The Best Crypto Wallets in the World
The presence and importance of cryptocurrencies are steadily gaining dominance lately. As more and more cryptocurrencies make their way into the market, the number of participants, namely, buyers and sellers, grows. With so many transfers and purchases taking place globally, the need for secure platforms to operate cryptocurrencies has become essential; this is where crypto-wallets come into the picture.
Crypto-wallets: What are they?
The use and adoption of e-wallets or digital wallets have popularized over the years. These wallets are either linked to bank accounts or they safely store card details and personal identification documents in digital formats.
Crypto-wallets, are an extension of these digital wallets that are dedicated to being used for cryptocurrencies. The one main difference between general digital wallets and crypto-wallets is that crypto-wallets do not store any cryptocurrencies; they simply store the keys that are used to operate the cryptocurrencies.
Cryptocurrencies are stored in blockchains, like Ethereum, where all activities, like purchases and transfers, are documented in blockchain ledgers. These cryptocurrencies are stored in blockchains, as they are decentralized currencies that are not governed and monitored by any particular authorities.
The Importance of CryptoWallets
If cryptocurrencies cannot be stored in personal crypto-wallets, then what exactly is the role of these wallets?
When a buyer purchases tokens or coins in cryptocurrencies, these are stored in digital formats on the blockchain network with updated ownership. The new owner of the crypto asset takes possession of a digital key that is unique to all currencies, coins, and tokens. These keys enable the operation of cryptocurrencies on the blockchain network.
These keys are stored in three forms.
– Paper Documents – These physical documents are then safeguarded and stored in safe places like banks or home lockers. A point to be noted here is that physical paper documents offer the lowest accessibility.
– External Hardware– Keys are also stored in external hardware that can be plugged into computer systems whenever the owner wants to operate their cryptocurrencies. External hardware is more accessible than paper documents, but they are also stored in physically safe places.
– Digital Wallets or Crypto Wallets – The keys are stored in digitalized wallets or applications that provide much greater accessibility to owners. This way allows the owner to take better control over their crypto transactions.
Without these keys, the owner cannot operate their cryptocurrencies even if they are officially under their ownership.
Here is where the importance of crypto-wallets starts to roll.
Cryptocurrency owners can use crypto wallets to store their digital keys in a secure and safe platform, which would give the owners much greater flexibility and accessibility to operate their crypto purchases.
The 6 Best Crypto Wallets According to Their Market and USPs
Exodus
Exodus offers brilliant services for beginners as well as advanced cryptocurrency users. The wallet supports more than 145 currencies and is best known for its slick desktop user interface. There are no charges for registration, however, Exodus does charge a fee for any transactions that are conducted using the platform. Both the desktop and mobile applications are compatible with different operating systems, like Windows, Android, iOS, etc. Exodus wallets are primarily hot storages that are connected to the internet at all times. Most users feel that hot storage, in general, offers lesser security compared to cold storage, resulting in them upgrading to cold storage after a point in time.
Coinbase
The crypto wallet by Coinbase has been recognized as the best wallet option for beginners. With a friendly and easy user interface that guides and educates new and old users about different aspects of cryptocurrencies and their market trends, Coinbase wallets have become quite popular for their services. The level of security offered in these wallets is high and includes multi-signature and 2-factor authentication. Coinbase supports more than 500 currencies, making it highly versatile for use. The one limitation with Coinbase is that it is not yet compatible with different operating systems.
Ledger Nano X
The Ledger Nano X is a physical wallet offered to cryptocurrency users to store their keys in physical hardware. This type of wallet is a form of cold storage that is accessible offline. The user can plug in their wallet devices to access their keys and operate their cryptocurrencies. The Ledger Nano X wallets support several digital assets and have a Bluetooth option that can be connected to the Ledger Live app and used to trade in cryptocurrencies. It is much more advanced and expensive compared to cold storage, but its security blanket is thicker and more versatile than most other options. The Ledger Nano X can also be used to protect and safeguard other documents like credit cards and personal IDs like passports.
Mycelium
Best known for its strong security and mobile services, Mycelium is another popular choice among crypto investors. With a strong focus on Bitcoin, this particular wallet has been built only for mobile devices. It offers advanced services for Bitcoin and Ethereum users, making it a little harder for new users to get a hold of the nuances, however, its par excellence security makes up for these disadvantages. It can easily be linked with cold storage providing good leverage to users. The Mycelium Wallet is an ideal option for people interested only in Bitcoin and Ethereum.
Electrum
Electrum is best known for its security over most hot wallets. This is another wallet that is solely focused on Bitcoin users and transactions and has been around for over ten years. Electrum also offers advanced options for users that can be slightly difficult for new users to understand. The transaction fee is customizable, giving users an added advantage. The wallet supports 2-factor and multi-signature authentication methods and can easily be integrated with cold storage.
Trezor – Model T
The Trezor Model T is a hardware wallet that is best known for its security. The wallet is quite similar to Ledger wallets, except that it allows users to access third-party exchanges from its interface directly. Trezor Model T supports over 1800 cryptocurrencies, making it very versatile for use. The Model T has a small touch screen that makes its operability much easier than buttons. Currently, the wallet supports different operating systems except for iOS.
Concluding Words
There are over 80 crypto wallets currently operating in the market, offering competitive services and prices. Two of the key objectives of wallets are usability and security. The more services, better compatibility, and advanced options the wallet provides, the more crucial it becomes for the wallet to offer the best possible security.
With so many wallet options buzzing in the market, it becomes difficult for users to make their choice. The best thing to do is to analyze your requirements, the level of expertise, and the security offered; such fundamental analysis would help determine which wallets suit you.
