>What is a Crypto wallet? Are all Crypto wallets the same? Do you know the number of different cryptocurrency wallets that are available on the market?
These questions are the first step on your journey to cryptocurrency. You might make a mistake and end up with a bad crypto wallet. This could cause a lot of headaches for you as a crypto trader or investor.
See also: How to choose a Bitcoin wallet
Accept the fact that cryptos are only as secure as their wallets. However, different wallet types serve different purposes.
This is why I am going to talk about different types of cryptocurrency wallets in this article. This article will help you find wallets that are specifically designed for Bitcoin.
The Best Bitcoin Wallets
What is a Crypto Wallet?
A Crypto wallet is a set of codes that allows you to interact with the blockchain. Your cryptocurrencies are stored on the blockchain so you can restore them easily with the help the seed word and private key, in case your wallet is lost.
How do you get started with Crypto Wallets
Below I’ve discussed different types of crypto wallets. To make it easy, you can use multi-cryptocurrency crypto wallets if you want to create a crypto wallet.
There are many crypto wallets on the market today. Here are some that I recommend.
The Best Crypto Wallets
Trust wallet – Multi-cryptocurrency wallet for all major blockchains. Metamask – This wallet supports Ethereum and layer 2 solutions such as Fantom and Matic. Metamask is a great wallet for Ethereum storage. It also has a mobile app that allows you to browse the world of dApps using an in-built browser. Phantom wallet: This wallet supports NFTs. Phantom wallet is supported by all dApps in the Solana ecosystem. It also has a mobile application that offers many features, just like Metamask. The best security is provided by the Ledger wallet. A Ledger Nano X is recommended if you store large amounts of cryptos and NFTs. It can be used with the native wallet, Leger Live app. Below is a detailed explanation of the native wallet.
4 million customers use the Ledger wallet
A Ledger NanoX can be ordered for around $120-$140. Delivery takes approximately one week. Instead of waiting for crypto to become mainstream, you can set up a mobile-based cryptocurrency wallet such as Trust wallet immediately to start exploring and understanding the world.
Order Ledger Nano X
You will need to download the Trust wallet onto your phone in order to get started.
Go to the Trust wallet official website to download the app for Android and iOS.
Follow this video tutorial to learn how to set up your first cryptocurrency wallet.
What is Native Wallet?
A native wallet refers to a wallet that is specific to a product or service. Ledger Live, a native wallet for Ledger Nano X that is a hardware wallet, is the most widely used crypto wallet.
Only Ledger Nano series hardware wallets can be used to access the Ledger Live app. You could store multiple cryptocurrencies and NFTs.
This is how the Ledger Nano Series native wallet looks:
Native wallet for the Ledger Nano series
Another popular native wallet is the “Trezor Suite”, which is offered by another hardware wallet company, “Trezor”.
Note: These hardware wallets can be used with non-native wallets such as Metamask or Phantom. As you’re still learning, don’t be overwhelmed. It will all make sense once you get started.
You have now learned about crypto wallets and the top crypto wallets. This section will explain the different types of crypto wallets. We will also cover FAQs common to beginner users. You will find the FAQ section very helpful in answering your questions about choosing your first cryptocurrency wallet.
5 Different Types of Crypto Wallets
A combination of your public address and private key is all that is required to create any type of wallet. Depending on where and how you store them, you can classify your wallets into the following sections.
1. Mobile wallets (Easy access to crypto assets)
Let’s begin with the most common and simple crypto wallet type.
Because of their accessibility, mobile wallets for Bitcoin or altcoins have become the most popular wallets. Mobile wallets for popular cryptocurrencies will be compatible with both Android or iOS. Even for less-known cryptocurrencies you can expect an Android version.
You should be careful before you trust a mobile wallet.
Private keys – Wallets where you control your private keysEase of use – Elegant UI for ease of useDevelopment community – Active development communityBackup & security – Backup and restore featuresCompatibility – Compatible with different operating systems
Because they are always connected to internet (hot wallets), mobile wallets are fourth-stack secure for storing your cryptocurrencies. However, their developers communities can make them vulnerable to being compromised.
Here are some mobile wallet ideas:
Trust WalletSafepalMyceliumCoinomiPhantom wallet (Solana)Terra station wallet (Luna ecosystem) Android version | iOS versionxDefi wallet
Notice: Please read the information about security risks associated with mobile, desktop and web wallets. This will allow you to make informed decisions.
2. Desktop Wallets (Convenient, but Not Too Secure)
Installable software packs for desktop wallets that allow you to store Bitcoins and other cryptocurrencies can be found for almost all operating systems, including Windows, Mac, and Linux.
Every cryptocurrency serious about its own wallet will launch desktop versions on the first day.
Your laptop or desktop is the one that connects to the internet most often. You should follow security precautions such as anti-malware and antivirus software, along with strong firewalls. There are many desktop wallets available for Bitcoin and other popular cryptos that you can use instead of storing them on exchanges.
The third-stackiest way to store your cryptocurrency is via a desktop wallet.
3. Paper wallets (Not Relevant Anymore).
Paper wallets were the only way to secure Bitcoin’s 2008 launch. This is why only a few people were able to store and buy Bitcoin back in 2008. Technology advancements and greater adoption have made it possible to store crypto assets in other wallet types.
It is worth reading and learning about paper wallets.
