Cryptocurrency is not stored in a wallet or some virtual bank, but directly in the blockchain ecosystem. The coins themselves, information on the distribution of digital assets between users, transaction history – all this data is stored by the chain. They cannot be changed or erased in any way unless completely eliminating the global Internet network.



You cannot manage your assets without a wallet. Unlike with fiat coins, which can be obtained from the hands of financial institutions or ATMs, payments with virtual coins are made only on the network. Therefore, the choice of the crypto wallet should be approached with utmost seriousness.



In this article, we explain how cryptocurrency wallet actually works and what is the best crypto wallet to store your bitcoins, ethers and other altcoins in.

How Does Crypto Wallet Work

Despite the fact that cryptocurrencies, unlike fiat, do not have a physical equivalent, a wallet is also required to work with them. As in the case of paper money, digital assets need a reliable vault that allows them to be manipulated.



The difference in interaction with cryptocoins has caused a number of variations of cryptocurrency wallets to appear on the market. Some were created for convenient everyday use (including to pay for goods and services), others to ensure maximum protection against theft (for those wishing to hodl their assets).



Users who prefer to use digital assets for trading also received an effective solution, in the form of exchanges. Cryptocurrency owners can use as many different types of wallets at the same time as they want.



Since cryptocurrencies are digital assets, these wallets are just code. You do not need to be a programmer to understand that the basic level of security is laid down when writing the technical component of future storage. However, even if initially the code seems reliable, there may be dangers crypto users will have to face when using them, including the following:

phishing

access key theft;

technical problems associated with the software component;

loss of access keys

media loss

Owning a variety of wallets for working with cryptocurrencies allows users to use the necessary features while avoiding technical difficulties. Probably, in the future, the crypto community will be offered a universal solution. For now, we offer you an overview of the best available options.

Types of Crypto Wallets

There are different types of wallets, and each of them has its advantages and disadvantages. There is no solution that immediately meets all needs, and therefore the choice is left to the users. Wallets can be attributed to two main types: hot and cold.

Hot wallets are those that are constantly connected to the Internet: online wallets, exchange, cloud, desktop, and mobile. They provide faster access to your funds in case you need to conduct a trading operation or spend cryptocurrency on anything. However, there is always a great risk of hacking, because such wallets are always connected to the network.

Cold wallets are those that do not have a permanent Internet connection. This category includes hardware and paper wallets. Hardware wallets usually look like a flash drive that a user plugs into a computer to transfer funds and manage them.

3 Best Hardware Crypto Wallets

Wallets of this type were created to create the maximum level of protection for the cryptocurrency it holds. These are flash drive devices on which digital assets can be placed. Depending on the models, hardware wallets can offer a number of possibilities: from setting a password, to having in-built anti-intruder systems.

#1. Ledger Nano S

Ledger Nano S is one of the best hardware wallets for Bitcoin, Ethereum and Altcoins. It has a closed execution environment and thereby provides high security for cryptographic asset storage and transaction posting. It connects to any computer (USB), has an OLED display for double confirmation of the transaction using the side buttons.



Ledger wallet is multicurrency and supports many coins. Their number is constantly growing.



Even if you lose it, as long as you have the secret phrase and backups you can easily restore all your coins on a new device. The device itself has its own protection and no one will get access to it without a PIN code.

The wallet interacts with the computer through the Chrome application, which will need to be installed on the machine. When using Ledger Nano, your private keys always remain secure inside the equipment and never reach the computer, guaranteeing hacker attacks prevention.

Type of Wallet : Cold

: Cold Available Assets: multicurrency (BTC, ETH, LTC, etc)

multicurrency (BTC, ETH, LTC, etc) Available Platforms: Android, macOS, Windows, Linux

Android, macOS, Windows, Linux Link: https://shop.ledger.com/products/ledger-nano-s

#2. Trezor

Trezor wallet has an isolated runtime environment, which significantly increases the level of security.



The wallet is easy to use and is safe, storing private keys on the device. Using the display you can visually check the balance and transaction posting. Even if your computer is hacked by malware, your private keys will still be safe.



To use the wallet, you need a PC connection and an installed application in Google Chrome, or a mobile application. In addition to the web interface, you can work with it through third-party applications like MyEtherWallet or Mycelium.



The Trezor hardware wallet leaves a pleasant impression and is recommended for purchase. The cost of this hardware wallet is about $150, which is slightly more expensive than its closest competitor Ledger. However, in a situation where the manufacturer has issues with production, the presence of a good alternative is simply necessary.

