A crypto wallet is an essential tool if you want to invest in virtual currencies. Wallets let you store crypto and make fast transactions. In this article, we show you the best crypto wallets for investing in cryptocurrencies.
What Is a Crypto Wallet?
To invest in a cryptocurrency, you need somewhere to store your money, and a way to carry out your transactions, whether a purchase or a deposit.
The tool that handles all of these operations is the cryptocurrency wallet, also called a crypto wallet. It is a device, which can take physical form, that lets you store, receive or spend cryptocurrency. A wallet can be compared to a kind of bank account for transacting with your digital money.
There are several types of wallets for storing your crypto, including physical wallets and online wallets. Some wallets can only be used with the blockchains they are dedicated to, as with Ethereum wallets, which are specific to certain ERC-20 tokens. However, there are also multi-asset wallets that can hold any cryptocurrency, such as some Bitcoin wallets.
Wallets also keep your digital currencies secure through public and private keys. And thanks to advances in technology, you can use them from your phone or computer as crypto software.
If this topic interests you, also see “How to Mine Bitcoin” and “Bitcoin Wallet“.
Ledger Nano Hardware Crypto Wallet
The Ledger Nano is a hardware wallet with one of the most polished designs for storing and securing your cryptocurrencies. Developed by a French startup, it supports the vast majority of cryptocurrencies and offers a range of features. For example, you can transfer tokens from your smartphone via Bluetooth. It also has one of the best user interfaces.
One of its best-known features is the swap function, which lets you exchange cryptocurrencies. Its simple USB-stick form lets you store your virtual currencies away from Internet scammers.
With the Ledger Nano, you can hold more than 450 crypto assets in your wallet, including the most popular, Bitcoin, as well as other altcoins and all of Ethereum’s ERC-20 tokens. There is also our Guarda wallet review, which is fairly positive at the moment.
Here are the pros and cons of using the Ledger Nano wallet.
Ledger Nano Pros
- Offline cryptocurrency storage offers maximum security
- More features with the Ledger Live app.
- Easy and simple to use
- Wallet with Bluetooth functionality
- Suitable for all types of crypto, especially for Bitcoin users
Ledger Nano Cons
- Risk of data loss if the device is lost
- The Ledger Nano is not available in French
- Complex process for buying cryptocurrency
- High fees
- High price (Ledger Nano S and Ledger Nano X at the same price)
Trezor T Crypto Wallet
The Trezor T is a hardware wallet positioned as the Ledger Nano’s main rival. It is one of the excellent wallets, supporting more than 1,000 crypto assets (Bitcoin, Litecoin and more) with a good interface. It has no app of its own and needs to be connected to a computer to be used. Compatible platforms are iOS, Android, Windows, Mac and Linux.
Here are the pros and cons of using the Trezor T.
Trezor T Pros
- Pleasant touchscreen
- Easy to use
- Supports web browsers, desktop operating systems and Android
- Supports hundreds of coins and tokens
- Ability to buy and exchange cryptocurrencies with fiat
Trezor T Cons
- The Trezor T is more expensive than other hardware wallets
- The Trezor T is not fully hierarchical deterministic
Trust Wallet
Trust Wallet is a crypto wallet app created in 2017 with the aim of building a wallet that supports ERC-20 tokens. In 2018, the company behind it was acquired by Binance, and it has since become Binance’s official wallet. It is designed for mobile users to trade and store cryptos such as Bitcoin, other altcoins and ERC-20 tokens.
You can also stake on this wallet, and you can store more than 35 types of cryptocurrency in it. However, its level of anonymity is low and it is not fully open source. Trust Wallet is also not available on PC, Mac or Linux.
Exodus: Ideal for Beginners
Exodus is a desktop and mobile wallet with a very simple user interface and a built-in exchange. Exodus currently lets you exchange between more than 100 different cryptocurrencies. Exodus is ideal for beginners, and it also stands out for its power, efficiency and simplicity. Its drawback is that it is a closed-source wallet.
Exodus Pros
- Ideal for beginners
- Powerful, efficient and modern
- Makes managing and exchanging cryptocurrencies easy
- Intuitive interface
- User-friendly
Exodus Cons
- Closed-source software
- Higher fees than other wallets
KeepKey Crypto Wallet
The KeepKey is one of the most expensive wallets compared with the competition. But it is easy to use, as the app installs easily through the Chrome browser. It also takes the form of a USB hardware device and can store a large number of cryptos, such as Bitcoin, Ethereum and some ERC-20 tokens. Its secure key system ensures maximum security for your crypto.
