Cryptocurrency wallets come in many forms, but within them they all provide a way to protect the secret information that gives you control over your digital assets. This is not something you want to leave to chance; If you lose access to these “private keys,” you may never get your cryptocurrency back.
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Free Cryptocurrency Wallet: Which Are the Best
Non-custodial wallets are the type of storage option preferred by many crypto enthusiasts because they put you in control of your private data.
Unlike when you hold assets on a cryptocurrency exchange, with a non-holder wallet, you don’t have to trust a third party to protect your private keys. The collapse of crypto platforms FTX and BlockFi, which have left customers wondering if their funds are lost forever, shows some of the potential pitfalls of leaving your cryptocurrencies in someone else’s hands.
This is not to say that non-holder portfolios are risk-free. They are less forgiving of mistakes like lost passwords, and you have to trust that your wallet’s hardware and software will work as intended.
And regularly moving assets between wallets can become costly due to transaction fees imposed by the underlying blockchain networks. For these reasons some cryptocurrency users have multiple types of wallets: some for long-term custody and others for active trading.
One way to choose a wallet is to look at the cryptocurrency website you hope to store. There are many single-use solutions created for individual cryptocurrencies. But if you’re planning to secure multiple types of cryptocurrencies in one place, it’s a good idea to shop around. Here’s how to know what’s right for you.
How to choose the best crypto wallet
If you plan to use a non-custodial wallet, the first question is whether you want a hot wallet or a cold wallet. These terms may seem unknown, but the main difference between a hot wallet and a cold wallet is whether it is connected to the internet.
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A hot wallet is on a device that is connected to the Internet. These are often free to use, offering additional services such as trading or betting in exchange for commissions. A hot wallet makes it relatively easy to transact using cryptocurrencies, but it may be more vulnerable to hackers who could theoretically reach your cryptocurrencies over the internet.
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A cold wallet is on a device that is disconnected from the Internet. These tend to cost money, because you have to buy a piece of real hardware that’s set up to store your cryptocurrencies. Because they are not connected to the Internet, they may be harder for other users to reach. But if you lose the actual device, recovery could be very difficult.
8 Best Hot Wallets
There is a large selection of hot wallets in the market, and most of them can support hundreds or even thousands of cryptocurrencies. In addition, they can typically contain at least some type of NFT or non-fungible tokens, and many connect directly to exchanges where you can buy or sell cryptocurrencies.
The key differences between crypto wallets are:
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How many types of digital assets are supported?
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How easy is it to move cryptocurrencies offline, into a cold wallet?
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Are there resources for staking programs or in-app rewards?
Crypto.com DeFi Wallet
Crypto.com DeFi Wallet is a wallet created by a company known primarily for its cryptocurrency exchanges. It is specifically tailored for use in what is known as decentralized finance (DeFi), which is an area of the cryptocurrency world focused on lending, savings, and other financial products that do not rely on a central broker. Users of Crypto.com DeFi Wallet can use their crypto holdings to interact with DeFi products both on their mobile app and in a browser extension. It also has a desktop app that integrates with Ledger hardware wallets.
Another offering that may interest some security-conscious users is the availability of two-factor authentication. It’s worth noting that many competitors, however, don’t have 2FA, arguing that it increases the risk of losing your cryptocurrency and is made redundant by some of the fundamental wallet technologies.
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Supported tasks: more than 1,000.
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Can convert to cold storage: Yes, on desktop.
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Staking/DeFi support: Yes.
Watch: 4.6 out of 5 stars
Guarda is a free and multi-purpose crypto wallet whose users can access their cryptocurrencies via mobile extension, desktop or browser. It says it supports more than 400,000 digital assets. Guarda users can move cryptocurrencies into cold storage through an integration with the Ledger hardware wallet. Guarda also has staking programs available.
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Supported activities: More than 400,000.
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Can be converted into cold storage: Yes.
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Staking/DeFi support: Yes.
Exodus
Exodus offers a solid set of software tools, including a mobile app, a desktop app, and a browser extension. Its products allow users to buy, trade, or bet cryptocurrency directly from their wallets, and it has an integration with the Trezor cold wallet intended to help people easily move cryptocurrencies from storage to refrigerated ones. Exodus, which is free, also has a solid library of explanatory content for people who are learning about cryptocurrencies. Exodus supports around 250 cryptocurrencies, including many of the most popular assets. However, that number is lower than that of some of its competitors who claim that customers can store tens of thousands of different types.
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Supported activities: More than 250.
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Can be converted into cold storage: Yes.
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Staking/DeFi support: Yes.
Coinbase Wallet
You’ve heard of Coinbase. The company operates the largest cryptocurrency exchange based in the United States. But Coinbase Wallet is a separate product that allows users to store cryptocurrency on their own rather than keeping it in Coinbase’s custody. Since the Coinbase wallet was created by Coinbase, it easily integrates with its company’s exchange and could be a good introduction for users who have never used a non-custodial wallet before.
