Best crypto wallets to store your assets
by Muskan Verma
Before we assess the best crypto wallets, we need to understand what we are talking about.
A crypto wallet is a software application that stores private and public keys necessary for engaging with a blockchain network and overseeing cryptocurrency.
Its primary function is facilitating the sending, receiving, and storing of digital assets like Bitcoin, Ethereum, and other cryptocurrencies. There are primarily two types of storage - hot and cold.
Hot vs. cold wallets
A hot wallet remains connected to the internet and is utilised for storing cryptocurrency or other digital assets that are actively traded or frequently accessed.
It is designed with convenience and user-friendliness, enabling individuals to swiftly send and receive funds without undergoing an extensive process of transferring funds from cold storage. Conversely, a cold wallet is used for offline storage of cryptocurrencies.
This approach aims to enhance security by minimizing the risks associated with hacking, malware, and other security threats inherent to internet connectivity. Cold wallets can be hardware devices like USB sticks, which employ non-electronic means to store private and public keys for your crypto assets.
Best crypto wallets - top 3 hot wallets
1. Coinbase Wallet
It is compatible with Ledger, allowing users to utilise cold storage for added security. This wallet offers a wide range of coins that can be staked, providing opportunities for earning rewards. It supports NFTs based on both Ethereum and Polygon blockchains.
However, the Coinbase Wallet does not provide the ability to recover stolen assets in case of loss or theft. Also, Bitcoin can only be accessed and managed through the Coinbase Wallet mobile application.
2. SafePal Crypto Wallet
It seamlessly integrates with the company's hardware cold wallet, providing enhanced security. It is also integrated with Binance DEX, offering convenient access to decentralised exchange functionalities.
However, this option is not the most user-friendly for beginners due to its complexity. Furthermore, customer support services are limited in their availability and assistance.
3. Crypto.com Defi Wallet
Crypto.com is a prominent cryptocurrency exchange. Its dedicated DeFi crypto storage service, the Crypto.com DeFi Wallet, specialises in storing crypto assets. Users can conveniently access the Crypto.com platform directly from their wallet to engage in crypto buying and selling activities. This wallet is specifically designed to store DeFi products and cryptocurrencies securely.
Users can earn rebates on more than 25 tokens, adding potential benefits to their holdings. It is integrated with the Crypto.com exchange, further streamlining trading processes. Additionally, it offers storage solutions for non-fungible tokens (NFTs), expanding its functionality to cater to the growing NFT market. However, Ethereum staking is not currently supported by the Crypto.com DeFi Wallet.
Best crypto wallets - top 2 cold wallets
Trezor's notable feature is its compatibility with multiple exchanges, enabling users to conveniently manage their assets across various trading platforms. Additionally, its integration with Exodus enhances the user experience by providing seamless access to a user-friendly interface. However, it is important to consider that Trezor currently lacks support for Solana, Tron, and Polkadot cryptocurrencies.
Furthermore, it's worth noting that 2019 security flaws were identified in Trezor, raising concerns about potential vulnerabilities. Despite this, Trezor remains popular among cryptocurrency enthusiasts for its robust security features and broad exchange compatibility.
Ledger offers a wide range of staking opportunities for various cryptocurrencies. Users can engage in staking activities with popular assets like Ethereum and Polygon (MATIC), as well as with lesser-known cryptocurrencies such as Ark (ARK) and Casper (CSPR). However, remember that Ledger experienced a significant hack in July 2020.
It's important to be careful and take precautions to avoid losing your private keys. This will help you recover your cryptocurrency if your hardware device gets damaged or lost.
Muskan Verma is a talented content writer and enthusiastic crypto investor. With a knack for creating engaging and informative content, she weaves words to captivate readers and deliver valuable insights. Beyond her writing skills, Muskan Verma is deeply immersed in the world of cryptocurrencies, constantly exploring investment opportunities and staying aware of market trends.