Cryptocurrency has changed how businesses and industries view the value of products and how people exchange money and other forms of currency.
Based on blockchain technology, this digital currency is revolutionary. It allows users to complete transactions, sometimes of large amounts of cryptocurrency, without involving a bank or other third party.
Instead, these transactions are secured with a key, something like a password, to your reserve of cryptocurrency. That key is stored safely in your crypto wallet, just like your physical wallet keeps your physical cash out of sight and safely in your pocket.
Defining hot wallets and cold wallets
Crypto wallets are either considered hot or cold, with hot wallets referring to those used and connected online and cold wallets offline and based on a computer system.
These two basic types come from the five main categories of crypto wallets in use today: mobile, web, desktop, hardware, and paper.
Five types of crypto wallets to choose from
Mobile crypto wallets are those built for use on a mobile device like a smartphone, web crypto wallets are created for browser usage, and desktop crypto wallets are used on your desktop.
Hardware crypto wallets are physical units that need to be carried around and are usually in a USB drive or some similar configuration.
Lastly, paper crypto wallets are printouts of either a QR code or some other physical private key that will grant you access to your cryptocurrency.
Before we look at the 5 safest crypto wallets, let’s go through the criteria based on judging them.
Criteria 1: Ease of use
When considering crypto wallets, ease of use, reputation, and management are three things that need to be considered. Suppose you’re someone who is constantly on the road and needs to have easy access to your cryptocurrency. In that case, there’s a good argument for staying away from hardware or desktop wallets since a mobile crypto wallet would be much more convenient.
Wallet 1: Exodus
A flexible wallet, which can be used as a desktop and mobile crypto wallet, Exodus prides itself on being one of the most user-friendly crypto wallets on the market today. It supports over 90 cryptocurrencies, including Bitcoin and Ethereum, and has built a strong reputation for excellent customer support.
Wallet 2: Mycelium
Mycelium is purely a mobile crypto wallet, limiting anyone who does any account management on their desktop setup. Its application is reproducible, meaning that it is not reliant on the company, and also gives users the option of using it as a paper wallet for extra security.
On the other hand, some believe that cold wallets, like desktop crypto wallets, are much more secure and might be preferable to someone who has a stationary workplace and wants to prioritize overall security.
Criteria 2: Reputation
You certainly wouldn’t move into a neighborhood without checking online to see what people are saying about the area’s safety, so why would your crypto wallet be any different?
Before deciding on one crypto wallet to go with, you’ll want to check out official reviews and user comments to learn more about every crypto wallet you’re considering, whether that means doing a cursory Google search or talking to existing users to get first-hand input.
Criteria 3: Management
This links with the first two criteria, but how every crypto wallet manages your keys is essential.
You might like the extra security that hardware crypto wallets offer, but will it be a pain to have to authenticate every transaction on your unit physically? Is the web crypto wallet you’re looking at very sleek, but you’ve heard that the management and user support is less than exceptional?
Since your crypto wallet is something that you’ll need to access every time you make a transaction, you’ll want to make sure that the management of your cryptocurrency funds and how transactions take place is something that you’re happy with.
Are you ready to learn about the best and safest crypto wallets for storing your precious currency? Let’s dive right into it!
Wallet 3: Electrum
Developed solely to support Bitcoin and no other cryptos, Electrum’s customizability for users who exclusively use Bitcoin is its strength.
2-factor authentication and the security check feature ask you to confirm the login by answering a secret question. The implementation of multi-signature protection, which allows you to set more than one signature as necessary to authorize a transaction, are additional levels of security that Electrum offers crypto HODLers.
Wallet 4: Ledger Nano X
While hardware crypto wallets may sound inconvenient compared to having an app on your smartphone or software on your desktop, some consider hardware crypto wallets more secure for several reasons.
Ledger Nano X, which has the vote of confidence from ANSSI, France’s national cybersecurity agency, uses a Secure Element (SE) chip to prevent sophisticated attacks, as well as a unique, genuine check process from confirming that the device has not been manipulated by someone other than yourself.
Wallet 5: Trezor Model T
Another hardware crypto wallet, Trezor Model T, is another excellent option for those considering a cold wallet.
You will be asked for confirmation of every action that takes place. Trezor Model T uses Trusted Display technology to provide you with details of every transaction and is well-known in the industry for being a transparent organization with an excellent track record for customer service.
Beyond the wallet: how to keep yourself safe
No crypto wallet is safe if you aren’t safe when using it. Ensure that your data is backed up and software is updated, where relevant. Features like 2-factor authentication and multi-signature authorization, when available, are also small details that make it just a bit more challenging for third parties to get into your crypto wallet.
It’s doubtful that cryptocurrency will do anything but get even more significant from here on in. If you haven’t already started looking into cryptocurrency, now might be a good time to start doing a bit of reading, and that includes considering what sort of management system would be best for you.
While ease of use, aesthetics, and system compatibility are all important, security is arguably the essential factor that you should be considered. In one form or another, this is still your money that’s at stake.