Contrary to common belief, cryptocurrency wallets actually do not store your cryptocurrency in them as a leather purse in your pocket contains paper banknotes and metal coins issued by the government.
A digital currency like Bitcoin, Ethereum, or Litecoin exists on the blockchain – a global decentralized electronic network (or database, if you want) that records information about all transactions and token ownerships. A cryptocurrency wallet essentially contains a unique address to the blockchain where your tokens are found.
You may view a crypto-wallet as a little key that opens a door of a stout safe box where your valuables lie. Losing that key indicates losing the ability to unlock a mega-strong safe that contains your precious stuff. So, a crypto wallet stores your private keys (and their backup seed phrase) which are necessary to access the blockchain address where your virtual funds are found.
A failure to use a reliable crypto wallet with cutting-edge security measures may end up with the leakage of your private keys and the exposure of your virtual holdings to the hacker attack. You need to pick the best cryptocurrency wallet to be sure the safety of your electronic funds will never be compromised.
The market is awash with different types of crypto wallets. The selection includes web-based, mobile, desktop, paper, and hardware wallets from various brands to store and secure your digital currency.
While these tools do come in different forms and offer different functionality, the purpose of all crypto wallets remains the same – to properly keep your keys that grant access to your Bitcoin and other cryptocurrencies. However, depending on your needs and intentions, some Bitcoin wallets may work better for you than others.
Types of Crypto Wallets
All forms of cryptocurrency or Bitcoin wallets can be divided into two large categories: hardware crypto wallets (also referred to as cold storage) and software wallets (also known as hot storage).
A hardware wallet presents a physical device to secure your digital currency. It presents a real gadget with a USB thumb drive or a Bluetooth feature. Such equipment can plug into your PC or smartphone connected to the Internet, so you can manage your electronic possessions as well as send and receive transactions.
The greatest thing about hardware wallets is that they present offline storage solutions. It means they are disconnected from the Global Net but need a mediator like a computer or a smartphone to go online for further actions.
Without an Internet connection, your virtual coins are hard to be stolen. But your digitalized assets are still vulnerable – if you lose or break your hardware wallet, you will not be able to access the blockchain address that actually contains your precious tokens.
When you need to execute a payment with your crypto tokens, you only need to connect your hardware wallet to a computer or cell phone, and you are ready to transact.
With their pin codes, passwords, and biometrics verification, hardware wallets are really great for safekeeping your Bitcoin, Ethereum, and other cryptocurrencies. But such devices do not come with rich functionality to allow you to use your tokens to the fullest. They are only good for keeping your keys and sending/receiving transactions.
Ledger Nano X
Ledger Nano X is a vivid example of the best hardware wallet. This nifty gizmo can pair with Ledger Live (a smartphone application) to let you quickly view your crypto balance, send and receive over 1800 coins as well as buy and sell, exchange, stake, and lend your crypto – all in one app.
Nano X Features
Unlike its predecessor Ledger Nano S, Nano X is Bluetooth-powered to enable wireless connections with your Android or iOS devices. Bluetooth connectivity gives rise to certain security concerns, but Nano X effectively addresses them:
- Bluetooth transports only public data; valuable personal finance details (such as a private key and a word seed phrase) never leave your device.
- The Bluetooth connection is subject to hacker attacks, but the Ledger Nano X will not execute any cryptocurrency transaction without your consent.
- AES-based encryption enhances the confidentiality of transactions.
- If you still are not comfortable using a wireless connection, you can disable Bluetooth mode and connect your Ledger hardware wallet to a computer through the Type-C USB cable.
Like all things good, a highly secure hardware wallet Ledger Nano X comes at a price – nearly $130 for this sleek and modern gadget, not to mention the fees and commissions you will have to pay for each Bitcoin and crypto transaction.
Trezor Model T
Trezor is a longstanding and trusted name in the hardware wallet market brought to us by the Satoshi Labs team. Trezor Model T is loaded with excellent security practices coupled with a convenient touch-screen interface for inputs.
Model T Features
The Model T supports over 1200 different coins and can be compatible with all major computer operating systems: Windows, Mac OS, Linux. As for mobile device support, only Android is compatible. iOS and Windows Phone are not currently supported, but the team is striving to amend this. ChromeOS is not yet officially supported, but the wallet works via Google’s WebUSB. This hardware wallet connects to your machine via a USB-C connector, and you need to enter a PIN code to get going.
The Trezor Model T is also open-source. It means that the computer code empowering the device can be checked by third-party users. This helps the crypto community to quickly detect bugs and vulnerabilities, so that the project’s developers can proactively fix the issues.
