""Choosing a wallet is one of the essential steps when working with cryptocurrencies. Nowadays, companies provide a wide range of crypto wallets tailored for different needs. While some are better for secure storage of large sums, others focus on convenient daily operations. In this guide, we will look at different types of wallets that work with the world’s top digital coins and try to answer the question that concerns users globally: "What’s the best way to store cryptocurrency?".
Crypto Wallets Storage Technology
There are two types of wallets: cold and hot storage. Despite sharing a common purpose of storing digital currencies, hot and cold wallets have critical differences. Here is an example to demonstrate it.
You keep a large amount of money, such as savings, in a safety deposit box. Going to the store, you do not carry all your savings with you, but instead use a wallet, which contains a much smaller amount. A safety deposit box is a cold wallet, and your daily wallet is a hot one.
Hot wallets include the following:
- Mobile wallets, installed on tablets and phones.
- Online crypto wallet options, typically on exchange websites.
- Desktop wallets, installed on PCs.
- Paper wallets, being QR codes printed on paper and generated on specialised services.
Cold wallets do not require a permanent Internet connection. In fact, such software stores a copy of the entire blockchain so that you can perform some transactions. An example of cold storage for digital currency is a hardware wallet. Read ahead to find out more about this crypto wallet type!
Which Hardware Wallet Should I Choose?
Cold wallets are physical devices that have the software installed to store cryptocurrency. It is possible to steal funds from such a wallet only when directly connected to a PC. It means that the device would have to be stolen first.
Some hardware wallets are equipped with a screen showing the recipient’s address and a button to confirm the transaction. So, even if your computer has a virus, your funds will still be safe.
Here are some pros of hardware wallets:
- One of the safest ways to store cryptocurrency.
- Offline access.
- Excellent for storing large amounts of digital currencies.
- Modern hardware cryptocurrency wallet models have a display, eliminating the need for a constant connection to a computer.
The cons of hardware storage are:
- Some hardware wallets are not beginner-friendly.
- Susceptibility to standard “flaws” of all electronic devices — for example, a strong electromagnetic pulse can disrupt your wallet’s operations.
Further is a comparison of the best hardware wallet variations.
Bitlox has been praised among users as being the best way to store Bitcoin in terms of security.
The Best Crypto Wallet App Options
An intuitive interface, multifunctionality, speed, excellent usability, and security are the main criteria for choosing a mobile crypto wallet. However, not all applications have the required characteristics.
With the development of blockchain technology and the coin market, the number of people who want to make money with digital currencies is increasing. An excellent mobile cryptocurrency wallet can be a reliable storage for your funds and a handy tool for active trading.
With a simple smartphone app, it is easy to check your account balance, make purchases, transfer and receive money, and trade cryptocurrencies. However, it is highly advisable to choose cold wallets to store large digital currency amounts.
Here are some of the top mobile wallets to make your day-to-day use of digital currencies as efficient as possible.
As you can see, all of the options are suitable for Android and iOS devices.
The Best Online Crypto Wallet Platforms
The most convenient way for crypto traders to stack coin assets is through online wallets, as they allow you to access your investments anytime and anywhere. There are many services today that offer investors the possibility to store their cryptocurrencies.
Online wallets have a lot of benefits for the users:
- The highest transaction speed.
- The most convenient way to store a small amount of digital currency.
- A variety of multi-currency providers.
- Often embedded into an exchange service.
- Anonymiser options.
Online crypto wallets are trending among traders globally. Nevertheless, they have two critical downsides:
- The cryptocurrency is not stored on your computer but on a third-party server.
- They are highly vulnerable to cybercriminals, as they have the lowest level of protection compared to other wallets.
Check out some of the best cryptocurrency wallet options in the table below.
What Are the Best Desktop Wallets?
Another type of hot crypto storage is desktop wallets. It is software that is installed on a PC that allows you to perform operations with cryptocurrency.
The main advantages of desktop wallets are:
- The highest level of protection compared to online and mobile wallets.
- The private keys are stored on your PC’s hard drive.
The disadvantages that desktop wallet users may encounter are:
- The lack of a backup copy of the keys — if the computer breaks down, you will lose access to your coin wallet.
- While your laptop is being repaired, other people may access your wallet.
- Just like any software installed on a computer, a desktop wallet is susceptible to virus attacks.
- Some desktop wallets require additional installation of weighty security certificates.
We have collected some of the top desktop wallet providers for you to compare.
Keep in mind that Exodus is not available for iPhone users.
What Is the Best Way to Store Cryptocurrency?
Nowadays, there are plenty of ways to store virtual assets. Trading platform deposits are considered the most unreliable storage type. Nevertheless, traders and miners cannot avoid using them. In contrast, the most secure crypto wallet option as of now is hardware variations.
All the mentioned wallet brands are among the top service providers in the crypto industry. It is impossible to name the best crypto wallet solution that would be universal, as it is a matter of personal preference. Which one to choose depends a lot on how you plan to use your tokens.