With the fast-changing and speculative market of cryptocurrencies, you as a user should always be up-to-date. In 2021, several companies and services have now started to accept crypto as a form of payment and trade. Even Musk’s Tesla has also invested 1.5 billion dollars in getting their feet planted in the digital currency. We’ll never know – tomorrow might be another big day for cryptocurrency.
As an investor, trader, or simply an enthusiast with crypto, you should have your tools at their prime – nothing less. As a beginner, you might wonder – what type of wallet should I get? That is why in this article, we will talk about the best crypto wallets that you should have with your coins.
Hot Wallet Vs. Cold Storage
We won’t go into depth on all the different wallets about cryptocurrency. But what you should know right off the top is the difference between a hot wallet and cold storage.
A hot wallet is like the wallet you carry around with you day-to-day. It isn’t incredibly safe, but it’s convenient and gives you easy access to your money. Cold storage is a lot more like a savings account. The money isn’t on you at all times, so it’s more secure but impractical to use every day.
An example of a hot wallet is your cryptocurrency exchange. It’s a software wallet that’s always online and requires password input to access. It makes it vulnerable to attack but very easy to reach your funds. The cold storage wallet would look like a piece of hardware that’s separate from your computer. It is always offline except for when you plug it in to access it. This means that while it is offline, it is safe from attackers.
Again we go much deeper into different types of wallets in our other videos. But it would help if you decided whether you’ll be using your crypto frequently or locking it away. Then you can choose a hot wallet or cold storage solution that’s appropriate for you.
5 Best Crypto Wallets For 2021
First on our list is the Exodus wallet. It is a digital wallet that is suitable for multiple cryptocurrencies. Exodus started only on desktop versions, then is now accessible for Android and iOS devices, too. Being different from other digital wallets, Exodus prides its services on a user-centered design for beginners in the crypto realm. Plus, the platform has an excellent interface due to its developers’ effort in its UI to make it more user-friendly.
A great feature of Exodus is its support for an array of different altcoins – and of course, including Bitcoin. A user can also exchange via the wallet crypto coins for another one, with no registration. With all these in mind – you should always include Exodus in your options. This is great for handling and trading some of your cryptos without any in-depth knowledge of the process.
- BitGo Wallet
BitGo is one of the leading service providers on digital assets, finance, security, and liquidity solutions. Just in 2013, BitGo released the pioneer in cryptocurrency’s multi-signature hot wallet for investors. Currently, the company is the largest processor of on-chain Bitcoin transactions. They handle almost a fifth of the entire Bitcoin transactions and a monthly $15 billion across other cryptocurrencies. BitGo is suitable for over a hundred tokens and is worth about $2 billion.
Coinbase is a crypto wallet that you can utilize to sell, purchase, transfer, and store digital currency. You will be worry-free as it can securely keep an array of digital assets offline. This digital wallet is available in more than a hundred countries.
With Coinbase, you can easily trade any cryptocurrency and handle all of it in a single place. The company also offers an app for both Android and iOS devices. Plus, you can also schedule your currency trading at your personal pace. Lastly, it keeps your funds in a vault that is safer than anywhere else. Indeed, one of the best cryptocurrency exchanges and wallets out there.
Next on our list is Binance – an excellent choice for your mobile device wallets. As most of us know, Binance is a cryptocurrency exchange platform. But it keeps up as it provides its official app named Trust Wallet.
Binance’s crypto wallet, Trust wallet, is available for about 40 blockchains. This means that it also works with thousands of other cryptocurrencies. With these being said, if you can’t find a wallet for your specific token, missing out on Trust Wallet is the last thing you want to do. Plus, this digital wallet is decentralized, meaning it won’t gather any of your personal data. Aside from that, it also has numerous card payment processors built into the wallet. With this, you can buy cryptocurrencies without leaving your mobile app.
- Ledger Nano X
Last but not least, we recommend you check out Ledger Nano X. Do you have any crypto coins? We highly suggest purchasing your personal Ledger Nano X to keep your cryptocurrency at its safest place. This digital wallet has been developed by the French company Ledger, which has cemented its place in the industry. The company’s first product is the Ledger Nano S. As a pioneer of hardware wallets for cryptocurrency – it reigned supreme way back for a few years.
Ledger Nano X, as a hardware wallet, provides support for over a thousand cryptocurrencies which also continue to grow each year. As a reminder, Ledger Nano X is a cold storage hardware wallet that comes with Ledger Live, including a user interface for your holdings.
Public and Private Key
Whatever wallet you choose, the platform will provide you with a public key and a private key. If not the most, this is one of the most important things in keeping your hard-earned crypto coins.
The public key
The public key is the electronic address that you will always use to receive funds. When you withdraw from an exchange, and they ask for an address, it’s your public key that is required. You’re free to share it and use it however you like.
Your private key
Your private key should never, under any circumstances, be shared. If your private key is leaked or discovered, your funds can be stolen and used without your permission. You will lose your funds, and you won’t be able to get them back. So write it down, keep it somewhere safe and secure, and do not share it.
Once you have your crypto stored in an appropriate place, you are ready to engage with crypto to crypto trades. Learn more about digital wallets here!
What type of wallet should I get? Actually, the answer lies in you. Above, we have laid down all the necessary information for you to arrive at the best decision. Just keep these in mind, and don’t rush to choosing your crypto wallet. Remember that this is where you will be storing your hard-earned coins. Having a bad user interface, services, and experience is the last thing you want with your digital wallet.