How to find the best cryptocurrency wallets

How to find the best cryptocurrency wallets


Traders and investors can do little in the cryptocurrency world without a good digital wallet.

Cryptocurrency enthusiasts need a wallet to buy, hold and sell their coins, tokens, and NFTs.

Out of the hundreds available, iExpats looked at some of those rated as the best and in no particular order, and here are a few we considered that lived up to the praise.

We hope they protect your crypto holdings and help make wallet management easier.

What is a digital wallet?

A digital or electronic wallet is software that stores encrypted financial and personal data related to cryptocurrency. The program works on smartphones, tablets and other computers.

Most digital wallets can handle multiple cryptocurrencies and connect to dApps (Decentralized Applications). dApps are blockchain-based financial applications.

Our favorite digital wallets

This list is based on the preferences of iExpats employees. The goal is to give a starting point for researching digital wallets, and it should not be taken as a recommendation.

Pie

Mycelium is one of the first digital wallets and is a step up from the basic entry tool. One of my favorite features is the ability to set transaction fees for holding a payment until the required fee is reached on the Bitcoin and Ethereum blockchains. Mycelium supports NFT modules based on Bitcoin, Ether, and ERC-20. Another beloved feature is Mycelium’s connection to offline storage. Less trusted users can benefit from the wide range of support available online.

Free

Find out more or download Mycelium

cipher

A digital wallet aimed at investing expats at any stage of their cryptocurrency adventures. The smartphone app from the financial company deVere Group, with an intuitive mathematical design, has been downloaded thousands of times. Crypto links containing more than ten popular cryptocurrencies, including Bitcoin and Ether. Users can switch from fiat currencies, such as the US dollar and the British pound, to cryptocurrencies. Crypto connects with the leading Kraken exchange.

Free

Find out more or download deVere Crypto

Tresor

If you are concerned about protecting your crypto assets, Trezor is the wallet for you. Trezor has some of the most powerful digital wallet security features. Reviewers point out that the cost of using Trezor doesn’t outweigh the benefits of the additional features if you don’t use them. Trezor supports nearly 2,000 cryptocurrencies – practically everyone in the market. However, new users have reported some issues with configuring the wallet, especially with the touch screen interface.

Cost: $195

Find out more or download Trezor

displacement

Exodus is an entry-level digital wallet with the option to link 150 cryptocurrencies and a built-in exchange. However, intermediate or advanced users may find the software to be too simplistic with no feature selection. Those users may find Trezor to be a better wallet option. The winning feature of Exodus is a helpful support to help beginners on their cryptocurrency journey. The wallet is available for desktop computers and smartphones.

Free

Find out more or download Exodus

Ledger Nano X

A digital wallet that connects to secure cold storage that also connects to up to 20 apps simultaneously. Critics argue that the wallet’s Bluetooth capability is not yet complete, which could leave the wallet open to hacker attacks. Ledger lost data to hackers in July 2020, which not only compromised personal keys but allowed other user data to be stolen. The predecessor of the Nano, the Ledger Nano S was one of the first wallets to come to market and led the sector for quite some time.

Cost: $119

Find out more or download Ledger Nano X

Ledger Nano S

Old wallet technology but still works without Bluetooth and is limited to storing three dApps. Formerly a market leader, Nano S is associated with more than 1,800 cryptocurrencies. Storage is limited if you have a large crypto wallet. Ledger Live is easy to use for beginners via smartphone or desktop computer, but more experienced investors and traders will find it problematic with technology limitations. Ideal for new investors looking for easy and hassle-free storage of a few cryptocurrencies.

Cost: $59

Find out more or download Ledger Nano S

electrum

Electrum is a one-trick pony game designed to do one job well – manage your Bitcoin investments. The intuitive, ribbon-backed interface is likely to attract more advanced crypto traders and investors due to the advanced functionality. Electrum comes with custom fees and optional security levels that are very useful for traders. Other drawbacks are that Electrum only communicates with Bitcoin, and user support is scarce if not impossible to find. As the cryptocurrency market expands, users will find that Electrum’s limitations are quite large.

Free

Find out more or download Electrum

Why do I need a crypto wallet?

A cryptocurrency wallet gives investors and traders a direct connection to the blockchains of their chosen coins or tokens. When a transfer of ownership of a coin or token occurs, the blockchain automatically updates the wallets of all parties involved.

Bitcoin wallets can hold as much cryptocurrency as you want.

Storing cryptocurrency is free, although buying and selling may attract a fee. Being set up to customize fees is important for traders who make a lot of transactions. The setup allows them to hold the fees until the network is quieter and the fees are lowered, making transfers cheaper.

Many exchanges offer wallets as part of the service, with the cost swallowed up in a fixed monthly management fee.

Another point to watch is when owners can withdraw their cash after a cryptocurrency transaction. Each wallet has specific rules about when to transfer fiat money, so make sure you know your wallet limits before withdrawing.

The average downtime is three days between making a crypto conversion and converting the value into hard cash.

Favorite Crypto Wallet FAQ

What is paper currency?

A fiat currency is a government-backed currency that is not backed by another asset, such as gold, but is a promise by the issuing government of the face value of the currency or banknote. Paper currency is recognized as the legal currency of the country. Although many governments recognize cryptocurrencies as a commodity, few have adapted them as legal tender.

What is hot and cold wallet storage?

Wallet storage can be hot – online all the time – or cold – and kept on an offline device. Many prefer cold storage because the data is only open to hackers while the drive is connected to an internet-connected device. Hot storage is available all the time. The best security is cold storage, where programs and passwords are provided up-to-date.

Can I store NFTs in a digital wallet?

The crypto wallet will handle buying, selling and holding NFTs (non-fungible tokens).

How do I choose a digital wallet?

You should consider four factors:

  • wallet security
  • Ease of use
  • Features
  • Compatibility

Security allows you to keep your investments safe. Ease of use makes investing less difficult. You also need to make sure that the wallet includes the features you need and is compatible with the cryptocurrency you wish to trade.

Can I use a wallet without being linked to the exchange?

No, you have to link to the stock exchange. Both services refer to different functions:

  • A wallet is a storage device for cryptocurrency investments
  • The exchange is a platform for buying and selling coins and tokens

Some wallets come with integrated exchanges, while some exchanges offer their own white wallets.

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