Complete Guide on Using the Best Crypto Wallets

Comparison of Best Crypto Wallets That You Should Use

 

We all know the use and purpose of a traditional wallet that we keep in our pockets. We use a wallet to store our hard-earned paper currency and even some metal coins. To make the payment, we take out the stored money from it and pay it to the merchant or seller. While receiving the due cash, we accept it and then store it in our wallets. So, it is not wrong to say that a wallet helps us when we have to keep, pay, or receive the money. In simple words, it acts as a medium to complete the transactions. Cryptocurrency wallets also work on a similar methodology. 

When an individual purchases a cryptocurrency like bitcoin, ethereum, ripple, etc., they will have to store the acquired digital assets somewhere to be used for completing the transactions in the future. In this case, it is a cryptocurrency wallet, where a user can store the digital currency. A cryptocurrency wallet is used for storing, sending, or receiving digital money. 

But the question is that how can we store something like a cryptocurrency that does not have any physical form or tangible existence? Cryptocurrencies exist in electronic form only, so if we use the phrase “storing of cryptocurrencies,” then it means that we are talking about “storing of private keys.”

It is private keys that allow the users to access and transfer the digital currency stored in a given public address. Combining the sender’s private key and the recipient’s public key is required to make the transaction successful. 

Without any access to a private key, a user will never see his or her cryptocurrencies, and completing the transactions will not be merely possible. Hence, a private key should not be shared with anyone else. It is also necessary to select only those crypto wallets that are efficient enough to secure the stored private keys from possible cyber-attacks, online intrusions, or theft. 

How does Cryptocurrency wallet work?

A cryptocurrency wallet does not store the digital currency, coins, or tokens but provides the users with the necessary tools to engage with a blockchain. In simple words, the wallet can generate relevant information for sending or receiving the cryptocurrency through blockchain transactions. This information contains single or multiple pairs of private and public keys apart from many other things. The wallet also has an address, which is nothing but an alphanumeric identifier created with the private and public keys’ help. This address is the specific location on the blockchain where the coins and tokens can be sent. Therefore, to receive the funds, you will have to share your wallet’s address.

If a person is sending you the coins, they are signing off the ownership of such digital currencies in favor of your wallet’s address. The private key stored in your wallet must be matched with the public address to which the currency has been assigned to spend these coins and access the funds. If there is a match between the private and the public key, then the balance of your digital wallet shall increase, and the balance in the sender’s wallet will decrease simultaneously. No exchange of actual coins took place here to complete the transaction.

It should also be noted that the coins never leave the blockchain. They are just reassigned or transferred from one address to the other. 

Different Types of Cryptocurrency Wallets

There are different types of cryptocurrency wallets available in the market to store and access the cryptocurrencies. These wallets can be categorized into five different categories, i.e., Desktop, Mobile, Online, Hardware, and Paper. All five of them serve additional requirements and vary from each other in terms of accessibility, security, convenience, etc. Let’s study them one by one. 

Hardware Wallets

Best Hardware Wallet - CoinGyan

 

A Hardware wallet is one of the safest cryptocurrency wallets available to store the cryptocurrencies securely. It is a physical, electronic device that looks like a USB drive and can securely store the private keys and public addresses. It comes with an OLED screen and some side buttons to help users navigate through the wallet. Hardware wallets are offline most of the time, but they can be connected to a computer or mobile device.

Below is an image that reflects an example of the hardware wallet from Trezor:

 

Advantages of using a hardware wallet: 

  • Hardware wallets are one of the safest cryptocurrency wallets.
  • It Considered as the best option if a large number of cryptocurrencies are required to be stored.
  • Hardware wallets are never exposed to the computer device, which makes them immune to viruses and malware.
  • The hardware wallet involves the confirmation of the transaction on the device before the coins can be spent.
  • Hardware wallets are readily available in online stores to purchase.

Disadvantages of using a hardware wallet:

  • A hardware wallet is expensive to purchase.
  • It is not user friendly for beginners.
  • Some of the hardware wallets need batteries to function.

Popular Hardware wallets:

 

Ledger Nano X

Ledger Nano X is a second-generation Ledger hardware wallet. It’s like a USB drive, and you can connect your device via Bluetooth or USB. You can simply connect to any Android or iOS device. It supports transactions of more than 1500 different cryptocurrencies, and the best thins is the community adding the list with new cryptos. I use it every day, and in my opinion, it’s the best Hardware wallet in terms of easy to use and security.  