Here are the pros and cons of the KeepKey crypto wallet.
KeepKey Crypto Wallet Pros
- Premium, simply perfect design
- Exemplary security compared with others
- Easily exchange coins and tokens directly from the wallet
- Open source with an intuitive system
KeepKey Crypto Wallet Cons
- The KeepKey is bulky and may be awkward to carry
- Few cryptocurrencies supported
Coinomi Crypto Wallet
Coinomi is a software crypto wallet that lets users transact with several types of coins. It is available on Mac, Windows and Linux. It is one of the most secure software wallets thanks to strong encryption that protects your funds.
Jaxx Liberty Crypto Wallet
This crypto wallet has an easy-to-use interface and an intuitive dashboard. It lets users quickly and easily see the coins and crypto they own. The wallet uses a password and a PIN code to further increase security. It is also more convenient than other software wallets in its category. It is available on Windows, macOS, Android and iOS.
How to Choose a Crypto Wallet?
To choose your crypto wallet, you first need to decide which type of wallet you want to use and which suits you. Each of these wallets has its own features and advantages. Here are the different types of wallets currently on the market:
Wallets on trading platforms. These are the wallets built into platforms that let you buy crypto and use a wallet to store it. They are simple to use and are set up automatically when you open your account. These wallets can also be used for any cryptocurrency you buy.
Multi-currency wallets let users store several different cryptocurrencies. They are harder to use than trading platform wallets. But holding several cryptocurrencies in your account is an asset if you have solid experience investing in virtual currencies. One example of a multi-currency wallet is the Jaxx wallet.
Single-currency wallets are less complete and do not give investors much choice. But they offer stronger security and let you enjoy the benefits of your cryptocurrency, making for smoother use. Some cryptocurrencies offer bonuses to those who use the wallets they provide when buying. One example is Ethereum, which has its own wallet.
How Does a Crypto Wallet Work?
For your crypto wallet to work, it needs a public key and a private key. Here is how these two components of your wallet work.
Public Key
The public key is a long sequence of numbers and letters that serves as your wallet address. The public key lets users send and exchange crypto with each other. It can be compared to a bank account number, used when someone sends money to your account.
Private Key
The private key is used to access the funds stored in your wallet. It lets users control and manage the funds in their account. It must be kept secret to prevent your cryptocurrencies from being stolen. However, some wallets do not give you exclusive ownership of the private key, which weakens the security of the virtual currencies in your wallet.
Blockchains
But the operations carried out on your wallet are not limited to how these keys work. Crypto wallets interface with the blockchains of the various currencies so that you can check your balance and make transactions, such as sending cryptocurrency to another user, which is broadcast as a transaction.
Once this operation is done, you have transferred your crypto tokens to another investor. The person receiving your transfer must be careful not to provide a wrong public key, or the crypto will be lost. The system set up by these blockchains lets your crypto wallet carry out fast, secure and simple transactions.
Note that when you use your wallet, you need to remember your address to avoid losing your crypto. It is also advisable not to share your keys and address with just anyone, to avoid scammers.
Which Crypto Wallet Should You Choose?
Several crypto wallets are available for storing your digital currencies. But some stand out thanks to their service, the number of cryptos supported and the devices they can be used on. We have presented the main wallets and their strengths above.
How to Create a Crypto Wallet?
After choosing your wallet based on your criteria and needs, you can now create it. If you are still new to crypto investing, it is more attractive and simpler to use the wallet of the trading platform you have chosen. This gives you a wallet that can support other virtual currencies.
The wallet on your platform is created right after your first cryptocurrency purchase. The platform is well secured, and you can build a diversified portfolio.
Here are the steps to follow to create your crypto wallet:
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Before using a crypto wallet, you need to own crypto, and the most common and safest way to get it is to buy it. To buy crypto, you need to open an account on an exchange or with an online broker.
To buy crypto on a platform with a secure wallet, we recommend using eToro. It lets you trade several asset types, such as crypto, stocks and currencies. It also offers many cryptocurrencies, including Bitcoin, Ripple, Ethereum, Dogecoin and Litecoin. It is a reliable site, regulated by several financial authorities such as CySEC, the FCA and ASIC.
eToro also stands out because it is suitable even for beginner investors. We therefore recommend using eToro as a trading platform for your crypto investments and as a storage tool for your virtual currencies.
