The Top 7 Best Crypto Wallets

[TL; DR]
A crypto wallet is a device or platform which keeps private keys.
There are custodial and non-custodial crypto wallets.
A hot wallet is connected to the internet while a cold wallet is a device which stores private keys offline.
Ledger Nano X, Trezor Model T, MetaMask , Exodus, Mycelium, Atomic Wallet and Trust wallet are the top crypto wallets on the market.

Keywords: Ledger Nano X, Trezor Model T, MetaMask , Exodus, Mycelium, Atomic Wallet, Trust wallet crypto wallet

As the crypto economy is growing people need secure means of storing their tokens and cryptocurrencies. There are so many options on the market right now. To start with, there are two broad categories of crypto wallets which are custodial and non-custodial. We can further classify the wallets as hot and cold wallets. These broad categories are very essential when you are choosing a crypto wallet. We shall discuss these categories as well as the seven best wallets.


Crypto wallets

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A crypto wallet is a device or platform for storing private keys required for making transactions. A private key is a password that allows you to access the digital assets you own. It is important to understand that the wallet does not store the tokens because they exist on the blockchain. Rather, the private keys are there to prove your ownership of the various digital assets on the blockchain. Broadly viewed, wallets can either be custodial or non-custodial.


Custodial and non-custodial wallets

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Custodial wallets: This is a type of a wallet where a third party holds its private key. A prime example is that of your account on an exchange. You do not store the private key but the exchange keeps it. In most cases, you use a password and a 2 factor authenticator to access your tokens. As an example, an exchange such as Gate.io is responsible for keeping the private keys of all the users on the platform.

Non-custodial wallet: This is a wallet where the user owns and keeps the private key. Therefore, the user needs to store the private key safely. This is because If he/she loses the key, there is no way to get the cryptocurrency. Above that, there is no way a third party can help to retrieve the private key. Now, let us look at the other categories of crypto wallets- hot and cold wallets.

Hot wallet: A hot wallet is web-based, meaning that it exists online. In order to have a web-based wallet, you should install the app on your device such as a computer. The disadvantage of hot wallets is that they are prone to hacking. A good example of a hot wallet is MetaMask.

Cold wallet: A cold wallet, also called offline storage, is not connected to the internet. Instead, it exists in form of a small gadget similar to a USB device, which you can even put in your pocket.

It is important to understand the nature of the wallets we have discussed. This will help you to choose the safest and most convenient one. Now, let’s focus on the best crypto wallets on the market which include Atomic, MetaMask, Exodus and Ledger Nano X.


Ledger Nano X

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This is a cold wallet which is very secure. The user can connect the wallet to a smart phone or computer using bluetooth or USB. This wallet has a large capacity as you can connect up to 100 apps and it supports over 1 800 cryptocurrencies and tokens. Also, it is a small gadget which you can safely put in your pocket. This device works on Windows 8+, macOS 10.10+, Linux, iOS 9+ and Android. The user can install the Ledger app on a smartphone and be able to buy, transfer and stake some cryptocurrencies. As we have already noted, the main advantages of Ledger Nano X are its high security and convenience.

Source: Amazon

Trezor Model T

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Trezor Model T is another cold wallet, a competitor to Ledger Nano X. This wallet supports over 1 200 cryptocurrencies and has a user-friendly interface. To further enhance security you can use your pin and seed phrase when using the wallet. Also, there is an independent party that audits the wallet’s security, ensuring that it meets a certain standard. The wallet works well on both a computer and smartphone which increases convenience. Its user-friendly interface enables the user to check the balance, purchase, receive and transfer cryptocurrencies. It is very durable as it can withstand high temperatures of upto 140 degrees celsius.


MetaMask

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MetaMask is a web-based wallet which works very well with DeFi platforms and various exchanges. You can easily install it on a smartphone or computer. Apart from its high security, MetaMask supports many blockchain networks including Ethereum, Avalanche, Fantom Binance Smart Chain, Celo and Polygon. Furthermore, it is connected to many dApps and NFT marketplaces such as OpenSea, making it one of the most widely used wallets with over 30 million users. Unlike Trezar Model T and Ledger Nano X where the user pays for the wallet, it is free to download and install MetaMask.


Exodus

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This is a hot wallet which you can install on a computer or smartphone. With a user-friendly interface, Exodus supports over 120 cryptocurrencies. You can login using fingerprint or barcode scanning, thereby enhancing security of your digital assets. Like many other wallets, it encrypts the private key as well as the transactions. In addition, it allows the user to transfer the cryptocurrencies to cold storage wallets it is synced with such as Trezor Model T and Model One.


Mycelium

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Mycelium is one of the top hot wallets you can find on the market. Although it originally supported bitcoin only, now it handles many cryptocurrencies. Many users prefer to use it on smartphones, especially on iOS and Android devices. One advantage of Mycelium is that it is integrated with Trezor and Ledger, meaning that you can easily store your crypto through one of them if you want to use a cold wallet. impressively, it has an educational database to allow its users to get relevant information. The user can also set his/her preferred transaction fee, depending on the speed of transaction he/she desires.


Atomic Wallet

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Atomic wallet is one of the preferred hot wallets which supports more than 300 cryptocurrencies.This wallet has many desirable features and services. For example, it has a decentralized swap service enabling the users to easily convert one cryptocurrency to another without any intermediary. Also, the users can purchase certain cryptocurrencies such as Ether and bitcoin using credit cards. This wallet works well on computers and smartphones. However, you need to securely keep your seed phrase and private key.


Trust wallet

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There is no doubt that this is one of the best wallets on the market. As a result of the integration with Binance, Trust wallet has many smart features. For example, it supports many decentralized applications (dApps), allowing users to lend, sell, buy and borrow cryptocurrencies. The users can also easily convert one cryptocurrency to another. As well, it supports over 50 blockchains and many digital assets.



Conclusion

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As we have discussed, crypto wallets allow the user to store the digital codes required to make transactions. Non-custodial wallets are wallets where the users have full control over and their content. With a custodial wallet, there is a third party that controls the wallet and the private keys. We can also classify the wallets as web-based or cold storage. In this respect, Ledger Nano X and Trezor Model T are examples of cold storage wallets while Atomic, MetaMask, Exodus, Mycelium and Trust wallet are hot wallets.






Author: Mashell C., Gate.io Researcher
This article represents only the views of the researcher and does not constitute any investment suggestions.
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