Pros

  • Ledger lives connected with the hardware wallet is having a convenient and intuitive user interface.
  • At a time, it can support 100 different applications.
  • Open source code and having colossal community support.
  • It has Bluetooth connectivity features.

Cons

  • The Crypto community claims Bluetooth connection can lead to potential attacks, but as of now, there is no proof, though.
  • The Bluetooth connectivity is adding convenience, but it’s not supported yet in the Desktop version.

To what use it helps

  • It’s cold storage wallet and Ledger Live UI is used to operate all holdings.
  • It maintains portfolios for your different cryptocurrencies.

 

Trezor 

Trezor is a cryptocurrency cold wallet. It has an interface that allows the user to operate third party exchanges. It’s convenient and justifies the expenses. The Model T launched in the second generation is a screen touch device, so it’s easy to use. It has a MicroSD card which holds the encrypted PIN to protect the device from cyber attack.

Pros

  • It has a web-based UI and in-built exchanges.
  • It supports a vast number of cryptocurrency transactions.
  • It’s having open-source code and having broad community support.
  • Simultaneously you can operate a limitless number of wallets.

Cons

  • This unique hardware wallet is a bit expensive.
  • The touch screen is small, so it’s tough to type on it.
  • The wallet is quite confusing for the beginners.

To what use it helps

  • It supports the transactions of more than 1400 varieties of cryptocurrencies.
  • It can connect your desktop or smartphone via USB.

 

Ledger Nano S  

Ledger Nano S is a first-generation Ledger hardware wallet. It is compatible with hundreds of cryptocurrencies. It connects user devices via USB but not with Type-C cable. Simultaneously you can operate 18 wallets in it. If you delete a wallet account, you will still not lose the cryptocurrency in your deleted wallet.

Pros

  • Ledger lives connected with the hardware wallet is having a convenient and intuitive user interface.
  • It’s a low price and secure storage for your cryptocurrency.
  • Open source code and having huge community support.

Cons

  • At a time, it can store only up to 18 crypto wallets.
  • It doesn’t have a wireless Bluetooth connectivity feature.

To what use it helps

  • It stores your cryptocurrency directly on the blockchain.
  • Operate it through ledger live, and it’s a highly secure storage platform.

  

Online Wallet or Web Wallet

A web wallet or an online wallet allows a user to access the cryptocurrencies through the internet. As long as your smart device is connected to the internet, you will be able to store, pay, or receive the cryptocurrencies. It is very convenient and easy to use web wallets.

Although the provider of the online wallet stores the private keys of the users on their server. Hence, online wallets have been labeled as one of the least secure cryptocurrency wallets. Suppose an online wallet has not been adequately secured. In that case, the organization operating the website might gain access to the private keys, and the user might lose control of their digital funds.

The image shared below reflects an example of an online wallet from Blockchain.com.

Advantages of using online wallets: 

  • Transactions are completed faster.
  • Convenient and flexible to use.
  • Some web wallets can manage multiple cryptocurrencies.
  • Registration is quick.
  • Some web wallets provide two-factor authentication.

Disadvantages of using online wallets: 

  • Prone to online security risks and threats like DDoS attacks.
  • Personal protection risks from computer viruses.
  • Storage of private keys on a third-party server.
  • Sometimes, the security patches are outdated.
  • Not suitable to store large amounts of coins or tokens.

Popular web/online wallets: 

 

Coinbase

Coinbase is the best web cryptocurrency wallet. It can be linked to your U.S. Bank account, and you can transfer dollars in it to buy cryptocurrencies. You need to pay fees for transactions and have to pay charges for currency conversion. It has experienced downtime in the past in which users were not able to access currencies.

Pros

Cons

  • Transaction fees are a bit high.
  • Past users experienced downtime incidents.

To what use it helps

  • Earn free cryptocurrency for watching videos.
  • It can hold more than 20 cryptocurrencies and U.S. dollars.
  • Easy to enter the crypto sphere with fiat money

 

Blockchain

Blockchain is one of the most reliable wallets for storing cryptocurrency. The wallet provides support for Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), Stellar (XLM), USD Digital (USD-D). The fee structure imposed by this online wallet is also one of the lowest in the market.

Pros

  • Advanced security features are provided.
  • The User Interface is easy to navigate.
  • It falls under the purview of strict government regulation.
  • Average fees for transactions.

