How to choose the right crypto wallet for you
If you’re planning to buy or trade crypto, you need a digital wallet to store them. Crypto wallets have several unique features that make them stand out. They also help you keep track of your crypto investments while ensuring they are safe from any cyberattacks that run rampant online.
Do you know which things to look at when finding the best digital wallets? Here’s a complete guide to choosing your go-to crypto wallet to start using your coins today:
Top features of a crypto wallet
A crypto wallet has two main functions: Store and trade cryptocurrencies. Different wallets have better features for either storing or trading, but you’ll generally want non-custodial digital wallets if you are just starting.
Non-custodial wallets provide you sole access to your private keys, which are used to sign transactions and prove ownership. Contrary to custodial wallets, these ask for your private keys, which means that they control the crypto stored inside the digital wallet.
This causes unnecessary delays in transactions when you need to use your crypto quickly. Both custodial and non-custodial wallets also have amazing features like security, portability, and crypto support that you should always consider before using them.
Security
The first feature that’s arguably the most integral part of any digital wallet is how safe it is to store your crypto. A great indicator to know whether a wallet has robust security features is how login measures are done.
Upon logging in, does the wallet ask for a two-factor authentication password? Does it require you to enter your PIN code? When finding the best digital wallet, you need to ask yourself these questions.
You can also tell if a digital wallet is safe to use from other people’s experiences. It’s smart to read online reviews about the crypto wallet’s capabilities in storing coins. If you plan on storing huge amounts of crypto, this feature becomes more important because hacks frequently happen in the crypto space. Thousands, if not millions, of crypto are on the line if you choose a digital wallet with subpar security features.
Portability
Accessing your wallet anywhere is a great feature, especially when you are interested in high-volume trading that needs quick access to your coins. Crypto transactions are also needed from various industries like casino and sports betting sites, which are becoming more mobile.
If you are considering using your crypto in the long run, you would want access to them anywhere and anytime. This is where the demand for portability is increasing, and it’s a feature that continues to get better over time.
Support for various cryptocurrencies
Since the crypto market is a growing industry, there is no doubt that more coins will appear. With this, the continuous support for different coins is essential to maintain the convenience aspect digital wallets are known to provide.
Aside from Bitcoin and Ethereum, there are over 10,000 coins in the market as of 2022. This number will only increase in the future, so digital wallets must catch up with the times and include newer crypto to garner more user options.
Hot vs cold wallet: Which one should I pick?
Most of the best features in digital wallets can be found in the two types of crypto wallets: Hot and cold wallets. The distinction between the two falls into unique categories intended for specific uses. If you’ve decided which type of wallet to go for, you’ll also have several options for each that suit your crypto needs.
Difference between a hot and cold wallet
The main difference between a hot and cold wallet is its online connectivity. Hot wallets can be connected to the internet, while cold wallets can’t because they are strictly for storage purposes. They both serve great uses for a particular group of people, so which one is the best for you?
Best hot wallets
Firstly, hot wallets are used by people involved in online crypto trading, and this type of wallet is perfect for them. These are also usually free, and some only need small interests from your stored crypto.
Hot wallets also have several named brands that you can check out. Below are some of the best hot wallets you can find:
- MetaMask
MetaMask is an Ethereum wallet that can store and send ERC-20 tokens. It can also be used to open decentralised applications. The best feature of this wallet is that the users can access their Ethereum wallet through a mobile app or browser extension.
- Coinbase Wallet
Coinbase is a user-friendly digital wallet that beginners can quickly learn to use. This boasts one of the most secure digital wallets around. It was created to support ERC-20 tokens but expanded its services to other cryptos in the market, like Bitcoin and Dogecoin. Its simple interface allows selling, receiving, and storing crypto.
- Trust wallet
Trust wallet offers over 160,000 cryptocurrencies that allow traders to accrue interest by staking their digital assets. This wallet has a Web3 browser that allows users to buy crypto directly from the Kyber Network’s native decentralised exchange.
Best cold wallets
If you’re just concerned about storing your crypto in the safest way possible, then a cold wallet is the best option. What’s unique about this type of wallet is that it usually comes with physical hardware like a thumb drive.
Check out some of the best cold wallets if you want to secure your digital assets better:
- Ledger Nano X
Ledger Nano X or Ledger is one of the most famous hardware wallets. The wallet has a steep price of $149 but provides a robust security feature that makes it nearly impossible for hackers to steal your stored crypto. The company is trusted by various companies as well as different retail firms around the world.
- Trezor
Trezor has two modes: Trezor One and Model T. Both are similar in software and hardware but have distinct features that set them apart. Trezor One lacks the support for a few coins like ADA and XRP, while the Model T supports the crypto mentioned above.
Model T offers expandable storage options, whereas its counterpart does not. Ultimately, Model T is better because it has more functionality but comes at a heftier price.
- Atomic Wallet
Atomic Wallet is a free cold wallet that beginners can depend on if they want a cheaper cold storage alternative. While not on par with the paid cold wallets security-wise, Atomic Wallet is still trusted by millions of users worldwide.
This wallet is one of only a few cold storage wallets that don’t come in physical hardware. Instead, the application is free to download online, and your stored crypto will not be kept in a server, achieving minimal risks of cyber theft in the process.
How to set up and use your digital wallet
With these amazing options, it’s time to set up your crypto wallet. There’s a general process to setting up your digital wallet, and below is a step-by-step guide to get you started:
Download and install the application
The first step to secure your digital wallet is downloading it from its official website or app store. Make sure that it is from the official developer or site. It is also best to read reviews before clicking the download button.
Set up your username and password
After downloading your preferred crypto wallet application, you need to register an account through their web page or an in-app prompt that lets you fill in some blanks with your information. It’s also wise to set up additional safety measures like a two-factor authentication code (2FA), so it’s harder for anyone to hack your account.
Add funds
The final step in the setup process is adding funds to your account. Simply deposit funds and store them in your account. You can withdraw them anytime you want, but there are certain withdrawal limits that you must know, depending on the digital wallet.
All crypto users have to deal with the process of looking for the best digital wallets to start their cryptocurrency journey. There are thousands of options available, but these can be narrowed down to a few guaranteed to provide the best services in the industry.
If you’ve found the best crypto wallet, invest in worthwhile coins to use in many ways, like betting on Bitcoin casinos. Secure a digital wallet first before claiming a Bitcasino bonus from the best Bitcasino VIP promos you can find.