Article update: 12/07/2023
Crypto wallets are software or hardware storage facilities with which users can store, send and receive cryptocurrencies. There are several types of crypto wallets: online wallets, mobile apps, hardware wallets, and even paper wallets. They all provide access to digital assets and have their own advantages and disadvantages.
In this article we will tell you more about the types of wallets by storage type, share our opinion, which wallets we consider the best and provide detailed instructions on how to create and use a crypto wallet.
Types of crypto wallets
Crypto wallets come in two types depending on where private keys are stored:
- hot;
- cold.
Private keys are secret keys that give owners access to their cryptocurrency funds. If attackers gain access to private keys, this could lead to the loss of all funds.
Hot crypto wallets
Hot wallets have a permanent Internet connection and are available online. They provide access to cryptocurrencies through a web browser (website, browser extension), mobile application or applications installed on a local computer.
Such wallets are convenient to use in everyday transactions, but their disadvantage is their vulnerability to cyber attacks and hacking.
Cold crypto wallets
Cold wallets are wallets that remain offline and are offline most of the time. This is one of the safest ways to store cryptocurrency, as private keys are kept in an isolated environment and are not exposed to online threats.
Cold wallets include hardware and paper wallets.
Hardware wallets store private keys on a physical device that can be connected and disconnected from the Internet via a computer, while paper wallets are physical documents with keys written on them.
The general rule of security when storing cryptocurrency is that a significant portion of assets are best stored in cold wallets, while hot wallets can store small amounts for day-to-day transactions. This option will help minimize the risks of losing funds while maintaining ease of use.
Best hot crypto wallets
Most newcomers to the world of cryptocurrencies prefer to store their assets in the wallets of crypto exchanges, where they can trade or invest. We examined in detail the best crypto exchange wallets in our article “TOP 5 crypto exchanges.”
However, if you want to not only trade, but also actively make transfers, use DeFi services or participate in the world of NFT games, then you will need a separate online wallet built into your web browser or mobile application. We have prepared a list of the best hot crypto wallets for you.
These wallets provide ease of use and access to diverse cryptocurrency ecosystems, allowing you to maximize the potential of your cryptocurrency assets.
Bitget Wallet
Official website web3.bitget.com
Bitget Wallet is a convenient crypto wallet for managing your cryptocurrencies in one application. The wallet was first launched in 2018. The Bitget wallet has been chosen by more than 12 million people around the world.
Bitget Wallet Benefits
It provides many features: fast and convenient trading directly in your wallet, cryptocurrency exchange, NFT market, access to decentralized applications and much more. One of the main advantages of this application is its ability to change cryptocurrency from one blockchain to another.
Pros and cons
Trust Wallet
Official website trustwallet.com
One of the most popular and reliable wallets for cryptocurrency and NFT tokens. Supports over 9 million tokens! Easy purchase, storage and transfer of cryptocurrencies. It is used by more than 60 million people around the world. This wallet has a mobile application and extension for Google Chrome, Brave, Opera and Edge browsers.
Trust crypto wallet supports several blockchains, including Ethereum, Solana, Polygon, Avalanche and Binance SmartChain. This wallet is also compatible with over 8 million tokens. You can easily send and receive cryptocurrency.
Pros and cons
MetaMask
Official website metamask.io
One of the leading hot crypto wallets in popularity. You can safely store, exchange and buy cryptocurrency. Also very easy to use. Supports a large number of coins and blockchains such as Ethereum, Linea, Binance SmatChain, Optimism.
There are applications for Android and iOS, a web version, as well as a convenient extension for browsers. At the moment, this wallet is used by more than 30 million people.
Supports integration with popular NFT games (such as Axie Infinity) and NFT marketplaces such as OpenSea.
Pros and cons
Exodus
Official website www.exodus.com
Convenient crypto wallet for storing, purchasing and exchanging cryptocurrencies. Available both in the browser and as an installable application for Windows, Linus and Mac OS with support for the Trezor cold wallet. It is also possible to install extensions for Chrome, Brave browsers and a mobile application for iOS and Android.
Access DeFi dApps, manage your NFTs, swap tokens with this multi-chain Web3 wallet.
Pros and cons
Phantom
Official website phantom.app
Phantom is a modern crypto wallet that provides users with a convenient and secure way to manage their crypto assets. Available for Ethereum, Solana and Polygon networks.
You can store, list for display, and burn your NFT tokens. Phantom is a non-custodial wallet. Provides access to NFT marketplaces.
Available as a browser extension and mobile application.
Pros and cons
Guarda
Official website guarda.com
Guarda is a cross-platform crypto wallet designed to store and manage your cryptocurrencies. Supports more than 400 thousand crypto assets.
Mobile applications and browser extensions are available for download. Also available via the website and as a local wallet for Windows, Linux and Mac.
Pros and cons
Best cold-wallets
Cryptocurrency cold wallets are devices or programs designed to securely store cryptocurrency assets. They got their name due to the fact that they do not have a constant connection to the Internet, that is, they are offline, which makes them less vulnerable to hacker attacks and viruses.
