Crypto Wallet for Beginners – Best Crypto Wallet Guide 2022

So you’ve decided to invest in cryptocurrencies. You’ve learned everything about the different blockchains and your choice of coins you’re interested in, but safeguarding your crypto investments without a crypto wallet is next to impossible.

Not having a secure crypto wallet is similar to leaving your backdoors open in your home. You can store your crypto on several types of wallets and strike a balance between security and functionality, from hardware wallets and DeFi wallets to software wallets.

Each type of wallet has different functionality and features, and it can be a bother to do research and find the one that is right for you. Read on to find some of the best crypto wallets that are a good fit for beginners to help you choose the best crypto wallet.

DeFI Wallets

A DeFi Wallet is essential for participating in the defi ecosystem as they offer important functionalities like security and usability. The security of your defi assets is invaluable, but you must also ensure an easy user experience. A defi wallet helps you securely store your assets, even when disconnected from the internet.

Some of the significant traits that distinguish a decentralized wallet are,

Non-custodial

The wallet enables users to receive and send funds with the assurance that only they will be accessing the funds.

Key-based

The unique key pair is the most important trait in defi wallets. The key pair in defi wallets indicates a significant difference from centralized wallets. Users of the defi wallet have to take responsibility for safeguarding their private keys, usually offered as a 12-word seed phrase.

Compatibility

Accessing all defi wallets is possible by connecting a web3 wallet. Mobile wallets have now started integrating decentralized applications (dApps) browsers for easier connections with decentralized finance applications without leaving the app.

Choosing the best defi wallet can be difficult if you don’t have an idea of the top choices in the market. Here are some of the top defi wallets you could choose from

Trezor

Pros

• Convenient and intuitive interface

• An option between two models

Cons

• No iOS support

• More expensive than similar wallets

Trezor is one of the top picks in defi wallets. Trezor is a cold storage wallet available in two models. Trezor One, the first model, presents better affordability while Trezor Model T, the second model, is higher priced.

Users also have access to top-notch security features in both wallets for online storage of their cryptocurrency assets. A pin has to be entered to gain access.

Additionally, the order of the keypad changes repeatedly, and this counters keyloggers. You could find better ease of use with the touch screen of the Model T version.

Furthermore, the Model T version also offers better adaptability with the ever-evolving defi ecosystem.

Coinbase Wallet

Pros

• User-friendly interface

• Supports over 500 crypto assets

• 2-factor authentication and multi-signature support

Cons

• Security issues and weak points

• Only available on tablets and mobile devices, except for extensions on chrome

The Coinbase wallet is a non-custodial wallet from Coinbase, one of the biggest centralized exchanges supporting various cryptocurrencies and providing beginners with better ease of use.

Furthermore, the Coinbase wallet also allows the transfer of assets from a user’s account on Coinbase.com. Have it in mind that the Coinbase wallet is different from the general wallet users use to interact with Coinbase.

The native Coinbase app wallet is suitable for sales, on-ramps, and purchases on the website.

The Coinbase wallet helps users experience the value of decentralized finance while enabling users to interact with different exchanges and defi apps without the centralized control of Coinbase. Coinbase wallet also has a proven assurance of security, as it leverages features such as a six-digit pin and biometric security for safeguarding your crypto assets.

Metamask

Pros

• Offers high-security levels

• Supports erc-20 tokens

• Easy to use

Cons

• Transactions can be slow

• It is online

Metamask is essentially a web browser extension that serves as a DeFi Wallet. It offers a flexible portal for easier DeFi access by leveraging any internet browser. Users could install the Metamast wallet on their computers’ web browser, unlike other DeFi wallets.

The Metamask wallet is also accessible on mobile phones, although a larger screen is needed to open multiple windows with ease. It will also help you seamlessly move from one tab to another when adding other DeFi apps.

Metamask supports the standard ERC-20 tokens on Ethereum, alongside BEP-20 Binance Smart Chain tokens and trading on layer two solutions.

CoinStats

Pros

• Military-grade encryption for crypto assets
• Live updates on cryptocurrency prices
• It makes it easy to simplify your portfolio
• Staking of up to 20% APY available

Cons

Hardware Wallets

A major concern of preventing theft and hacking of digital assets requires proper storage of the private keys used to secure your crypto; this is where hardware wallets come in.

Hardware wallets are considered one of the most secure methods of storing cryptocurrency as they offer offline storage of your private keys.

The cost and increasing complexity might scare you away from using a hardware wallet, but they offer significant benefits. For example, they keep your cryptocurrencies secure even if your computer is hacked.

Hardware wallets are compact physical devices about the size of a USB thumb drive. Stealing from a hardware wallet requires access or physical possession of the device and the associated passwords or PINs used to access funds.

These are some of the top hardware wallets.

Ledger

Pros

• Supports a large number of assets

• Long-lasting built-in battery

• Built with special hardware that protects your private keys

Cons

• Expensive

• The use of Bluetooth technology might be a privacy concern.

Ledger is one of the most popular brands of hardware wallets in circulation today. Its mobile trading capabilities, high-security standards, and the number of supported cryptocurrencies are some of the reasons that make Ledger the best wallet for offline storage.