Cons

  • It has some security vulnerabilities.
  • The verification process is cumbersome and might consume a few days.

To what use it helps

  • Users can have access to three levels of security.
  • Users can benefit from comprehensive cryptocurrency support.
  • Intuitive User Interface helps the users to operate the wallet with ease.

 

Guarda

Guarda cryptocurrency wallet provides non-custodial services to the users who want to send, receive, or store the cryptocurrencies. Guarda has launched ten different products so far, such that it includes not only a wallet but also crypto payment solutions, exchanges, prepaid debit cards, and token generators.

Pros

  • Does not store private keys.
  • Supports multiple currencies.
  • Credit card purchases are allowed.
  • Easy to use and manage.

Cons

  • Some users have reported high exchange rates.
  • Does not provide a cold wallet storage facility.

To what use it helps

  • Guarda wallet is not just a web wallet, but it also offers the users a mobile wallet, desktop wallet, shielded wallet, and even chrome extension.
  • Guarda wallet provides multi-sig security features to users for enhanced safety.

Some of the other leading online wallets in the market today are provided by- Lumi Wallet, Circle, Strongcoin, and Xapo.

 

Mobile Wallets

A mobile wallet runs as an application on the smartphone device and allows the users with the most convenient option to access and manage the cryptocurrency. With a mobile wallet’s help, a user can send or receive the cryptocurrency just by scanning the QR code. With the convenience and easiness that a mobile wallet offers, it is best for the users who perform transactions and payments daily.

The following are some of the features that should be present in a cryptocurrency mobile wallet:

  • You should be able to control the private keys.
  • Simple and effective User Interface for ease of use.
  • Comprehensive and active development community.
  • There should be some backup and restore features for security.
  • The wallet should be compatible with different operating systems.

The image shared below reflects an example of a cryptocurrency mobile wallet from Coinomi-

Advantages of using mobile wallets: 

  • Are comparatively safer than the web wallets.
  • It can be conveniently used while on the go.
  • Offer convenient features like QR code scanning.
  • It takes only a few seconds to complete the transaction.

Disadvantages of using mobile wallets: 

  • There is a risk of losing the crypto assets if the smartphone is lost or damaged.
  • Mobile wallets are vulnerable to malicious applications and infections.
  • Mobile wallets cannot be used in an offline mode.

Popular Mobile wallets: 

 

Trust Wallet

Trust wallet is an easy to use mobile application that can help the users to send, receive, or store a wide array of cryptocurrencies. It is an open-source wallet and comes with a unique and straightforward User Interface.

Pros

  • It is free to download
  • It can store a wide array of cryptocurrencies.
  • Convenient and straightforward to use

Cons

  • It is not a secure wallet.
  • It is prone to viruses and malware.

To what use it helps

  • It allows for the earning of returns on crypto-assets held.
  • Users can retain control of their private keys.

 

MetaMask

MetaMask is a user-friendly wallet that can be used for storing, sending, and receiving ETH and ERC-20 tokens only. It does not provide support for the BTC wallet. It can bridge browser like Firefox to Ethereum blockchain as MetaMask acts like an extension. The users can also interact fully with Ethereum without any need for downloading the entire blockchain.

Pros

  • MetaMask is open-source software.
  • It makes use of hierarchical deterministic settings that helps the users to make backups of their accounts.
  • MetaMask has integrated Coinbase and ShapeShift exchange.
  • The customer support service is reliable.

Cons

  • There is always a cybersecurity risk.
  • Using a browser can compromise the privacy if reliable antivirus software has not been installed.
  • Support only ETH blockchain

To what use it helps

  • MetaMask provides the users with an option to navigate DApps on the Ethereum platforms without launching a full Ethereum node.
  • The intuitive user interface of MetaMask helps a lot to manage their crypto assets easily.

 

Jaxx

Jaxx is a multicurrency HD wallet that can store more than 60 tokens and coins in one place. Users can control their seed and PIN as it is a self-hosted wallet. Jaxx offers custom fee options as well. Another essential aspect of Jaxx is that it supports a wide range of platforms like Android, iOS, OS X, Chrome, Windows, and Linux.

Pros

  • Single wallet with multiple cryptocurrencies.
  • Suitable for beginners as well as intermediate users.
  • In-built exchange to allow fast conversions.

Cons

  • There is no verification requirement while logging in.
  • The wallet lacks 2-factor authentication.

