Top 5 Crypto Wallets Sorted by Type

Top 5 Crypto Wallets Sorted by Type

If you are already keen on investing in cryptocurrency, you should already be thinking about how to store and manage it. Crypto wallets are those instruments that will make it an easy, fast and hopefully safe experience. But having in mind how many there are, which one is the best one? Finding the right one for you can be quite confusing and frankly hard, but what must be considered first is: there are wallets for different people with different needs and preferences. Before giving you the list, we’ve compiled with the top 5 digital wallets, first, let us shed some light on the term crypto wallet and what types of wallets are out there.

crypto wallets

A Crypto wallet is a software or a piece of hardware which one can use to store and manage their digital assets. Actually, it does not simply store currencies, since the virtual assets do not exist anywhere in physical form, more accurately it contains the private and public key pairs which enable users to send, receive and spend cryptocurrencies through the blockchain in addition to monitoring and managing their balance. Every piece of cryptocurrency or so-called coin has a private key and in order to effectively spend the associated coin, the private key is used to make a record in the blockchain.

Simply put, the wallets exist to allow someone to “own” and practically use cryptocurrency. The digital wallet could be seen as a regular physical wallet with the advantage of being smarter and more sophisticated because it acts as a personal record of transactions and it basically does all the thinking for you. Things like checking your balance, tracking various details such as when where and how much has been spent, added or withdrawn, keeping the different digital currencies apart in different departments, so they don’t get mixed up are all done quickly, securely and efficiently within the crypto wallet.

The Different Types of Wallets:

Hot or cold.

Whether the wallet is hot or cold depends on whether it uses internet connection or not. All wallets are categorized either as hot or cold (online wallets are called hot, respectively offline wallets – cold.)

Single or Multi-Currency Wallets

Some wallets only hold one type of cryptocurrency, while others will allow you to store multiple types of cryptocurrencies in one place –wallets for all cryptocurrency. The official wallets of cryptocurrencies are mostly single currency wallets.

Examples:

  • Bitcoin: Bitcoin Core Wallet, Mycelium or Electrum.
  • Ethereum: Ethereum Wallet or MyEtherWallet (Paper Wallet).
  • Litecoin: Litecoin-QT.
  • Dash: Dash Core.
  • NEO: Neon Wallet, NEO-CLI, NEO-GUI.

And the list goes on… but not here.

Hardware wallets refer to secure hardware devices, similar to USB sticks, where user’s private keys are stored.

Online wallets (Web wallets) – wallets accessible via internet browser using a certain URL address and are usually a cloud-based service.

Mobile wallets –applications used on a mobile device.

Desktop wallet –software installed locally on a computer or a laptop. They store the private keys on the hard-drive.

Paper wallet – a physical printed document (can be referred to as an actual piece of paper) containing a public address(es) used for receiving coins and private key(s) for transferring and spending cryptocurrency.

Here’s a list of the top 5 crypto wallets*, we’ve compiled for your convenience based on our subjective internet research:

1. Ledger Nano S 

Ledger Nano S is a cryptocurrency multi-asset hardware wallet, probably the most popular one. The device looks like a USB memory stick and connects via USB port. It requires physical interaction with the device (using a small screen and buttons) for transaction and payment validation. Ledger is a French blockchain security and cryptocurrency company. The price of the device is about 65-70$ or 55-58 Euro. It is a Multi-currency wallet, supporting 24 cryptocurrencies.

 Other hardware wallets: Ledger Blue, Trezor, Keepkey, Digital Bitbox

2. Coinbase

Coinbase is a digital currency exchange and online wallet for Bitcoin and Ethereum, supported in more than 30 countries. Free to sign-up, however, they charge a transaction fee depending on the size of the transaction.

  Other online/web wallets: Naga wallet, MyEtherWallet, Jaxx wallet, Cryptonator, Blockchain, Gatehub.

3. Coinomi

Coinomi is a multi-coin crypto wallet, a mobile application available for iOS and Android. Integrated with exchange websites ShapeShift and Changelly. Completely free to use. Supported coins: Bitcoin, Litecoin, Dash, Ethereum, Zcash, Dogecoin, Verge, Zcash, Zcoin plus over 50 more.

Other mobile wallets: Mycelium, Edge, Jaxx, Blockchain

4. Exodus

Exodus is a free desktop wallet for multiple cryptocurrencies. It stores the private keys on the hard-drive of the computer it is installed on. Offers full compatibility with ShapeShift. You don’s have to download the whole blockchain. It has a user-friendly interface and provides full control over digital assets. There are transaction charges. The number of supported coins is over 30.

Other desktop wallets: Electrum, Jaxx, Armory, Eidoo.

5. Paper wallets

Paper wallets such as ethaddress Wallet, Bitcoinpaperwallet.com, paperwallet.com are services which allow a user to print paper wallets.

Have in mind that the number of cryptocurrency wallets available is huge. The ones mentioned in this article are just some of the most popular and trusted ones. The most suitable one for you is out there waiting for you to find it.

*The main list consists of multi-currency wallets.

Disclaimer: The information provided in this text should not be considered as professional investment advice. It is for general knowledge and presents the author’s personal opinion based on internet research on the topic and their own subjective knowledge.

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