Create an Account
After buying your crypto, you need to find a crypto wallet to store it. To do this, you need to create an account to identify yourself. One of the best crypto wallets for storage is the Ledger wallet. Here are the steps to follow to create your Ledger wallet:
- Go to the Ledger website, where no registration is required
- Choose a wallet among the Nano S, Nano X and Crypto Starter Pack. To help you choose, the site shows a comparison of the different offers. Once you have made your choice, all you have to do is place your order
- After receiving your device, it is time to create your wallet by setting it up. The wallet is easy to use: just turn it on and follow the instructions on the screen. It will ask you to choose a PIN code and create a recovery phrase.
Your crypto wallet is now created and you can start trading.
How to Store Your Crypto?
There are several solutions for storing your cryptocurrencies, depending on your needs and how you use your crypto. If you opt for a platform, the drawback is the lack of security due to not holding the private key. But some platforms such as eToro can make up for this, as it is a regulated platform with stronger security. The only problem is that you have to go online to check your virtual currencies, and scammers and hackers are on the lookout for unsecured connections.
If you opt for hardware wallets, you get stronger security for your crypto. This is because you hold the private key and the cryptocurrencies are your property. These wallets also take the form of a USB stick and let you keep track of your cryptocurrencies even offline. The problem is that if you lose your wallet, it is almost impossible to recover your crypto.
Each type of wallet gives you what you are looking for to store your digital currencies. But everything depends on your experience and what you expect from the wallet.
How to Get a Wallet?
To get your crypto wallet, you need to choose among these different types of wallets the one that suits you.
Hot Wallet (Exchange / Broker)
Hot wallets are the wallets offered by platforms and brokers such as eToro. These are secure platforms that are simple to use for all types of investors. These platforms’ wallets let you log out and log in to your account from another device. However, it is generally advisable to keep only a small part of your funds in this type of wallet.
PROS
- The easiest way to get started;
- No need to transfer your assets if you want to sell them;
- Fast and cost-effective;
- High security standards on reliable sites such as eToro
CONS
- Not every exchange guarantees state-of-the-art security for your wallet;
- An exchange is by definition a point of failure;
- The convenience can make users less careful about storage security;
- You do not have immediate access to your funds.
The other types of wallets we will now look at are also called cold wallets. They can be created by brokers (eToro, Binance, Coinbase cold wallets and others), or dedicated to specific cryptos (Ethereum cold wallets, Cardano cold wallets, XRP wallets and so on).
Software Wallet (Desktop / Mobile / Online)
Software wallets let you store your tokens on your desktop computer or mobile phone. They give you quick access to your crypto with full control of your private keys. A wallet file is created in which your private keys are recorded. This file is also encrypted and protected by a password or passphrase to increase the security of your account.
There are also two types of software wallets, depending on how you use your virtual currency:
Software wallets that can hold several different cryptocurrencies
Software wallets that can only hold one type of digital currency
PROS
- Easy to install and use;
- High security;
- Control of your private keys.
CONS
- Risk of being hacked if you lose your computer or mobile phone;
- Your funds are “hot” when your computer or phone is connected to the Internet;
- Using public Wi-Fi to access your funds is risky.
Hardware Wallet
Hardware wallets offer a much higher level of security than other wallets. Many investors consider them the best way to store cryptocurrencies (Bitcoin, Dogecoin, Tron and more). Your private key is stored on a cryptographically secured physical device (a USB stick). Hacking rates for this type of wallet are therefore very low, and even a virus on your computer can do nothing about it. If you want to use this type of wallet, we recommend buying from reliable manufacturers rather than using second-hand wallets.
PROS
- Simple to use;
- Very high security standards;
- The device can be stored safely;
- Practical solutions for restoring funds if the device is lost or damaged.
CONS
- Second-hand hardware wallets may contain malware;
- May seem impractical to use;
- If the device is lost, it is impossible to restore your funds.
Paper / Physical Wallet
With paper wallets, websites create a public and private key for you in moments to secure your account and create your wallet. These wallets generate your keys through open-source services that create them locally on your device. This means the wallet offers good security, since the keys are not sent over the Internet.
