safest-crypto-wallets

Safest Crypto Wallets: Your Ultimate Guide

Safety is important, especially in finances. One of the recurring questions people ask is whether they can get a safer crypto wallet for their cryptocurrency holding. How secure are these digital wallets? The answer to that question depends on how you manage your wallet.

Table of Contents

What is a Crypto Wallet?

A cryptocurrency wallet store, send and receive cryptocurrency. You need a set of private keys; otherwise, you cannot access your funds. These keys help secure the crypto coins in your wallet. A crypto wallet allows you to easily check your balance and send and receive cryptocurrency.

Depending on how much security you require, you can choose between a hot wallet or cold wallet storage.

📖 Read more on How to Get a Crypto Wallet

What to Consider When Selecting a Crypto Wallet?

There are many different wallets available, and there are some things to look out for when selecting one. The following are essential key factors to consider:

  • Security: Every crypto wallet will come with a security feature or features that make keeping your money safe easier. Some wallets encrypt all your data on your device so that no one can access it without your password.
  • Reputation: Another critical aspect of choosing a wallet is reputation. Check online reviews to see if the wallet has an excellent reputation, is known to keep their wallets safe, or if it’s hackable.
  • Access to private keys: Non-custodial wallets let you keep your private keys, so you have complete control over your funds. On the other hand, Custodial wallets store thekeys on your behalf. If you lose your private keys or get stolen, you will never see your cryptos again.

Hot Wallets Vs. Cold Wallets

Hot wallets are connected to the internet via computer, phone, or tablet. They’re convenient, but they lack enough security to protect you from hacking or theft. So, they’re best for storing small amounts of cryptocurrency.

Cold wallets are the safest option for keeping your funds since they are connected to the internet and therefore less vulnerable to hacking. These wallets use an offline device like a USB stick to securely store your private and public keys. They also come with software that helps you view and manage your crypto holdings without putting your private key at risk.

Safest Hot Wallets of 2022

1. Coinbase Wallet

Coinbase Wallet is probably the most popular Bitcoin wallet with an excellent reputation. It boasts excellent security features such as multi-sig vault storage, which requires multiple people to enter their keys to access funds. The wallet’s highly intuitive interface and best-in-class security features make it the best option for beginners with little to no experience in crypto. A reputable exchange also backs it, so you don’t have to worry about losing your funds.

Given that the wallet is non-custodial, users are fully controlling their crypto assets – no need to worry about locked funds or hacking on the Coinbase website.

2. Mycelium

Mycelium is one of the safest and most convenient wallets with excellent security features. This wallet is available on iOS and Android, making it easy to manage your bitcoins anywhere.

Mycelium also provides a great backup solution through its 12-word backup phrase, which you can use to recover your coins if anything happens to your phone or tablet.

The wallet has an in-built feature called “cold storage” that allows users to store large amounts of coins on external drives for security purposes. This feature allows for added security for those who are not comfortable with the idea of leaving their coins on an online server.

3. Electrum

Electrum is a secure Bitcoin wallet that enables you to set up a strong level of security very quickly. During the simple installation process, a twelve-word phrase will allow you to recover all of your funds if your computer fails during the simple installation process.

Your wallet is encrypted by default which helps protect your coins against hackers. Electrum also offers two-factor authentication and multi-signature support for extra security. Lastly, it is compatible with cold wallets like KeepKey, Ledger, and Trezor.

Safest Cold Wallets of 2022

1. Trezor

Trezor is a small device wallet with an interface integrated for making secure payments. You need to plug the USB cable into your computer or phone and enter the pin to access your funds. Even if you lose this device, your coins are safe because Trezor creates a 24-word seed after setup. The seed phrase is generated using randomness from your movements while setting up the device. So it can be re-generated anytime in case of loss or damage to your Trezor device. There’s also an option to choose between the more affordable Trezor One and Trezor Model T.

2. Ledger

Ledger is a company based in France that produces security hardware for cryptocurrencies such as Bitcoin, Litecoin, Ethereum, etc. Ledger has been around since 2014 and has created the most secure hardware wallets with high-security standards. Ledger Nano X, for instance, uses a specialized chip – the same one also used for credit cards and passports — to protect your wallet against attacks.

The Ledger Nano X wallet connects via USB to a computer or mobile device via USB. When you plug in a ledger, you will need to access the Ledger Wallet App on the specific device you are connecting it. You will be presented with options to set up a new wallet or access an existing one from that stage.

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As mentioned above, the safest cryptocurrency wallet will always depend on your specific situation. A single wallet can never be the ultimate solution for everybody. If security matters to you, then consider purchasing a cold wallet. They may not be very convenient to set up or use, but it is safe to conclude that cold wallets offer the most secure way to store your crypto.

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