What is a crypto wallet?
A crypto wallet is a place where you keep your private and public keys safely and securely. You can use these keys to access your cryptocurrencies stored at various platforms. Public keys are the digital code attached to a decentralised Blockchain. It is something like your bank account numbers. Private keys are also a digital code that is unique and attached to your crypto wallet. You can assume it like your ATM PIN code to access your cash. Users make use of private keys to get access to their cryptocurrencies.
Some wallets hold only one type of cryptocurrency while other wallets support multiple crypto assets and users can store different numbers of crypto assets in one wallet like Bitcoin, Ethereum, Litecoin and many others. These wallets ensure that only valid owners get access of their crypto assets through public and private keys with elaborate security measures. Users can get access their wallets via. mobile phones, tablets and desktop.
Crypto wallets are used to buy, sell and utilize crypto assets like Cryptocurrencies, NFTs, Metaverse lands and DeFi Contracts.
Crypto wallets are available in two forms. Hardware form of a wallet is like a Ledger. You can assume it is like a USB stick. These hardware thumb drive wallets are only connected with the computers when you use them for cryptocurrency access. These types of wallets are offline and hence more secure from theft and hacking. But these are less convenient than the online crypto wallets.
Another form of crypto wallet is Online wallets where you keep your digital public and private keys. These wallets are simple and easy to use but also have the risk of hacking so you have to consider the security measures of your wallet provider as well.
Use of online wallets is easy and simple like you use your credit card for shopping and billing.
Crypto wallets are not like your physical wallets that keep your cash in actual. Crypto wallets only store your digital public and private keys and your actual cryptocurrency is stored on Blockchain. You use your private keys to access your cryptocurrency from these Blockchains. If you lose your private keys, it means you would lose your cryptocurrency as well. So you have to keep your private keys secure and also have to take security precautions like two factor verification. This is the main reason many people use trusted wallet providers.
Online wallets provide you many advantages. Let’s explore some of these major pros of online crypto wallets.
Benefits of cryptocurrency wallets
- Control your private keys.
- Manage your crypto assets at one place as per your convenience.
- Shop with cryptocurrencies where it is acceptable using these crypto wallets.
- Username can be used instead of long and complex hexadecimal addresses for public keys.
- Exchange cryptocurrency from anywhere in the world with anyone.
Let’s see some of the most trusted and used crypto wallets based on cost, ease of operation, supported cryptocurrencies, user experience, and customer support system.
List of top crypto wallets
- Exodus: Best for Desktop Wallet
- Exodus is the best option for desktop
- 24/7 support system
- Can buy Bitcoins from Apple Pay
- High speed transactions
- Easy to use
- Appealing interface
- Supports around 150 cryptocurrency assets
- Originally a desktop wallet now also have apps for Apple and Android users.
- Mycelium: Best Wallet for Mobile Transactions
- Mycelium offers offline transactions
- Robust security features
- Track transaction history with advanced features
- Device both Android and Apple mobile users
- Custom transaction fees
- Electrum: Best Wallet for Bitcoin
- Electrum execute transactions fast
- Easy to operate
- Custom transaction fee, more fee for faster transactions
- High security features
- Open source code which means it’s code can be scanned and checked for security and hence built trust among the crypto community
- Two factor authentication cam multi signature facility provides high security
- Integrate with other hardware wallets like Ledger, KeepKey and Trezor
- Ledger Nano X: Best Offline/ Hardware Crypto Wallet
- Ledger wallet provides high level of security standards
- Support high number of cryptocurrency assets that is 1800 coins and tokens
- Bluetooth connectivity
- Built in battery
- Its Ledger Live app can be used to buy, sell, llend and stake cryptos.
- A special chip is embedded that provided high end security from cyber attacks and thefts
- Coinbase: Best Wallet for Beginners
- Coinbase has user friendly interface that is easy to use
- Support around 500 crypto assets
- Two factor authentication and multi signature verification
- Supported by reputed crypto exchange that can recover lost or stolen cryptos
- Best for beginners as it is intuitive and easy to use with identifiable user functions
- High connectivity with most major bank accounts
- It can also store NFTs
- It is Non custodian that means your private keys are not stored on its server and rather stored in your device. This feature saves you from cyber attacks or any fear of losing your crypto assets.
How to choose the best crypto wallet?
You can choose the best crypto wallet as per your needs. You can decide upon the factors such as speed of transactions, fee, number of supported crypto assets, security standards and level of your experience.
You can balance among these factors to decide your wallet among the best alternatives available.