- What Are Crypto Wallets?
- What Are Crypto Hardware Wallets?
- What Are Crypto Software Wallets?
- What Are Crypto Exchange Wallets
- Crypto Exchange vs Crypto Wallet
- Best Crypto Wallets for Staking?
- Best Crypto Wallet for Beginners?
We list the best crypto wallets in 2023 for beginner and advanced investors. Learning how to invest in cryptocurrency is more than just buying. How to store to store your crypto is fundamental to investing in cryptocurrency from the UK.
Storing your cryptocurrency is an important decision. Whichever cryptocurrency investing strategy you decide to use and how often you want to buy, sell, send or receive crypto will depend which crypto wallet is best for you.
For example those who want to employ a long term crypto investment strategy can use a hardware wallet to be safe. The apps attached to the wallets also allow you to grow your stacks by dollar cost averaging into your crypto.
What Are Crypto Wallets?
The definition of a crypto wallet is that they keep your private keys secure. Therefore keeping your cryptocurrency safe and accessible. Crypto wallets also allow you to send and receive cryptocurrency like Bitcoin. But first you should learn how to buy Bitcoin before investing in a wallet.
Using a crypto wallet also enables you to easily move your crypto off an exchange and into a wallet. However, there are different types of wallets that are categorised into hardware, software and exchange wallets.
Ultimately, securing your cryptocurrency is essential. Privacy and security within the crypto space is important whether that’s using a crypto wallet to store your assets securely or keeping your online transactions and personal data hidden. You can browse our top picks for the best VPNs when buying crypto.
What Are Crypto Hardware Wallets?
Hardware wallets or ‘cold storage’ is a crypto wallet that stores your private keys. It looks like a USB device or thumb storage device. A hardware wallet is only connected to your computer when you want to use your crypto, like selling or buying.
When you buy a crypto hardware wallet you’ll need to download the software that comes with the device. This means you can interact with your cryptocurrency such as buying or selling directly on the blockchain without being connected to the internet and therefore keep your assets much more secure.
Best Crypto Hardware Wallets
Trezor is the original hardware wallet and there are two Trezor models to choose from, the Trezor One and T. It uses a simple USB connection to allow users to interact securely.
The main difference between the One and the T is that the T model has a larger colour screen. Trezor stores over 1000 cryptocurrencies, so you can be fairly confident this wallet will store your chosen investment.
Trezor does not support staking for that many coins. However the wallet iis compatible with other wallets. This hardware wallet is easy to set up and runs on most operating systems like iphone.
The Ledger hardware wallet Nano X and Nana S look like USB sticks. Each device has a little screen and buttons to enable you to do transactions. The wallet supports over 1000 cryptocurrencies.
The Ledger Nano S connects to the ‘Ledger Live’ app which is like an online crypto portfolio so you’re able to manage your assets easily.
This is extremely secure. Your crypto is actually stored on the device itself with a pin number.
Trezor vs Ledger
The main difference is the Ledger wallet is built on a double chip base whereas Trezor is built on a single chip base. Ledger also stores more crypto assets than Trezor. Ledger also has an app which allows you to track, send and receive cryptocurrency. However Trezor is slightly easier to set up.
What Are Crypto Software Wallets?
Software wallet or ‘online wallets’ is a crypto wallet that stores your private keys in an app or other software. This means you can send, receive, buy and sell crypto directly on your mobile or desktop.
The convenience of a digital crypto wallet is that you can send and receive cryptocurrency as easily and as fast as you would with a normal bank account. You also don’t have to worry about losing your hardware device.
Best Crypto Software Wallets
Metamask is an Ethereum token wallet that only interacts with the Ethereum blockchain. Metamask lives in your web browser like Chrome or Firefox. The wallet acts as a browser extension so it’s very simple to connect to the likes of Coinbase, so buying and selling is simple.
Exodus wallet is ideal for beginners starting their crypto investing journey. It’s a free wallet that supports multiple currencies, which is compatible on mobile and desktop devices.
There is customer support over live chat and a built-in exchange. It’s so simple to use you don’t need to be a tech geek to have a great experience.
Metamask vs Exodus
The main difference is that Metamask only allows you to store ERC-20 tokens, that’s Ethereum-based tokens. Exodus also has its own built-in exchange and supports over a 100 different cryptocurrencies. You can also store tokens from any blockchain.
What Are Crypto Exchange Wallets
Crypto wallets hosted by exchanges like Coinbase are perhaps the most convenient but could be considered more risky.
However, most exchanges like Coinbase hold your crypto in cold storage anyway.
Some exchange-based crypto wallets also offer savings accounts or staking rewards, so that you can earn more by storing your crypto with them.
Best Crypto Exchange Wallets
Coinbase wallet is quick to install, simple to use and free. This crypto exchange wallet connects seamlessly with Coinbase, making it very easy to move your crypto in and out of the exchange. Investors can also use search engines within the wallet to bookmark sites like Uniswap, which offers a wider range of cryptocurrencies than centralised exchanges.
The Swissborg wallet takes your security seriously. It stores private keys in hot and cold storage making it extremely safe. However, it doesn’t support as many cryptos as Coinbase.
Coinbase vs Swissborg
The main difference is Coinbase supports many more cryptocurrencies than Gemini. Gemini, however, has put more focus on the security aspect of the wallet and does support Ethereum tokens along with the top 10 cryptos by market capitalisation.
Crypto Exchange vs Crypto Wallet
The main difference is your cryptocurrency is much more accessible and easy to trade if you keep it on the exchange you bought it from. Mainly because if you want to sell your crypto due to a price increase you may need to send and receive it to and from your wallet, whereas if it’s stored on the exchange it can be instantly used.
Should I keep my crypto in a wallet or on an exchange, which is best? This all depends on the type of investor you are. If you prefer to swing trade (buy and sell regularly) then an exchange is probably best. If you want to hold your crypto for the long-term and DCA then a hardware wallet is best.
Also, if you are investing a lot of money (a lot of money can be different to each person) and you feel safer having your own private keys to your crypto then a wallet will give you more peace of mind.
Best Crypto Wallets for Staking?
Staking wallets can include hardware or software wallets. You can stake your crypto directly from your Trezor or Ledger or from digital wallets like Exodus. Staking is a way of earning passive income on your cryptocurrency.
Ledger: to stake your crypto on the Ledger hardware crypto wallet you must do it on the Ledger Live App. There are around 10 cryptocurrencies that you can stake. This is a very secure wallet as the app runs independently from your computer.
Trezor: You cannot stake your crypto directly in the Trezor wallet. However, you can pair your Trezor with other wallets where you can then stake.
Exodus: You can stake around 7 different cryptos using the Exodus wallet. This wallet is free and very user-friendly, so it’s ideal for beginners. It’s also compatible with iphone, android and desktop.
Full Article: List of the best crypto wallets for staking
Best Crypto Wallet for Beginners?
When beginners first enter the crypto space, it’s firstly important to learn how to invest in cryptocurrency. This includes finding the best cryptocurrency to invest in, what wallet you should use and so on.
So what’s the best crypto wallet for beginners? If you want to put your crypto in a hardware wallet then Ledger or Trezor are the most popular wallets to use and are very simple.
But if you want to store your crypto online or in an app then it makes sense to use Coinbase or Exodus. The Coinbase wallet is ideal for novice investors as most will first invest on the Coinbase exchange, the most popular exchange in the space.
Another option is the free Exodus wallet. It’s built with user experience in mind. The wallet has been created with a design-first approach making it great for finding your feet.
Full Article: List of the best crypto wallets for beginners