Cryptocurrencies are probably one of the most popular assets as far as the millennials’ preferences are concerned.
In December 2020, about 330,000 daily Bitcoin transactions took place. The figure soon reached approximately 400,000 in January 2021.
The notion of crypto trading is simple. You buy a specific cryptocurrency and hold it until it reaches a certain price point when you sell it to make some profit.
It is the holding of the crypto that makes or breaks the deal.
If the crypto is not stored securely, some hackers may hack into your system and rob you of your crypto gains. This is where crypto wallets come to the rescue.
Traders rely on cryptocurrency wallets to securely store their crypto assets, as well as to validate and protect transaction data.
Crypto wallets are designed to keep your private keys (— a 12-word password phrase that safeguards access to your crypto assets), secure and safe.
What are the safest crypto wallets in 2022?
Crypto wallets can be based on hardware or software and exist in a variety of forms, from USB sticks to smartphone apps.
Which one you should use depends entirely on your personal preference. Long-term Bitcoin investors may prefer the security of an offline cold storage wallet (hardware wallet).
On the other hand, people who are more engaged in daily crypto transactions may prefer the convenience and quickness of a hot storage (online wallet) option.
Let us take a look at the safest crypto wallets you can find in 2022. Our list contains both software and hardware alternatives. So, you can read the blog and decide for yourself, which one to opt for.
Here are the best hot crypto wallets in the market.
MoonPay is one of the safest wallets you can find online. The company’s success can be gauged from the fact that it took them only two and a half years since its founding to achieve a valuation of $3.4 billion. Moonpay’s Series
An investment round fetched $555 million, which is the highest and largest valued Series A investment for any bootstrapped crypto-based startup.
MoonPay employs stringent security procedures to ensure the safety of your Bitcoin purchase.
All data transported from or to MoonPay’s infrastructure is encoded in transit using TLS (Transport Layer Security) version 1.2 or later, and a rigorous HTTP Strict Transport Security (HSTS) policy protects against downgrade attacks.
MoonPay data is stored in ISO27001 and PCI DSS certified data centers and is protected at rest using AES-256 block-level storage encryption.
When it comes to usability, MoonPay is fairly intuitive. In case you are wondering how to buy bitcoin on MoonPay, it’s an extremely easy process.
All you need to do is select your desired crypto and enter the amount of money you wish to spend. You can carry out transactions using US dollars as well as a variety of other fiat currencies.
MoonPay allows you to buy as low as $30 worth of Bitcoin. So, crypto investment got more convenient and affordable.
That’s not all, as you can instantly purchase Bitcoin using your debit or even credit card. Other payment procedures include bank transfer, Samsung Pay, Apple Pay, etc.
The next crypto wallet on our list is Coinbase. Coinbase is not only user-friendly but also an extremely secure wallet. The software features a user-friendly interface with a three-tab structure and easily distinguishable functionalities.
Coinbase Wallet offers over 500 crypto assets, the most offered by any hot wallet. It can also store NFTs (non-fungible tokens) and other digital collectibles.
Coinbase is non-custodial, which means your private key is held on your device rather than on Coinbase’s servers. As a result, you don’t have to worry about your funds being frozen or exposed to a server cyberattack.
Electrum is another well-known cryptocurrency wallet that is being used by a lot of people globally. It has a range of powerful security measures in place that many other wallets lack.
One of the wallet’s best features is that it runs on a light client, which is simple to set up and takes up much less space on your system than regular wallet clients.
The wallet downloads only sections of the blockchain when utilizing SPV (simple payment verification). This speeds up the transaction process without compromising its security
Mycelium is next on our list of the safest cryptocurrency wallets. This particular wallet focuses heavily on Bitcoin.
It remains one of the top solutions for iOS and Android users, having been introduced to the market in 2008.
The wallet’s transaction choices and security are among its biggest selling points. The software is completely reproducible and can be compared to the original code to identify potential security flaws; if any. It also comes with many pin protection levels.
