Cryptocurrency may be a digital asset, but it also needs a wallet for secure storage. A cryptocurrency wallet primarily stores your public and private keys, which amounts to the ownership stake of your crypto funds. This makes finding the best cryptocurrency storage essential for a secure digital investment.
When it comes to storing cryptocurrency, there are two main types of wallets you can use. You can choose either a cold or hot wallet. These two types vastly differ in terms of features and cost. Choosing one or the other will ultimately depend on the type of investor you are, as well as your own individual trading preferences.
Hot Wallets are also referred to as ‘Software Wallets’. These are wallets that are often connected with an exchange, allowing you to store your keys while also receiving and sending tokens at the same time. Hot wallets are often connected to the Internet because of this, which does lead to their own advantages and disadvantages.
As it is connected to the internet, Hot Wallets are just a bit more vulnerable to attacks and hacks which could lead to theft. Fortunately, many providers have been beefing up their security in recent times, with some even claiming that they haven’t been attacked as of the moment.
Investors can also take certain measures in order to reduce the risk. For instance, they can store only a small amount of coins and tokens in their hot wallets, reducing the likelihood of someone attempting to break in.
Among software wallets, there are also different types to choose from. You can either get a software wallet that works as a standalone, or one that is designed to work with a particular web app, or even certain cryptocurrencies. Conducting research as to which features are important to you will be essential when it comes to choosing the best hot wallet for your storage needs.
These wallets are some of the best to use when it comes to crypto. Each of these wallets have their own features to offer their prospects, so you can’t really go wrong with any of them.
Exodus works on both desktop and mobile, allowing users to transact and participate even on-the-go. Their easy-to-use interface makes them a good fit for beginners just starting out with crypto investing. Customer service is pretty good too, with the Exodus Support Team capable of helping users with all of their queries. Users will be able to transact and swap between over 100 different currencies on the wallet.
On the other hand, it is a closed-source wallet, which means users don’t have access to the code to check it for any security holes or weaknesses. It does also mean that malicious actors won’t be able to get their hands on the code for their own purposes.
Coinbase Wallet allows users to store their own crypto while participating in the crypto exchange and DeFi. Coinbase helps users manage their private and public keys while also allowing users to store their assets directly on their devices.
Note that you can’t connect your Coinbase Wallet to your bank account, so you can’t use it to directly buy or sell crypto using fiat currencies like USD. However, it does allow you to do other things such as buying and storing ERC-20 tokens, participate in airdrops and ICOs, use DApps, shop at stores that accept crypto, and even collect digital art and other collectibles.
MEW Wallet is a fully-fledged mobile app that users can download onto an iOS or Android device. It is a true, non-custodial Ethereum-based wallet, meaning that any coins associated with the Ethereum blockchain will automatically be supported.
It has a lot of features, but people looking to trade using different cryptocurrencies may want to look elsewhere. As a dedicated-currency wallet, MEW won’t be supporting non-Ethereum currencies anytime soon. The company is upfront about this however, so you don’t have to worry about accidentally selecting the wrong coins.
Check out a list of more Hot Wallets via our comparison page:
On the other hand, cold wallets are also known as “hardware wallets”. This is an actual device you can use to store your public and private keys and can be disconnected from the Internet. This makes it a very safe method of storage, with a far lesser risk of being compromised.
Most of the time, you can find these hardware wallets in the form of a USB drive, while also coming with software that can enable its users to still use them in tandem with their portfolio. They do require a bit more knowledge to set up, however, and of course, you do need to pay for the actual physical device.
Here is a list of some of the best cold storage available for most investors:
When it comes to Ledger, interested customers can choose between the Ledger Nano X or the Ledger Nano S. Both are equally good and secure and mostly differ in their features and inclusions. The Ledger Nano X is easier to use and offers a larger screen, making it easier to use for people who have some difficulty with compact devices. They also allow more experienced investors to use and install up to 100 apps at a time.
Ledger Nano S on the other hand, has already sold over 2 million units, making it one of the best-selling cold wallets. However, they can only offer up to 3 apps at a time, which is an important consideration for more experienced users. Using a Ledger Wallet also allows you to use the Ledger Live App, giving you access to multiple crypto-related services on your desktop or your smartphone.
As one of the oldest crypto hardware wallets available, the reliability of Trezor has already been proven in a lot of ways. Their universal support and ease of use as well as the security features and convenience it offers continues to make Trezor one of the best picks for cold storage in the crypto industry.
The Trezor ONE and the Trezor Model T constitute their different tiers of products, with the Model T acting as the more ‘premium option’. Both enthusiasts and beginners should be able to find something to like in both models, with their customer support always ready to help should you find something difficult to understand about the product.
Developed by European company Sofitto, the Sugi NFC Wallet makes it easy for you to spend and deposit your cryptocurrency while acting as a secure cold storage option for the rest of your funds. Simply tap your card on your phone while transacting like you would a bank card for easy convenience.
Sugi has also partnered with other different partner wallets like Infinito, allowing you to make use of different blockchain apps that expand the functionality of your device such as buying fiat with crypto, games, exchanges, and more.
Check out a list of more Cold Wallets via our comparison page:
Ultimately, it depends on your specific circumstances as well as what you are personally looking for as an investor. Some investors may prefer having the peace of mind that their funds and keys are kept as secure as possible, and could really appreciate having an actual, physical device they can keep at all times. Finding the best cold wallet is also essential for people with a lot of crypto investments they want to secure.
On the other hand, some investors might appreciate the functionality and ‘always on’ property of a Hot Wallet. A hardware wallet may also not be that practical if you’re only storing small amounts of cryptocurrency at a time, since it will require a separate product purchase.
Regardless of your chosen media of storage, you should be safe to go provided you follow the best practices in keeping your private and public keys safe and confidential. Good luck with your investments!
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