Types of cold crypto wallets
Cold wallets include:
- Hardware cold wallets. These are physical devices, similar to flash drives, specifically designed for storing cryptocurrencies.
The most popular wallets: Ledger Nano S, Ledger Nano X and Trezor. They usually have pin code protection and two-factor authentication. - Software cold wallets are programs that are installed on a computer and can then work offline. They have a good level of security, but lower than that of hardware wallets.
Wallets from Exodus and Guarda have such applications. - Paper cold wallets – this is an option to store your private keys and addresses on paper. In this case, all data will be completely offline. However, this is not the most convenient way to store and use cryptocurrencies.
There is a risk of loss or damage to a paper document and, as a result, loss of funds.
Advantages of cold wallets for cryptocurrencies
- Security
They are offline and not subject to online threats. - Control
Only you can manage your funds. - Data Loss Protection
Even if your computer or device is damaged or stolen, your cryptocurrencies will remain safe if your private keys do not fall into the hands of attackers.
SafePal S1
Official website www.safepal.com
SafePal is the first cryptocurrency hardware wallet developed by Binance Labs. Full decentralization allows users to maintain 100% control over their own digital assets. Also available as a hot wallet as a mobile application and browser extension with rich functionality.
Price: $49.99
Payment methods: cryptocurrencies, bank cards
Delivery: delivery to Russia available
Free delivery when purchasing two devices
Warranty: 1 year
Pros and cons
Ledger Nano S Plus
Official website www.ledger.com
Ledger Nano S is a hardware wallet for cryptocurrencies produced by the French company Ledger. It is one of the most popular cold crypto wallets in the cryptocurrency market. This wallet provides a high level of security for storing and managing digital assets.
This is the most budget-friendly cold wallet option from Ledger. Connects to a computer via USB-C.
Price: $79.00
Payment methods: cryptocurrencies, bank cards
Warranty: 1 year
Pros and cons
Trezor Model One
Official website trezor.io
Trezor One is a hardware cryptocurrency wallet developed by SatoshiLabs. The company’s wallets were among the first hardware wallets on the market and are widely recognized for their reliability and security.
Price: $69.00
Payment methods: cryptocurrencies, bank cards
Warranty: 1 year
Pros and cons
Cold wallet comparison
Below is a comparative table of the above mentioned cold crypto wallets.
SafePal S1 | Ledger Nano S | Trezor One | |
Цена | $49.99 | $79 | $69 |
Доступные интерфейсы | USB-C и камера | USB-C | USB-A |
Способ подключения | Сканирование QR-кода | USB-C | USB-A |
Air Gap (Воздушный зазор сети) | Есть | Нет | Нет |
Экран | 1.3’ цветной дисплей | 128*32 LED один цвет | 128*64 OLED один цвет |
Батарея | 400 mAh | Нет | Нет |
How to choose a crypto wallet
The choice of a crypto wallet depends on your goals and needs for managing cryptocurrency assets. Pay attention to the following criteria to understand which wallet is suitable for your purposes.
- Purpose of storage
If you plan to actively trade or frequently exchange cryptocurrency on an exchange, then you are better off choosing a hot wallet. It will allow you to quickly complete transactions.
For long-term storage of large amounts, we recommend using hardware wallets or a reliable application for your operating system. If you choose an app, make sure your device is secure. - Level of control over transactions
In cold non-custodial wallets, full control over the security of funds rests with the owner of the wallet.
In hot options, the user has partial control. It assumes that some transactions will require third party confirmation. - Transaction speed
If you need fast and urgent transactions, then online storage facilities such as exchange custodial wallets are better suited. They complete transactions almost instantly. - Crypto portfolio size
The larger the amount of your crypto assets, the more important it is to choose a reliable way to store them. For small amounts intended for current transactions, you can use hot exchange, desktop or mobile wallets.
For storing large amounts, it is safest to use hardware wallets, as they provide the maximum levels of protection. - Anonymity
Some companies providing hot wallets require user verification in accordance with legal requirements. If it is important for you to maintain anonymity, choose hardware or browser-based decentralized wallets that do not require personal identification.
The main thing about crypto wallets
Cryptocurrency wallets are the optimal means for managing and storing cryptocurrencies and tokens.
It is important to understand that the funds themselves are not stored in wallets. These applications and devices provide access to transactions on the blockchain using private keys.
There are several options for using a crypto wallet:
You can download special software to your computer, such as Exodus, Guarda, or to your smartphone, for example, Trust Wallet. You can install extensions for browsers such as Meta Mask, Trust Wallet and others.
And for more secure storage, you can purchase a hardware wallet such as SafePal, Ledger or Trezor, which is a physical device not connected to the Internet.
It is important to remember that hardware wallets are considered the most reliable because they work offline, which makes it impossible for third parties to access your private keys and money.
Other types of wallets have varying degrees of security and are subject to various risks. For example, exchange vaults such as KuCoin, Huobi, and Binance are less reliable and are recommended for storing only limited amounts for the purpose of fast transactions.
