Best Cryptocurrency Wallets in the UK 2023

Cryptocurrency wallets allow people to transfer coins, connect to dApps, and participate in various investing protocols. They are the best way to safeguard your coins as crypto wallets use private keys. These keys act as a unique password to your crypto wallet that only you have access to. This makes them incredibly secure to use and best for trading or holding cryptocurrency.

Cryptocurrency adoption has increased 650% over the last three years in the UK from 1.5 million buyers in 2018 to 9.8m in 2021. The staggering increase of crypto holders is mainly due to the recent bull run that began in 2020.

Unfortunately, most beginners in the UK leave their coins in exchange without knowing the associated risks when they should for example store their Bitcoin in a good Bitcoin wallet. Therefore, we’ve created this page to help inform UK residents of the alternative ways to store their cryptocurrency and use crypto wallets UK.

So, what is the best crypto wallet in the UK? The best crypto wallets let you configure easily available and functional payment methods with which to buy crypto. Most cryptocurrency wallets in the UK also let you securely receive and send crypto to external wallets and control your private keys.

In this guide, we’ll go in-depth on how cryptocurrency wallets work, and which ones are the best crypto wallets in the UK. Also, we’ll cover essential subjects like how to set up a crypto wallet in the UK, some wallet providers, and the top tips to stay safe while buying cryptocurrency in the UK.

What Types Of Cryptocurrency Wallets Are There in the UK?

A crypto wallet is a software program or piece of hardware that interacts with the underlying blockchain to facilitate transactions. The main purpose of the crypto wallet is to offer safe coin storage without using an intermediary. For example, when you buy Bitcoin in the UK, you should have a Bitcoin wallet and store the crypto assets in this Bitcoin wallet UK. Like all crypto wallets, a bitcoin wallet UK has both a private key and a public bitcoin address and the best Bitcoin wallet UK will depend on your own needs and preferences. The app will showcase how many coins it holds, previous transactions, and your receiving wallet address.

Apart from general cryptocurrency wallets, you can find some specific wallets to store some specific crypto assets:

• Ethereum wallets

• Litecoin wallets

• Dogecoin wallets

• XRP wallets

However, contrary to popular belief, crypto wallets do not store coins directly within them. Instead, the coins are on the public ledger, which is a record-keeping system. The only way to access the cryptocurrency is with a specific password that the online wallets provide, known as a private key. This is usually a combination of random characters that is proof that you own the coins.

Hot Wallets - Best Crypto Wallets For Beginners in the UK

Hot wallets are always connected to the internet and store your private keys online. They provide essential functions like transferring coins, receiving, and storing cryptocurrency. Most hot wallets are multi-blockchain, meaning you can store various coins like Bitcoin, Ethereum, and BNB. They are the most popular way of storing coins in the UK, with around 176,000 active users at any given moment.

Here are some examples of hot wallet types available in the UK:

• Desktop wallet & Laptop wallet

• Web wallet (browser extension eg metamask)

• Mobile app wallet (Mobile wallet such as Trust Wallet)

• App wallet (eg Exodus)

• Exchange built-in wallet

Cold Wallets - Best Crypto Wallets for More Experienced Users in the UK

Cold wallets are fully disconnected from the internet when not in use, meaning your private keys are stored offline. This makes hardware wallets impossible to hack, making them the most secure way to hold your cryptocurrency. There are many different crypto hardware wallets. So, if security is your priority, compare hardware wallets and select the one that suits your needs.

However, hardware wallets require an initial investment that is only cost-effective if you hold a substantial amount of crypto. Furthermore, they can be trickier for beginners as they are more complicated to set up than hot wallets. Also, cold wallets are ideal for long-term holding due to the protection provided.

Here are some examples of cold wallet types available in the UK:

• Paper wallets: A paper wallet is exactly how it sounds, a piece of paper that contains your private key and public wallet address, usually printed in the form of a QR code. Being a physical form of storage, it means you must take extra care to protect the paper. Also, you should always keep multiple copies of a paper wallet in places you know are safe.

• Hardware wallets: A crypto hardware wallet is the best crypto wallet option when you are looking for the most secure way possible of storing your digital assets. Hardware wallets are also referred to as cold storage.