Type of Wallet : Cold

: Cold Available Assets: multicurrency (BTC, ETH, LTC, etc)

multicurrency (BTC, ETH, LTC, etc) Available Platforms: Android, macOS, Windows, Linux

Android, macOS, Windows, Linux Link: https://trezor.io/

#3. CoolWalletS

CoolWalletS is a hardware wallet that is connected to your mobile phone via the app. The information stays updated thanks to Bluetooth function. With the wallet, you can track your assets and be aware of your portfolio details. The wallet is secured by biometric and physical 2FA. CoolWallet allows you to send and receive assets without any problem.

Moreover, you can exchange your digital money right into the app. There is an integration with Changelly platform and Binance exchange.

Type of Wallet : Cold

: Cold Available Assets: multicurrency (BTC, XRP, ETH, LTC, BCH, BNB, Horizen, ICX, stablecoins and ERC20 tokens)

multicurrency (BTC, XRP, ETH, LTC, BCH, BNB, Horizen, ICX, stablecoins and ERC20 tokens) Available Platforms: Android and iOS

Android and iOS Link: https://www.coolwallet.io/

Hardware Wallets Pros&Cons

+ easy way to keep coin secure – not free + easy to backup – not so easy for newbies + easy to set up and use

4 Best Desktop & Mobile Crypto Wallets

Today it’s hard to imagine the life of a modern user without Android and iOS devices for communication, which many also use to perform a number of operations with money (payment, transfers, etc.).



As a result, mobile cryptocurrency wallets have been steadily increasing in popularity, and are currently even more popular than the desktop versions in some cases. Here is our selection of the best desktop and mobile cryptocurrency wallets.

#1. Exodus

Exodus, a universal cryptocurrency wallet, is rightfully considered one of the best in 2019. It supports more than 100 altcoins, has a built-in exchange service and a convenient graphical interface. Private keys are stored directly on the user’s device, so that in the event of operating system failure, the program can be easily restored. In addition, a mobile version of the application has been released. Exodus can interact with the Trezor Hardware Wallet.

Type of Wallet : Hot

: Hot Available Assets: multicurrency (BTC, ETH, LTC, etc)

multicurrency (BTC, ETH, LTC, etc) Available Platforms: iOS, Android, macOS, Windows + integration with Trezor Hardware Wallet

iOS, Android, macOS, Windows + integration with Trezor Hardware Wallet Link: https://www.exodus.io/

#2. Jaxx

Jaxx cryptocurrency wallet can be accessed via desktop, mobile, and browser. The installation process for the PC is the most convenient one, making it the most in-demand version. You can store private keys, and there is a second level of protection in the form of a PIN code, which is entered every time you open the program. Jaxx service combines comfort with cold storage level of security and supports a fairly large number of virtual coins.

Type of Wallet : Hot

: Hot Available Assets: multicurrency (BTC, ETH, LTC, etc)

multicurrency (BTC, ETH, LTC, etc) Available Platforms: iOS, Android, macOS, Windows, Linux, Google Chrome Extension

iOS, Android, macOS, Windows, Linux, Google Chrome Extension Link: https://jaxx.io/

#3. Coinomi

In 2019, the company released a desktop version of Coinomi Blockchain Wallet. But the resource has gained popularity thanks to the multicurrency application for mobile phones with a Russian-language interface and two integrated exchange services, Shapeshift and Changelly. The wallet supports more than a hundred virtual coins, and the keys are stored exclusively in the application.

Type of Wallet : Hot

: Hot Available Assets: multicurrency (BTC, ETH, LTC, etc)

multicurrency (BTC, ETH, LTC, etc) Available Platforms: iOS, Android, macOS, Windows, Linux

iOS, Android, macOS, Windows, Linux Link: https://www.coinomi.com/

#4. Edge

Edge is an easy-to-use Bitcoin wallet for iPhone and Android. Convenient authorization allows you to access the application easily, even for beginners in the field of Bitcoin and crypto. The wallet automatically backs up so you don’t have to worry about it.

Type of Wallet : Hot

: Hot Available Assets: multicurrency (BTC, ETH, LTC, etc)

multicurrency (BTC, ETH, LTC, etc) Available Platforms: iOS, Android

iOS, Android Link: https://edge.app/

4 Best Online Crypto Wallets

#1. Blockchain

Blockchain wallet can be created very quickly. This is suitable for anonymous one-time transactions and to ensure the security of transfers. The project’s administration does not have access to the data of the system participants.



Blockchain uses two-factor authentication for protection. This involves the creation of a one-time code that must be used in order to give access to the system or confirm the payment. In addition, the participant can back up the wallet.

