Best Cryptocurrency Wallets in 2022
Cryptocurrency wallets allow you to store your coins securely.
Today, we will be jumping deep into the world of cryptocurrency wallets, so hopefully, by the end of this, you will have a complete understanding of what they are, how they work, and what your best options currently are.
Here's Our List of Top Cryptocurrency Wallets in 2022
Picking the right cryptocurrency wallet can be difficult, and as such, to make things a bit easier for you, we've created a list of some of the best options you have out there.
What Is a Cryptocurrency Wallet, and How Does It Work?
A cryptocurrency wallet is where you can receive cryptocurrencies from platforms, such as exchanges and brokerages. You can also get money from other people that use crypto.
The coins you will buy and store are not stored in the wallet. Your wallet is just the gateway through which you can access a specific point in the blockchain network where your cryptocurrencies are stored. That said, you need to be aware of two types of keys when it comes to using cryptocurrency wallets.
There are the public keys, which you can give to other users as an address to which they can send you crypto coins. This is useful when you want to get coins from another user or a platform. There are then private keys that allow you to gain access to the cryptocurrency wallet. These keys will prove to the blockchain that you are the rightful owner of that wallet address, granting you access to your money. It is essential to have a private cryptocurrency wallet because not having one will put you at risk of having your money stolen.
Best Cryptocurrency Wallets For:
There are many different types of cryptocurrency wallets out there that you can pick from. Each of them is built to serve a different kind of user, and today we'll be going over some best beginner wallets and wallets recommended to more advanced users.
Beginners
Software wallets are recommended for beginners because they offer a high level of flexibility and are instantly available. These will typically be on-exchange wallets.
Coinbase Wallet
The Coinbase wallet is available to all Coinbase users and will allow you to store any of the cryptocurrencies available for purchase on the platform.
Pros
Well-funded company behind the wallet.
Protects user control with two-factor authentication.
Cons
Supports a limited number of cryptocurrencies.
Gemini Wallet
Gemini is a secure cryptocurrency wallet. However, it is a hot wallet, which means that it will only work when you have established an internet connection. Its simple to navigate through, and as such, comes as a recommendation for newcomers.
Pros
Supports many cryptocurrencies.
The site offers insurance of digital assets against exchange hacks.
Cons
Higher fees than other cryptocurrency exchange wallet alternatives.
Crypto.com Wallet
This is the official cryptocurrency wallet used on the Crypto.com exchange. It is a non-custodial wallet that provides you with a full array of decentralized finance (DeFi) services, and you gain complete control over all of the cryptocurrencies stored there.
Pros
Supports many cryptocurrencies.
High level of security.
Easy to use.
Cons
Hot wallets are not as secure as cold wallets, no matter how many security measurements they have.
Experienced users
If you are an experienced user, the chances are high that you will want the highest level of security when it comes to the cryptocurrency wallet you will be using. In this section, we will be discussing hardware wallets.
Ledger Nano X
Ledger Nano X is a cold storage device specifically designed to store your crypto-related addresses. It can be connected to a computer by using a USB cable and even has a smartphone application known as "Ledger Live," through which you can control it.
Pros
Easy to set up.
Very portable.
Built-in battery.
Supports all significant blockchains as well as many coins.
Cons
Expensive.
Trezor One
Trezor One is a cryptocurrency wallet with a reputation for its high level of security and a built-in display that allows for ease of use. You can even set up a pin so you can access it, which fills the role of a two-factor authentication method.
Pros
Supports more than 1,000 cryptocurrencies.
Straightforward setup process.
Open-source technology.
Digital assets are kept offline through a multi-layered security system.
Cons
Not too many accessories are available.
SafePal S1
SafePal S1 is one of the most portable and easy-to-use hardware wallets; it's about the size of a credit card. You can store your cryptocurrencies on it, and it has a SafePal application through which you can use a QR connection.
Pros
Supports thousands of cryptocurrencies.
High levels of security.
Affordable.
Cons
Complex to send transactions.
How to Add Funds to a Cryptocurrency Wallet?
When you want to add cryptocurrencies to your wallet, the process itself is pretty streamlined and straightforward. Follow our step-by-step guide, and you should have your wallet set up in no time.
Discussing software wallets, here is what you need to do:
Step 1: Sign-Up for a cryptocurrency wallet.
Step 2: Buy the cryptocurrencies that you want to put into the wallet.
Step 3: Deposit the cryptocurrencies into your cryptocurrency wallet. You will need to enter your wallet address. Once it is selected, a pop-up will show on your screen, prompting you to confirm the transaction that's about to occur. Once that happens, you should see your wallet's balance updated.
If you use hardware wallets, here is what you need to do:
Step 1: Buy and unbox your cold wallet once it arrives.
Once you do proper research and have decided which wallet you want to use, you can either order it online or go to a physical store and buy it. Once you do so, you will need to unbox the wallet and view all of the components in it. Typically, you will find that it features a USB cable and a keychain, alongside paper cards, for example, as well as a recovery sheet and instructions.
Step 2: Connect your device to a computer.
In some instances, a wallet might have a small LCD screen. Most of the time, the budget-oriented option has buttons. In any case, these will allow you to navigate through the menu, view any options, and sign transactions. You need to plug in your wallet through the USB port on your computer, which will work with the cable provided in the box. Once it is connected, you should see a welcome message on your display alongside instructions on using it.
