The best wallet is the only method to safeguard your cryptocurrency money.
That’s because, in the words of Brent Campbell, founder and managing director of Fort Lauderdale, Florida-based digital asset investment company NXS Crypto Fund, a cryptocurrency wallet is akin to “the keys to the kingdom.” I advise my clients that creating a wallet is the first step in getting involved in the blockchain ecosystem since it allows users to save, store, and send cryptocurrency without the need for a bank.
Since most popular exchanges enable you to keep your cryptocurrency within your account, much like a 401(k) or IRA does within a Fidelity or Vanguard account, not all cryptocurrency investors technically require their own wallet. Contrary to the regular stock market, however, investors in cryptocurrencies do not have access to strong federally required safeguards. The extra protection that comes with having your own wallet may be useful when the value of your cryptocurrency increases.
You could take into account a hot or cold wallet, as well as a wallet provided by your preferred exchange, depending on your investing plan. What long-term investors should be aware of, we asked four cryptocurrency specialists. Here are the top six cryptocurrencies according to our own analysis and advice from industry professionals.
Coinbase Wallet — Best Crypto Wallet for Beginners
A straightforward hot wallet is advised by experts if you are new to the crypto world. These frequently support a wide variety of tokens and coins and are free, simpler to use, and frequently connected to an exchange.
The well-known Coinbase exchange’s Coinbase Wallet is perhaps the best option for newbies. It is easy to use, supports a large number of cryptos, and is noncustodial, allowing you to keep custody of your private keys.
Chris Brooks, CEO of Crypto Asset Recovery, a business that specializes in assisting cryptocurrency investors recover passwords and seed phrases to their wallets, says that his organization will advise 95% of the clients it speaks with to just use a Coinbase wallet.
According to Campbell, the majority of cryptocurrency investors already begin with an exchange-hosted wallet like Coinbase Wallet, which is similar to utilizing “an on-ramp and off-ramp into crypto.”
Electrum — Best Bitcoin Wallet
If your main investment is in bitcoin, you might want to think about using a wallet that was specifically created to support bitcoin.
Therefore, Electrum could be a fantastic choice for you because it’s simple to use and has been around for more than ten years, which is a quality that very few other wallets can make. If you’re looking for a bitcoin wallet, Electrum is recommended because of its emphasis on bitcoin and nothing else.
Since it was created expressly to interact with the bitcoin blockchain, Electrum offers a few performance and security benefits. It has been around for more than ten years. For instance, Electrum’s Simple Payment Verification makes it simple for consumers to interact with the bitcoin blockchain. Because it was created expressly for that reason, Electrum can literally dance about the Bitcoin blockchain more effectively than other wallets.
It may not be as user-friendly for beginners, and its major limitation is that it only supports BTC; if you wish to store additional cryptocurrencies, another option is better.
Exodus — Best Crypto Wallet for Altcoins
Any cryptocurrency that isn’t bitcoin is referred to as a “altcoin,” and there are hundreds of them available. In light of this, a suitable cryptocurrency wallet for securely keeping altcoins is one that supports a large number of them and enables simple trading and acquisition.
Exodus supports more than 180 different kinds of cryptocurrencies, and you may conduct transactions without visiting an external exchange by doing so directly from the wallet. Exodus may not support as many coins as some other wallets, but it offers the ease of storing all of your cryptocurrency in one location while connecting to several exchanges. Additionally, you may communicate directly with other users via the wallet’s integrated exchange.
Depending on your security choices, you may also select a desktop, mobile, or hardware wallet. A Trezor wallet with an Exodus hot wallet running on it qualifies as the hardware alternative.
Trezor Model T — Best Crypto Wallet for Security
An expert consensus is that a cold storage hardware device is unbeatable if security is your top priority. Campbell adds that he has some assets on a hardware device and secured in a bank vault and advises anyone who wants to avoid security concerns to shift their valuables to one.
According to Chris Brooks’ son Charlie Brooks, CPO and co-founder of Crypto Asset Recovery LLC, Trezor is one of the finest solutions for a cold wallet. “Your money is safest held in a cold storage solution.”
The Trezor Model T physical hardware wallet is a good option for security-conscious cryptocurrency investors, according to experts. It’s not inexpensive at $280. A huge, full-color touchscreen display and add-ons like Shamir Backup, a security standard created by Trezor and exclusively available for the Model T, are a few of the Model T’s unique features, though. You may build 16 recovery phrases using the Shamir backup to utilize as backups. By enabling you to completely recover your wallet via a recovery seed, the security standard also provides security in the event that it is lost or stolen.
Trezor products are just as secure as Ledger wallets, but in a few subtle differences, thus it likely comes down to a user’s taste. Some individuals might also prefer the Model T since it is physically stronger and more durable, at least on the outside. Additionally, it is simple to use, straightforward, and set up.
Ledger Nano X — Best Cold Wallet That Costs Less
Since they are not always linked to the internet and therefore pose a lower risk of hacking, cold wallets are the ideal for keeping cryptocurrency assets secure, as we have previously discussed. Furthermore, physical tools like the Trezor Model T can significantly increase the security of your assets. However, you may purchase inexpensive cold wallets. For investors on a tight budget, we believe the Ledger Nano X to be the ideal cold wallet.
The Ledger Nano X is more cheap than the Trezor Model T and supports thousands of currencies. The Trezor and Ledger wallets were recommended by the experts as the best for protecting valuables. Although the Ledger Nano S is less expensive, the Nano X is superior because to its added capabilities and Bluetooth connectivity, which eliminates the need for a plug. Numerous tokens and currencies, as well as up to 100 applications, are supported with the Nano X. If you’re an active investor with an interest in a variety of various cryptocurrencies, it’s an excellent option.
The Safeguard Element security chip, which is identical to what is used to secure credit cards, is the Nano X’s most significant security feature.
MetaMask — Best Hot Wallet for Ethereum and Web3 Compatibility
If you want to buy and hold, a cold wallet may be useful. But if you want to trade your cryptocurrency, a hot wallet is a need because it will make transactions lot simpler and quicker. In light of this, MetaMask has grown to be a popular among cryptocurrency traders since it provides access to new Web3 markets.
The greatest hot wallet for ethereum is MetaMask. Campbell claims that “MetaMask works on the ethereum blockchain, which is the largest blockchain and can communicate with [NFT exchange] OpenSea. “The most access to the blockchain is provided by MetaMask.”
The Ethereum-based blockchain networks, NFTs, and any Ethereum-based coins may all be accessed using MetaMask. It’s a well-liked, simple-to-use wallet that can be used with anything Ethereum-built, which makes up a sizable portion of the Web3 universe. These elements work together to offer it an advantage over rival wallets.
Additionally, it’s simple for “Web2” customers to transition to Web3 thanks to the availability of the mobile app for both iOS and Android devices as well as the web extension for the majority of popular browsers.
It may be used to swap or purchase tokens and crypto, store NFTs and other collectibles, and work in tandem with a hardware wallet (like Trezor or Ledger). So MetaMask might be a good option if you want to learn more about NFTs and the metaverse.