Top Hot & Cold Cryptocurrency Wallets in the UK

The cryptocurrency wallets industry has expanded significantly in recent years, resulting in a wide range of amazing options. However, each crypto wallet has its pros & cons and distinct features, so it’s up to you to decide which crypto wallet UK fits your needs. In the sections below, we’ll show you the best hot and cold wallets in 2023.

Best Cryptocurrency Wallets Overall

Once you’ve invested in cryptocurrency, you’ll want to transfer the coins to a private crypto wallet UK to store them safely. We have evaluated the best crypto wallets in the UK based on their ease of use, security, and integrations. Here is a list of the best crypto wallet options to use in the UK.

Here’s a more in-depth look at each of these wallets:

Guarda

Guarda is an established crypto wallet UK that has aquated an outstanding 4.7 stars on Trustpilot. The user interface is simple, and the dashboard showcases all the necessary features. Moreover, if you plan to hold long-term, the app has various staking options. Also, the mobile wallet is available on iOS, Android, Linux, and Windows.

Trust Wallet

Trust Wallet offers multiple features like storing coins, NFTs, and staking. The unique crypto wallet also has a Web 3.0 browser that investors can use to connect to various dApps. Trust Wallet is non-custodial, meaning you fully control your crypto wallet and are responsible for keeping your private key safe. Trust Wallet has instant exchanges that is availalbe to UK customers and lets you buy coins such as Dogecoin, Ethereum, Bitcoin and other altcoins instantly with a bank card.

Ledger Nano X

The Ledger Nano X is a cold wallet that stores your private key off the internet, making it the most secure way to hold cryptocurrency. Although it has a fairly large price tag, it’s worth the investment if you plan to hold long-term or have a high-value portfolio.

Ledger is currently the most popular brand for storing cryptocurrency in the UK and globally, with sales reaching over 3 million units. The company estimates that its hardware devices secure around 15% of all crypto assets.

The hot wallet resembles a USB stick that is easy to set up and store in a safe location. Also, the Ledger Nano X will come with an in-depth instruction manual that is super helpful if it’s your first time using a hardware crypto wallet.

If you’re looking for a more extensive list of Cryptocurrency wallet options, then have a look at the section below for rankings by each type.

Best Cryptocurrency Wallets in the UK Reviewed By Type

Best online software Cryptocurrency wallets in the UK

If you have small holdings or plan to trade often, then using a software wallet or a web wallet is ideal due to their fast speeds and dApp integrations. Below you’ll find the top software or web wallets that were selected based on several factors like ease of use, adoption, and security.

Best hardware Cryptocurrency wallets in the UK

Hardware wallets provide the best protection, making them the top choice for large portfolios and long-term holding strategies. The cold wallets underneath are available to buy in the UK and make the process of storing cryptocurrency straightforward.

Best mobile app Cryptocurrency wallets in the UK

Mobile wallet applications will play a significant role in cryptocurrency adoption in the United Kingdom due to their unique features. For example, contactless cryptocurrency payments are becoming integrated into smartphones. The crypto wallet does this by converting your coins to fiat money while making payments. Here are the best crypto wallet options for those looking to use a mobile wallet in the UK.

Best Free Cryptocurrency Wallets in the UK

Generally, software wallets are free to install and use for storing coins. However, they do take a small fee on crypto transactions for using their services. Here are the top 3 UK cryptocurrency wallets you can use right now.

What To Consider When Choosing the Best Crypto Wallet In The UK?

Do Cryptocurrency Wallets Support NFTs?

NFT (Non-fungible token) is digital data stored in the blockchain. An NFT can resemble a piece of art, tickets to an event, or even digital clothing in a metaverse. The technology makes it so each piece of information is one of a kind and cannot be copied.

Roughly 3.3% of the UK population plan to buy an NFT in the future, with millennials making the majority of purchases at 23%. Due to the gaining popularity of NFT technology, most crypto wallets have incorporated it into their ecosystems.

