Cryptocurrencies are increasingly becoming popular with more people accepting it as a global medium of exchange due to its many advantages over tradiitional fiat currencies and banking systems. Additionally, one of the core principles of cryptocurrency is decentralization, typically referring to a system governed by everyone and no one.
Cryptos are stored on a blockchain networks, which in itself offers profound security depending on the compromised and can be accessed only using softwares or hardwares generally known as Crypto Wallets. However, the the anonymous nature of crypto transactions make it a prime target for hackers; hence, it is important to spend some time researching the best and most secure crypto wallets. This is what we aim to help you achieve with this piece, easing your journey into the world of cryptocurrencies.
It is generally encouraged to always carry out your own research so we bring this piece your way to help identify some of the best wallets you can begin to look into. In this piece, we will be giving our top crypto wallet picks for the year 2022 so far.
Let's dive
What is a Crypto wallet?
A cryptocurrency wallet allows users to manage different kinds of crypto assets (such as, Bitcoin, Ethereum, Binance Coin, USDT etc) and exchange funds easily. Transactions using a crypto wallet are secure as they are cryptographically signed and users can access their wallets through websites, mobile phones, desktops, or specified hardware devices while their privacy and identity are being preserved. Transactions on crypto wallets operate similarly to sending or receiving funds through popular gateway platforms such as PayPal; however, funds are accessed and transferred by providing strings of characters/words known as private keys.
Types of crypto wallets
Crypto wallets are categorized based on their method of access and location of storage, they include:
- Hot and Cold Wallets
Hot wallets are wallets which are always connected to the internet. These wallets are free to use and offer add-on services like trading or staking in exchanges. They are mostly used for daily transactions and it is very easy to set up.
Hot wallets are typically easy to use as they offer quick access to your crypto assets considering they are always online; however, they can be more vulnerable to hackers who could access your crypto over the internet.
On the other hand, cold wallets are kept in a device that is not connected to the internet. They are expensive and users have to buy a piece of hardware which is set up to store your crypto. Since it's not connected to the internet, it becomes hard for other users to reach; hence, aiding security and posing less risk. Cold wallets are mostly used for long term holdings One of the downsides is that if you lose your device, it would be very difficult to access your assets.
- Hardware wallets
Hardware wallets are battery-less devices used to store public addresses and keys. They look like USB with an OLED screen and side buttons which can be connected to a PC and accessed via its native desktop app. They are considered to be more secure than hot wallets and more user-friendly compared to paper wallets. One of the most popular hardware wallets are Ledger Nano S and Trezor.
- Paper Wallets
Paper wallets are physically printed QR codes which contain a scannable barcode created by an app. These barcodes are used as a way to store and access cryptocurrencies offline and they were considered to be more secure compared to other forms of crypto storage.
This is why wallets like Coinbase allow users to download the code to generate new addresses offline. This kind of wallet is hard to hack, but the major flaw is not being able to send partial funds hence, it cannot be reused.
- Desktop Wallets
Desktop wallets are software applications that allow users to securely store their cryptocurrency keys on a computer hardware. They are considered to be the third most secured means of storing cryptocurrencies and the best for cold storage. If you are using this type of wallet, it is important to have regular computer backup updates. Also, an anti-virus should be installed because a system connected to the Internet poses fundamental security issues. Desktop wallets are easy to use, guarantees anonymity, and it does not involve a third party. Examples of desktop wallets include Exodus, Bitcoin core, Electrum, etc.
- Mobile Wallets
Mobile wallets are similar to desktop wallets made for smartphones. It is very convenient and suitable for daily operations but vulnerable to malware attacks. This is why encryption of mobile wallets is essential. Examples of mobile wallets include Coinomi and Mycelium.
- Web Wallets
Web wallets are wallets that can be accessed through an internet browser (such as Chrome). One of its major downsides is that private keys held in some web wallets can be prone to DDOS attacks. Examples of web wallets are MetaMask, Teleport wallet and Coinbase.
Top Crypto Wallet Picks for 2022
Teleport Wallet
Teleport Wallet (TeleWallet) is a Chrome-based browser wallet built to fully support both EVM and non-EVM chains, making it the first multi-verse and multi-identity wallet. By multi-verse, we mean you can use a single wallet to manage all your assets across multiple blockchain ecosystems (such as EVM, Cosmos, Polkadot, Solana, and more); and by multi-identity, we mean you can create different custom identities using different sets of mnemonics.
For instance, with metamask, you only have one set of mnemonics in one wallet(identity). If you have different metamask wallets in different chrome accounts, Teleport Wallet allows you to manage them all in one.
Additionally, Teleport Wallet allows anyone to explore dApps and execute crypto transfers across both EVM chains and non-EVM chains. Our extension is designed to inject web3 APIs into every website's javascript context so apps can read from the blockchain. TeleWallet also integrates with other Teleport-related products for signing transactions without the need to provide private key details stored securely in the extension locally and encrypted with your password. Furthermore, TeleWallet will require the user's permission to read and write to web dApps in open tabs when interacting with them.
Coinbase Wallet
Coinbase Wallet is a non-custodial digital wallet that supports a wide range of cryptocurrency assets and comes with a built-in browser for decentralized apps which can be used to explore all kinds of dApps such as, decentralized crypto exchanges, crypto lending platforms, games, and digital collectibles. If you have a Coinbase account, you can easily connect it directly to the wallet for convenient crypto storage. The Coinbase Wallet also supports different types of cryptocurrency, including all ERC-20 tokens and tokens on EVM-compatible blockchains.