Step 3: Install any required software.
Cold wallets, most of the time, will require software to run as efficiently as possible. You will need to install this software to operate them. You can do so from the included media device in the box or visit the wallet's official website and download the required software. After that, install the software, and you can get started quickly.
Step 4: Transfer your cryptocurrencies.
Finally, in the last step, you can transfer cryptocurrencies to your hardware wallet. To do so, visit the platform you have bought the coins from. First, copy your wallet address, and on the exchange, navigate to the balances tab. Once you're there, you can insert the copied wallet address from your hardware wallet, click on send, and approve the transaction so it occurs. You should see your hardware balance updated.
What Are the Different Types of Cryptocurrency Wallets?
There are two kinds of cryptocurrency wallets that you will have to deal with when buying or trading cryptocurrencies. The first is known as software wallets, and the second is known as cold wallets. Let's dive into each of them so you know exactly what to look for.
Software Wallets
Software wallets run through the usage of an internet connection and need to be installed or launched from a device, which means that they cannot operate on their own. There are multiple types of wallets. However, the one thing common across all of them is that they have to be always online for you to operate them or view them.
Web wallets – These are wallets that you will typically find bundled or built into your account whenever you create an account for a cryptocurrency exchange.
Desktop Wallets – These are wallets that you have to download and install onto your device in the form of a software package.
Mobile Wallets – These wallets were specifically developed to run on a mobile device, but you need to download and install them.
Cold Wallets
Cold wallets are named that way because you can store crypto onto them and disconnect them from the internet entirely. This means that they have no direct internet connection. There are two main types of hardware wallets out there: hardware wallets and paper wallets.
Hardware wallets — These are wallets typically in the form of a physical device, made either out of plastic or metal, designed similarly as a USB drive, for example. Sometimes, you might even find them shaped like a credit card, depending on the manufacturer you choose. That said, they can be connected to a device, such as a computer or even a smartphone. Some even come with a built-in LCD display through which you can navigate them.
Paper wallets – Paper wallets are literal sheets of paper that have things printed on them. These are typically QR codes that you can either scan to check your account's balance or withdraw the crypto from the wallet itself.
How Much Does a Cryptocurrency Wallet Cost?
Each brand of wallet will have its own costs associated when discussing hardware wallets. These are typically the most expensive option because companies need to contribute materials, time, effort, and research to develop these physical devices.
You have a free alternative, such as on-exchange software wallets and paper wallets, where you can essentially print out a QR code on a sheet of paper. The more money you spend on a hardware wallet, the more features you will get, such as an LCD screen, for example.
How Do You Cash Out Your Cryptocurrency Wallet?
This method will have a significant difference depending on the type of wallet you are using, so to make things a lot easier to follow, we will split the steps into software wallets and hardware wallets.
In terms of software wallets, here is what you need to do:
Step 1: Get the wallet address from the platform you will be using.
Step 2: Sign the transaction from the software wallet, which will typically be in the form of a browser pop-up that you need to click.
Step 3: Once the wallet receives the funds, you can cash them out.
In terms of hardware wallets, here is what you need to do:
Step 1: Connect your cryptocurrency wallet to your computer using the included USB cable. If it connects differently, read the manual and discover how-to, but it's a direct connection most of the time.
Step 2: Enter the wallet address where you want to send your cryptocurrency coin, which will most of the time be an exchange through which you can eventually cash out.
Step 3: Sign the transaction and transfer the funds upon its confirmation.
What to Consider When Choosing a Cryptocurrency Wallet?
When picking a cryptocurrency wallet, here's what you need to look out for:
Security — If the platform you are using allows for two-factor authentication (2FA), ensure that you enable it. This will always prompt you to verify your identity beyond your login details, such as via an SMS code.
Ease of use — Ensure that the wallet you will choose is easy to understand and use; the last thing you want is to be confused and lost while using it.
Mobile version — If you want the highest accessibility and availability, ensure that the wallet has a dedicated mobile application.
Supported cryptocurrencies — You need to check how many types of cryptocurrencies the wallet supports. Typically, the more it supports, the higher level of flexibility it will give you.
Backup options — Ensure that the wallet can give you a reliable way to back it up if you forget some data or require it again in the future. You do not want to end up getting locked out of your cryptocurrency wallet.
Final Thoughts
Both software wallets and hardware wallets have their space in the cryptocurrency space. The main thing that will ultimately define which one you will end up using is your specific requirements. Software wallets are quicker, easier, and if they're built into the exchange, they typically have low to no fees. Hardware wallets are slower to access and inconvenient for short-term trading. Still, if you will hold onto cryptocurrency coins for a prolonged period, they are your safest option.
FAQs
Is a Cryptocurrency Wallet Actually Necessary?
They're not mandatory. However, you will need a cryptocurrency wallet if you want to buy cryptocurrencies and don't want to put yourself at risk.
What Is the Most Secure Type of Cryptocurrency Wallet?
The most secure type of cryptocurrency wallet is a cold wallet.
Do I Need a Crypto Wallet to Buy Cryptocurrency?
In many cases, you will need to have a cryptocurrency wallet for you to be able to buy cryptocurrencies.
Can I Keep My Cryptocurrency on an Exchange?
You can keep cryptocurrencies on an exchange if it has a built-in cryptocurrency wallet, but your safest option for storing crypto is to have your own private wallet.