Model T Security
Among the best hardware Bitcoin wallets of modernity, Trezor Model T keeps private keys on your device, making sure they are impossible to retrieve remotely. Your personally created pin code safeguards the device from unauthorized use, and the Model T’s code is open-source and regularly audited by security researchers to never let you doubt its excellent level of security.
Still, there is one remarkable downside to this cold wallet – its not-so-budget-friendly price that starts with $180.
Paper Bitcoin Wallet
Somewhat similar to hardware wallets, paper wallets also exist in real life, but they do not present physical units of equipment. As the name indicates, such Bitcoin wallets are essentially pieces of paper that store your printed private and public keys looking like QR codes.
Paper is not the only material used for such cold wallets. The cherished QR codes can be printed on plastic or stamped on a metal plate that will survive even if your house is burned down. It may sound strange, but such cold wallets are quite safe solutions to safeguard your assets.
To initiate a transfer from your paper storage, you first need to move the funds to a software crypto wallet. Such a procedure is called “sweeping”.
Thrifty and nifty, printed cryptocurrency wallets, still, have one significant drawback – they easily go missing. If you gravitate toward a paper Bitcoin wallet, make sure you have several copies of it kept in different secret places, just in case.
Unlike cold storage hardware wallets, hot wallets present programs and applications that you install on your computer, mobile phone, or tablet to secure your digital money as surely as to be able to send and receive crypto transfers.
Simplistic software wallets tend to be less secure than robust hardware products because they are connected to the Internet where cyber hackers and thieves lurk.
When a cryptocurrency investor decides to buy Bitcoin or mine some other cryptocurrencies, they must determine where to store their electronic valuables and how to ensure their protection.
As you know, cryptocurrency wallets do not store your tokens and coins, but help to access the blockchain and record changes to the crypto ownership rights as you transact on the decentralized ledger.
For the cryptocurrency user, the critical elements of a crypt wallet are the cryptographic public keys and private keys. Public keys function like account usernames: they identify the wallet so that the user can receive payments without the need to reveal their identity.
Private keys function like pin codes: they allow you to unlock the wallet and view its content, initiate transactions, and manage your electronic possessions. If one of the keys is absent, the wallet cannot be used.
The security of a software wallet largely depends on the user’s actions. Any digital capital stored in a hot wallet is exposed to hacking because the public and private keys are kept on the Web. Professional crypto investors use different types of wallets to secure their keys: they distribute their virtual capital across both hot and cold storage tools as not to put all the eggs in one basket.
Some investors prefer to keep their tokens in accounts linked to popular cryptocurrency exchanges like Binance or Coinbase. These platforms will store your virtual money on their servers, so such wallets can also be called hot. If an online cryptocurrency exchange is attacked and a cracker gains access to your wallet, you may say goodbye to your savings.
Software digital currency wallets come in varieties. Some products are designed to be used only in conjunction with a particular mobile application, while others are only compatible with certain coins like Bitcoin or Ethereum.
Unlike physically existing cold wallets, hot wallets are downloadable clients and apps that are not linked to any particular cryptocurrency exchange. You have control over your secret keys, so the virtual assets in the software wallet remain under your control, too. Still, your tokens are vulnerable to stealing. When, for example, a malevolent user hacks into your computer or smartphone, your wallet can be drained via the software app.
Hot Bitcoin wallets are categorized as the following:
- Desktop wallets. As the name implies, such a hot crypto wallet is installed on your PC, so you can manage your electronic funds from a large screen.
- Web wallets. Such an instrument generally presents a browser extension that connects to the coin’s blockchain to fulfill a transaction.
- Mobile wallets reside in your mobile phone, so you can buy, sell, and manage your cryptocurrencies on the go. Mobile wallets often come with QR scanners to let you pay with tokens at stores.
Unbeatable in terms of security, functionality, and convenience, Crypterium fully meets the definition of the best crypto wallet software. Veritably an all-in-one cryptocurrency platform, Crypterium is designed to fit all your cryptocurrency needs, while supporting dozens of types of cryptocurrency, including Bitcoin, Ethereum, Litecoin to name a few out of many.
Jam-packed with essential features that every crypto investor needs to effectively trade and manage their virtual holdings, the Crypterium free mobile wallet allows you to buy, sell, and use an array of top stablecoins and altcoins on the go.
Available in nearly 200 countries and loved by half a million users, Crypterium is far more than a software wallet for cryptocurrencies.
Not only can you buy Bitcoin, Ethereum, and dozens of other cryptocurrencies with your debit card. But you also can trade over 150 cryptocurrency pairs at the fairest rates, thanks to the integration of Crypterium with the world’s biggest 10 cryptocurrency exchanges including Binance, Kraken, and Coinbase.
