What is unknown to most people is that the cryptocurrencies held in your trading account are not well protected against hackers. Also, many people are getting into crypto and need an easy platform to start on. An easy way to keep your money safe and start your crypto investing is using the right crypto wallet.
Over the years, the amount of different crypto wallets has increased exponentially. Now there are probably a hundred crypto wallets to choose from. Each one has slightly different features, capabilities, and levels of security. Most wallets are either Cold or Hot wallets, which means they are either physical drives that hold your crypto or online wallets holding your money.
Many new wallets come out all the time, and it's hard to find the right wallet to use. Here are my suggestions on crypto wallets depending on your experience in crypto investing, security preferences, fees and costs, and overall capabilities:
1. Ledger Nano X: Cold Wallet Specialty
If hacking fears you but losing a physical drive does not, you might want to check out Ledger Nano X. Since its release in 2019, this crypto wallet is almost the safest wallet out of any other on this list because it is offline. The wallet can hold up to 1,800 cryptocurrencies and will only cost you $119. The drive works on either plug-in or Bluetooth. If you are afraid of Skynet and are a very organized person, this crypto wallet is worth using.
2. Trezer Model Z: A Safe But Pricey Cold Crypto Wallet
For the highest level of security and a touch screen, your crypto wallet will be safe for as little as $190. While it does not feature Bluetooth, it has very tight security features. If your biggest worry is security and you have the breathing room to splurge, investing in this wallet is suggested. While it does not have a maximum number of applications and different cryptos, it can only hold 1,200 crypto coins––which is less than Ledger Nano X.
3. CoinBase: A Great Start
Coinbase is the second-largest wallet by volume and accepts more than 500 different cryptocurrencies and NFTs. The wallet is accessible through mobile devices only and is easy to use, and is a great starting point for amateur crypto investors. Coinbase’s security features call for two-factor authentication and can optionally save your files in Google Drive as a backup.
While Coinbase is easy to use and is a great start for investors, it has very high fees. Fees range from 0.5% to 4.5% for transactions. If you are a large investor, Coinbase is not a good spot for your investments.
4. Electrum: Bitcoin Investors Only Club
This wallet has been storing Bitcoin only since 2011. This wallet is the largest Bitcoin-only wallet and is fast and easy to use. This option is best for investors who are only interested in Bitcoin. Electrum’s fees are special: Users decide how much their fees are, based on how long they are willing to wait for their transaction to process. Their fees peak at 0.2 mBTC (millibitcoin is the one-thousandth of a Bitcoin) and are typically reduced depending on processing preferences.
5. Exodus: For Investors Who Are Computer People
Exodus is another easy-to-use wallet exchange for cryptocurrencies. Investors can choose between more than 150 different currencies and have the option of receiving 24/7 customer support. While Exodus has a very easy-to-use desktop version, it is also fully functional on mobile devices. While Exodus has a fast transaction speed, it does not have strong security––including not having two-factor authentication. Also, Exodus has high fees. While Exodus is working towards having customizable fees like Electrum, its monthly fees are high compared to others on this list. Typically, you will be paying around $10 a month with Exodus.
6. Mycelium: For Investors Who Are Not Computer People
Mycelium is another old crypto wallet. It can work as a cold wallet (where cryptos are stored offline) or a hot wallet. This wallet is the best crypto wallet for mobile users because it is so easy to use, and it has built-in educational resources for users to learn about crypto. Mycelium features customizable fees for Bitcoin and is working to establish that option for other cryptos. Mycelium also supports Ethereum and Ethereum based NFTs.
7. Ledger Nano S: Safe And Cheap Cold Storage
Ledger Nano S is a primitive version of Ledger Nano X. Initially released in 2014, Ledger Nano S was the safest cold storage for crypto on the market. This wallet has the capacity of 1,100 crypto coins and the capability of only storing three different applications rather than Nano X’s 100, and does not feature Bluetooth technology. However, the drive is much cheaper for investors, at just $59, who do not have a lot of spending room.
8. MetaMask: Best NFT Wallet
MetaMask is a hot wallet accessible through a browser extension or mobile application. This wallet accepts only Ethereum-based NFTs and the fees are typically .875%. While this fee is high compared to other wallets, MetaMask is very safe. MetaMask never stores the wallet information on its own servers, making it decentralized. Instead, it places your information on the internet, making your data even harder to acquire. Their fees are high, but if safety is a must for you––I would hold and trade with MetaMask.