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M.J. KELLEY II
If you are a beginner when it comes to cryptocurrency, you may be under the impression that a crypto wallet acts similar to a normal wallet, in that it just holds your money. If this was the case, then there would be no real need for a wallet as all your digital cash would just be stored for you by your online broker/ exchange.
Crypto wallet are extremely convenient for digital transactions. They store NFTs and make it easier to send and receive money from people’s accounts and marketplaces. A wallet is in actuality nothing more than a device you use to store your private keys/ keywords. All you need to do is to ensure the safety of your keys, that way even if you lose the device, as long as you have the keys, you won’t lose anything!
Crypto Wallets can also be used to manage exchanges and digital currency, which one must do themselves. Due to all this responsibility, many people find it difficult to choose a wallet. Additionally, with the sheer variety in digital wallets, no wonder this is a hard decision! If you have been indecisive in this regard, then this article is just for you. Here are all the features you should be on the lookout for when in need of a wallet for all your crypto needs:
There are a lot of details in each of these features which is why it is recommended that you read the article in its entirety. By the end of it, you should have all the knowledge you need to choose a wallet that suits your needs. Furthermore, I will also talk about some wallets you should look into.
What I believe to be the first deciding factor when on the hunt for the best crypto wallet is whether the wallet is fully decentralized or not. The appeal of the blockchain is in its decentralization and you will not be getting that if you opt for a custodial wallet, simply because of how it operates.
When it comes to crypto wallets of this nature, all of your funds are in the possession of a third party, operating similarly to a bank. Popular exchanges such as Binance offer custodial wallets. Opting for one will save you the trouble of storing your crypto, and remembering passwords and offers a beginner-friendly environment. Unfortunately, it comes with the threat that the third party may either intentionally or unintentionally, lock you out of your own funds.
I recommend Non-Custodial Crypto Wallets because of the control they offer. With no third-party risks, only you can manage your funds and investments. Additionally, it also makes crypto exchange easier to do and even offers offline storage capabilities. Since you are solely responsible for the wallet, it will be your job to manage the password and security of the wallet. While you still run the risk of getting hacked, at least you won’t have to deal with the threat of a third party getting hacked or acting against you.
Before I can go and explain what type of crypto wallet is best suited for you, you should know the devices you can use to access a wallet. If you frequent a specific device over another, you should make sure that it can support the wallet that you are looking for. Depending on your device, you may be limited in the type of wallet you can have. Furthermore, each device has its own positives and negatives as well that you need to know. Here are further 5 types of wallets you should understand before you decide on a cryptocurrency wallet for you:
These crypto wallets are installed on your computers and are quite easy to use, especially for beginners. The first digital wallet was indeed a desktop wallet and most exchanges offer desktop support. Oftentimes, they are constantly connected to the internet which is a significant feature to remember.
Also known as web wallets, online wallets are a convenient way to store your crypto. Usable via browser plugins, these types of wallets are often controlled by third parties. Running on the cloud, these cryptocurrency wallets do not require any sort of download, making them easy to use but they are often criticized for their lack of security.
Operating on the same concept as desktop wallets, albeit tinkered for the mobile experience, you get the same facilities here as well. In this version of your digital wallet, everything is optimized for mobile and much more simple. Offering much more convenience, they are easy to use on the fly but are more vulnerable due to a lack of mobile security.
If you are planning to get into crypto for the long haul, you will want the ultimate protection. You can get this via hardware wallets that do not connect to the internet and store private keys either on USB sticks or hard drives. You only run the risk of losing the actual device and the only other drawback is that it will cost you some money for the device.
While not the fanciest, paper wallets get the job done by storing your private keys on a piece of paper. Private keys can either be written down as is or be stored in the form of a QR code that you will need to scan. Since they lack an internet connection, they are generally safe but you still run the risk of losing them. Make sure you keep them safe too as the paper is not the most durable material!
