A WALLET FOR EVEVRYONE

So now you've understood the concept and importance of a crypto wallet. Let's look at the different options, and discuss their pros and cons and see which one is most suited to your needs.

I will summarize the unique features of the top cryptocurrency wallets that you must know of.

The first thing to understand is that Wallets don’t actually store your cryptocurrency. Your Bitcoin or Ethereum stays securely on the blockchain.

Your wallet is just an interface, a tool, that allows you to manage your bitcoin address and store your password and keys.

Not all cryptocurrencies can be stored in one wallet. There are some wallets that are currency specific, and some support multiple currencies.

The most important thing to remember about your wallet is that your private key is the access to your funds, as long as you have control of your private keys and keep it secret, if you have full control of your crypto assets and nobody else can access them.

That’s exactly why when you send your cryptocurrency to an exchange to trade it, they have control of your private keys, not you!

I recommend for you to have your own wallet and send to the exchange only the amount you want to trade. When you are finished you can withdraw your crypto and store it safely in your wallet.

Now you are ready to choose your wallet

Desired traits of a Cryptocurrency Wallet

What are the desired traits of a crypto wallet and how difficult is it to choose a wallet?

This seemingly easy answer, unfortunately, does not have a single satisfying answer for everyone: convenience may come at the cost of security; additional features may come at the cost of a steeper learning curve. More importantly, what are the traits that, ultimately, you value over the others?

See the list below, not in order of importance:

Cost: Is it free? What are the drawbacks of using this wallet?

Security: Does the company have a track record of security excellence?

Mobility: Is it easy to keep and difficult to lose? Is it accessible anytime, anywhere?

User-friendliness: Is the wallet designed so its easy to use and pull up data efficiently? Can I store a range of cryptocurrencies ?

Convenience: Am I able to make a fast purchase when the time calls for it?

Style: Do I have a weakness for cool tech gadgets?

You may want a wallet that offers the best combination of the above-mentioned traits. Remember, all wallets have their pros and cons.

Which Cryptocurrency wallet is the best for you?

There is an ever-growing list of options. Before picking a wallet, you should, however, consider how you intend to use it.

Do you need a wallet for everyday purchases or just buying and holding digital currency for an investment?

Do you plan to use several currencies or one single currency?

Do you require access to your digital wallet from anywhere or only from home?

Take some time to assess your requirements and then choose the most suitable wallet for you.

What are the different types of Cryptocurrency wallets?

First of all you need to know the difference between the two main types of wallets:

HOT WALLET: Is a Bitcoin wallet that is online and connected in some way to the Internet. Bitcoin-related services and exchanges that are able to pay out withdrawals instantly can be said to be paying them from a "hot wallet".

COLD WALLET: is any cryptocurrency wallet that is not connected to the internet and therefore more secure. You could hold your Bitcoin in a cold wallet and transfer it to a hot wallet only when you need to trade or send money somewhere.

There are several types of wallets that provide different ways to store and access your digital currency. Wallets can be broken down into four distinct categories – software, hardware, mobile app and paper.

Desktop: wallets are downloaded and installed on a PC or laptop. They are only accessible from the single computer in which they are downloaded. Desktop wallets offer one of the highest levels of security however if your computer is hacked or gets a virus there is the possibility that you may lose all your funds.

Software: are online wallets run on the cloud and are accessible from any computing device in any location. While they are more convenient to access, online wallets store your private keys online and are controlled by a third party which makes them more vulnerable to hacking attacks and theft.

Mobile: wallets run on an app on your phone and are useful because they can be used anywhere including retail stores. Mobile wallets are usually much smaller and simpler than desktop wallets because of the limited space available on a mobile.

Hardware: These are physical devices, that act as a vault for your digital money. They store a user’s private keys on a hardware device like a USB. Although hardware wallets make transactions online, they are stored offline which delivers increased security. Hardware wallets can be compatible with several web interfaces and can support different currencies; it just depends on which one you decide to use. In order to make a transaction you will have to plug in the device to any internet-enabled computer or device, enter your pin, send currency and confirm. Hardware wallets make it possible to easily transact while also keeping your money offline and away from danger.

Paper: wallets are easy to use and provide the highest level of security. While the term paper wallet can simply refer to a physical copy or printout of your public and private keys, it can also refer to a piece of software that is used to securely generate a pair of keys which are then printed. Using a paper wallet is relatively straightforward. Transferring Bitcoin or any other currency to your paper wallet is accomplished by the transfer of funds from your software wallet to the public address shown on your paper wallet. Alternatively, if you want to withdraw or spend currency, all you need to do is transfer funds from your paper wallet to your software wallet. This process, often referred to as ‘sweeping,’ can either be done manually by entering your private keys or by scanning the QR code on the paper wallet.

So here are my reviews of the different wallets available.

