Buying, trading, and selling cryptocurrencies, such as Bitcoin, Ethereum, Matic, etc., need cryptocurrency wallets.

Custom web3 wallets, also known as hardware or software wallets, provide traders with unique options not available on crypto exchanges.

This article discusses the types of crypto wallets you can choose from and the best crypto wallets in 2022.

What is a Crypto Wallet?

A crypto wallet is a software program or a physical device that holds a user's cryptocurrency and allows them to send and receive it.

Private and public keys are the two critical pairs of a software crypto wallet. Combining the private and public keys yields a public key to delivering crypto to a wallet.

Crypto wallets come in various categories, including paper wallets, hardware wallets, and software wallets.

What can you do with a crypto wallet?

Unlike a traditional wallet, which holds physical cash, crypto wallets do not store users' cryptocurrency. Assets are stored on the blockchain, but only a private key can access them. The keys verify that a user owns digital money and allow them to transact with it.

If you lose your private keys, you will lose access to your funds. As a result, it's critical to use a reputable wallet service, or if you’re using a hardware wallet, to make sure you don’t lose it.

The following are some of the reasons why blockchain wallets handle traditional payment concerns in different ways.

• Crypto wallets allow you to store and logically manage many different types of currencies.

• There is never a shortage of space in a cryptocurrency wallet. You can keep a large number of cryptocurrencies in a single location.

• They feature a handy balance checker and a transaction history.

• These wallets also come with a notes feature that allows you to jot down any specific notes regarding a transaction or Bitcoin to help you remember it later.

As a result, blockchain digital wallets are auditors, trackers, and cash keepers.

Types of crypto wallets

Hardware wallets

It doesn't get any more secure than a hardware wallet. A hardware wallet is a physical device that stores your private and public crypto keys in hardware.

Most hardware wallets contain screens to verify and show important wallet details, adding another layer of protection.

A user can create a recovery phrase and confirm the payment amount and location. Your money will be safe and secure as long as you acquire an actual product from a recognized and competent manufacturer.

Many users believe that storing cryptocurrency in a hardware wallet is the safest because it takes physical form and doesn’t link to the internet.

Desktop wallets

Desktop wallets must be downloaded on a specific laptop or computer and are only accessible from that device.

They are, by definition, more secure than online and mobile wallets because they do not rely on third parties for data and are more challenging to steal.

Several desktop wallets are available, each with its own set of features. Some are concerned with security, while others are concerned with anonymity, convenience, decentralization, and other issues.

Full node wallet like Umbrel downloads the complete blockchain to your computer. Hundreds of gigabytes of hard space and a fast internet connection are required for this.

Mobile wallets

A mobile wallet is similar to a desktop wallet in that it is downloaded to your device immediately.

You usually get access to your cryptocurrency wallet by installing a mobile app, letting you spend your coins in a physical business by scanning a QR code.

Mobile wallets use simplified payment verification techniques since they only work with limited portions of the blockchain and rely on trustworthy nodes in the blockchain network to guarantee the correct data.

Some apps make use of the smartphone's near-field communication (NFC) function, which allows users to tap their phone against the terminal without providing any information.

Paper wallets

Before cryptocurrencies became popular, most people used paper wallets. Although storage technology has advanced since the approach became popular, it is still a viable option for storing your keys in certain situations.

One of the most underappreciated crypto wallets is the paper wallet. All you have to do is write down your private and public keys on a piece of paper, and your money is safe!

While many people believe the hazards of losing, misreading, or breaking a paper wallet outweigh the security benefits, it is still a viable alternative for storing your keys.

Web wallets

Web wallets keep your private keys on a server that is always online and under the authority of a third party.

Various providers have different capabilities, like linking to mobile and desktop wallets and reproducing your addresses across your devices.

An online wallet is the most convenient option when sending crypto to another person, but it is also the least secure.

Types of crypto wallets

1. Binance Wallet

Binance is one of the finest places to set up a crypto wallet because it allows you to trade over 150 different cryptocurrencies. It comes with an API that will integrate your current trading software.

2. Coinbase Wallet

Coinbase Wallet is an excellent wallet for people just getting started with cryptocurrency. Coinbase Wallet offers over 500 crypto assets to store non-fungible tokens (NFTs) and digital collectibles.

The software can link to most major bank accounts and features a user-friendly interface with a simple three-tab structure and easily distinguishable functionalities.

3. Metamask

Metamask is a cryptocurrency wallet and blockchain app gateway with over 21 million users globally. It allows users to explore blockchain applications in seconds.

When a Dapp wants to make a transaction and publish it to the blockchain, MetaMask provides a safe interface for the user to evaluate the transaction before accepting or rejecting it through private keys, local client wallets, and hardware wallets.

4. Trust Wallet

Trust Wallet is a fast and secure multi-crypto wallet with Binance DEX compatibility, excellent for storing your various crypto assets.

With the Trust Wallet, you can safely send, receive, and store Bitcoin and many other cryptocurrencies, including NFTs, as well as earn interest on your crypto, play blockchain games, collect NFTs, and have access to the latest DApps and DeFi platforms.

5. Crypto.com

Crypto.com is one of the most popular crypto wallets, allowing you to purchase 200+ cryptocurrencies using 20+ fiat currencies.

It enables you to manage, access, and spend your money at any time. Crypto.com achieves the most significant levels of security and compliance.

6. eToro

eToro distinguishes itself from the crowd as the most refined crypto wallet regarding security, asset diversity, and functionality. First and foremost, by using eToro as your primary wallet, you will be working with a brokerage firm regulated by the SEC, FCA, ASIC, and CySEC.

