With the increased transactions of digital currencies, the chances of theft and fraud have also increased in cryptocurrency. This is what makes it crucial to understand how cryptocurrency works and what to consider while choosing the best crypto wallets. Today, in this blog, we’ll be talking about what is a crypto wallet; we shall explain different types of cold crypto wallets and hot crypto wallets; and some of the best crypto wallets you can consider while looking for crypto wallets. We have reviewed and compared each cryptocurrency wallet to bring you the best crypto wallets.                

What is a Crypto Wallet?

When we talk about cryptocurrency, a crypto wallet plays an important part. Just like in real life, we use wallets to store and protect our cash or money; cryptocurrency wallets are used to store the private keys used to access and make cryptocurrency transactions, offering enhanced security protection. They don’t directly store your crypto like the physical wallet does, but use the passkeys for digital transactions. Initially, to send cryptocurrencies, one had to enter long keys, but now most of the process is automated with less human intervention.   

Key Elements:

Crypto wallets are the software used to hold your private keys that allow you to make virtual transactions.  

Anybody who knows or has control of passkeys can access the coins. 

Different types of cryptocurrency wallets are available and can be used to store different kinds of cryptocurrencies, each with its own unique features and security levels.

There are mainly three types of crypto wallets, which are cold Crypto wallets, referring to software wallets, Hot crypto wallets, referring to hardware wallets, and paper wallets.  

Cryptocurrency wallets can be handled in two ways: 1) Custodial, 2) Non-custodial. Custodial wallets are the ones who are handled by third parties, whereas the other one gives you full access.

Cryptocurrency Wallet Types

Cryptocurrency wallets are generally classified into three types: cold, hot, and paper wallets—each with distinct features and varying levels of security. 

Hot Crypto Wallets

Hot crypto wallets, also known as software wallets, refer to the programs and applications installed on a Pc or mobile phone to access cryptocurrencies and make transactions, mostly connected to the internet. Apart from this, a few wallets include features like balance checking, exchange integration, and much more. They are available in different varieties like web wallets, desktop wallets, and mobile wallets.    

Cold Crypto Wallets

Cold crypto wallets, also known as hardware wallets, are electronic devices used to store the private keys generated through the RNG method. They don’t need any internet connection and can be operated offline. Cold crypto wallets are one of the popular Cryptocurrency wallets as they enhance security by keeping private keys offline, protecting them from any malicious attacks. If you are investing a larger amount or want to keep your assets for a long period, then you should go with hardware wallets. Hardware wallets are less user-friendly as compared to software wallets.          

Paper Wallets

Initially, crypto traders used to write privately on paper, which referred to paper wallets. But now they are not used by many as they can be easily lost and destroyed. They are generally safe, but require secure and cautious storage.

 Top 10 Best Crypto Wallets

Crypto wallets are not all about storing passkeys; the best crypto wallet is the one that is cost-effective, offers a robust and scalable infrastructure that supports seamless buying, selling, and staking of cryptocurrency. Below, we have listed the top 10 best crypto wallets, which include both hot crypto wallets and cold crypto wallets:

1) Zengo

Zengo is one of the best crypto wallets that uses multi-party computation to protect assets and make transactions instead of relying on private keys. The price of Zengo is 129 dollars annually and supports more than 300 assets that can be converted into cold storage via WalletConnect. With its strong infrastructure, this wallet safeguards millions of users with no history of wallet breaches. 

2) Coinbase

Coinbase is a free hot crypto wallet, supporting 1000+ assets. With the help of Coinbase, users can store cryptocurrency by themselves instead of relying on Coinbase. This is the best crypto wallet for beginners, as they can learn and grow with this platform with no cost, without compromising on security.  

3) Exodus

Another best hot crypto wallet on our list is Exodus, supporting 250+ assets. Exodus is also a free hot wallet, offering a set of application tools. This wallet is also integrated with the Trezor wallet to seamlessly transfer crypto between hot and cold storage.   

4) Crypto.com

Crypto.com Onchain is a self-custody hot wallet designed for DeFi use, supporting both mobile and browser access. It connects seamlessly with the main Crypto.com app, making it easy to trade and transfer assets to cold storage. It also integrates with Ledger hardware wallets for added security and supports 1000+ assets. 

5) Guarda

Guarda is a free hot crypto wallet available on mobile, desktop, and browser extension. It supports 300+ digital assets. For added security, users can move funds to cold storage via Ledger integration.

6) Trust Wallet 

Trust Wallet is a crypto wallet used for Finance, allowing users to buy, sell, and trade crypto directly from the app. It claims support for over 10 million digital assets, though actual circulating cryptocurrencies are far fewer. While it doesn’t list all supported coins, compatibility with 100+ blockchains means it likely supports most major cryptocurrencies.

7) Ledger

Ledger is one of the well-known cold crypto wallets that offers plans ranging from 79 dollars to 399 dollars, supporting 5K+ assets. It integrates with popular software wallets like Crypto.com and Guarda and can be accessed through a mobile app, a desktop app, and a browser.

8) Electrum 

This is a free and easily downloadable wallet designed specifically for Bitcoin. This wallet is compatible with multiple OS, making it an ideal choice for keeping their bitcoin safe. One of the key disadvantages of having Electrum is that it does not support trading features.   

9) Trezor

Trezor is a cold wallet, supporting 9K+ assets. This can be easily integrated with other Cryptocurrency wallets, allowing access from both desktop and mobile phone. The price of the Trezor wallet ranges from 49 dollars to 169 dollars.     

10) Metamask

MetaMask is a free wallet supporting more than 6 lakh assets and is specially designed to handle Ethereum-based coins. This wallet supports both hot and cold storage but doesn’t support Bitcoin. Any asset developed on Ethereum can be stored by MetaMask. MetaMask can be accessed through mobile and web-based wallets, but not yet available on desktop.