With the Coinbase Wallet, users can buy and store NFTs from various marketplaces. Its browser extension, which is an optional feature, offers support for Ledger hardware wallets. It also offers an additional layer of security because users are required to have the physical wallet to authorize transactions.
Ledger Nano X Wallet
The Ledger Nano X is a high-end cryptocurrency hardware wallet that offer users a vast amount of features and top-tier security. The wallet has a commendable security for its hardware wallet and it also has the ability to send and receive over 1300 crypto assets and tokens which means that almost any cryptocurrency can be stored on the wallet. Ledger Nano X large storage capacity can take up to 100 applications making it possible to hold almost all your crypto assets on one device.
Ledger provides a well structured technical support as both physical and online instructions are included with the wallet, alongside some troubleshooting guide. The wallet has a secure bluetooth capacity for easy useability compared to its “Nano S” version and it has a larger screen for easy readability.
The company developed its own operating system that its hardware wallet runs on called BOLOS. Users' private keys are stored and isolated inside the device on the most secure chip and without a pin code, users cannot access the hardware wallet.
Additionally, the Ledger Nano X allows users to create a 24-word passphrase. This feature generates a separate account on the wallet which can be used to store any assets. So, in case your pin gets compromised, the account you created with the additional passphrase will not be compromised.
MetaMask Wallet
MetaMask wallet is one of the most popular crypto wallets available both on mobile and desktop. It is described as one of the best wallet extensions for EVM-based tokens which can be used to buy, send, and receive cryptos and non-fungible tokens (NFTs) within the wallet. By connecting your Metamask wallet to an Ethereum-based or any other supported network dapps, you can spend, stake, and trade on various decentralized exchanges (DEXs). The wallet also allows users to gain entry into the emerging world of decentralized finance (DeFi) by providing a way for users to various access DeFi apps such as Compound and PoolTogether.
MetaMask wallet is one of the most versatile products in the marketplace, supporting over 450,000 coins on the Ethereum protocol and also allows users to store and connect to non-fungible tokens (NFTs) marketplaces like OpenSea. The wallet also supports multiple blockchains like BNB Chain, Polygon, Avalanche, Teleport network (Testnet) and several other test blockchains.
Trust Wallet
Trust Wallet is a non-custodial multi-coin wallet which was acquired by Binance in 2018. The wallet allows users to store, send, receive and exchange different cryptocurrencies with a single account. Users can also stake on Proof-of-Stake coins such as Tezos, Cosmos or Tron and earn rewards. It is very convenient and easy to use, especially for absolute beginners in crypto.
This wallet is capable of accommodating much more than most crypto wallets can support. It is also a non-fungible token (NFT) wallet enabling users to buy, store, and sell NFTs on your mobile device as the wallet is strictly mobile-based. As a non-custodial wallet, you are allowed to do whatever you wish as the responsibility of your asset is solely dependent on the user. Trust wallets also allow users to buy cryptocurrency from various third-party platforms, such as Mercuryo, MoonPay, Ramp Network, Simplex, Transak, and Wyre.
What Do I Look out for in a Crypto Wallet?
- A good crypto wallet should be able to cover for both your personal and investment needs as it must also provide improved functionality, easy-to-use interface, robust security, and so much more. Here are a few tips on what to look out for:
- An important factor to consider when selecting a crypto wallet is the user experience. Are the functions convenient and straightforward? If it isn’t, it is advisable to go for the one that is before you end up losing all your funds. Also, be intentional on knowing what other users are saying about them. Look for reviews and other users' experience with the wallet . Examine the wallet features, user interface, and the ability of the wallet to integrate with other cryptocurrencies and financial platforms.
- Any crypto wallet of your choice should be able to offer faster and safer transactions. Also, an easy and more secure QR Code Scanner feature (this can be optional although it can prove useful). As an alternative to having to write out all of the lengthy characters of public keys, users can be allowed to scan the QR code and the requested information will be retrieved via the scanner.
- The wallet should be able to accommodate as many crypto assets as possible. The wallet should not be limited but should provide numerous options to the users.
- As an investor or a user, it is highly important to look out for a crypto wallet that generally has great security. When choosing a crypto wallet, consider the ones that guarantee the security of your funds against cyber criminals and hackers. Most importantly, check for the EAL, or Evaluation Assurance Level. EAL represents the rating of the security of a crypto wallet. The EAL grade ranges from one to seven;and wallets with EAL ratings greater than 5 are generally considered safe.
- Check if there's any availability of backup facilities. Remember that the information in your cryptocurrency wallet is very valuable and as such, it should be adequately protected. This backup facility will always come in handy especially if you lose your wallet information or your device gets stolen;recovery becomes easy. Any wallet holding yourcrypto assets should be reliable and effective. Also, the backup procedure should be simple and straightforward so you can gain access to your funds without going through any complicated process..
Concluding Thoughts
Crypto wallets have come a long way in helping users navigate across various blockchain features and as such, it should have access to tradable assets, live charts, staking, lending protocols, and user friendly interface. Its services and security should be seamless so that users can be rest assured of the safety of their crypto assets.
Additionally, wallets that support multiple ecosystems offer better and seamless crypto storage experiences. For instance, Teleport wallet is integrated with Cosmos, making it the first-ever wallet that grants users the ability to manage both Ethereum and Cosmos assets in the same wallet. Users will be able to store and manage assets from both Cosmos network blockchains as well as EVM chains all in one wallet, as well as interact with dApps and write contracts on each respective chain.
Finally, security should be a top priority of every user, always take it seriously and always do your own research before venturing. Stay safe
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