Paper wallets may not be for everyone. They are complex and require extreme caution. This is because a paper wallet allows you to simply print your private keys, public addresses and begin transferring bitcoins or other altcoins.
It keeps your private keys off-line, making it another safe way to store your cryptos. However, not all cryptocurrencies offer paper wallets. You can easily find paper wallets for popular cryptocurrencies. However, they should be used with caution. These are the second-securest way to store your cryptocurrency.
Learn how to make a bitcoin paper wallet and how to spend bitcoins.
Notice: People are increasingly using hardware wallets over paper wallets as technology advances.
4. Hardware wallets (Recommended).
This type of wallet is highly recommended for high-value investors. A hardware wallet is essential if you have more than $1000 worth of crypto. Hardware wallets are among the most secure types of cryptocurrency wallets you can use.
Hardware wallets are, as their name implies, hardware devices that are specifically designed to handle private keys and public addresses.
The device is similar to a USB stick and has an OLED screen. Side buttons allow you to navigate the wallet interface. It also includes native desktop apps that support different cryptocurrencies. You can use it to connect to your PC or mobile device via USB, even if the device is infected. However, this is not recommended. It makes crypto storage extremely secure because your seed word and private key are displayed on an external screen (hardware wallet display).
This is an image showing the Ledger Nano X wallet. You can see the screen as well as the buttons for navigation.
It can also be connected to your smartphone or laptop via Bluetooth.
Although a hardware device can be expensive, it is well worth the investment for security reasons. The majority of popular hardware wallets allow you to store more cryptocurrencies than 22 (including BTC, NFTs, and 500+ ERC-20 coins).
There are over 10+ cryptocurrency hardware wallets on the market. To make things easier for you, I’ve already prepared a guide to the top hardware wallets in 2022.
Here’s a video tutorial series that explains how a hardware wallet works:
They are, naturally, the best way to store cryptocurrency.
5. Web wallets (Least secure but usable)
Web wallets, which are hot wallets, are connected to the internet. They can be accessed by different internet browsers like Firefox, Google Chrome, and IE. These wallets’ private keys can be accessed online in your browser. DDOS attacks can also be carried out on web wallets.
One simple example of a web wallet is the storage of cryptocurrencies on a cryptocurrency exchange. You don’t have access the private key to your crypto wallet. This is the most important thing to remember. This means that if the exchange is hacked tomorrow, your cryptocurrencies will be lost.
You should only keep cryptocurrencies that you are trading on an exchange. You should move the rest to a mobile wallet (medium secure) or a hardware wallet.
Web wallets can be hosted (no access or private key) or non-hosted (control/seed word) depending on the type of wallet that you use. We recommend that you use “non-hosted” wallets to ensure you have full control over your funds.
Some wallets that are not hosted:
Hosted wallets are available:
Binance (The best)CoinbaseCEX.io
These wallets can be used as long as they are not hacked or DDOSed.
2022 Tip #1 – You can combine Metamask and Ledger Nano X for the security of a physical wallet with the accessibility of a web browser. How do you do this? It will be covered in an article.
2022 Tip #2 – People are switching to mobile wallets with this technology, “Walletconnect”, which makes web wallets obsolete. Mobile wallets like Trust wallet can be used instead of web wallets.
This video will explain more about crypto wallets and how they protect your privacy.
Do not be alarmed if some aspects become too complex for you. You can read my previous guides here:
Bitcoin Private Key: Everything You Need To KnowWhat is Mnemonic Phrase and Mnemonic Passphrase Also known as seed words
What is your Crypto Wallet Type?
Types of WalletName of WalletWalletHardware WalletsLedger nanoX TrezorDesktop WalletsAtomic exodus Bitcoin Core ElectrumMobile WalletsSamourai Wallet Atomic Wallet MuunWalletWeb WalletsCoinbase MetaMask
The table below lists the various types of crypto wallets, in alphabetical order. This doesn’t necessarily mean that the most secure wallet should be used. You need to know the strengths and weaknesses of each wallet in order to make the best use of them.
Which crypto wallet is safest?
A cold wallet is the best choice for crypto. This is usually a hardware wallet. There are many hardware wallets available, but two of the most popular are 1.Ledger NanoX 2 and 2. Trezor Wallet
Is it possible hack a crypto wallet
A crypto wallet can be hacked. The type of wallet that you use will determine how secure you are. If a hacker gains remote access to your computer, and you have set up your private keys/seed words on the hacked machine, the hacker can access the same. You are also protected 100% from hackers if you use hardware wallets that only show your seed words on hardware devices.
Which crypto wallet can’t be traced?
Private crypto wallets are almost impossible to trace. These include Trust wallet, Phantom wallet and Ledger wallet. Your I.P can be easily exposed, so it is recommended that you use a VPN when interacting with crypto wallets. Find the best VPN for cryptocurrency here. VPNs don’t consume too much power these days, so you can use VPN 24×7 without worrying about battery drain.
What is a crypto wallet?
To give you access your cryptoassets, crypto wallet uses both public and private key cryptography. The public key allows others to send you cryptoassets, while the private key gives your ownership and rights to spend them. These mechanisms are all happening in the background. The only thing you have to be certain of is the safety and confidentiality of seed words.
Also, read: Security Risks of Mobile, Web & Desktop Bitcoin Wallets (Must Know).
Enjoy this post, and please leave your comments below. Please let me know which crypto wallet you prefer and why.