To what use it helps

  • A broad base of users can use this wallet as the compatibility scope of the wallet is wide.
  • Jaxx provides the users with an option to explore the latest updates, developments, and news about the wallet and blockchain.

 

Exodus 

Exodus is a mobile wallet having an easily navigable user interface and an in-built exchange system. Currently, It allows swapping between 100 plus different cryptocurrencies. It’s suitable for the crypto space beginners because of its simplicity. The features are easily accessible, and you can use the wallet in your mobile efficiently.

Pros

  • It supports the swapping of various cryptocurrencies.
  • It has an in-built exchange platform for transactions.
  • It has good consumer support because of its easy accessibility.

Cons

  • The source code is not openly accessible.
  • The transaction fees are not customized.
  • Users can’t set their priority levels.

To what use it helps

  • The custom transaction fees are set automatically.
  • The priority levels keep on changing dynamically.

 

Mycelium

Mycelium is an open-source mobile wallet. It supports transactions only for Bitcoin. It has a new featured user interface and has an in-built exchange system. In this wallet, you customize the transaction fees. It has a hardware wallet for offline storage.

Pros

  • It allows users to set custom transaction charges.
  • It has a hardware wallet to store your bitcoin.
  • The source code is easily accessible.

Cons

  • Users can access bitcoin through mobile-only.
  • It supports transactions of Bitcoins only.
  • The first-time user may not use it properly.

To what use it helps

  • It provides offline storage for your bitcoin.
  • This hot wallet is available free of cost.

 

Desktop Wallets

Desktop wallets for cryptocurrencies are software packs installed on most desktop operating systems like Windows, Mac, and Linux. However, desktop wallets run with the help of an internet connection; hence, the users must install a safe and reliable antivirus program and a strong firewall on the desktop.

Instead of storing the cryptocurrencies on an exchange, the users can store them in a desktop wallet because a desktop wallet is recognized as a safer option than other types of wallets available.

Below is an image that reflects an example of the desktop wallet from Bitcoin Core:

Advantages of using a desktop wallet: 

  • Desktop wallets give full control of keys and funds to a user.
  • A desktop wallet is a convenient choice for the users who trade cryptos from their computers.
  • The private keys are not stored on a server that belongs to a third party.
  • Desktop wallets can be too safe if the computer is not connected to the internet.
  • Desktop wallets are considered suitable for beginners.

Disadvantages of using a desktop wallet: 

  • A desktop wallet is difficult to use if a user is on the go.
  • There is a need to continually update desktop wallets, which consumes a lot of memory and space.
  • A user can lose the cryptos if no backup has been made.
  • A desktop wallet is vulnerable to viruses and specific malware attacks.

 

Popular Desktop wallets: 

 

Wasabi

The desktop wallet Wasabi is specially designed to maintain your cryptocurrency account privacy with advanced features like tor routing and coinjoin. The wallet is supported by platforms like Linux, macOS, and windows.

Pros

  • It’s open-source and fully supports Segwit.
  • It provides coinjoin functionality, and traffic is routed via Tor.
  • Collaborated hardware wallets like with Trezor, ledger, and cold card.

Cons

  • Advanced features are not understandable by the beginners.

To what use it helps

  • CoinJoin integration protects your account from breaching and stealing.
  • It supports highly secured network transactions.

 

Blockstream Green

Blockstream Green is a secure and unique desktop wallet in the industry. It owns a backup of 2-of-2 style means if the user loses their backup, they can recover the lost data through a 2-factor authentication system. It is supported by platforms like Linux, macOS, iOS, F-droid, and Android.

Pros

  • Users can set up the wallet quickly.
  • It has a great support system for fee estimation.
  • 2-factor authentication is implemented using multi-sig.

Cons

  • Advanced features are not accessible by beginners.
  • The 2-factor recovery system is quite confusing.
  • The android version can only provide hardware wallet services.

To what use it helps

  • It is a compatible option for frequent Bitcoin traders and collectors.
  • Users can simply transfer bitcoin in the wallet for streamline trading.

 

Ledger Live 

Ledger live known to be the most secure desktop wallet. It’s quite different from other wallets because the user needs to have a Ledger hardware wallet to use it. It helps you to manage your various coins and ERC -20 tokens directly. It is supported by platforms like macOS, Windows, iOS, Linux, and Android.

