Having a secure wallet to store your cryptocurrencies is something that we all fret about, none of us want to lose our hard-earned crypto.
Crypto wallets store your private keys which keep your coins safe and accessible as long as you know the codes to get in. Your private key is required for you to gain access to your cryptocurrencies whilst the public key is the address people would use to deposit more for you.
What type of Crypto Wallets are there?
I’m sure we’ve all heard of the popular ones like the ledger, which is a hardware-based wallet that secures your keys in an encrypted drive.
However, anywhere where you are storing your cryptos is essentially a wallet, you might be using a completely personal and private one or you could be storing it on an exchange wallet which you have no real control over other than selling or withdrawing them. Though the safety of your cryptocurrencies is relative to the safety of the exchange.
Here are some different types of crypto wallets that you can use:
- Online wallets: These would be web-based applications that might either be an exchange or a company that markets themselves as a crypto wallet. These would usually be protected by the central system governing the website/server and also have other measures to keep your crypto safe such as 2-factor authentication. A good example would be Coinbase or MyEtherWallet (MEW).
- Hardware wallets: Just as we described above, a hardware wallet would be a ledger which is an encrypted drive that holds your keys and keeps your crypto safe. This is a safer option than online wallets as it is a piece of hardware you can actually touch and is not controlled by a centralized system.
- Paper wallets: Ironically, a piece of paper could be your most secure way of holding cryptocurrencies. The reason why is that a piece of hardware like a ledger can always fail or get damaged, if you have your crypto written down on a piece of paper (or printed) and kept this very safe then there’s little that can be done except the event of a housefire perhaps. Might be good to keep the two in separate locations.
Clearly, there are risks with every method depending on how diligent you are, also having a paper wallet would make it hard to send crypto as well unless you connect it to exchanges or an online-based wallet.
What are the best crypto wallets to use in 2022?
1. Coinbase Wallet
Coinbase has been around since most of us can remember in the cryptocurrency game, they’ve developed many different apps such as Coinbase Commer, GDAX, and now Coinbase Pro. It is no wonder they’ve also developed a wallet that can be used to hold cryptocurrencies.
Coinbase has been known to stronghold their services and their security is up there. This is a great wallet because it is very beginner-friendly and has an intuitive interface to use. The app can also be connected to most major banks. It is also capable of storing NFT’s (Non-fungible tokens).
Your private keys are also stored on your device, not the central Coinbase server, adding to its overall security. With how much support it provides in one location, its definitely one of the best crypto wallets around at the moment.
2. Trezor Wallet
The Trezor is a cold hardware-based wallet that is available in a lighter 59 euro model as well as a more feature-packed 159 euros model.
You have complete SSH access to this wallet, as well as being able to set up a PIN for easy access and have the possibility of adding backups as well.
This is definitely for the more tech-savvy paranoid user. Though depending on the amount of crypto you’re holding, then you can’t put a price on safety.
3. Ledger Wallet
The Ledger is also a cold hardware-based wallet similar to the Trezor. Although it has been noted that the Ledger has a lot more assets that it can support. Though if you’re only dealing in typical cryptocurrencies then both the Ledger and Trezor would fit the bill.
The Ledger Wallet also contains an app that you can use to see your holdings as well as scan cryptocurrencies.
It does have BlueTooth enabled for some features though, so if you’re really worried about security and end up getting the Ledger then keep an eye out on this and you may want to disable it.
4. Paper Wallet
What would a list be without having a paper wallet? By storing your private keys on a piece of paper (Either written or copied/pasted then printed) and storing this in a safe location or two, you have the ultimate peace of mind where you won’t be worried about a wallet getting hacked or your hardware failing. This could be in addition to having a cold wallet perhaps.
There are plenty of options when it comes to storing your cryptocurrencies. Ultimately it comes down to your preferred level of safety and how often you use your cryptocurrencies.
If you’re always buying and selling then it may be worth keeping it on an online wallet that has these capabilities so you can avoid the fees of constantly moving it around from wallet to wallet. Coinbase is a great option for this, or perhaps Ledger if you want a bit more control and added security.