The free app has some other strengths, such as mobile and browser-based connections to decentralized applications. It also lacks some features offered by competitors, such as a desktop app, though its browser extension connects to the Ledger hardware wallet.
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Supported activities: “Thousands” according to Coinbase’s marketing materials.
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Can be converted into cold storage: Yes.
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Staking/DeFi support: Yes.
MetaMask
If you are
a regular user of applications on the Ethereum blockchain, chances are you have come across MetaMask. Free and open-source, MetaMask can store any digital asset built on Ethereum (there are more than 700,000). MetaMask also integrates with many of the “Web3” applications that exist on the Internet and require cryptographic transactions to function.
MetaMask has mobile and browser-based wallets, though it doesn’t have a desktop app. MetaMask also doesn’t stake directly into its app. However, you can easily target tokens using apps that connect to MetaMask on the web. Just remember that if you are not a big user of Ethereum and its related tokens, MetaMask may not be of much help to you.
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Supported activities: More than 700,000.
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Can be converted into cold storage: Yes.
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Staking/DeFi support: via connected apps.
Atomic Wallet
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Atomic Wallet allows users to store more than 1,400 cryptocurrencies and also provides options for people who want to buy, trade, or target digital assets directly from their wallets. Unlike some of its competitors, Atomic Wallet doesn’t have the ability to directly link your holdings to cold storage.
One feature that sets Atomic Wallet apart from its competitors is that you can purchase a paid membership, which allows you to earn rewards when you make a transaction using its platform. Unlike other hot wallets, however, Atomic Wallet does not offer a browser extension, which can be of great help in using cryptocurrencies to interact with decentralized applications.
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Supported tasks: more than 1,400.
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Can be converted into cold storage: No.
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Staking/DeFi support: Yes.
Trust Wallet
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Trust Wallet is another storage product that operates in partnership with a major cryptocurrency exchange. It’s the official wallet of Binance, the international digital asset company, and that partnership gives users the ability to buy, sell, and trade directly from their wallet. It says it supports more than a million types of digital assets. However, it doesn’t have an obvious way of converting resources from cells to cold rooms. It is, however, completely open-source, a distinction that only a handful of competitors share.
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Supported activities: More than 1 million.
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Can be converted into cold storage: No.
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Staking/DeFi support: Yes.
Electrum
Electrum is an outlier value among the wallets reviewed by NerdWallet, as it only works with a cryptocurrency. That cryptocurrency, however, is Bitcoin, by far the most valuable cryptocurrency on the market. What Electrum lacks in altcoin offerings, however, makes up for in security and transparency. This free, open source product offers two-factor authentication, easy connections to cold storage, and support for multisignature transactions (requiring multi-user approval). Electrum only offers a desktop app, but the tools it offers Bitcoin users make it exceptional. And it’s a reminder that if you’re looking to store just one cryptocurrency, it may be a good idea to refer to its official website for recommendations.
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Supported resources: One (Bitcoin).
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Can be converted into cold storage: Yes.
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Staking/DeFi support: No.
Top 3 Cold Wallets
Cold wallets are usually gadgets that help you store sensitive cryptographic information on a device that is not regularly connected to the internet.
While there are ways to do it yourself, hardware wallets are preloaded with software and other usability and security features that make the process smoother.
Cold wallets
cost more than hot wallets, partly because you’re buying a real physical product. When comparing crypto wallets, you may want to consider details like price and security measures. If you also use a hot wallet, you should check that the hardware you are considering works with your software wallet.
Ledger
Ledger is one of the most well-known names in crypto wallets. Its prices range from around $79 to $149, and Ledger can integrate with many popular software wallets like Crypto.com and Guarda. Ledger has a highly rated mobile app, as well as a dedicated desktop app, and its developers are launching a browser extension. Ledger also has two-factor authentication and a library of educational content for users. Ledger also has a high-end model with an advanced display, known as the “Stax,” which is expected to come out later in 2023 and costs around $280.
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Supported tasks: more than 1,000.
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Can convert to online storage: Yes.
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Staking/DeFi support: Yes.
Trezor
Trezor offers some of the high-end hardware available in crypto storage. While its entry-level model costs around $70, it also has a more expensive model (the retail price was $219) with a touch screen and additional cryptocurrencies available for storage. Trezor has integrations with other cryptocurrency companies such as Exodus, although it also provides built-in services such as staking and cryptocurrency purchases through its software products. It has a desktop offering, but Trezor doesn’t offer a mobile app.
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Supported activities: More than 1,200.
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Can convert to online storage: Yes.
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Staking/DeFi support: Yes.
SafePal
SafePal is a kind of hybrid wallet, with both offline and online items. Store your cryptocurrencies on a hardware device, which costs $50 relatively cheap. You can then use that device to interact with SafePal’s software products such as a mobile application and browser extension that facilitate services such as buying, selling, and trading. It says it supports around 30,000 digital assets, which is the most among the hardware wallets reviewed by NerdWallet. However, it does not have a dedicated desktop app.
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Supported activities: More than 30,000.
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Can convert to online storage: Yes.
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Staking/DeFi support: Yes.