So here they are in no particular order:

COLD STORAGE WALLETS:

PAPER WALLETS:

MyEtherWallet:


Paper wallets are for those who wish to have their own private wallets without forking out cash for hardware wallets. The money saved could be invested in their coins. Simply generate your wallet online at myetherwallet.com and note your private keys. The website does not store or transmit any of your private information. If you don’t trust the online version, you can even download it from GitHub and run it offline. Paper wallets are free but require an in-depth knowledge to set it up properly. In short, this type of wallets generally take a lot of hassle and are not advised for novices.

HARDWARE WALLETS:

The most secure ways to store your cryptocurrency is a hardware wallet, these are physical devices, that act as a vault for your digital money.

Popular hardware wallets include:

KeepKey

The coolest looking tech gadget to show off to your friends. Made by a relatively new company, KeepKey offers a hardware wallet of a polished design. In addition to bitcoin, the KeepKey wallet enables the storage and transaction of a variety of cryptocurrencies, including Ethereum, Litecoin, Dash, Dogecoin and Namecoin. This is ideal if you’re using multiple cryptocurrencies or looking to build a portfolio of digital assets. KeepKey is said to be a port of Trezor’s code and firmware, so their main difference is the material. KeepKey feels like a ‘premium’ wallet but might be a little on the heavy side and hence more susceptible to drops. It comes with a standard, simple to use set up.

TREZOR:

Trezor is a hardware Bitcoin wallet that is ideal for storing large amounts of bitcoins. Trezor cannot be infected by malware and never exposes your private keys which make it as safe as holding traditional paper money.

Trezor is open source and transparent, with all technical decisions benefiting from wider community consultation. It’s easy to use, has an intuitive interface and is Windows, OS X and Linux friendly. One of the few downsides of the Trezor wallet is that it must be with you to send bitcoins. This, therefore, makes Trezor best for inactive savers, investors or people who want to keep large amounts of Bitcoin highly secure.

Pros:
Good security & privacy, cold storage, easy to use a web interface, in-built screen, open source software, beginner friendly, you can buy it with your Bitcoin (If you already have Bitcoin of course)

Cons:
Costs $76 USD, must have device with you to send bitcoins

LEDGER NANO:

The Ledger Wallet Nano is a new hierarchical deterministic multisig hardware wallet for bitcoin users that aims to eliminate a number of attack vectors through the use of a second security layer. This tech-heavy description does not mean much to the average consumer, though, which is why I am going to explain it in plain language, describing what makes the Ledger Wallet Nano tick. In terms of hardware, the Ledger Wallet Nano is a compact USB device based on a smart card. It is roughly the size of a small flash drive, measuring 39 x 13 x 4mm (1.53 x 0.51 x 0.16in) and weighing in at just 5.9g.

Pros:
Screen/device protected by metal swivel cover, Multi-Currency support, 3rd-Party apps can run from devi U2F support, When recovering wallet from seed, the whole process can be done from the device without even connecting it to a computer! Fairly inexpensive (~$65 USD)

Cons:
Not as advanced wallet software (no transaction labeling), No ability to create hidden accounts, No password manager

MOBILE WALLETS:

If you prefer to have your Crypto on-the-go the best way is to have your wallet on your mobile device. The advantage of mobile wallets is that it is only accessible from your mobile and if you lose your mobile you can cancel access to it in a click

Bread Wallet:

Bread Wallet is a simple mobile Bitcoin digital wallet that makes sending bitcoins as easy as sending an email. The wallet can be downloaded from the App Store or Google Play. Bread Wallet offers a standalone client, so there is no server to use when sending or receiving bitcoins. That means users can access their money and are in full control of their funds at all times. Overall, Bread Wallet’s clean interface, lightweight design and commitment to continually improve security, make the application safe, fast and a pleasure to use for both beginners and experienced users alike.

Pros:
Good privacy & security, beginner friendly, simple & clean, open source software, free.

Cons:
No web or desktop interface, lacks features, hot wallet.

JAXX:

Jaxx is a multi-currency Ether, Ether Classic, Dash, DAO, Litecoin, REP, Zcash, Rootstock, Bitcoin wallet and user interface. Jaxx has been designed to deliver a smooth Bitcoin and Ethereum experience. It is available on a variety of platforms and devices (Windows, Linux, Chrome, Firefox, OSX, Android mobile & tablet, iOS mobile & tablet) and connects with websites through Firefox and Chrome extensions. Jaxx allows in wallet conversion between Bitcoin, Ether and DAO tokens via Shapeshift and the import of Ethereum paper wallets. With an array of features and the continual integration of new currencies, Jaxx is an excellent choice for those who require a multi-currency wallet.

Pros:
Good privacy & security, Multi-currency, wallet linking across multiple platforms, great user support, feature rich, user-friendly, free.

Cons:
Code is not open source, can be slow to load.

