Crypto wallets are a necessary tool for purchasing, trading, and selling cryptocurrency. Traders rely on them to securely store cryptocurrency as well as to preserve and validate transaction data. Custom crypto wallets, whether hardware or software, also known as hot and cold storage, provide traders with dedicated solutions in comparison to those provided by crypto exchanges. Continue reading to discover about the many types of best cryptocurrency wallets, how they function, and which one you should choose.
What Is Cryptocurrency Wallet?
Cryptocurrency wallets, also known as crypto wallets, are locations where traders keep the secure digital codes required to communicate with a blockchain. Despite what their name suggests, they do not actively store your cryptocurrencies.
Crypto wallets must connect with the blockchain in order to locate the cryptocurrency associated with your address. In truth, crypto wallets are more like ledgers than wallets: They serve as an owner’s identification and account on a blockchain network, as well as access to transaction history.
Which Are The Best Cryptocurrency Wallets?
At a reasonable price, the best cryptocurrency wallets offer a nice balance of security tools and user-facing features. Electrum, Coinbase, Ledger, Exodus, Mycelium, Trezor and Atomic Wallet are among the best cryptocurrency wallets, according to our analysis.
Top 8 Best Cryptocurrency Wallets In 2021
One of the wallet’s most valuable features is that it employs a lightweight client. Light clients can be set up in minutes and take up less space on your computer than regular wallet clients. The wallet only downloads sections of the blockchain when utilizing simple payment verification (SPV), which speeds up transactions without compromising security.
- Fast and easy to set up
- Customizable transaction fees
- Greater security than other hot wallets
It’s critical to distinguish between Coinbase the exchange and Coinbase the wallet. The Coinbase wallet can be used without registering with one of the big cryptocurrency exchanges. It’s also non-custodial, which means its private key is held in your device rather than Coinbase’s servers, so you don’t have to worry about your currencies being frozen for any reason or being vulnerable to a cyberattack on the website.
- User-friendly interface that is easy to navigate
- Supports more than 500 cryptocurrency assets
- Multi-signature and 2-factor authentication support
The number of currencies supported by Exodus is one of its most appealing features. Higher than 145 cryptocurrency assets are supported by the wallet, which is more than many other hot wallets. This includes popular meme coins like Dogecoin and Shiba Inu, as well as established altcoins like Ether, Litecoin, Tether, and Dash.
- 24/7 customer support
- Supports over 145 crypto assets
- Allows users to buy Bitcoin with Apple Pay
Mycelium is another well-known crypto wallet that focuses heavily on Bitcoin. It’s been a mobile-only software wallet for a long time and remains one of the best solutions for Android and iOS customers.
The wallet’s security and transaction choices are two of its main selling points. The software is completely reproducible, which means that its code can be reproduced and compared to the original to identify any potential security flaws, and it includes many levels of pin protection. Custom transaction fees with four recommended levels — low priority, normal, economy, and priority — and various different types of user accounts are available in the wallet app.
- Offline transactions are available
- In-app cryptocurrency exchange and educational material
- HD spending accounts and Single Address saving accounts available
- Randomized keyboard
- Apps for Android and PC
- EAL6+ and IOT Secure certified
- Support is available 24 hours
- Supports over 300 tokens and coins
- Supports credit card purchases as well as in-wallet exchanges and conversions
The Ledger Nano By is now available for $119 and features a 128 x 64-pixel screen for cycling through apps. The wallet supports over 1,800 currencies and tokens — the most of any wallet on our list — and can manage up to 100 of them concurrently via the device’s apps. Its Bluetooth Low Energy connectivity, which can be disabled at any time, enables the Nano X to be used in conjunction with the Ledger Live software for Android or iOS devices to conduct crypto transactions on the fly.
- Supports a very large number of digital assets
- Bluetooth allows trading on the Ledger Live mobile app
- Built with special hardware designed to protect your private keys
The Model T has a touch screen, which may be easier for beginners to use than the buttons on their previous model. The Trezor is also best cryptocurrency wallets has a MicroSD card slot, allowing you to encrypt the PIN and further safeguard your device from threats.
- Intuitive & convenient interface
- Massive list of supported cryptocurrencies
- Web-based user interface with exchanges built-in