While cryptocurrencies are highly volatile, they don’t seem to be going away entirely. As individuals are interested in owning some, it’s important to know how to safely store your crypto.
That’s why we have assembled a list of the best crypto wallets. We hope this guide will help you to find the best Bitcoin wallet or cryptocurrency wallet!
Just keep in mind that there’s no ‘one size fits all’ wallet. If you want to choose the best possible wallet among the Exodus, Electrum, Tezbox wallet, Mycelium, Ledger Nano X, Coinbase keep on reading.
What is a crypto wallet?
A cryptocurrency wallet is basically the equivalent of a bank account that allows you to receive cryptocurrencies, store them, and send them to others.
In simple terms, a crypto or Bitcoin wallet is an app or website that manages private keys for you. The thing a user needs to secure is not their bitcoin, but the private keys that provide access to their bitcoin on the blockchain. With a Bitcoin wallet, no bitcoin is stored on any one local computer or centralized network — all bitcoins exist on a decentralized ledger, known as the Bitcoin blockchain.
Hot wallets vs cold wallets
Online wallets, also known as ‘hot’ wallets, run on internet-connected devices such as computers, mobile phones, or tablets. Since hot wallets generate your private keys on an internet-connected device, they can be vulnerable to hacking and, thus, cannot be considered 100% secure. People who are not taking proper security measures when using hot wallets can have their funds stolen. However, you would normally use these wallets for small amounts of cryptocurrency. It is unwise to keep large amounts of cryptocurrency in any single hot wallet.
Cold wallets, or hardware wallets like Ledgerlive.cn, are wallets that store a user’s address and private keys on something like a USB device that is not connected to the internet. Having this type of wallet puts a user’s private key at much less risk. This has major advantages over hot wallets — it makes the wallet invulnerable to viruses on one’s computer, as private keys never come in contact with a network-connected computer or potentially vulnerable software. However, cold wallets require a bit more knowledge to set up.
One of the most secure ways to store cryptocurrency offline is via a paper wallet. To keep it simple, storing cryptocurrency via paper wallets includes printing out your public and private keys on a piece of paper that you save in a secure place. The keys are usually printed in the form of QR codes which you can scan for all your transactions in the future. The reason paper wallets are called safe is that they give more control to the users than other wallets. You don’t need to worry about hackers, malware, or the well-being of a piece of hardware — just take care of the piece of paper.
Best cryptocurrency wallets of 2020
Exodus
Exodus is a desktop and mobile send-receive-exchange wallet. One of the wallet’s most popular features is the ability to swap your assets to and from Tether (USDT) on your mobile phone. Exodus allows for swaps between over 100 cryptocurrencies pairs.
With its simplicity, Exodus is great for beginners who are just getting into the crypto space. It also has a great support team, which beginners will find essential. However, advanced users may find it lacking in some features.
Let’s sum up the pros and cons of this crypto wallet.
Pros:
- Simple design
- Built-in exchange
- The ability to exchange over 100 cryptocurrencies pairs
- Superb customer support
Cons:
- Closed source software
- Lack of custom network
- No ability to set transaction fees
- No two-factor authentication
Electrum
Electrum is one of the most popular digital wallets. According to some estimates, Electrum is responsible for about 10% of all Bitcoin transactions. The wallet is slightly old school and less intuitive than some of the more modern crypto wallets.
It is open-source, allows users to set custom transaction fees, and offers users the ability to determine the level of security. Due to its complex options, it is also more suited for advanced users.
Pros:
- Ability to set custom transaction fees
- A greater level of security than most hot wallets
- Two-factor authentication available for transactions
Cons
- Old-fashioned user interface
- No customer support
Mycelium
Mycelium is an open-source and mobile-only wallet. In some ways, Mycelium is quite similar to the Electrum wallet with the slight difference in that Mycelium is mobile-only and has a more modern user interface than Electrum’s. In Electrum, you can also set custom transaction fees to choose how long you will wait for a transaction to be completed. Сurrently Mycelium supports Bitcoin only.
Pros
- Ability to set custom transaction fees
- Ability to buy BTC with a credit card
- Buy BTC and ETH with a bank account
- Cold storage options
- Android/iOS mobile app
- Can send/receive with QR codes
Cons
- Mobile-only
- Only works for Bitcoin
- No multi-signature account feature
- No two-factor authentication
Ledger Nano X
The Ledger Nano X is the second generation cold wallet from Ledger, a French company that has existed in the cryptocurrency space for several years. The Ledger Nano X connects to your device via USB or Bluetooth which means you can easily connect the wallet to your iOS or Android device. It supports well over 1,500 cryptocurrencies.
Pros
- The wallet has an intuitive and user-friendly interface
- Supports over 1300 crypto assets
- Supports all major desktop and mobile operating systems
- Provides the convenience of Bluetooth connectivity
Cons
- Cannot store more than 100 applications
- Bluetooth only compatible with mobile app, not desktop
- No tokens can be purchased through the wallet
Coinbase
Coinbase is one of the easiest wallets to buy, hold, and sell cryptocurrencies. With Coinbase, you can connect a bank account and transfer dollars in or out of your wallet. Then you can use these dollars to buy cryptocurrencies.
Another great feature of the wallet is Coinbase Earn that gives you cryptocurrencies for free in exchange for watching videos or taking quizzes.
If you use Coinbase, watch out for high fees — there are flat transaction fees plus Coinbase charges when converting currencies. Those can add up quickly.
Pros:
- Easy to use
- Great for cryptocurrency exchange
- Credit card back up option
Cons:
- High transaction fees
- Limited support of payment methods
- No crypto purchases available