HOT WALLETS SOFTWARE:

Electrum:

Electrum is a fast, lightweight wallet for desktop and mobile users. It has a long list of supported features to make it the most flexible wallet today. It offers cold storage solutions, integration with hardware wallets (KeepKey, Nano Ledger S, Trezor) and able to achieve anonymity (with Tor). On the security side, Electrum enables multi-sig support, and it is not tied to a centralized server, so server downtime will not be an issue. Overall, Electrum is the established software wallet solution out there that warrants a try-out.

COINBASE:

Coinbase is an online web-based wallet and is the beginner-friendly version of GDAX. As a hot wallet, you can easily transfer to the GDAX exchange instantly, and for free. In the same interface, you can make quick purchases with fiat (regular currency). The best part is that 100% of your crypto holdings on Coinbase is insured so if you get hacked you won't lose your money!

Also if you sign up with this link you get $10 bonus

You can activate 2-Step Verification and Google Authenticator for more protection, and Coinbase even has a vault available if you wish to trade convenience for an added layer of security.

Pros:
Beginner friendly, hot wallet, secure can make purchases in fiat.

Cons:
Not all currencies are available although the most popular included: Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic and Litecoin

MYCELIUM

Advanced users searching for a Bitcoin mobile digital wallet, should look no further than mycelium. The Mycelium mobile wallet allows iPhone and Android users to send and receive bitcoins and keep complete control over bitcoins. No third party can freeze or lose your funds! With enterprise-level security superior to most other apps and features like cold storage and encrypted PDF backups, an integrated QR-code scanner, a local trading marketplace and secure chat amongst others, you can understand why Mycelium has long been regarded as one of the best wallets on the market.

Pros:
Good privacy, advanced security, feature-rich, open source software, free

Cons:
No web or desktop interface, hot wallet, not for beginners

EXODUS:

Exodus is a relatively new and unknown digital wallet that is currently only available on the desktop. It enables the storage and trading of Bitcoin, Ether, Litecoins, Dogecoins and Dash through an incredibly easy to use, intuitive and beautiful interface. Exodus also offers a very simple guide to backup your wallet. One of the great things about Exodus is that it has a built-in shapeshift exchange that allows users to trade altcoins for bitcoins and vice versa without leaving the wallet.

Pros:
Good privacy & security, beginner friendly, intuitive, easy to use, in-wallet trading, supports multiple currencies, open source software, free.

Cons:
Hot wallet, no web interface or mobile app

COPAY:

Created by Bitpay, Copay is one of the best digital wallets on the market. If you’re looking for convenience, Copay is easily accessed through a user-friendly interface on desktop, mobile or online. One of the best things about Copay is that it’s a multi-signature wallet so friends or business partners can share funds. Overall, Copay has something for everyone. It’s simple enough for entry-level users but has plenty of additional geeky features that will impress more experienced players as well.

Pros:
Good privacy & security, multisig transactions, multiple platforms & devices, multiple wallet storage, beginner friendly, open source software, free

Cons:
Can be slow & unresponsive, limited user support

ARMORY:

Armory is an open source Bitcoin desktop wallet perfect for experienced users that place emphasis on security. Some of Armory’s features include cold storage, multi-signature transactions, one-time printable backups, multiple wallets interface, GPU-resistant wallet encryption, key importing, key sweeping and more. Although Armory takes a little while to understand and use to it’s full potential, it’s a great option for more tech-savvy bitcoiners looking to keep their funds safe and secure.

Pros:
Good privacy, great security features, multi-signature options, solid cold storage options, free.

Cons:
Only accessible via the desktop client, not for beginners.

GREEN ADDRESS:

Green Address is a user-friendly Bitcoin wallet that’s an excellent choice for beginners. Green Address is accessible via desktop, online or mobile with apps available for Chrome, iOS, and Android. Features include multi-signature addresses & two-factor authentications for enhanced security, paper wallet backup, and instant transaction confirmation. A downside is that Green Address is required to approve all payments, so you do not have full control over your spending.

Pros:
Solid security, multi-platform & device, multi-sig, beginner-friendly, open source software, free.

Cons:
Hot wallet, average privacy, the third party must approve payments.

BLOCKCHAIN.INFO

Blockchain is one of the most popular Bitcoin wallets. Accessing this wallet can be done from any browser or smartphone. Blockchain.info provides two different additional layers. For the browser version, users can enable two-factor authentication, while mobile users can activate a pin code requirement every time the wallet application is opened. Although your wallet will be stored online and all transactions will need to go through the company’s servers, Blockchain.info does not have access to your private keys. Overall, this is a well-established company that is trusted throughout the Bitcoin community and makes for a solid wallet to keep your currency.

Pros:
Good security, easy to use web & mobile interface, well-known & trusted company, beginner friendly, free.

Cons:
Hot wallet, weak privacy, third party trust required, has experienced outages.

An all-in-one package wallet does not exist.

It is important that you manage to find the wallet that addresses your greatest concern, be it security from theft, ease of transfer, convenience, monetary cost, or even style. A wallet may turn out to be your greatest investment decision, financial wise and emotional health wise.


Choose wisely.