currencies run on different blockchains. So, when looking for a crypto wallet, make sure the list of supported assets contains those you’re going to use. And never use the same address for different assets.
4. Think about what services you’ll use
The minimum range of options you need — deposit and withdrawal transactions. Most of the crypto wallets also provide exchange options and allow you to buy and sell crypto right in the app.
Nowadays, you can find tons of DeFi wallets that support useful options like crypto staking, loans, trading. So you can implement your liquidity and yield farming strategies right away, and save funds on transactions fees.
Top cryptocurrency wallets
- If you prefer cold storage
Ledger is a pioneer among wallets providers and still, it’s one of the most popular. The wallet uses multiple security mechanisms, supports a range of digital assets, and offers trading and staking options.
Ledger is a hardware wallet meaning you need an additional device to access your funds. It’s a USB flashcard you can connect to your PC or laptop. However, the Nano X version has a bluetooth connection, so you can use it with your smartphone.
- If you’re in the mobile squad
Mycelium, another wallet with significant experience, is available on mobile devices only. People like Mycelium because of its straightforward interface and ability to use custom transaction fees depending on your preferences.
Currently, the wallet supports a wide range of ERC-20 tokens and major coins like Bitcoin and Ether. It also has an integrated exchange platform and supports hardware wallets. The last one allows keeping your BTC in a cold storage device, like Ledger wallet, while still working with Mycelium’s interface.
- For DeFi fans
Eidoo is a non-custodial wallet meaning you’re the only one who owns the private keys. The main advantage of this wallet is that it supports around 1000 cryptocurrencies, including ERC721 and ERC20 tokens and major coins like LTC, BTC, etc.
The platform has a built-in NFT manager and token exchange so you can participate in yield farming and earn by providing liquidity. Additionally, they have eidooCARD, a VISA-based debit card that you can use to pay for goods and services in different online or physical stores worldwide.
- If you want to stay incognito
Most crypto wallets, including those we’ve mentioned, are anonymous. But there’s something special about the Samourai wallet. They support TOR and VPN, AES-256 encryption, and offline funds transferring support. Moreover, when you use Samourai you get a different address for every new transaction. Thus, you need to be super attentive when making deposits to your wallet.
Samourai Wallet is free but available only for Android gadgets. Currently, it supports only Bitcoin transactions.
- All-in-one app
Some crypto platforms combine cold and hot wallets for storing their customer’s funds. This guarantees the security of storage and uninterrupted transactions flow. For instance, the CEX.IO ecosystem uses cold storage for clients’ funds and keeps the company funds on hot wallets. That means in the case of online hack and money theft, it is able to guarantee the safety of your holdings. Meanwhile, you can withdraw as many crypto or fiat as you need anytime. Noteworthy, it has never been hacked since its launch.
With their mobile wallet and crypto trading app you can get access to numerous crypto services like Instant Buy with your bank card, market and limit orders for trading over 200 markets, price alerts, order notifications, and so on. You can even compare the BTC market rate on different exchanges to spot arbitrage opportunities. Also, CEX.IO supports crypto staking. Once you have stake-able coins on your account, you start earning the passive rewards.
By the way, the company launches many crypto giveaways, contests, and other promo campaigns with money prizes. If you have their app on your smartphone you’ll receive notifications about available free cryptocurrency giveaways.
Choosing storage for your crypto funds is not just a matter of taste. Some prefer cold non-custodial wallets to get full control of their funds, others favor online wallets because of their convenience. a
When deciding which type of storage to use, cold or hot, many crypto users don’t pay attention to the recovery access process. If you obtain a cold wallet, you’re the only one who has private keys and knows backups to your wallet account. If you lose or forget them, there is no way to access your funds. Yet, when you keep digital assets on the crypto exchange, you can always contact the support team to recover access to your account. Stay safe and always do your research!