Your Guide to Understanding What Crypto Wallets are and the best Crypto Wallets for 2021
What is a Crypto Wallet?
Before we delve deep into the nitty-gritty details about the best crypto wallets you can choose to work with, let us first understand what a crypto wallet is.
The functionality of a crypto wallet is relative to that of normal mobile applications. We use mobile applications to store information and retrieve it when needed. Crypto wallets allow users to store their crypto assets and easily retrieve them when needed. Just like the normal money wallets, the crypto wallets will safeguard your crypto assets from risks such as losses and thefts. A user who acquires a cryptocurrency such as Bitcoins can use the crypto wallets to store and access them when the need to use the crypto coins arises.
The history of crypto wallets traces back to the inception of Bitcoins. Satoshi Nakamoto, the mastermind behind the Bitcoin currency, advocated for a crypto wallet to hold Bitcoins. Many wallets have since emerged to store not only Bitcoins but also other Cryptocurrencies.
Why Do I Need a Crypto Wallet?
The major reason for having a crypto wallet is that it allows you to generate unique addresses to receive your cryptocurrencies. A crypto wallet will also allow you to send Bitcoins and other cryptocurrencies to other wallet address peer-to-peer and over a blockchain. As you might be aware, the cryptocurrency streets are filled with hackers who rampage anyone they find, stealing crypto coins and leaving users completely devastated. Indeed cryptocurrency hacks and frauds have been increasing more rapidly, as shown by a report by Statista.
The best crypto wallets will allow users to keep a close watch on their real-time crypto balances and ensure those threat actors are kept far away.
Comparison of Best Crypto Wallets in 2021
Exodus is one of the best mobile and desktop crypto wallets. Its simple user interface and built-in exchange make it easy even for beginners to easily handle their crypto coins. One of its major competitive advantages is its ability to swap between the growing number of cryptocurrencies. Today, Exodus allows a cryptocurrency swap of over one hundred cryptocurrencies.
It is its simplicity that makes it a favorable option for the newbies of the crypto space. It also has great customer support to help beginners handle the ever confusing crypto market.
It also offers live or real-time charts to help the users monitor the market movement on their desktops or mobile phones. Using this wallet, users will easily make the right decision over whether to buy or sell their portfolio.
Key features of Exodus
- It supports crypto swaps to 100-plus cryptocurrencies.
- It is compatible with desktops and mobile phones. It also syncs with crypto hardware wallets, including the Trezor devices. Additionally, it is compatible with both the Android and IOS operating systems.
- It allows a user to transact with the supported cryptocurrencies without withdrawing or using a centralized exchange.
- It is a closed source wallet; hence it is hard for users to verify its code
- It does not impose a customs fee for Ethereum and other altcoins.
The trezor one is a crypto wallet designed and crafted by SatoshiLabs in collaboration with the stellar cybersecurity team, and cryptocurrency advocated. It is the first crypto wallet developed based on modern cryptography.
Its LED displays and easy-to-use interface is its competitive advantage. It is also known for its enhanced security because of the two-factor authentication feature, allowing only legitimate users to access the wallet.
It is compatible with Windows, Linus, and Mac. It offers a wide range of altcoins to trade-in.
- It allows users to transact crypto on exchanges like ChangeNow and Changelly
- It allows for backup, which is done using a 12 to 24 words long recovery seed.
- It allows for the functionality of a password manager; hence it is easy to create strong passwords that will be retrieved easily in case of password loss.
- It is compatible with multiple app wallets
- It has a cloud storage option.
- The wallet costs a lot of money to acquire
- It has a poor customer service
Atomic wallet is a decentralized wallet that allows users to have and keep their cryptographic keys on local storage locations while managing their crypto coins on the blockchain. One of the most outstanding features of the atomic wallet is its recently launched atomic wallet token. It is used for affiliate airdrops, bounty programs, cash backs, and creating stakes in the wallet.
- It supports over 300 coins and tokens, including Bitcoins, Ethereum, and XLM.
- It is compatible with the following operating systems: Windows, macOS, IOS, Android, Ubuntu, Federo, and Debian.
- It has a backup feature to allow for easy recovery in case of uncertainties.
- It allows for staking.
It does not allow for the integration of offline storage hardware wallets.
4. Shift Crypto
Shift crypto is the best crypto wallet for institutions, custodians, groups, and exchanges. It is best known for its BitBox hardware program, which allows users to store their private crypto keys offline. It also comes with an android and Windows application that makes it easy for users to manage their coins in their portfolio.
Shift Crypto features an OLED display and fast-touch buttons that allow its users to transact quickly.
- Apart from the popular Bitcoin and Ethereum, Shift crypto also supports more than 1500 tokens and crypto
- It has Bitcoin-only hardware that only allows the storage of Bitcoins.
- It is compatible with a USB-C. Thus it can be used with a mobile device.
- It has a backup and recovery option.
- It allows for 2FA hence strengthening the security of the wallet.
No Integrated exchange
5. Bitcoin Cash Wallet
Bitcoin cash wallet was specifically developed to cater to the needs of those who want to store Bitcoin and cash at a go. It has the features that users so much need to trade in-app. Users can freely convert crypto coins into stable coins to save themselves from the dangers of volatility movements. They can also convert the stable coins back to crypto coins whenever they want.
- Multi-factor authentication (biometric unlock)
- It has separate saving and spending wallets
- Back and restore options
It does not support software wallets
6. Bitcoin Core
Bitcoin core is arguably one of the best wallets for users who use Bitcoins as the only cryptocurrency. Users can transact in Bitcoins to other networks. It allows users to track their transaction details.
- It is compatible with the following operating systems: ARM, Linux, Windows, macOS, and ARM Linus.
- Use can prune the 400GB blockchain file to a manageable 6GB.
- Easy backup and data restore option
- It does not allow for storage other cryptocurrencies other than Bitcoin
- Lacks an internal exchange
- Only allows for the connection of a single address
- Syncing the application takes between hours and days to complete
7. Green Address
Green Address is a crypto wallet that allows users to store Bitcoins securely with multi-factor authentication and multi-signature technology. It is one of the most secure crypto wallets we have today. It will enable users to log into a watch-only mode which does not allow for cloud or local-stored keys. Thus, users can securely view their wallets even when using public Wi-Fi.
- It has set spending and rate limits to transactions.
- Utmost transaction privacy because every transaction has a new address. As such, it is not vulnerable to attacks such as session hijacking
- No integrated exchange
- It does not support other crypto coins other than Bitcoin
- It is not compatible with hardware wallet
Coinbase wallet sees cryptocurrency as the future for money. It is trusted by over 35 million users globally.
- Small trading fees
- A convenient user interface
The user interface can be a bit confusing
Mycelium is the ideal crypto wallet for crypto traders and diversified hodlers. It provides direct control of your private keys. The private keys will never leave your device. You can also use a secure PIN to lock your wallet.
- Allows users to operate multiple accounts
- Facilitates in-app exchanges
- It has in-app material that will help you throughout your cryptocurrency journey.
- Allows for a backup and restore feature
We picked this crypto coin wallet because of its ability to offer secure cold storage
- Intuitive and expedient user interface
- Allows for Bluetooth connectivity
- Bluetooth connectivity could open up doors to cyber attackers.
- It has limited wallet storage.
You now understand what a crypto wallet is, why you need one, and some of the best crypto wallets that you can go for. Choose the crypto wallet that best befits you.