A good crypto wallet is a must-have for anyone collecting, trading or holding Bitcoins, Altcoins and tokens. There are two types of wallets for holding crypto, you can use a cold or hot wallet. Both are Ok for short term trading, but if you want to hold a big bag of a certain cryptocurrency then you will be wanting a cold wallet.
In this article, we will be revealing our top picks for the many types of crypto wallets and revealing how to make your crypto experience safe. Before any crypto enthusiast can trade crypto you need a secured wallet and be the “ONLY” one who knows the secret passphrase should anything happen to your device, laptop or smartphone.
Always Secure Your Wallet Before Use
Once you have selected the crypto wallet that suits you best, you will need to record the 12 or 24-word security phrase once downloaded. You can take a picture of it, write it down on a piece of paper or store it on a mini USB drive. But be sure to keep it safe and never share it with anyone apart from yourself.
A passphrase is a fallback security code should anything happen to your crypto wallet. Say you lose your phone, laptop or another device that is holding your crypto wallet. You just re-download the wallet/software and use the recover tab, enter your passphrase and you will have your original crypto wallet back from the dead!
Passphrase Scam Warning: There are many users online that will gladly relieve you of your passphrase. They hint at helping you, giving you advice or pretending to be a crypto helpdesk. The passphrase scams are endless, so basically if you ever share that passphrase you will 100% lose any crypto stored on that wallet!
What Is A Cold Crypto Wallet
A cold wallet is an external piece of hardware that acts as a wallet. You plug it into your laptop. desktop or tablet, open the device and that is your wallet. It is a secured storage device that stores your contracts from the blockchain.
When you are ready to trade or cash in your stored crypto you just plug the wallet into your device and send your crypto to a cryptocurrency exchange. Then, from there you can trade or sell, but remember to always transfer your crypto back to your cold wallet for
- Can be disconnected from the internet
- Good for long term holding
- More secure than a hot wallet
What Is A Hot Wallet?
A hot wallet is always connected to the internet, which makes them insecure/vulnerable so no good for long-term investing. Another important part about a hot wallet is others can see what crypto you are holding. All you need to do is find your wallet address search for that wallet on various websites and anyone can see what you own.
This is also another security concern because if you are holding a considerable amount of crypto then your hot wallet might become a target! Although hot wallets are secured with public and private keys there are many instances that wallets have been hacked and the owner losing everything.
A hot wallet is more desirable for day traders because they have quick access to their crypto for trades if they see the opportunity. Hot wallets are good for initially buying your desired cryptocurrency because they are more convenient, but you should always transfer those altcoins or tokens once you have made your trades. Just in case!
- Always connected to the web
- Secured behind private keys
- Great for day traders
- Or for initial crypto buys
The Best Crypto Wallet For External (COLD) Holding
In the first section of this crypto wallet guide, we will reveal the best external (cold) option when holding crypto offline for longer periods. These options are the safest way to hold crypto in the real world, with no connection to the web your crypto is very safe.
Ledger Nano X Cold Wallet – Cold/External Wallet
The Ledger Nano X is a serious contender for top stop and should be your first choice when it comes to selecting a cold wallet. Ledger was the first-ever cold wallet for keeping your crypto safe. Trusted by many high profile crypto enthusiasts the Ledger Nano X is all you need when holding offline for longer periods.
The device is small and no bigger than your average USB drive, so it can be stored easily for safekeeping. You just need a secure place to keep the drive that no one else knows about. You can store most of the well-known cryptocurrencies such as Bitcoin and the majority of altcoins, but there is a limit to how many crypto types it will hold.
Security for the Ledger Nano X is very tight with a 24-word passphrase that can be secured to use a 25th for
- Cold/External Crypto wallet
- 24-word passphrase
- Additional 25th-word security
- USB connected
- Easily stored in a vault/lockbox
- Bluetooth compatible
- Pricing: $55 – $120
Electrum – Best Bitcoin ONLY Wallet
Electrum was released in 2011 and is an open-source crypto application. You can be sure it lives up to its name as the most secure, for storing Bitcoin. So, if you wanted to buy Bitcoin and Bitcoin only this is the crypto wallet that would suit you best. It’s open-source so you know there are no vulnerabilities because many eyes have analyzed or improved the code.
- Only for storing Bitcoin
- Open-source
- Basic interface
- Set transaction costs
- No internal support
- Free to download and secure
The Best Hot Wallets For Trading/Collecting Crypto
As mentioned earlier in this article hot wallets are not as secure when compared to cold wallets. Although hot wallets are still secured behind private keys they are just not as secure. Another downside to a hot wallet is others can see what crypto you hold. This is another security flaw, so any big bags of crypto should always be secured with a cold wallet.
A hot wallet is a piece of software that is downloaded over the internet or through an App service. This alone makes them vulnerable because there are so many fake apps and websites all looking to claim your crypto. So be sure to always check the URL or app provider and never download through a link embedded in an email or other forms of communication. It is just far
For a hot wallet to feature in this article it must provide a recovery phrase of 12 or 24 words. But also provide 2-factor identification called 2FA such as a fingerprint or face recognition. Although this will not be needed to
The Coinbase Crypto Wallet – Bitcoins & Altcoins
The Coinbase wallet is separate from their exchange wallet. It works just like a normal hot wallet but is very secure. Coinbase has taken time to create a crypto wallet easier for beginners, secured with private keys and 2-factor identification 2FA.
If you are going to be using Coinbase Pro to purchase altcoins and Bitcoin then be sure to transfer them to the wallet, leaving them in the
- Downloadable to all devices
- 2 Factor authentication
- Backed by Coinbase
- Best for beginners
- Free to use and download
- Bitcoin and altcoins
- Cannot store BEP-20 & ERC-20 tokens
Trut Wallet – Hot Wallet
The Trust Wallet is an all-around crypto wallet that offers a secure way to trade crypto. It holds any type of crypto and is the best when it comes to variety. If your goal is to secure tokens such as BEP-20 or ERC-20 tokens then Trust Wallet is the crypto app for you. You just simply search the crypto you want to buy and add it to the interface. It comes with 2FA, a secret phrase for recovery and private keys.
- Trade Tokens, Bitcoin and Altcoins
- BEP-20 & ERC-20 compatible
- Easy to navigate for beginners
- A safe and secure way for short term trading/holding
- 2 Factor authentication
- 12-word passphrase for recovery
- Secure browser for trading
- Pancakeswap, Uniswap secure browser
Conclusion – Best Crypto Wallets
A cryptocurrency wallet is the most important part of crypto because it keeps your assets safe and allows you to trade and swap tokens, Bitcoins or altcoins. There have been so many horror stories from people losing their wallets with thousands of dollars worth of crypto, so before you stock up be sure to choose a wallet that is safe and secure.
Always secure it before trading or adding assets and obviusly never share that passphrase…EVER!
We love hearing from our readers and will help where we can, so if you need any advice contact us directly or just use the comment section below and we will get back to you ASAP.
Leave a Reply