:max_bytes(150000):strip_icc()/Crypto_Wallets_Review-0cfaf508fdaa42aaa8f5a9563e45300b.jpg "Best Crypto Software Wallets for April 2024")
Company Number of Currencies Supported Supported Bitcoin Incorporated Exchange Adjustable Fees Compatible Hardware Guarda Best Overall and for Security 400,000+ Yes Yes Yes Yes Exodus Best for Beginners 250+ Yes Yes Yes Yes Electrum Best for Bitcoin 1 Yes No Yes Yes Mycelium Best for Mobile 8+ Yes Yes Yes Yes Coinbase Wallet Best for Low Cost Thousands Yes Yes Yes Yes
How to Choose the Best Cryptocurrency Wallet
Choosing the best cryptocurrency wallet depends largely on your personal needs. Here are some helpful tips for choosing the wallet that’s right for you.
How often do you plan to use your wallet?
How often you plan to use your crypto wallet plays an important role in choosing one that is right for you. For example, if you plan to use digital currencies, such as Bitcoin or Tether USD, to make regular payments, you probably want to keep your funds in a mobile wallet.
But if you want to invest in and store crypto-assets long-term – and if you’re looking for a large amount of digital currency – it’s better to secure your crypto-assets offline in cold storage using either a hardware or paper wallet .
If your intention is to actively trade digital assets, it will probably be beneficial to choose a multi-platform wallet that offers the flexibility to manage your cryptocurrency portfolio on both your computer and smartphone.
Nevertheless, it is essential to exercise caution and avoid storing significant amounts of cryptocurrency on centralized crypto exchanges or lending platforms. By doing this, you reduce the risk of experiencing a total loss of funds in the event of a hack or the insolvency of an exchange.
Interested in the number of cryptocurrencies the wallet supports?
If your goal is to create a diversified crypto portfolio consisting of numerous digital currencies and tokens, choosing a multi-asset wallet that supports a wide range of assets will be a wise choice.
Do you care about the level of customer service?
If you are a beginner, you probably want to choose a beginner-friendly wallet with an easy-to-use interface.
Not all wallet providers have customer support. For example, many long-standing open source wallets offer no customer support. If you think you’ll need help with your wallet, choose one that allows you to communicate with a human customer service agent via phone or live chat.
How important is security?
Are you just looking to navigate the waters in the brave new world of crypto? Or are you looking for a substantial investment? Depending on your plans, security will play either a relatively small or a very large factor in choosing a wallet.
You might be looking for a desktop wallet that you can secure with an encryption password. Or maybe you want the best security that crypto storage solutions can offer.
Backing up your wallet is one of the most important – if not the most important – aspects of crypto wallet management. Are you content to write down a recovery phrase and store it safely, or do you prefer to just remember a username and password?
Choosing a wallet with a backup feature that works for you is another essential safety measure when it comes to choosing a wallet.
How important is it to have ownership of your private key?
Are you comfortable with a third-party provider holding your wallet’s private keys (and thus having de facto ownership of your virtual assets)? If not, you can choose a non-custodial wallet where you are responsible for managing your wallet’s private keys.
Although these wallets are considered best practice because you have full control over your virtual assets, if you lose access to your wallet or forget your encryption password, you will lose all funds held in that wallet.
Frequently Asked Questions
A cryptocurrency wallet is like a digital bank account for your crypto assets. It allows you to securely store, send and receive digital cryptocurrencies. Many wallets also support other digital assets, such as non-fungible tokens (NFTs).
Technically, however, crypto-assets are stored on the blockchain. So what a crypto wallet allows you to do is access your digital assets stored on a blockchain using the wallet’s private key.
There are several ways you can get a crypto wallet, including downloading a software wallet to your smartphone or computer, purchasing a hardware wallet device, or printing a wallet on paper.
Download a software wallet: You can download a wallet app on your smartphone or computer. Once you’ve downloaded the app, you can create a wallet account (don’t forget to back it up securely!) and start using it to store your crypto assets. Buy a hardware wallet: You can buy a hardware wallet device online from the manufacturer or a trusted online provider to securely store your crypto assets in so-called cold storage. Hardware wallets physically store your private keys offline, essentially eliminating the ability for hackers to remotely access your coins. Print a paper wallet: Paper wallets are another cold storage option, where you print your public and private keys on a piece of paper and store the physical paper in a safe place. However, this crypto storage method is not recommended for beginners as it requires a higher level of technical knowledge to ensure that the wallet’s keys are generated and printed securely.
The most popular crypto wallets are software wallets like the ones listed above. So let’s use the example of a mobile cryptocurrency wallet to show you the typical steps you need to take to set up a wallet.
Download a crypto wallet to your smartphone. Make sure you choose a reliable one. Open the app and click on “Create New Wallet.” Write down the wallet’s recovery phrase (also known as a seed phrase) and store it safely. You’ll need it to regain access to your wallet in case you accidentally delete the app or lose your phone. Finalize the setup by confirming that you have written down the wallet recovery phrase by typing selected words or the entire set of words in the correct order. That’s it! You can now start using your cryptocurrency wallet to receive funds or make an in-app purchase if that option is available.
Methodology
One of the most important things to consider before trading and storing cryptocurrencies is to have a suitable crypto wallet in place. To help determine the wallet that works best for you, we conducted a comprehensive review process of the top cryptocurrency software wallets.
Our review process is built around a quantitative rating model that weighs key factors such as security, cost, privacy, usability, customer service and features according to their importance. Our team of researchers collected more than 40 data points and conducted extensive research for each of the 19 companies we reviewed. Our team of writers, who are experts in this field, then tested each wallet to give their qualitative point of view.
Our model prioritized companies with the strongest security measures and reputations. Companies with rich features, such as supporting a large number of crypto-assets, giving users the ability to sync with hardware wallets and allowing for fee customization, also ranked high.
Read our full methodology.
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
UnCirculars – Cutting through the noise, delivering unbiased crypto news
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