Which is the best wallet to use for cryptocurrency? A cryptocurrency wallet is a software program, online platform, or hardware device that stores the keys that you use to send and receive various cryptocurrency blockchain tokens.
It stores your “private” and “public” keys, which are the secure communication path of your wallet with the cryptocurrency blockchain ledger.
It also allows you to view the status of cryptocurrencies you hold. The interface, a display of the software, helps users understand the crypto balance (how many different cryptocurrencies like Ethereum, Bitcoin, or Ripple they have).
The way blockchain works are that the ‘leaders’ in the blockchain network are updated on all the ‘nodes’. This means that all personal ‘leaders’ will be updated at the same time – a wallet does not contain crypto money, but a record of transactions.
Contrasting a wallet in your pocket, your crypto wallet does not store money the way funds are stored in a PayPal account. This is the main difference between cryptocurrency wallets and other online cash accounts.
The Importance of Protecting Your Cryptocurrency
Investing in crypto is not easy. To buy various cryptocurrencies, you have to get the best wallet to use for cryptocurrency, and to buy cryptocurrency you need to deposit money into a crypto exchange- and we won’t even talk about bank transfers.
There are a lot of different moving components, and when they work as they should then investing in cryptocurrency is easy. But if one part stops working they all stop working.
In the cryptocurrency world, a cell phone, hard drive, or other portable storage space becomes a bank vault. Decentralization did the same. By removing intermediaries (banks and governments) cryptocurrency has made people more independent, but all of this comes at a risk.
By making you more independent, you have to take full responsibility for ensuring the security of your cryptocurrency.
Different Types of Crypto Wallets
Do you want to store the cryptocurrency on your computer, smartphone, or offline? There are many different ways to have a cryptocurrency wallet. This section will summarize the various wallet technologies available and the advantages and disadvantages of using them.
This type of wallet is considered the best wallet to use for cryptocurrency. To store cryptocurrencies a hardware wallet is one of the safest ways. It’s called “cold storage.” This means that a hardware wallet is offline and is more secure than a “hot storage” wallet (like a web or software wallet). Therefore, it is considered the best type of wallet for cryptocurrencies.
A hardware wallet differs from a paper wallet in that it provides high built-in security. The hardware wallet has advanced security and looks like a USB flash drive. This means that no one can access the device without the correct password. It helps to significantly improve security.
However, keep in mind that the hardware wallet also has drawbacks. If these wallets get damaged or corrupted, you may not be able to restore them. Moreover, since these are physical devices, you can lose them. But, a recommended cold wallet like the Ledger Nano S gives you a word seed that can be used to restore it.
Another drawback is the price. A paper wallet, a web, or an application based wallet costs much less than a hardware wallet. This is because you are buying digital security. A hardware wallet is like a USB drive with good memory and advanced security. They start at $ 70-99 plus and some cost over $ 2000!
A hardware wallet is a good choice if you plan to trade cryptocurrency with regularity and need a crypto wallet for offline protection (‘cold storage’). Keep in mind; this is like having a safe deposit box. You have to remember the access code of the wallet because if you forget it, no one else can help you access it.
Ledger Nano S
The Ledger Nano S is one of the reliable and most popular hardware wallets. More than 1,500 cryptocurrencies are supported by Nano S and are constantly expanding its list. The main reason why Ledger Nano S is warmly recommended is its safety.
Nano S like other cold wallets stores your private keys within the actual device – offline, which means you do not have to worry about cyber attacks. Also, you can select a pin and get a recovery phrase of 24 words this recovery phrase will be needed if you forget your pin code or lose your device.
An improved version of Ledger Nano S, known as the Ledger Nano X is also available. It looks the same but has a larger screen and some additional features that improve functionality.
These ledger devices are made of stainless steel which makes them resistant to physical damage. So Nano S is the best wallet to use for cryptocurrency.
Although the Ledger Nano S costs only $ 59, the Ledger Nano X is more costly – $ 119. While they come at a price, safety should come first.
Trezor wallet is one of the most commonly recommended hardware wallets. It can be called the best wallet for cryptocurrencies. It’s a superb Bitcoin wallet and it is very secure. Trezor supports Windows, Linux, and Max and is one of the best Android wallet applications available to store cryptocurrency in cold storage.
Trezor wallet includes full two-factor authentication, a password management application, and is compatible with ERC-20 tokens. The wallet supports a wide range of cryptocurrencies including Bitcoin, Ethereum, and Dash.
Easy to use, just plug in the USB adapter, you are connected with a computer and you can reset them using the management software that came with the product. Complete control, complete security, and complete peace of mind. It is also small so you can carry it with you anywhere.
Trezor Model T is priced at $ 169.99. Although relatively expensive, these types of prices pay off handsomely.