Now that I have explained all the ways you can access your wallet and private keys, I should now talk about which of these you should consider. Careful readers may have noticed that I mentioned whether or not each crypto wallet can connect to the internet or not. I have done so to bring up both hot and cold wallets and talk about which one is more suited for you.
Wallets that are always connected to the internet are called hot wallets. Being free to use, they offer a lot of additional services such as trading and buying NFTs. As you would expect, this comes at the cost of them being prone to attackers. Hackers and adversaries can exploit vulnerabilities to lock you out of your wallet. If you plan on carrying out a quick purchase, a hot wallet should be your go-to choice. If you were planning on storing the bulk of your digital currency, I would not recommend this wallet as you run the risk of having it all stolen. This is where the next wallet type comes into play.
Since they are not connected to the internet, cold wallets are much more reliable to store a large amount of digital currency. While they lack transaction convenience and general features, they make up for this with their iron-clad security. Aside from being physically stolen or damaged, you can be sure that your cold wallet will protect all your currency inside. Keeping this in mind, you would be wise to store most of your cryptocurrency on a physical device that also has a passcode on it.
For a lot of cryptocurrency enthusiasts, the best crypto wallet will vary depending on their usage of their currency and its frequency. It will also shift significantly depending on your area of interest. If someone told you that you would soon get your hands on a real bitcoin, then you were being scammed. Hopefully, you didn’t follow up like I did! Cryptocurrency is always in digital form. Using and protecting it all falls down on your hands.
People who simply want to store their digital currency will gravitate towards cold wallets while those who wish to actively trade will go for the opposite. Currency storage will also play directly into security. Physical devices are much more secure making hardware and paper wallets better.
For people who wish to carry out transactions and do so regularly, web wallets and computer wallets are more preferable. Furthermore, these transactions can vary as well. Some crypto wallets can only handle basic crypto exchanges while more advanced ones will allow the trading of NFTs. Knowing whichcrypto wallet offers what facilities are another integral step in getting the best wallet.
Finally, it all falls down on the reputation of a particular crypto wallet. Providers that have proven themselves time and time again should be chosen over one those who have had multiple failures. In addition to this, you should also see the security they provide as well as any features they include for your convenience.
Now that I have explained all the features you should be looking for in a crypto wallet, the next section of the article will talk about a couple of wallets that I personally recommend. The wallets in question are:
If you are interested in opening a wallet in any of these providers, then stick around as I will be going over all of the features they offer as well as their drawbacks.
Being non-custodial, Exodus Wallet leaves you in charge of all your private keys and cryptocurrency. Offering a solid set of tools included in desktop, web, and mobile applications, this wallet supports well over 250 digital currencies. This may seem like a lot but many of its competitors have claimed to support tens of thousands of them. All of this is available in a user-friendly environment that is great for beginners.
When it comes to customer services, Exodus Wallet seems to have dropped the ball. They offer a lack luster customer support and charge high fees. Sadly, even with these high fees, the do not have a debit cards and are soon to go public. Because they are not yet public, they do not have customer identification either.
With over 70 million users under their wing, you can expect a lot of features from Crypto.com. This cryptocurrency wallet is mostly transaction-oriented and supports a variety of different coins and currencies. One of which is their signature currency; Cro coin. Aside from having implemented a debit card system and visa integration for transactions, you can also make money by advertising from them! If you are looking for even more ways to earn then this site allows you to stake high and earn a lot through that. The visa integration also makes it seamless to convert the crypto back into normal money.
Unfortunately, this wallet also suffers from bad customer service which is frustrating, to say the least. The debit card can take weeks if not months to get into your hands. Another thing to note is that their signature currency has little if any use outside of the site itself.
The world of cryptocurrencies is ever expanding with more and more people making the shift to a digital currency. With the future being Web3, now is the best time to establish your funds in a trustworthy and capable wallet. Now that you have finished reading this article, you should have a complete understanding of what makes a cryptocurrency wallet good. This way, you can take steps to get the best crypto wallet for you.
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