Wondering which are the best crypto wallets? This guide explains in detail what a crypto wallet is, the types of crypto wallets available and the best crypto wallets that provide users with a digital solution for securely storing cryptocurrencies or other assets.
If you want to buy Bitcoin, Ethereum, and Ripple or any other coin, you will need a cryptocurrency wallet. This is a special software that resembles internet banking. It allows you to manage digital assets and perform various operations with them: store, receive, send.
What is a Cryptocurrency Wallet?
A cryptocurrency wallet is a software that holds the keys to send & receive various blockchain cryptocurrency tokens. It stores the ‘private’ keys and your ‘public’ keys to secure communications with the other blockchain cryptocurrency ledgers. It also allows you to look at your cryptocurrency balances.
The interface of the software helps users to understand their cryptocurrency holdings. The blockchain works with the upgradations of ledgers across all ‘nodes’ on the blockchain network. This means all individual ‘ledgers’ are updated at the same time. Therefore, the wallet doesn’t hold crypto money but record the transaction only.
However, a ‘ledger’ is another word for a ‘database’. The terms of ‘ledger’ are more familiar than ‘database’ in the crypto world. On the other hand, the ‘node’ geeks call of the individual computers that run and maintain the blockchain.
Unlike the wallet, the cryptocurrency wallet doesn’t store any money like PayPal's account store funds. This is one of the crucial differences between crypto wallets and other online money accounts.
Trade cryptocurrencies safely with an AtoZ approved broker:
How to choose a Crypto Wallet?
Choosing the best crypto wallet is quite challenging for investors. the types of crypto wallets differ from the person to person in accordance with their needs. some wallets are suitable for regular small transactions while some are for long term investment. However, you have to follow the below-mentioned checklists before Choose Crypto Wallet that is suitable for you.
Choose Single or Multi-Currency
Besides Bitcoin, there are hundreds of cryptocurrencies with distinctive ecosystems and infrastructure. If you’re interested in using a variety of cryptocurrencies, you don’t have to set up a separate wallet. There are multi-currency wallets along with the single currency wallets. It is quite convenient to use multi-currency wallets to use several cryptocurrencies. The multi-currency wallets will allow you to hold several types of crypto assets with options to exchange between them.
In general, the crypto transaction fees are very smaller than traditional Bank fees. Sometimes you have to pay certain types of transactions to network miners as processing fees. However, some transactions do not have any fees at all. The most interesting matter is this- you can set your own fees.
For reference, the median transaction size of 226 bytes needs a fee of 18,080 satoshis or $0.12. If you choose a lower fee, your transaction will get low priority. In that case, you have to wait for hours or even days to confirm the transaction. In order to process the transaction early, you have to pay higher fees.
However, the transaction fees are not any amount to worry about. It is your choice to pay tiny transaction fees, or pay no fees at all. It is a definite improvement from the past!
Are cryptocurrency wallets anonymous?
No, it is not completely anonymous. However, the Wallets are pseudonymous. If the actual identity of a user is not linked with the wallet, all transactions are stored publicly on the blockchain. However, your personal street addresses will not be there.
There will be pieces of information like your wallet address. Therefore, other people can trace you with those numbers. Moreover, there are some undergoing projects to make the wallets completely anonymous. One of them is "Darkwallet"- that is looking to increase the privacy and anonymity through stealth addresses.
Security of the Crypto Wallet
The most important part to choose crypto wallets is to keep your funds secure. Before choosing a crypto wallet make sure to keep the security concerns at the top of your priority list. Moreover, It is important to carry out some research about the security of the crypto wallets.
However, blockchain technology is the biggest innovation regarding privacy. The overall system provides security that the unbeatable. Therefore, some of the assurance about the security comes from the blockchain itself. Overall, you should make sure that you’ve done everything possible towards ensuring the security of your funds. In that sense, the "hardware wallets" will give you the highest security If you can keep the information secret.
Mobility of the Crypto Wallet
In terms of mobility and convenience, online and web wallets are best. You can access the web wallet from anywhere in the world. Moreover, you can access all types of digital devices like mobile, android or windows. Some wallets provide mobile applications to make it more convenient. However, If you are planning to invest a small amount of money for regular transactions, web wallets will be the best choice. Moreover, You can use multiple wallets for multiple cryptocurrencies.
User-friendliness is one of the most critical aspects to choose crypto wallets. There are some wallets that are very boring and hard to operate. Many people struggle to find the options and setting in the software. On the other hand, some wallets are very user-friendly and easy to use. User-friendliness means the difference between enjoying the wallet and getting frustrated with it.