5. Crypto.com DeFi Wallet
The Crypto.com DeFi Wallet is a great option for those who are just getting started with decentralized financing. Defi wallet provides users with complete control over their digital assets as well as their private key, which they must keep safe.
It also allows users to swap cryptos 1:1 and utilize a variety of Cryof tools to create passive income on the cryptos they currently possess, both of which are unavailable in traditional custodial wallets.
Without creating an account on Crypto.com’s exchange, customers can download and use the Crypto.com DeFi Wallet for their day-to-day crypto operations.
Exodus is a hot wallet, which means it’s a software wallet that’s connected to the internet; yet, it’s noncustodial, which means that your private key is only accessible by you.
The Exodus wallet is compatible with Windows, Mac, and Linux computers, and an Android and iOS companion app is also available. The desktop user interface is simple and intuitive to use. Your wallet is fully connected with the Exodus exchange, making transactions simple.
Exodus accepts over 130 different cryptocurrencies, such as bitcoin, tether USD, ether, and dogecoin. Bitcoin can be purchased with US dollars in the app version. Once you have an asset in your wallet, you can quickly trade it for other assets that are supported.
Now let’s take a look at the most secured cold crypto storage solutions.
Ledger is one of the most well-known hardware wallet brands on the market today. The Ledger Nano S, a feature-rich and extremely secure cold wallet, spurred the company’s early popularity.
The Ledger Nano X builds on the success of the Nano S by including a built-in battery as well as features like Bluetooth connectivity and enhanced asset management.
The Ledger Nano X, presently priced at $119, has a 128 x 64-pixel screen for cycling through apps and comes in a matte black finish. The wallet supports over 1,800 coins and tokens, the most of any wallet on our list, and can manage up to 100 of them at once through the device’s apps.
The Nano X can be used with the Ledger Live software on Android or iOS devices to swap crypto on the go. Its Bluetooth Low Energy connectivity may be switched off at any time.
Trezor was founded in 2011 as a subsidiary of SatoshiLabs in the Czech Republic. Its second-generation hardware wallet, the Model T, is totally open-source, providing some additional security. The code that runs the wallet is open to inspection, making it a secure one.
Trezor Suite can operate directly on your desktop, which provides more protection as compared to a web-based program, however, you can use the company’s official website as well to access your assets.
Trezor wallets presently support over 1,600 tokens and coins. Additionally, you may use the company’s integrated exchange to perform direct transactions on Trezor Suite.
The Model T, which looks like an old-school stopwatch, has a USB cord and touchscreen. It also comes with a microSD card slot for adding secured storage to your hardware wallet directly.
A word of caution
Crypto wallets play an important role in keeping your investments secured.
There were instances in the past when life savings in cryptocurrencies being lost to fake crypto wallet app. We aim to help you make the right decision so that your assets are not jeopardized.
As you can see, hot and cold crypto wallets have different functionalities. As a result, we needed to examine some factors differently for each.
The cost of using a hot wallet is rather inexpensive when compared to cold storage wallets, given that the cold hardware wallets are physical items that must be purchased from a retailer.
So, in this blog, we examined 8 crypto wallets and ranked them according to their security features and functionality.
Before you go ahead with your crypto investment career, there are a few things to keep in mind. Cryptocurrencies are a relatively new and fascinating kind of asset. For many people, the idea of a decentralized currency that is not tied to the financial industry is appealing. The dramatic price swings can be thrilling, and some coins are just plain funny.
Cryptocurrencies, while exciting, are unpredictably volatile assets that should be dealt with caution.
Personal financial gurus and consultants advise investing no more than 5% of your portfolio in volatile assets such as cryptocurrency. Beginners also should avoid more risky crypto trading techniques like lending and staking currency for profit. To keep your crypto assets secured, consider reading How To Avoid NFT Scams, And Protect Your Crypto: Expert Tips.