Blockchain wallets are an integral part of the cryptocurrency technology, but there are so many different types and features, that understanding the differences can be confusing. This guide aims to give you all the information you need to choose the most suitable wallet for you.
The Different Types of Wallets
Some wallets offer more convenience while others offer higher security. There are wallets which accept a wide range of cryptocurrencies and others which are limited to Bitcoin and a few others. Understanding what you will do with the cryptocurrency you own will help you choose the right wallet for you.
Generally, wallets can be split between:
- Hardware / Cold Wallets
- Desktop / Mobile Wallets
- Web / Exchange Wallets
Wallets are normally free, except hardware wallets which are physical devices which need to be purchased. They are best known for offering the highest level of security but are also the slowest to connect to the Blockchain in order to transfer funds.
Choosing The Right Blockchain Wallet
Security & Flexibility
When it comes to security, cold storage devices are certainly your best choice. When disconnected from the Blockchain, these devices are virtually unhackable, leaving the digital coins stored within them completely safe. Sometimes, this added security comes at the expense of functionality, but this is not the case with Ledger wallets.
Both Ledger Nano S and its successor, the Ledger Nano X offer users a user-friendly experience and the possibility of storing over 1,000 different cryptocurrencies. Both offer recovery options in case of loss of passcode, and the Nano X can even connect to the Internet via your mobile phone.
Advanced Security Options
Whilst all of the top cold storage wallets are safe, as explained in a previous guide, they are susceptible to tampering on their way to the user. CoolWallet S is a hardware wallet which cannot be infiltrated, nor can the private key be removed from the chip.
The chip which is holding the private key is a military-grade CC EAL 5+ certified S.E. Chipset, equivalent to FIPS-compliant security level. At comparable costs to the Ledger Nano X, the CoolWallet S accepts a much smaller number of cryptocurrencies. Nevertheless, you can use it to safely store your Bitcoin, Ether, and 20 other currencies.
Convenient Cryptocurrency Exchange
If you are a regular cryptocurrency trader, cold wallets might be too slow for your daily transactions. Exodus is a desktop wallet which also offers a convenient way to trade assets. As one of the newer wallets in the industry, Exodus wallet and exchange offer you a multi-currency solution packed up in just one software package.
Accepting over 71 different currencies, including Bitcoin Cash and Dash, Exodus might not be as safe as hardware wallets but is certainly more convenient. As with other software wallets, including Coinbase Wallet, it is best not to store all your crypto on it. Instead, you should keep the majority in Ledger or Cool Wallet S, and use Exodus for your daily transactions.