Want to trade bitcoins or other cryptocurrencies but don’t know where to start? The very first step is to create a wallet. There are several types of cryptocurrency wallets, and the main thing is to choose a reliable and safe one.
In this article, we’ll talk about key types of crypto wallets, how they can differ from each other, and also will consider the most reliable crypto wallets of 2021. Let’s get started!
Key Types of Cryptocurrency Wallets
How was mentioned before, there are several types of cryptocurrency wallets, each of which has different ways of storing keys and providing access to them. The three main categories are software, hardware, and paper. Let’s consider all these types in more detail.
- Desktop (local) wallets are downloaded and installed on a PC or laptop. You can log into your account only from the same device on which they’re installed. This provides a certain level of security, but at the same time, it’s dangerous in a situation where a PC is infected by a Trojan malware or virus.
- Web (online) wallets can be accessed through a browser from any device. This is convenient, but private keys are usually stored by a third-party service provider, which may hand them to hackers.
- Mobile crypto wallets are app for mobile platforms. They are very convenient in that you can make a transaction anywhere at any time. But they have a minimal level of functionality and are also the least well-protected ones.
- Hardware crypto wallets store user keys on an external device, similar to a USB flash drive — this is their main difference from software ones. With the help of such devices, you can store cryptocurrency offline, connecting to the Internet only when you need to make a transaction. If you’ve lost your wallet, then the finder won’t be able to use it, since access is protected with a pin code.
- Paper crypto wallets guarantee a high level of security and are also quite easy to use. This definition can refer to two concepts: a simple physical copy of printed public and private keys, as well as software that is used to create keys, which can then be printed.
How to Choose the Best Crypto Wallet?
Which crypto wallet to choose? Well, this depends on many factors. The most important thing is security, as well as the ability to save a private key or seed phrase.
You should choose a software-type crypto wallet in case:
- you don’t store large amounts of money;
- it’s important for you that a wallet is free of charge;
- confidentiality isn’t important for you;
- you’re interested in the most convenient storage option.
And here are the situations in which it’s better to choose a paper or hardware wallet:
the main priority is security — for example if you’re about to store a large amount of cryptocurrency for a long time;
- you don’t need to make frequent transactions;
- you don’t trust a third party and want to control private keys yourself;
- confidentiality is important to you;
- you’re ready to pay $50-100 for a device.
Nothing prevents you from using two options at the same time, using a software wallet for long-term investments, and a hardware wallet for small fast transactions.
Top 5 Best Crypto Wallets to Know
No matter the type of wallet you chose, they all perform the same function of storing your assets. Since a huge number of blockchain wallets have appeared on the market, we have selected the top 5 best crypto wallets of 2021. Now you can easily decide which crypto wallet to choose, let’s get started!
Exodus is a multi-currency cryptocurrency wallet. In fact, this is a thin desktop wallet integrated into the Swiss exchange ShapeShift with a user-friendly interface. Newbies quickly get help from technical support, and this is one of the advantages of the service.
Here you can set complex passwords, use SEED phrases and make copies of the wallet with a special utility developed by service programmers.
It’s another multilingual, multi-currency mobile wallet for Android with an HD wallet function, but without two-phase confirmation.
But if a virus that got into the phone is able to get secret keys to assets, it knows how to get authentication ciphers. Thus, in this regard, the absence of this function doesn’t matter.
This cryptocurrency wallet has managed to gain trust. It can be installed on smartphones and various operating systems like a thin wallet. It works on the principle of open source, and those who value anonymity choose it, as it functions perfectly in the Tor network.
Unlike other crypto wallets, several Bitcoin addresses are available to each user. It’s possible to set complex passwords and SEED phrases, and individual keys are kept by their owners. If you have any questions or difficulties in the work, technical support quickly responds to requests.
It’s a perfect online Bitcoin wallet. It has 2-Step Verification, SEED codes, and complex passwords, making it very secure.
But if you synchronize it with a mobile phone using a QR code, the level of security drops instantly. Technical support tries to quickly fix all arising problems.
You can purchase famous Ledger hardware wallets on their official website. If we talk about possible risks, then the list includes the loss of a SEED code or falsification of addresses during a money transfer.
None of these options can be considered a serious problem. In order not to lose your wallet and SEED code, you just need to be careful and attentive.
In any case, when choosing a cryptocurrency wallet, you should pay attention to all the factors mentioned in the article. To choose the right one, you need to determine the purpose and frequency of use. But still, when choosing a wallet, pay attention to its safety, convenience, and functionality.
What crypto wallets do you consider the most reliable ones? Which ones do you use? Feel free to share your favorite wallets in the comments!