Ledger has two variants, the Ledger Nano X and Nano S. You can receive and send cryptocurrency and check your balance with the included Ledger live software. Ledger also supports over 1,800 digital tokens and coins, so you’re not limited to just Bitcoin.

The Ledger Nano S has the capacity for up to three applications, while the Nano X can hold up to 100 applications. It is worth noting that Ledger suffered a data breach in 2020. Although hackers stole only some personal data and not customers’ crypto assets, it is a good reminder to be careful in dealing with crypto assets.

SafePal S1

Pros

• Beginner-friendly

• Cost-effective

• Self destruct mechanism prevents malware attacks

Cons

• Does not presently support tending tokens like TRON, Litecoin, and EOS.

Binance backs the SafePal S1 straight from the Binance Lab kitchen, and it comes with remote private keys and PIN, which makes it harder to track. The main idea behind SafePal S1 was to have a more affordable hardware wallet from the likes of Ledger Nano S.

For instance, Transactions can be signed offline when making crypto payments by using the QR code scanning via an in-built camera. SafePal S1 also comes with a mnemonic card to store the private keys and mnemonic seed codes, brand stickers, and a USB cord.

SafePal S1 is a multi-crypto wallet that supports ERC-20 compatible tokens, Bitcoin, BEP-20 tokens, Binance Coin, and Ethereum, and it costs about $40.

SecuX V20

Pros

• Improved display

• Bluetooth

• Passphrase and multi-signature support

Cons

• Higher prices than other brands

SecuX is a company based in Taiwan that offers enterprise blockchain auditing and security advisory services. Unlike other hardware wallet designs, the V20 has a circular shape with a 2.8″ touchscreen.

The SecuX V20 hardware wallet can connect to mobile phones, making it quite portable, unlike other wallets, which must be connected to laptops or computers. Once the wallet has been connected through a web interface, you can add cryptocurrencies for which you want to create addresses.

The SecuX V20 wallet does not need to be connected to the internet before you can send deposits to it. Crypto deposits can be made using QR codes senders can use.

Software Wallets

Amongst the different types of crypto wallets, software wallets, commonly called hot wallets, are the most vulnerable to online attacks. Software wallets are internet-connected and make spending or trading cryptocurrencies easier and faster.

Desktop wallets, web-based wallets, and mobile wallets are typically software wallets. Although all hot or software wallets are vulnerable to attacks and theft online, web wallets are the least secure among them.

The ease of use is a notable benefit to hot wallets. Because software wallets are always online, there is no need to transition online and offline to make a crypto transaction.

Software wallets are directly connected to the cloud infrastructure and provide several features unavailable in other wallets; however, not every software wallet offers the same features.

Here are some good software wallets.

Exodus

Pros

• Beginner friendly and easy to use

• Allows crypto-to-crypto exchange in-app

• Multiple currencies support

• Users can retain their private keys

Cons

• Higher transaction fee

• No two-factor authentication

• Doesn’t support multi-signature addresses

The Exodus wallet is a multi-asset cryptocurrency wallet that provides a beginner-friendly experience. Users can manage their cryptocurrency portfolios on one interface. Exodus is one of the most intuitive and visually appealing wallets in the Crypto market.

The Exodus wallet was originally desktop only, but it now has apps for Android and iOS and is compatible with Trezor wallets. The desktop wallet application is updated every two weeks and is still the wallet’s core offering.

Furthermore, the exodus wallet allows users to trade, buy and earn Interest on their digital assets via staking.

Mycelium

Pros

• offline transactions

• Hardware wallet compatible

• In-app educational and crypto exchange material

Cons

• Only supports ERC-20 tokens, Ethereum and Bitcoin

• Not as secure as hardware wallets

• No desktop version

Mycelium is one of the finest crypto wallets for mobile devices because of its advanced transaction history information and a strong focus on security. Mycelium is a well-established software wallet with a huge focus on securely managing ERC-20 tokens, bitcoin, and Ethereum.

The wallet app has numerous levels of pin protection, and it is entirely reproducible; this means that its original code can be duplicated and compared to find potential security issues. The wallet app provides a range of advanced features such as custom transaction fee levels -low priority, normal, economic, and priority- several types of user accounts, cold storage integration, single address savings, and spending accounts.

Electrum

Pros

• Widely used

• Numerous privacy features

• Offers integration with hardware wallets for increased security

• Easy to set up

Cons

• Supports only Bitcoin

Electrum is the best Bitcoin-only wallet because of its high degree of customizability and extensive security features. Electrum has over ten years of success in helping Bitcoin holders store crypto.

Electrum has various security features other wallets lack. Users can also adjust fees depending on their willingness to wait for transactions; your transactions will be executed faster when you pay more fees.

Using a lightweight client is one of the electrum wallet’s greatest assets. You can set up light clients in minutes; it takes up less space on your computer than traditional wallet clients.

Electrum also allows users to open Lightning payment channels to receive and send Bitcoin payments over the lightning network.

Final Thoughts

Like any other valuable asset, storing cryptocurrencies requires a personal decision about how best to safeguard them while striking the perfect balance between security and functionality.

Before choosing a crypto wallet, it is important to find a provider that allows you to trade your crypto seamlessly, offers a wide range of cryptocurrency assets management features, and provides a high level of transparency and security.

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