Some cryptocurrency wallets like Trust Wallet and Exodus provide storage solutions for NFTs. Also, cryptocurrency wallets can allow integrations with NFT marketplaces, such as OpenSea.

Is Staking Possible With A Cryptocurrency Wallet?

Staking is when you lock your coins to support the blockchain network to receive rewards or interest. Most crypto wallets nowadays offer staking options without needing to use a dApp. Some popular options include Exodus, Guarda, Trust Wallet, Crypto.com, and Atomic Wallet.

Can I Use The Same Wallet For Multiple Exchanges?

Yes, you can use the same crypto wallet to transfer cryptocurrency to various exchanges. However, you must use the correct receiver wallet address; otherwise, the coins will not reach your exchange account. Therefore, you should double-check that you are using the correct blockchain and coin when making a deposit.

Can I Trade On Decentralized Exchanges Using A Cryptocurrency Wallet?

Decentralized exchanges (DEXs) are non-custodial platforms that offer peer-to-peer transactions. Most DEXs have integrations for cryptocurrency wallets to provide convenience. They require using a browser, so in most cases, you’ll need to connect with a web-based wallet like MetaMask.

Can I Buy Cryptocurrency Using A Wallet in the UK?

Crypto enthusiasts can use a crypto wallet to purchase cryptocurrency through an exchange or directly through the wallet platform if it has fiat currency payment methods. Ideally, you’d want to use a centralized or decentralized exchange to purchase coins because they have the best fee rates. However, using a debit or credit card to buy coins through the crypto wallet UK is convenient and avoids complicated trading interfaces.

Here’s how to invest in cryptocurrency through Trust Wallet:

Furthermore, you can use an eWallet like PayPal in the UK to purchase cryptocurrency. Currently, they offer a limited range of coins such as Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. Also, the online banking app will store the investment for you.

Do I Have To Pay Tax on Cryptocurrency Stored in My Wallet in the UK?

Investors do not have to pay taxes when holding cryptocurrency in their private wallets. However, if they decide to sell cryptocurrency and profits exceed £12,300, a flat capital gain tax must be paid.

The HMRC (Her Majesty's Revenue and Customs) can track and look at your crypto holdings if you store coins in an exchange wallet UK. For example, Coinbase must provide information to the HMRC if your investments are more than £3,000. Also, if you store crypto in banking apps like Revolut, they can take control of funds if you are being investigated.

Bitcoin Wallet in the UK

What is a bitcoin wallet? Bitcoin wallets are a great option if you are planning to buy, trade, or use Bitcoin. Having a Bitcoin wallet is a must for any trader after buying Bitcoin.

What is the best Bitcoin wallet in the UK? There are different types of Bitcoin wallets and each of those Bitcoin wallets has different features, so it depends on the trader to decide which is the best Bitcoin wallet or which Bitcoin wallet to use based on the investment strategy. As bitcoin is a digital asset, the way it is used and stored differs so make sure you compare each Bitcoin wallet.

Additionally, Bitcoin wallets are one of the safest ways to store the crypto assets, most beginners leave their coins in exchange without knowing the associated risks.

How to Set Up a Cryptocurrency Wallet in the UK

Here’s a step-by-step guide for setting up a cryptocurrency wallet with eToro wallet account in the UK. The overall best crypto wallet in the UK for both beginners and experienced investors alike is offered by eToro and it is also one of the safest crypto wallet options.

How Do You Cash Out And Spend Cryptocurrency From A Crypto Wallet UK?

Top Tips For Cryptocurrency Wallet Users

• Always check the transfer fees when sending coins between crypto wallets.

• Never share your private keys on a website or with someone claiming to be customer support because it’s a scam.

• Make at least 2 copies of your seed phrase in case you forget your password.

• Double-check cryptocurrency addresses when making a transfer because you may have unknowingly installed a virus that can paste a different crypto wallet address.

• Do a background check before using a cryptocurrency wallet UK. Usually, a good reputation means the service can be trusted.

• Never login to your cryptocurrency wallet when using a public internet connection.

• If you use a mobile crypto wallet, you should hide the app icon and make it difficult to find. This is because thieves robbing people are not targeting any digital wallet as much since crypto holdings are usually more desirable.

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