PROS
- Very high security standards (depending on how the paper wallet is created);
- Inexpensive, practical and fast.
CONS
- If the sheet containing your private key is lost or stolen, it cannot be restored;
- Risk of being compromised from the start if malware has infected your computer.
How to Use Your Crypto Wallets?
How you use your crypto wallet depends on your trading and investment strategy. For example, if you want to invest in Cardano, we recommend using platforms as your wallet if you are investing for the short term. For long-term investments, we recommend using a Cardano Ledger wallet for greater security of your funds.
Experienced investors also prefer to hold two different wallets, especially for cryptocurrencies that offer their own (Ethereum ETH, Cardano, Tron TRX, Dogecoin and others). In that case, you will need to create a Trust Wallet account to use these wallets.
Why Use a Crypto Wallet?
Investing in cryptocurrency means you are ready to take a risk: the risk of leaving part of the control of your money to the crypto market. So, to manage your virtual currencies as fully as possible, it is important to have your own wallet.
But a wallet’s usefulness is not limited to managing your cryptocurrencies. It also keeps your crypto secure, since hacking a wallet address is still very difficult today. A crypto wallet also lets you make fast transactions, whether it is a hardware wallet or a trading platform such as eToro. On top of that, you can hold a large number of cryptocurrencies in the same wallet. You can hold Bitcoin, Ripple, Tron and other cryptos in your wallet and diversify widely.
How to Choose the Right Bitcoin Wallet?
As Bitcoin is one of the most popular cryptocurrencies, here are the best tips for choosing your Bitcoin wallet. First, your experience as an investor is one of the main criteria. A beginner will need a secure wallet, while an investor used to peer-to-peer transactions can choose whichever wallet they prefer.
Next, ask yourself which kind of Bitcoin wallet really suits you. Whether it is a cold wallet or a hot wallet depends on your style and what you need from a wallet. Wallet security is also a major criterion before choosing. You should use a code and password that are hard to crack and that only you know. And don’t forget to check which devices the wallet you choose is available on.
Finally, take the price of the wallet into account when assessing its quality. That means looking at the number of cryptocurrencies available, the fees and the security of your Bitcoin wallet. There is no point investing in a wallet that leaves you out of pocket.
Storing Your Cryptocurrencies: Which Wallet Protects Them Best?
The security of your cryptocurrencies will depend on how you use them and your investor profile. For example, for your long-term investments, we recommend using hardware wallets (Ledger, Trezor and others) or paper wallets to keep your crypto secure. Hardware wallets are the most recommended because of their high level of security. But they are more expensive than other wallets, which sometimes offer free storage services.
For short-term investment strategies, the most widely used wallets are online wallets or those available on platforms such as eToro. These wallets are less secure, but they let you buy or sell your crypto quickly, so you can cash in your gains right after each successful trade. To use these services, you also need to complete the requests and provide the supporting documents your broker or wallet asks for.
But these wallets are not meant for large sums, because of the high risk of having your virtual currencies stolen. We therefore recommend trading with online wallets for small amounts, and keeping large amounts in cold wallets.
How to Receive Crypto in a Wallet?
Receiving cryptocurrencies in your wallet is very simple. Just share your public wallet address with the sender. If your wallet has a QR code, you can simply let the sender scan it.
How to Send Cryptocurrency from a Wallet?
Here are the steps for sending cryptocurrency from a wallet:
Enter the recipient’s public wallet address, then choose the amount to send, taking transaction fees into account
Once the various checks are done, all you have to do is press “send transaction”
Using a QR code can help you avoid mistakes when typing the recipient’s address
Conclusion: Which Wallet for Your Crypto?
To choose a wallet for storing your cryptocurrencies, you need to consider several criteria, such as the wallet’s security, reliability and features. You can then select your wallet based on your needs and how you intend to use your virtual currencies, for example when you want to set up collateral for a masternode and select the masternode address.
For experienced investors, we recommend the Ledger wallet, a user-friendly wallet with enhanced security. It is also suited to long-term trading strategies.
For beginner investors, we recommend the eToro platform for a complete and successful first trading experience. It is easy and simple to use and lets you follow the trading strategy of your choice.
It can also be worthwhile to combine these two storage tools to give you plenty of flexibility in your trading strategies.
Read also: Abra Wallet Review · Edge Wallet Review