En route to invest in cryptocurrency, the most nerve-racking decision is to select a wallet. Finding the best one has never been easy, with the wide availability of different types of crypto wallets. Before sneaking into the top 5 options, let us understand what a crypto wallet is.The way you use regular wallets to fold your money and put the physical money in, the crypto wallet is the same but for digital currency. It is a software program that lets you secure your private keys (the proof that you are the legal owner of the coin), send and receive crypto, and keep the transaction history. The most crucial aspect of the crypto wallet is the private keys – that’s where new users trouble the most. Other keys driven from the private keys are public that serve as the wallet address and connect with the server.Crypto wallets fall in the following category based on security levels and ensuring the private keys’ safety.
What Is A Crypto Wallet?
Different Types of Crypto Wallets
- Paper wallet: Founded in 2011 and remains in use till 2016. As the name suggests, paper wallets offer printed private keys and the wallet address on paper.
- Software wallet: Hard drive software that runs on your computer with 100% security of wallet address and private keys. You can also download the wallet on your computer.
- Hardware wallet: Hardware wallets are similar to USB drives. This type stores the private keys in the physical device. The device is locked with a security pin- ensuring no one gets access to your private keys.
- Mobile wallet: Mobile wallet is also known as a light wallet. Having this wallet, you can store your keys on your mobile phone and carry them wherever you want.
- Desktop wallet: In this type, first, you have to download the blockchain. The wallet is accessible on laptops and desktops.
- Online wallet: Online wallet is best for those stepping into crypto exchange for the first time. The wallet locates on the centralized exchange platform, keeping your private keys and wallet address safe from third parties.
Top 5 Crypto WalletsProceeding with the list of different types of crypto wallets, here are the top 5 options.
- User-friendly welcoming interface
- More than 500 digital assets
- High liquidity
- High inactivity fee on Coinbase Pro
- Advanced transaction history
- In-depth available educational material
- Several pin protections
- Offline transactions
- Confusing for beginners
- Ledger Nano X
- Bluetooth connectivity
- Specialized chip for security protection
- 8 hours of battery life
- Supports different digital assets
- No touchscreen
- Electrum – Software Wallet
- Trezor Model T – Hardware Wallet
- Multisignature support
- Easy setup
- Too small screen size