Pros

  • It’s the most secure wallet and has a great UI.
  • You can manage all your crypto with one dashboard only.
  • The Ledger live wallet can be integrated with your ledger hardware wallet.

Cons

  • You must need to have a ledger hardware wallet to use it.
  • A new user may come across complications while confirming transactions.

To what use it helps

  • The hardware wallet backs up the ledger’s lives data.
  • Buy, sell, or store tokens and coins directly with your desktop ledger account to earn a reward.

 

Paper Wallets

Paper wallets have no link or connection with the online world and have been recognized as a unique way of storing cryptocurrencies. To use a paper wallet, the user will have to print out the private and public keys. The keys and the crypto address are printed in the form of QR codes. To execute the transactions in cryptocurrencies, these codes are required to be scanned. Paper wallets can be the best option for the users who want to store their cryptocurrency for the long-term period but do not trust electronics.

Below is an image that shows how a paper wallet looks like-

Advantages of using a paper cryptocurrency wallet: 

  • The most hacker-proof and secure wallet available in the market.
  • A paper wallet doesn’t need any form of computer storage.
  • The keys are not stored on any third-party server.

Disadvantages of using a paper cryptocurrency wallet: 

  • It is a little difficult for beginners to use.
  • It isn’t easy to move cryptocurrencies utilizing a paper wallet.
  • There is a risk of destruction of a paper wallet that contains sensitive information.
  • It is not suitable for daily transaction purposes.

Popular Paper wallets: 

 

Bitcoin paperwallet.com

The Bitcoin paperwallet.com is a cryptocurrency key generator that can print both sides( front & back). The sensitive information like private key and QR code is provided on the front side. The data is entirely sealed with the hologram stickers, so it can’t be stored or destroyed whenever removed.

Pros

  • The private key and QR code are highly secured.
  • Sealed information can’t be replaced or removed.

Cons

  • If someone has your wallet access, then without any alert, they can withdraw funds.
  • The wallet is quite confusing for the beginners.

To what use it helps

  • It’s the best option for long term crypto investors.
  • It is the safest medium to secure your cryptocurrency.

 

Bitcoin.com paper Wallet 

The Bitcoin.com paper Wallet provides offline storage to your bitcoin. There is no risk of hackers or fund stealing. The source code is downloaded by the users to generate their offline paper wallets. The paper wallet can be easily created without any expertise.

Pros

  • You can quickly generate your secure offline wallet.
  • Compatible wallet for both experts and beginners as well.

Cons

  • Regular traders may find it challenging to manage.
  • You need to generate QR codes and paper keys separately for different transactions.

To what use it helps

  • It provides crypto investment security for a long time.
  • You need to store the paper wallet safely as any damage can result in the loss of your cryptocurrency.

 

Wallet Generator.net 

The Wallet Generator.net can be directly downloaded from GitHub. To protect your crypto from stealing open index.html files in your system. While generating your paper wallet, disconnect your internet connection for security purposes. Keep your private key securely to restrict accessibility.

Pros

  • It’s the best bitcoin paper wallet format with high security.
  • For long term investment, you can store your Bitcoin offline.

Cons

  • You need to keep a copy of the private key and code for backup.
  • Without your knowledge with the private key, anyone can access your cryptocurrencies.

To what use it helps

  • The private key is required to deposit or withdraw any funds from your wallet.
  • In a public address, funds are received from the other crypto users.

 

Tips for keeping the cryptocurrency wallet and coins safe

Some additional tips can help you secure your cryptocurrency wallet and coins secure:

 

  • Always use a wallet from a trusted source or brand like the ledger wallet. There are many software and applications that pretend to be a cryptocurrency wallet but are malware. The malware might take advantage of the sensitive and confidential information of users.
  • It is advisable to use a strong password and activate additional security features like two-factor authentication.
  • The users should never share sensitive information like wallet password, PIN, seed, or private key. This information should be stored or saved in a safe place like an offline place immune to cyber-security threats.
  • It is always safe to use a personal device to access the cryptocurrency wallets.

 

CONCLUSION

The transaction in cryptocurrencies cannot be done without a cryptocurrency wallet. There are five types of crypto wallets available for use, and choosing the best one depends on a user’s personal choice. If a user performs many transactions in a day, they will find wallets like desktop, mobile, and online more suitable. On the other side, if a user does not indulge in daily cryptocurrency transactions, then going with hardware or paper wallets will be a better and safe option.

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