Crypto Investing 101
How to Invest in Crypto for Passive Income & Long-Term Wealth
In This Article
You’ve made your first cryptocurrency purchase — great! Now what do you do with your coins?
Put in it a crypto wallet. Easier said than done.
Crypto wallets come in all shapes, sizes, and capabilities. So how do you know which crypto wallet is the best for you?
That’s what we’ll answer in this crypto wallet guide: the 10 best crypto wallet options for you today. In addition, we’ll discuss the intricacies of a crypto wallet, the types of crypto wallets, and whether or not you need one in the first place.
If you’re ready to learn everything you need to know about the best crypto wallets today, let’s get started!
What is a Crypto Wallet?
A crypto wallet allows you to send, receive and securely store cryptocurrency. All of that is done through a set of public and private keys.
Private Keys
Your private keys act as your password and recovery device.
They are 12-24 random words in sequential order. Your wallet doesnʻt actually hold your crypto; it holds your private keys.
Your crypto is "stored" on a public ledger, known as the blockchain. Your private keys are like an electronic signature that only you can know.
If something has your private keys, you are broadcasting to the network you gave your electronic signature, and the transaction is irreversible.
Just like youʻd never give out your banking and email passwords, you should never give out your private keys.
If someone were to gain access to your private keys, they would have total control to send funds out of your account.
Public Keys
Your public keys are your receiving address. They're like your Paypal address or Venmo username. You can share it with friends, and if you need to, itʻs safe to post online.
Your public keys are different for every different kind of cryptocurrency!
Ethereum is different from Bitcoin, which is different from Dogecoin. Sending or attempting to receive the wrong kind of crypto to the incorrect wallet address may result in a complete loss of funds.
The Best Crypto Wallets Today
Next, we’ll take a look at the best crypto wallets to choose from.
Crypto wallet #1: Exodus
Exodus wallet is a free desktop and mobile wallet supporting over 100 cryptocurrencies with a built-in exchange.
One of the best crypto wallets today, Exodus has a clean interface and is user-friendly, with customer support available if you have questions.
Learn more about the crypto wallet here.
Crypto wallet #2: The Trezor Model One
The Trezor Model One is an industry-standard hardware wallet.
The Model One is one of the best crypto wallets for "cold" storage.
At around $70, Trezor makes a relatively cheap and reliable way to store your crypto.
The Model One can also integrate with Exodus wallet, which means you can quickly go from "hot" to "cold" storage or have it serve as a backup.
Learn more about the crypto wallet here.
Crypto wallet #3: Metamask and Trust Wallet
Metamask and Trust Wallet are the two most popular free browser-based wallets. They share many of the same features that enable them to interact with decentralized applications (Dapps).
You can easily link them up to exchanges for quick swaps in coins not featured on major exchanges.
If you are into extreme micro-cap cryptos and dapps, Metamask or Trustwallet might be the best crypto wallets out there.
Learn more about Metamask here and Trust Wallet here.
Crypto wallet #4: Atomic Wallet
Atomic Wallet is a free software wallet featuring both desktop and mobile access.
Atomic has many of the same features as Exodus but has an added layer of anonymity — making it one of the best crypto wallets today.
Atomic does not need an account or any verification to set up, just keys and crypto, the way Satoshi intended.
Learn more about the crypto wallet here.
Crypto wallet #5: Coinbase Wallet
If you’re just getting started in the world of crypto, Coinbase is likely to be right up your alley. You can easily download the Coinbase app to your iOS or Android device for easy transactions.
The user interface is a breeze to use, too, making it an excellent fit for beginners and seasoned users alike.
Coinbase even offers a convenient debit card through Visa that you can integrate with your Google or Apple Pay account. You can even buy and trade tokens and coins using real-world money.
As a non-custodial wallet, no one else but you can access your private key. It’s worth noting that while the Coinbase Wallet is non-custodial, Coinbase’s exchange is custodial.
Fortunately, seamless integration between the wallet and exchange ensures effortless transfers.
Learn more about the Coinbase crypto wallet here.
Crypto wallet #6: Ledger Nano X
As a cold storage crypto wallet, the Ledger Nano X is all about offline crypto storage — but you can still connect it via USB to your computer or laptop for easy management. What’s more, the Nano X even supports Bluetooth. And as such, you can connect the wallet to your iOS or Android device if you prefer to go the wireless route. Those are just a few reasons why it's considered one of the best crypto wallets today.
Holding the Nano X, the crypto wallet feels well-made and durable. Moreover, there’s a built-in LED display. To access your Nano X crypto wallet, you will need to provide a seed phrase, which you initially set up along with your PIN.
Your seed phrase doubles as your private key. So as long as you remember your phrase, you can access your crypto. This is true even if you misplace or lose your wallet.
Ledger Nano X uses the Ledger Live integrated platform and offers support for more than 1,800 cryptocurrencies.
Learn more about the Ledger Nano X crypto wallet here.
Crypto wallet #7: Mycelium
As one of the oldest crypto companies in the industry, Mycelium’s crypto wallet boasts a user-friendly interface that’s been refined over the years. Users old and new will appreciate the ease of use presented by this crypto wallet.
You won’t find support for as many cryptocurrencies compared to most of the competition, but don’t let that deter you from having a look. Sending and receiving crypto like Bitcoin, Ethereum, and ERC-20 is a cinch, making it one of the best crypto wallets today.
And by using the Mycelium app, you can buy Bitcoin with fiat currency. Moreover, the app simplifies buying and selling to bring you a sleek, if limited, user experience.