Loaded with an AI-powered market tracker, this top-notch multi-currency hot wallet allows you to keep tabs on the events and trends occurring at the cryptocurrency scene as well as access the coin’s price history and predictions, so you can make better investment decisions and conduct intelligent trades.
A cross-platform solution, Crypterium can be accessed as a website and a mobile app that is fully optimized for Android and iOS devices. The registration with the platform is extremely straightforward requiring only the provision of your valid phone number.
To ensure you can use electronic tokens with a full blow, this hot wallet supports Crypterium Visa cards, so you can spend crypto as traditional money, with all the necessary conversions being done automatically and instantly with little to no fees.
Crypterium Visa cards also allow you to swap your cryptocurrencies for fiat and withdraw cash at Visa-compatible ATMs all over the globe.
The wallet-card tandem also allows you to top up the balance of your phone, use Google Pay and Apple Pay, and just enjoy the financial flexibility that Visa cards bring while harnessing the potential of virtual tokens like Bitcoin.
Another powerful feature of Crypterium is the ability to send cryptocurrencies to other people using a phone number, even if they do not have a Crypterium. Once you have initiated a transfer, the recipient will get a notification about incoming funds and a link to download the hot wallet and accept the payment.
What sets Crypterium apart from other similar products is the support of savings accounts and crypto loans. You can grow your virtual capital up to 15% annually by locking your digital assets into the crypto vault. Alternatively, you can get a cheap crypto credit using assets in your wallet as collateral.
With such a matchlessly rich functionality, Crypterium has to implement high-end security measures to give you peace of mind that your valuable assets can safely reside in your wallet. And Crypterium does, indeed. Its security practices include:
- Password – it is created at the stage of setting your user account. A password is requested every time you try to access a mobile wallet on your smartphone or a web wallet in your browser.
- 2-factor authentication – it is the second layer of security demanding you to verify both your phone number and your e-mail before you can use crypto assets in your wallet.
- Insured funds. The contents of users’ wallets are insured by Crypterium strategic partners to provide full compensation in the highly unlikely event of the crash of the company’s servers.
- Client-side encryption: all the Bitcoin and cryptocurrency operations that take place in your wallet are encrypted for the sake of absolute data security.
- A hosted wallet. Crypterium partners with BitGo, a leading and well-established provider of custody crypto-security services.
- Face ID and Fingerprint ID for Crypterium Visa cards help you control your card spending and prevent its misuse.
Since it is one of the best Bitcoin wallets on the market so far, Crypterium has certain requirements for its customers to keep criminals and wrongdoers at a bay. This wallet conducts thorough KYC and AML checks for every new user before allowing them to buy Bitcoin, Ethereum, and other cryptocurrencies with a bank card or engage in crypto trading and investment. Just because compliance matters.
A desktop wallet in its purest formpurest, Exodus is a smart choice for every crypto enthusiast who wants to trade a decent host of cryptocurrencies from a single user-friendly interface on their computer. As befits all decent desktop wallets, Exodus comes with live charts for Bitcoin and other cryptocurrencies, portfolio management, an in-built exchange, and 24/7 human customer support.
For tech-savvy, ever-hurrying customers, this nice solution is available as a mobile, connected to the Internet app, compatible with Android and iOS smart devices to let you control your digital assets while on the move. The Exodus mobile app can synchronize with your desktop wallet for well-coordinated trading, and it also acts as a source of the latest cryptocurrency news and market trends.
Surely, wallets like it are optimized to be used with cold storage instruments like Trezor and Ledger for an enhanced level of security of your electronic wealth. Thanks to the integration with featured crypto apps like Cosmos, VeChain, and Cardano, Exodus also allows you to capitalize on your tokens through staking.
Exodus wallets are free for use. When you transact through your Exodus software, the fee is paid to the coin’s blockchain, not to the wallet itself, which makes it a great option for crypto traders on a tight budget.
Though Exodus boasts all the bells and whistles, typical for the best Bitcoin wallet, it does not support 2-factor authentication and multi-signature, which makes it a less secure product than most competitors.
A handy solution to store your Bitcoin (and only Bitcoin, unfortunately), Armory is an open-source hot storage wallet that features multi-signature and offline storage functionality for the greater safety of your electronic funds.
This simple, yet robust desktop cryptocurrency wallet can be downloaded on various operating systems, including Windows, Mac OS X, and Linux.
Using the Armory crypto wallet, you can create multiple addresses to separate your personal Bitcoin account from your other funds. This software also provides password-protected transactions and keeps wallet keys offline.
Such a Bitcoin wallet is free to install and use, so you may expect to pay only the network fees. But you, probably, already know that BTC transactions may have quite a high commission that depends on how soon you want your transfer to be verified and added to the new block.