Generally, desktop & mobile wallets are very user-friendly. These wallets don’t need much work to set them up properly. Therefore, they need less effort and become friendly in operating. The launch of mobile apps makes the process more attractive to users.
What Types of Crypto Wallet are Available?
A crypto wallet is a must-have ecosystem attribute. Without it, working with digital assets is impossible, and therefore it is so important to choose a convenient and reliable tool that will solve your problems.
To help users navigate the wide variety of available solutions, AtoZ Markets have selected the best crypto wallets for safe storage of cryptocurrency
- Trezor One
- Ledger Nano X
- Ledger Nano S
- Coinbase Wallet
Try the best crypto wallet with a reputable broker on a free account:
To choose the best crypto wallets, consider your needs and compare wallets based on key factors that include:
Security. 2-factor authentication (2FA), is another way to verify your identity when logging into your crypto wallet. If someone had your password or managed to crack your password through any of a number of methods, they would still need to pass the second level of authentication, typically a code sent to your phone which needs to be entered into a sign-in field before access to the wallet is granted.
Ease of use. Sending, receiving and storing cryptocurrency can be complicated and confusing, particularly for beginners. Your wallet should suit your tech knowledge and crypto experience. While crypto novices might focus on finding a wallet that’s simple to set up and use, experienced holders might look for advanced features, like an in-wallet exchange and multisignature transactions.
Costs. While most crypto wallets are free, choosing a hardware wallet means parting with some cash. Consider the upfront price and shipping costs when making your decision. Some wallets also charge a fee for every transaction you make. Read the fine print to see what you’ll pay.
Multi-signature support. In some cases, a crypto wallet is owned by several people, like business partners, for example. Multi-signature support means that you can set the security for the wallet to require multiple keys before access is granted. This prevents any one person from spending the funds in an unauthorized way or from transferring the funds to another wallet.
Supported cryptocurrencies. Are you looking for a wallet that stores just one crypto, like bitcoin, or are you in the market for a multicurrency wallet? Make sure the wallet you choose is compatible with the cryptocurrencies you need to store, and remember that some coins and tokens can only be held in an official wallet.
Best Cryptocurrency Wallets
Following is a handpicked list of top crypto wallets, with their popular features and pros and cons.
1# Trezor One
The Trezor One, by SatoshiLabs was designed and crafted in the Czech Republic by cryptocurrency advocates and a stellar cyber security team. In Czech, trezor literally translates to “vault.”
The Trezor team is credited with developing the first hardware wallet for cryptocurrencies using modern cryptography. It provides an LED display for an easy-to-use interface, as well as a PIN to access the wallet. Providing even more security, the devices prompts you to use 2-factor authentication when verifying your purchase.
The unique piece of hardware is compatible with Windows, Mac, and Linux and offers over 500 possible alt-coins to hold and trade. Much like every other hardware wallet, the device requires your computer to be connected to the internet and connected via USB.
2# Ledger Nano X
The Ledger Nano X is a cryptocurrency wallet that supports a great selection of cryptocurrencies like Bitcoin, Ethereum, Litecoin, and over 1150 more. The Nano X allows owners to trade crypto on the go by making use of their smartphones. The Nano X uses Bluetooth to connect to your smartphone and allows you to download the Ledger Live app to transfer cryptocurrency.
The Ledger Nano X has a 128×64 display screen that shows all data regarding your transactions. You control the device using 2 small buttons. The device is also has a built-in 100 mAh battery which lasts for hours when the device in use regularly.
Since Ledger Nano X uses a highly secure chip, similar to the one used in credit cards, and because this is not directly connected to the web, it is extremely difficult for hackers to steal your coins from this hardware wallet.
- User-friendly and intuitive setup
- Supports over 1,100 cryptocurrencies
- Safe & reliable
- Portable & lightweight
- Relatively expensive
3# Ledger Nano S
Ledger Nano S is a multicurrency wallet which supports a great selection of cryptocurrencies, including Bitcoin, Ethereum, Litecoin. The cold storage wallet guarantees maximum protection for your digital assets as it is built using a secure chip, similar to the one used for credit cards.
The Ledger Nano S comes with a crisp and clear screen that displays information on your current transactions. Two buttons allow you to manage your device conveniently, including sending and receiving funds. The wallet doesn’t require any charging for its functionality as it draws power from your PC whenever it’s connected.
Since Ledger Nano S uses a highly protected chip and is not connected to the web, it is virtually impossible for hackers to steal coins from it. The development team behind the product even gave special consideration to its appearance, which is why it is available in various colours, from Matte Black to Flamingo Pink.
