A crypto wallet is an essential tool for any crypto investor. They are used to store cryptocurrency. They could either be hot or cold wallets. A hot wallet is online-based, while a cold wallet is a physical device not connected to the internet, such as a USB.
Hot wallets are preferred for short-term investments, where investors store crypto for quick trades. On the other hand, cold wallets are better for long-term investments since they are deemed safer than hot wallets since hot wallets are prone to hacks and attacks on the internet.
Choosing a wallet can be tricky since plenty are out there. Most hold Bitcoin (BTC), some hold Ethereum (ETH) only, and a few can support any cryptocurrency.
A little research can go a long way in helping you pick the best wallet for your needs. This article discusses the best wallets to store the top ten cryptocurrencies, which, according to CoinMarketCap, currently look like this:
5 Best Hot Wallets for 2024
1. Coinbase Wallet
Coinbase Wallet is one of the most widely used crypto wallets and the go-to wallet for beginners. It was launched in 2015 and is one of three wallets provided by Coinbase, a leading crypto exchange.
The wallet is available as a mobile app and browser extension and is considered very user-friendly.
Coinbase Wallet supports over 100,000 crypto assets and seamlessly connects to Coinbase and other exchanges, including Uniswap, SushiSwap, and TraderJoe. However, the wallet only keeps Bitcoin through the mobile app.
Furthermore, the wallet offers robust security features, including two-factor and biometric authentication technology.
2. MetaMask Wallet
MetaMask is a popular wallet known for its compatibility with decentralized applications (dApps). It supports cryptocurrencies on various networks, including Ethereum, Polygon (MATIC), and Binance Smart Chain (BSC).
The wallet allows users to earn rewards and additional tokens through airdrops and staking. Moreover, it charges fees only for swapping and sending tokens but not for receiving them.
3. Exodus
Many consider the Exodus Wallet one of the best multi-asset crypto wallets, ideal for experienced users.
It is available for mobile and desktop and supports over 50 networks and over 200 crypto assets, a large number compared to other hot wallets. Moreover, it allows users to swap crypto without leaving the wallet.
Exodus users can also buy Bitcoin with Apple Pay as an added advantage.
4. Trust Wallet
Trust Wallet is a popular wallet known for its robust security features and user-friendliness. The wallet supports a wide range of blockchain networks and tokens.
It offers users heightened security, including a secure passphrase, biometric lock options, and private key control. The wallet is free on Android and iOS devices and does not charge transaction fees.
5. Crypto.com
Crypto.com is a decentralized finance (DeFi) wallet that supports over 250 cryptocurrencies. DeFi wallets give users complete control over their assets and private keys. They also offer features unavailable on custodial wallets, such as one-to-one crypto swaps and opportunities for users to earn interest on their crypto.
The Crypto.com DeFi wallet lets users choose their preferred trading fee and confirmation speed. Moreover, users can earn interest on more than 25 cryptocurrencies.
3 Best Cold Wallets for 2024
1. Ledger
Ledger is famous for its hardware crypto wallets, the Ledger Nano X and Ledger Nano S. These are considered some of the most secure wallets for holding crypto.
They store private keys offline and are, therefore, considered immune to hacks. The wallet is also capable of generating private keys and creating blockchain accounts.
Ledger products offer extra security using a Secure Element component, a chip standard in passports, credit cards, and payment systems. The wallet also has a PIN code and a recovery seed phrase.
Ledger wallets can be acquired through a one-time purchase, and there are small transaction fees for using the device.
2. Trezor
Trezor Wallet was the first-ever crypto wallet and one of the most popular cold wallets in the crypto world. It prioritizes security and supports a variety of tokens and cryptocurrencies. Users can store their private keys offline, and every transaction requires confirmation.
The wallet also allows users to set up a recovery seed phrase in case they misplace their private keys. Buying this device is also a one-time purchase, and transaction fees are generally low.
3. Keepkey
Keepkey is a well-known hardware wallet used to store crypto assets safely. The wallet offers additional protection by using a PIN and a recovery seed phrase in case of loss or damage to the device.
Keepkey is considered affordable and user-friendly; hence, it is popular with both beginners and experienced users.
The wallet supports more than 7,000 cryptocurrencies across 348 networks and is compatible with various decentralized applications (dApps), including Uniswap, Aave, and OpenSea.
Choosing the right crypto wallet
Before you pick a wallet to store your crypto, there are some things you should consider to ensure you choose one that best suits your needs.
For instance, think about what you plan to do with your crypto after buying it. If you’re an active trader, hot wallets are best for their speed and accessibility. However, if you plan on stashing away large amounts of crypto for a long time, consider a cold wallet since they are safer.
Different wallets support different cryptocurrencies, so ensure you pick one that can accommodate the crypto you own and those you wish to hold in the future.
Lastly, some wallets offer additional features, such as opportunities to earn passive income on your crypto through lending, staking, and deposits. Ensure you exhaust all the available functionalities in different wallets before deciding on one.
Conclusion
The best crypto wallet is easy to use and can support many cryptocurrencies and tokens. An excellent hot wallet should have robust security features like two-factor authentication and multi-signature support. It should also charge little or no trading fees.
A good cold wallet should be affordable and compatible with various hot wallets to support trading.
Experienced investors looking to trade specific crypto assets should consider wallets that specialize in those assets. They can also target wallets with additional functionalities, such as customizable trading fees and opportunities to earn passive income on their crypto.
Beginner traders, on the other hand, should focus on wallets that are secure, reliable, and easy to use.