👛 Compare Best Crypto Wallets

👛 What are Cryptocurrency Wallets?

Cryptocurrency wallets are digital tools that allow users to securely store and manage their blockchain assets and cryptocurrencies. They enable users to spend, receive, and trade cryptocurrencies and can support multiple assets, such as Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. Cryptocurrency wallets are accessed through smartphones and computers and are secured with passwords and other security measures to ensure that only the owner can access the funds.

Instead of physically storing the blockchain assets, cryptocurrency wallets store public and private keys. Public keys are digital codes that are attached to a decentralized blockchain and are similar to a bank account number. Private keys are unique to an individual's cryptocurrency wallet and serve as proof of ownership for the corresponding public key. They are used to conduct all transactions with the cryptocurrency in the wallet.

Businesses can also use cryptocurrency wallets through cryptocurrency payment gateways to securely store or exchange blockchain assets. In order to be classified as a cryptocurrency wallet, a product must allow users to store private keys, provide a way to interact with blockchains, and offer security measures to protect the private keys.

🧩 What are Different Types of Cryptocurrency Wallets?

While hardware wallets are often considered the best way to store cryptocurrencies it’s important to note there are other ways to hold your crypto. Perhaps the best thing about non-hardware wallets is that they tend to be free. Here’s a look at the alternatives to a hardware wallet.

Exchange (Free)

It’s possible to buy digital assets on a cryptocurrency and just leave them parked on the exchange itself. This is referred to as a “custodial wallet” and is considered one of the least safe ways to store cryptocurrency because a third-party holds your private keys. Several high-profile exchanges have filed for bankruptcy and essentially robbed their customers. Exchanges have become much more reliable over the years but we don’t recommend leaving any sizeable amount of cryptocurrency on an exchange.

Desktop Wallet (Free)

Desktop wallets are easy to use but significantly safer than cryptocurrency exchanges. At least with a desktop wallet your private keys are stored on your own personal computer. That means your PC or Mac would have to be compromised to get your coins stolen. It’s definitely possible, but less likely. The plus side is that its very easy to make transactions using your desktop wallet because the keys are already on your computer and you don’t have to plug in anything. Generally desktop wallets are free.

Mobile Wallets (Usually free)

Mobile wallets are also very convenient but are considered more secure than desktop wallets because smartphones are generally less prone to malware than personal computers. Furthermore, some mobile wallets allow you to add extra layers of security such as 4 digit PINS, or fingerprint identification. Other than that, they work much the same way as desktop wallets, which means it’s very easy to send and receive cryptocurrency. You might be in trouble if you lose your smart phone, however. Fortunately if you’ve made backups of your recovery phrase, or private keys, you shouldn’t have anything to worry about.

🔥🧊🌡️ What is the difference between hot and cold wallet?

When it comes to using a non-custodial wallet, you must decide between a hot wallet or a cold wallet. The main difference between the two is whether the wallet is connected to the internet.

A hot wallet is a wallet that is on a device that is connected to the internet. These types of wallets are often free to use and may offer additional services, such as trading or staking, in exchange for fees. Hot wallets make it easy to conduct transactions with cryptocurrency, but they may be more vulnerable to hackers who can potentially access your crypto over the internet.

On the other hand, a cold wallet is a wallet that is on a device that is disconnected from the internet. These wallets tend to cost money because you have to purchase a piece of hardware specifically designed to store your cryptocurrency. Cold wallets are less accessible to other users because they are not connected to the internet, but if you lose the actual device, it may be difficult to recover your crypto.

🎨 How to compare Crypto wallets?

Below are the most important aspects to check wen comparing the cryptocurrency wallets:

Security. Security is an important factor to consider when comparing cryptocurrency wallets, as it is the place where you store and protect your crypto assets. When comparing crypto wallets, it is important to review the brand's security features, such as 2FA, pin codes, multi-signatures, back-up type, and anonymity level.
Type. Cryptocurrency wallets come in different types, including hardware, software, and paper. These types have different features, levels of security, prices, and ease of use, so it is important to know what you will receive with each type.
Pricing Pricing for cryptocurrency wallets often reflects the security level and additional features offered by the product. Hardware wallets tend to be the most expensive, but they also offer the highest level of security and additional features. Software wallets may be free, but they usually have fewer security elements and a simpler structure.
Usability. Ease of use is also an important factor to consider when comparing cryptocurrency wallets. It is helpful when a wallet offers top-tier security with a fluid user interface and easy-to-understand processes.
Support. Customer support is vital for cryptocurrency wallet brands, as users are putting the security of their assets in the brand's hands. It is important to consider the evaluation of customer support when comparing crypto wallets.
Coins supported. When comparing cryptocurrency wallets, it is also important to consider the number and type of supported coins. If you want to hold more than one cryptocurrency, it is more convenient to store them in a wallet that supports multiple coins. The number of supported coins varies by brand, so it is important to check the specific number and type of coins supported by each wallet.