Another recommended hardware wallet for the cryptocurrency is KeepKey. It has a large screen that allows you to view the entire cryptocurrency address without the need for scrolling the screen back and forth. The screen is protected by a polycarbonate case.
KeepKey, a hardware wallet, is very secure. It provides you with a PIN code and retrieval seeds. Moreover, it has a unique feature of changing pin code from time to time that protects you from copying your code by malware.
KeepKey is priced at $ 49, making it one of the most affordable hardware wallets in the market for cryptocurrency.
A “hot wallet” is a software cryptocurrency wallet. This means that they can be accessed or hacked remotely due to internet access. But if you trade small amounts, a software crypto wallet for desktop may be a good cryptocurrency wallet for you!
As for Coinbase, most crypto enthusiasts know that this is an exchange. While this is true, it also has its software wallet and can be considered as an online or web wallet. Among online wallets, It is considered the best wallet to use for cryptocurrency.
While software wallets are not as secure as hardware wallets, the good news is that you can download and use them for free. Naturally, when you want to buy or sell cryptocurrencies, you have to go through the Coinbase exchange for this purpose, which charges a fee on transactions (on average 3.75%/transaction) as with other cryptocurrency exchanges (only fees vary).
Coinbase software wallet version is available for iOS and Google Android users. If you trade a lot daily, you can store some of your crypto assets in a hardware wallet or Coinbase software wallet and store other parts on Coinbase exchange that acts as an online wallet and makes it easier to trade.
Less Recommended Software Wallets
Electrum can be downloaded for Windows, Mac OS, and Linux OS. This is a well-famed software wallet for desktops, but this wallet is also very technical. If you are new to the cryptocurrency world or Bitcoin, this software may not be the right choice for you.
The biggest benefit of a software wallet – like Electrum – is adjusting transaction fee settings. When a Bitcoin network is busy, the fees increase while people wait for the transaction to be confirmed. Electrum wallet facilitates the users to change transaction fees to expedite transactions.
Exodus is a beautifully designed wallet that supports exchanges in multiple currencies, including Bitcoin, Ethereum, Litecoin, Dogecoin, and Dash. It lets you manage your keys, displays your investment in graphics that are easy to understand, and fully customizable – so you can make it perfect for you.
A desktop software wallet is not appropriate for everyone. If you have large amounts of cryptocurrencies, it would be best to use a more secure type of wallets such as a paper wallet or a hardware wallet like Ledger Nano S and Trezor.
A desktop software wallet is better than a web wallet, but it is not the best type of cryptocurrency wallet available.
One of the safest ways to protect your cryptocurrency is to have a paper wallet. A paper wallet is also the best wallet to use for cryptocurrency. It is an offline way to hold a cryptocurrency. Simply put, it displays QR codes that indicate your public and private keys.
This offline security network means you have complete control over your investments in cryptocurrencies. A paper wallet is one of the best available cryptocurrency wallet formats.
However, this type of wallet is not suitable for everyone. If you trade daily or weekly, paper keys will be very difficult to operate – you will use a lot of QR codes.
A paper wallet is best suited for a long-term investor in cryptocurrencies. If you are planning a large purchase of crypto, in the long run, using a paper wallet can give you the best peace of mind because a paper wallet is one of the safest ways to store your crypto coins.
BitcoinPaperWallet.com like services permit users to print Bitcoin paper wallets to get the best offline Bitcoin storage solution. You can buy a tamper-proof paper wallet online with full QR codes. BitcoinPaperWallet.com like service can facilitate long-term security for investing in Bitcoin
You should keep in mind that the paper wallet must be stored in a safe place. Any damage from water or fire can cause complete loss of your cryptos. You can lose everything – but that applies to all wallets if they are hacked or lost.
Responsibility – it’s about taking care of your code. If possible, it is recommended that you keep a copy of your paper wallet with a trusted family member. This way you can back up your private key if your originals are damaged or lost.
This guide tried to gather all the different crypto wallets available for cryptocurrency investors. There will be a need for a crypto wallet for every crypto investor, trader, and user, so if you are one of them, it is up to you to choose your best wallet for your crypto coins.
So which is the best wallet to use for cryptocurrency? We found that a “hot wallet” is not 100% safe – good for small transactions only. Desktop software wallets and wallets based on Apps/web are examples of “hot wallets”.
On the other hand, a “cold wallet” is much better for long-term cryptocurrency retention. Hardware wallets and paper wallets are examples of cold wallets.
The material published on this website is not intended to provide any financial, investment, commercial, or other forms of advice. Blockgeneses.com does not recommend buying, selling, or holding any cryptocurrency. Consult your financial advisor before making financial investment decisions.