Type of Wallet : Hot

: Hot Available Assets: multicurrency (BTC, ETH, LTC, etc)

multicurrency (BTC, ETH, LTC, etc) Available Platforms: iOS, Android

iOS, Android Link: https://www.blockchain.com/wallet

#2. Coinbase

Coinbase is not only one of the top-ranked multi-purpose cryptocurrency wallets of 2019, but also a trading service that many retailers use to receive payments made in digital currencies.

Coinbase successfully operates in 24 countries, including the United States.



To use the service, it is necessary to pass identity verification as well as verify your bank account. Private keys are stored on the server, and client funds are stored on a cold wallet. It is possible to enable two-factor authentication and install the mobile application on a smartphone.

Type of Wallet : Hot

: Hot Available Assets: multicurrency (BTC, ETH, LTC, etc)

multicurrency (BTC, ETH, LTC, etc) Available Platforms: iOS, Android

iOS, Android Link: https://wallet.coinbase.com/

#3. BitGo

BitGo multicurrency Internet wallet also has a fairly high level of reliability. Each transaction requires two signatures. The BitGo platform does not manage the digital assets of users. Only the backup key is stored on the server in case the client loses access to the wallet, the other two private keys are kept by the owner of the coins.



You can use the service only after enabling two-factor authentication. All deposits are insured against hacking by Innovation Group LLC.

Type of Wallet : Hot

: Hot Available Assets: multicurrency (BTC, ETH, LTC, etc)

multicurrency (BTC, ETH, LTC, etc) Available Platforms: Browser

Browser Link: https://www.bitgo.com/

#4. GreenAddress

GreenAddress is a cross-platform wallet. You can work with the resource online only after installing the mobile application. A desktop version of the program is available on GitHub. The creators of the resource focused on the security of deposited assets.



The wallet features multi-signature, 2FA and PIN to ensure security. You can set a certain maximum number of outgoing transactions, thereby limiting access to assets, and the addresses change after each transfer of funds.

Type of Wallet : Hot

: Hot Available Assets: multicurrency (BTC, ETH, LTC, etc)

multicurrency (BTC, ETH, LTC, etc) Available Platforms: Browser

Browser Link: https://greenaddress.it/en/

Hot Wallet Pros&Cons

+ easy way to keep a small amount of crypto coins – not safe to store large amounts of money + mostly free

What is the Safest Crypto Wallet

The best cryptocurrency wallets are hardware storages. In any case, a lot depends on the owner. According to statistics, almost 80% of digital wallet hacks are due to careless attitude to security rules. Everyone knows the general recommendations for working with virtual coins, but not everyone attempts to implement them.

The harder the passwords and passphrases are, the worse it is for hackers and the better for you. The main thing is to not lose them in any case and to not store them electronically, even on a flash drive.

Use all the security options available on this resource and never download cryptocurrency programs from unverified sources.

When performing an outgoing transaction, carefully check the dispatch address.

Do not send private keys to anyone.

Before choosing a particular storage method, read the reviews of other users on forums and social networks.

How to Set Up a Cryptocurrency Wallet?

It is easy to create a wallet for your cryptocurrency. All you need is to choose the wallet that will suit your currency (bitcoins or any altcoins), fill in all the registration gaps and create a wallet address. Voila! You are ready to store, receive and send cryptocurrencies.

What If I Forgot My Seed Phrase?

The whole point of strong encryption is that it is impossible to recover data without a seed phrase. Try to remember it. If you fail, you cannot manage your cryptocurrency anymore.

How to Get Bitcoins on My Wallet?

You can buy Bitcoin or any other cryptocurrency on Changelly with your credit card fast and securely.

Are Paper Wallets Safe?

A paper wallet is a paper on which private and public keys are printed in the form of a QR code. Paper wallets are generally better and safer than any other type of wallets. Here are a few reasons to use them:

They are easy to use. Creating a paper wallet does not require much effort or technical knowledge. A few simple steps will secure your coins. Using hardware wallets is much more complicated. They are autonomous. Such a wallet is not available online for hackers and scammers, so it lies in your locker. Your currency is presented in the form of a piece of paper on which keys are printed. No hardware problems. Paper wallets are more secure than hardware wallets, which can be damaged and may have software malfunctions. A paper wallet is the easiest form of cryptocurrency storage.

Summary

At the moment there are enough options for cryptocurrency wallets so as to allow you to organize the process of effective interaction with cryptocurrencies regardless of the complexity of your goals. The main thing is to decide on the tasks that the selected crypto wallet should handle.

About Changelly

Changelly is a secure instant crypto exchange that has 150+ cryptocurrencies available to be swapped and bought at market-best rates. Operating since 2015, the platform and its mobile application attract over a million visitors monthly, who all enjoy quick and simple exchanges, low transparent fees, and 24/7 live support.