The Atomic Wallet presents a decentralized crypto storage solution for both a web and mobile experience. Loaded with an inner exchange Atomic Swap, this software supports over 500 different cryptocurrencies, which makes it one of the best crypto wallets out there. Being on the market since 2017, Atomic supports various operating systems including Windows, MacOS, Android, and iOS.
One of a few wallets to support fiat-to-crypto transactions, Atomic allows you to buy popular cryptos with your bank card without the use of a cryptocurrency exchange or completing any KYC verifications. In this regard, Atomic is an anonymous crypto wallet, too.
It is free to use crypto wallet software, apart from blockchain transaction fees. This application does not store your secret keys – they reside in your device together with a 12-word seed phrase should your PC or smartphone be compromised.
As for security protections, this desktop wallet requires you to create a password when first launching the software after downloading. The password will be needed every time you access the wallet, confirm a transaction, or want to view your secret keys.
To backup your password, this software Bitcoin wallet will also randomly generate a complex seed phrase to enable you to restore access to your wallet if your device is broken or stolen.
Transactions are secured through AES and TLS encryption. Personal finance data of users is not stored on the company’s servers and Atomic does not store or have access to your private key, so that you are solely responsible for the safety of your digital currency.
The absence of cold wallets support and the inability to set custom transaction fees are, perhaps, the most remarkable shortcomings behind the Atomic Bitcoin wallet.
How to Pick the Best Crypto Wallet?
Detecting the best Bitcoin or cryptocurrency wallet is not a small task, given the richness of selection. Your options span veritably millions of wallets, and picking one to work well for you may be a hard quest.
Nevertheless, the first factor to influence your buying decision should be the level of security of the wallet. Your plans, though, are also important. If you are going to buy and hold substantial amounts of tokens for the long haul, a hardware type of wallet seems a wise choice.
For everyday spending and trading, you may opt for a software wallet with advanced functionality to make the most of your virtual holdings.
An integral part of a solid risk management strategy is to limit the number of electronic funds that can be accessed through less secure platforms such as cryptocurrency exchanges while keeping most of your tokens in a safer wallet with multiple security checks. You can even choose to store your digital assets in several wallets of different types to mitigate your risks.
Features To Look For In the Best Cryptocurrency Wallets
- Two-factor authentication aka 2FA is necessary to verify a user when logging in to the crypto storage system. If your password has been compromised by a hacker, they will still need to pass the second layer of user verification to grant access to your wallet. This generally involves entering a code from an SMS or checking biometrics.
- Multi-signature. It is not untypical that a crypto wallet is simultaneously owned by a group of people, for instance, business partners or a family. Multiple signature support means you can configure the security of the wallet so that multiple keys are required before granting access. This prevents unauthorized spending of funds by one person or the transfer of funds to another wallet.
- In-built cryptocurrency exchange. Online crypto exchange platforms are juicy targets for hackers, so it is in your best interests to avoid keeping large sums of tokens on exchanges. The go-to crypto wallets always come with an in-built crypto exchange functionality to let you buy, sell, and trade tokens without resorting to third-party services.
- Multi-currency support. Professional crypto investors never want to have only one asset in their portfolio, but numerous assets. Advanced cryptocurrency wallets allow users to access multiple blockchains from a single interface because maintaining a separate wallet for each coin may lead to lots of confusion and wrongful trading decisions.
Best Crypto Wallet
Crypterium is the first solution at the market that couples generous functionality with unrivaled security standards, and genuine user friendliness.
Loaded with features that cannot be found with other wallets, hardware or software, Crypterium is a highly secure, convenient, one-stop-shop mobile app.
Meeting the definition of the best cryptocurrency storage solution, this Bitcoin wallet allows you to purchase BTC, ETH, and tens of other popular cryptos with your debit card, receive and send crypto payments, hodl your investments, swap cryptocurrencies in an inner exchange, and track the performance of more than 200 coins.
Available both for Apple and Android, as well as compatible with leading hardware wallets, this powerful software is also accessible via web, with seamless and instantaneous synchronization between accounts.
Perfect not only for token spending, Crypterium allows you to grow your electronic capital through staking. Crypto loans, Crypterium Visa, and ATM withdrawals are also exclusive elements of this sophisticated ecosystem which all together allow you to discover the full potential of cryptocurrencies.
Cryptocurrencies like Bitcoin and Ethereum are a new phenomenon on the financial market, and they are rapidly evolving. Many of such coins make lucrative investment opportunities as their price may soar in a matter of a few days or even hours. If you want to buy and possess a huge amount of electronic tokens, you need the best Bitcoin or crypto storage solution that will never let you down, even in front of aggressive hacker attacks.