Mycelium’s wallet is non-custodial, so only you have access to your PIN and private key. What’s more, the wallet is compatible with:
- Ledger
- KeepKey
- Trezor
Learn more about the Mycelium crypto wallet here.
Crypto wallet #8: ZenGo
If you’re looking for a no-nonsense crypto wallet, ZenGo is worth your time and consideration.
More than 70 of the most popular cryptocurrencies are supported by the wallet.
As somewhat of an oddity, there isn’t a PIN or private key associated with ZenGo. Instead, the company uses its own cryptography to secure your assets.
That said, all of your assets are securely backed up. Simply use ZenGo’s two-step verification to safely recover your assets in the event that you lose your phone.
You can learn about this security and the crypto wallet here.
Crypto wallet #9: BitGo Cryptocurrency Wallet
The BitGo Cryptocurrency Wallet is a hot wallet that supports more than 100 tokens and coins.
What’s more, BitGo handles massive amounts of Bitcoin transactions each month. Transactions number to the tune of $15 billion on a monthly basis — that’s approximately 20% of all the world’s Bitcoin transactions.
As such, you’re getting a custodial crypto wallet from a company that certainly knows crypto — making it one of the best crypto wallets today.
It’s a trusted platform that’s been in the industry for nearly a decade, too. So you know BitGo has a handle on the crypto market.
Learn more about the BitGo crypto wallet here.
Crypto wallet #10: Ambire Wallet
Are you looking for a crypto wallet with email authentication? That’s one of the perks of using the Ambire crypto wallet, putting it on our best crypto wallet list. In fact, it’s the world’s very first crypto wallet of its kind, and you get a lot of nice features to go with it. The Ambire Wallet boasts:
- account recovery
- readable messages
- secure email and password login
- transaction parsing
- it even has an integrated DeFi protocol
You can use your Ambire Wallet with numerous networks for a user-friendly experience.
Learn more about this crypto wallet here.
Do I Need a Crypto Wallet?
Now that you know the best crypto wallets today, you may be wondering if you need a crypto wallet in the first place.
If you have purchased your crypto from an exchange like Coinbase, Binance, or Gemini, no, you technically donʻt need an external wallet. You can send and receive funds right from your exchange wallet.
If you plan a day or swing trading regularly, the time it takes to switch back and forth from an exchange to your wallet might make or break the success of a trade.
Thereʻs a saying in the crypto community: "Not your keys, not your crypto." Your private keys are stored on the exchangeʻs servers, and you access them through your account. Itʻs much faster but less secure.
Server stored keys give hackers a chance to access your wallet. Keep in mind, that your crypto is not insured like a stock would on any popular brokerage.
While exchanges will proudly note your funds are FDIC insured up to $250,000, the second you exchange your fiat (government back currency), you lose that insurance.
Your exchange might have a private fund to pay back exchange wallets that were hacked. In the case of a complete hack, that fund will not be nearly enough.
Remember, with crypto, there is no customer support and no government backing if something goes wrong.
You are in charge of keeping everything secure.
Certain people fear a government seizure on cryptocurrency because Bitcoin is often referred to as digital gold.
During the Great Depression of the 1930ʻs, the American government seized private ownership of gold as a means to stabilize the dollar. People were forced to sell below market rate, only to have the Gold Reserve act of 1934 set a considerably higher standard rate for gold.
Private gold ownership remained illegal until the 70ʻs, and some fear this could happen again with crypto. Private keys mean private ownership. That might sound overly paranoid, but history has a habit of repeating itself.
Types of Crypto Wallets
There are three types of crypto wallets you can choose from.
All of them have their pros and cons — you canʻt have it all because ease of use always comes at a loss of security.
We’ll look at each one next.
Software / Browser Wallets
Software wallets serve as a graphic user interface to interact with your private keys. Instead of just lines of text, you can get minute-to-minute updates on your portfolioʻs value.
Most software wallets also have mobile apps for easy payments. You can also get your wallet address or someone elseʻs as a QR code to simplify transactions.
Browser-based wallet extensions for Chrome and Firefox make it extremely easy to interact with other decentralized applications and send and receive funds.
The downside to software wallets is that they are susceptible to malware attacks. Keyloggers are regularly set to hunt down things that sound like your private keys. Software wallets are only as safe as your internet habits are.
If you want ease of use and are comfortable with your internet habits, the software route might be the best crypto wallet for you.
Hardware Wallets
Hardware wallets serve as a single-purpose holder for your public and private keys. Hardware wallets usually look like a USB drive that plugs into your computer.
Hardware wallets are incapable of doing anything else except holding your keys. They can’t even connect to the internet. That way, thereʻs no possibility of malware. It is a completely sealed and self-contained "dry box." Your computer is only there to interface with the hardware.
Once a hardware wallet connects to your computer, a bridge application allows you to sign off on incoming and outgoing transactions. The bridge enables your private keys never to be directly connected to your computer.
A hardware walletʻs added security comes with the downside of added hassle. A further consideration you need to take is where you are going to store your hardware wallet. If your house gets broken into, and the thief finds your hardware wallet, you're out of luck.
If you donʻt use crypto regularly for transactions and have a secure location, a hardware wallet might be the best crypto wallet long-term.
The Best Crypto Wallets: The Botton Line
The more you scale your position sizes and the time you plan on holding your crypto, the more backups and fail-safes you should have. That's why it's important to not only have a crypto wallet, but have the best crypto wallet.
Choose a crypto wallet from our best crypto wallet list to ensure your cryptocurrency is safe now and into the future.