7. Ledger Nano

The Ledger Nano is a piece of hardware that can support a variety of cryptocurrencies. These hardware wallets contain a PIN to prove the handheld device is convenient and safe, as well as an LED display for payment validation.

It allows you to install up to 100 programs on your Ledger and is easily accessible through a USB-compatible device. Ledger provides two-factor authentication and helps you secure and control all of your encryption.

8. Coinsmart

Coinsmart is a cryptocurrency exchange that makes it simple to purchase and sell cryptocurrency. It allows you to access your Bitcoin payment and your cash instantly. Using SmartPay Invoicing, this tool will enable you to invoice your customers quickly and easily.

Coinsmart also accepts several different cryptocurrencies, including Bitcoin Cash, XRP, Litecoin, etc. You can trade any currency with a single click, and it processes all fiat withdrawals in a matter of days.

9. Kraken

Kraken primarily provides brokerage and exchange services for individuals in eligible countries and leverage and margin trading.

Kraken has been at the vanguard of the blockchain revolution since 2011. It has constantly been recognized as one of the finest sites to buy and trade crypto online, with minimal costs, a variety of funding alternatives, and a high level of security.

Their goal is to hasten the adoption of cryptocurrencies worldwide so that everyone can benefit from financial independence and inclusion.

10. FTX

FTX is a cryptocurrency exchange designed for and by traders, and it offers industry-first derivatives, options, volatility products, leveraged tokens, etc. They create a user-friendly platform for professional trading firms.

11. Trezor

Trezor is a hardware wallet that stores bitcoins and other coins. You can effortlessly connect to your computer or smartphone with this device. It assists you in generating a random pin code that keeps your device safe and secure.

12. Bybit

Bybit is a one-stop cryptocurrency shop focused on the needs of its customers.

They hope to change the business by combining the best of cryptocurrencies and traditional finance. You may buy digital currencies with a credit card, debit card, or bank transfer with only a few mouse clicks.

13. Coingate

Coingate is a service that makes it simple to hold digital currencies such as Bitcoin, Ethereum, and Litecoin. This program allows you to purchase cryptocurrencies using a variety of methods.

It makes it simple for you to manage your Bitcoin. This cryptocurrency platform has a quick and easy checkout process to get your money quickly.

14. Payeer

Payeer is a digital currency trading platform that allows you to trade Bitcoin, Litecoin, Ethereum, and various other digital currencies. This software shows you the most recent cryptocurrency price you want to sell. It allows you to create an account from any 127+ countries easily.

It allows you to open multi-currency accounts and offers fast payments and transfers in various languages, including Spanish, English, Russian, and others.

15. Atomic Wallet

Atomic Wallet is a decentralized cryptocurrency wallet that supports over 500 coins and tokens while also providing its customers with simplicity, security, and convenience.

It is one of the top crypto wallets for instant exchange with cashback and one of the most secure crypto wallets for managing, exchanging, stacking, and purchasing all of your favorite assets in one safe interface.

16. Edge

Edge is a Bitcoin wallet that works on both iOS and Android devices. It is one of the best BTC wallets, supporting over 30 currencies.

This tool is one of the best cryptocurrency wallets in terms of security because it provides two-factor authentication.

It's simple to get started on a mobile device, and it lets you switch between digital currencies and assets on the fly. Quickly log in from multiple devices.

17. Exodus

Exodus is a web-based platform that allows you to store, manage, and trade your cryptocurrencies all in one place. It is one of the best cryptocurrency wallets available, allowing you to sell various assets to diversify your portfolio.

It protects your cryptocurrency with advanced security. On Exodus, your asset is kept safe and secure while also monitoring market moves on the go.

18. Nash

Nash is one of the most convenient platforms to purchase cryptocurrency. It allows for quick trading across Ethereum, NEO, Bitcoin, and other blockchains. You can rapidly adjust your transaction limit using this app.

It comes in English, French, Italian, Portuguese, and other languages, and it encrypts your wallets while also supporting rapid payment methods.

19. Electrum

Electrum is one of the first Bitcoin wallets on the market. It’s one of the best cryptocurrency wallets available, with robust privacy features that keep your Bitcoins safe.

Electrum uses servers to facilitate transactions and reduce waiting times.

20. Phemex

Phemex is a platform that allows you to trade digital assets in real-time. With this app, you can buy Bitcoins with a debit card, credit card, or other payment methods. It allows users to keep track of their Bitcoin assets simply and efficiently.

It also allows you to process 300,000 transactions per second while still providing security with offline signatures and live multilingual help 24 hours a day, seven days a week.

21. Mycelium

Mycelium is another well-known cryptocurrency wallet that focuses heavily on Bitcoin. It has long been a mobile-only software wallet and continues to be one of the top solutions for Android and iOS users, having been introduced to the market in 2008.

The wallet's security and transaction choices are two of its most significant selling points.

The software is entirely repeatable, which means its code can be reproduced and compared to the original to identify any potential security flaws, and it has many pin protection levels.

22. Blockchain Wallet

Blockchain is the most secure and widely used wallet. It's a cryptocurrency wallet that may be used to invest in and store cryptocurrencies. It's one of the safest Bitcoin wallets since it maintains who owns which digital tokens.

It allows you to save your assets in a cold wallet and use the hot wallet for day-to-day transactions. It also gives you complete control over your finances, backs up your data, and protects you from unauthorized access.

Conclusion

In this blog post, we looked at what crypto wallets are, what they can be used for, the different types of crypto wallets, and how to utilize them.

To discover more about blockchain, NFTs, NFT artists, crypto, and other web3 topics, check out the Hashnode web3 blog.