Ledger also offers more advanced hardware wallets, in case you decide to upgrade your Nano S further on.
- Easy to set up & use
- Supports over 1,100 cryptocurrencies
- Great value for money
- Portable & lightweight
- Screen navigation is sometimes tedious
- No private key access
Another competitor in the hardware wallet space is KeepKey. Created by a subsidiary of the Shaftshift exchange, KeepKey highlights the notable differences its device holds over its competitors. Launched in 2015, KeepKey noted that its security measures were far stronger than Trezor or Ledger.
We have yet to view anyone brave enough to confirm this notion; however, KeepKey does not have an operating system. Not having an operating system essentially makes a device malware proof.
It’s nearly impossible to infect a device with complicated instructions if that device does not have an operating system.
While security remains an advantage in using KeepKey, a major drawback is the availability of only 35 cryptocurrencies. Still, the device couldn’t be more easy to use by plugging it in one of the USB ports of your computer.
- A secure & lightweight device
- Available on Mac, Windows, and Linux systems
- Supports a decent number of cryptocurrencies
- More user restrictions than other cold wallets
- No private key access
5# Coinbase Wallet
Coinbase Wallet is predominantly used to store Bitcoin, Ethereum, ERC20 tokens and other digital collectibles. Although Coinbase Wallet is a software wallet, it provides full protection for cryptos using advanced security features similar to the hardware wallets. Moreover, this wallet can be used to receive tokens purchased from other exchanges or directly from ICO token sale events. Additionally, Coinbase wallet lets users interact with Ethereum-based DApps with its integrated DApp (Decentralized Applications) browser.
It isn’t mandatory to create an account on the Coinbase Exchange to use the Coinbase Wallet, since it functions as a standalone software. It can be downloaded and installed by anyone without any geographical restriction. Thanks to its accessibility, the wallet is a good choice even if you’re new to the world of trading and would like to ensure your cryptos are safe or would like to send or receive digital currencies anywhere in the world.
- Backed by a regulated exchange
- Trading fees are a fraction of what you’d pay on Coinbase
- More involved user interface and trading indicators
- Ability to set market and limit orders
- No private key access
- Less secure than cold wallets
- Some users may find the interface confusing
- There are other competitors with more competitive fees
MetaMask is an ethereum wallet that works as a Google Chrome extension as well as a mobile app. It’s a great wallet for beginners, as it has a simple user interface and is intuitive to use.
However, MetaMask only supports Ethereum tokens, such as eth, EOS, Maker, DAI and many others. If you want to store bitcoin on MetaMask, you’d need to purchase WBTC (wrapped bitcoin) which is a synthetic bitcoin on ethereum’s network.
MetaMask also makes it exceptionally easy to connect with decentralized applications directly from your browser. Because of this, MetaMask is the go-to choice for investors looking to interact with several defi platforms.
- Open Source
- Local Key storage
- Has built-in coin purchasing through Coinbase or Shapeshift
- Does not offer a full node system
- Hot wallet storage only
Like these cryptocurrency wallets and want to try them out? Do it with an AtoZ Approved broker for free:
Best Crypto Wallets - Conclusion
Each of the best crypto wallets has its own advantages and disadvantages.The right wallet for you is the one that matches your needs. If security is your No. 1 concern, you’ll likely choose a different wallet than someone who wants fast and easy access to their coins.
In the end, you are the individual responsible for the security of your own cryptocurrency. You have to make a lot of research before choosing Crypto Wallet. Moreover, there are no government rules to save you from any disputes. If you lose then there will be no one to help you. The paper wallets and hardware wallets can promote good ownership which means your crypto remains safe and secure. The hardware wallets are the best from the crypto wallets along with the paper wallets.
However, Make sure to think about your wallet security before you end up as a victim. You don’t want your hard-earned cryptocurrency stolen. Therefore, take responsibility and use good wallet services to keep your cryptos safe. Hence, do your research and compare wallets. Start with our crypto wallet reviews to get an idea of what’s available and key features to consider.
Should you use crypto wallets on your own at all?
Before you start trading with your crypto wallets, you'll want to read this.
Our in-house trading expert Dr Yury Safronau, PhD in Economic Sciences, gives you daily his best stocks, forex and cryptocurrencies to buy and sell signals right now. And it's not just based on a simple singular backtested strategy.
His trading approach which is based on non-linear dynamic models has achieved more than 65 000 pips of profits since 2015. And right now there are some strong buy signals across several markets you definitely don't want to miss.
Want to see which ones?
Think we missed something? Let us know in the comment section below.