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A crypto wallet, short for cryptocurrency wallet, is a digital tool that allows users to store, send, and receive cryptocurrencies like Bitcoin, Ethereum, and many others.
Essentially, it’s a digital means to manage one’s cryptocurrency holdings.
In this article you will be able to find a list of the best crypto wallets.
To make our choice, we took into consideration the following factors:
- The quality of the crypto wallet
- The type of transactions allowed
- The type of wallet
- The security offered by the exchange
|Ledger Nano Wallet
What are the best crypto wallets?
Below our curated list of the best crypto wallets, with details of features and characteristics.
Crypto Wallet Custodial vs Non-Custodial: main differences
The main difference between custodial and non-custodial wallets is the type of custody of the private key:
Custodial: the private key is held by the exchange
Non-Custodial: the private key is guarded by the client.
Custodial-type cryptocurrency wallets are therefore easier to manage and open, as the exchange takes care of the creation, protection, and management of the private key. Losing access to the wallet is therefore virtually impossible, as any issues related to access can be resolved by the exchange.
In contrast, non-custodial wallets provide the user with the private key to gain access, which makes these wallets unsuitable for beginners. In addition, if the private key is lost, regaining access to the wallet and stored cryptocurrencies will be impossible.
Where can a cryptocurrency wallet be created?
Cryptocurrency wallets can be created at any cryptocurrency exchange.
In the case of custodial wallets, the wallet will be created automatically each time a cryptocurrency is purchased.
When you choose a non-custodial wallet, it will have to be created manually within your account.
How is a crypto wallet valued?
Generally, the evaluation of a crypto wallet goes through three factors:
- number of cryptocurrencies supported
- possible uses
Certainly, the security of a cryptocurrency wallet is critical. Non-custodial crypto wallets are protected only by their owner, and with the growing trend of online scams, it only takes a small oversight to suffer a cyber attack and lose access to cryptocurrencies.
Custodial wallets, on the other hand, are relatively more secure as the exchange is able to protect the private keys and cryptocurrencies with complex anti cyber attack systems. However, the reliability of the exchange must also be considered here, as a wallet should not be custodial by a cryptocurrency platform that is not serious about customers.
Another important point is the number and type of crypto assets the wallet can support and the availability of the best cryptocurrencies. Typically, all custodial wallets support all cryptocurrencies offered by the exchange that custodies them, but this is not always the case.
In addition, it is important that a crypto wallet allows the user not only to store cryptocurrencies or NFTs, but also to monitor their performance in the market, as well as sell, trade, or buy them.
Can cryptocurrencies increase in value in the wallet?
Cryptocurrencies stored in wallets can change in value by following market trends.
If a user invests $100 in Bitcoin and stores it in their crypto wallet, the $100 over time may increase or decrease based on the value of Bitcoin relative to the time of purchase.
For example, if the user buys $100 of Bitcoin when 1 BTC in full was priced at $20,000, and the market value after a few weeks increases to $21,000 (+5%), the value of the Bitcoins in the crypto wallet will increase to $105 (i.e., “initial investment” + 5%).
What are the safest wallets?
The absolute safest wallets are offline crypto wallets.
Offline cryptocurrency wallets are physical objects similar to USB sticks that can be connected and disconnected from the network.
Although no wallet is 100% safe from scams, offline wallets are safe from cyber attacks as opposed to online wallets or those offered by exchanges.
That said, offline wallets can still be compromised if the device they are connected to (such as a PC) is infected.
Therefore, regardless of the type of crypto wallet, care must be taken so as to protect access to the cryptocurrencies in one’s possession.
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