What is the most secure crypto wallet ?
Crypto wallets are essential for anyone who is looking to get involved in the world of cryptocurrency. As there is no intermediary who will take care of your money for you (as a bank would do), you need to take care of your money by yourself.
As a beginner it can be overwhelming at first, because the stakes are high. But if you take some time to educate yourself on the matter, you will realize that it’s not that hard to secure your funds.
In this article, i will try to explain what are the most secured crypto wallets in order to protect your money. In order to do so, i will teach you the different forms of wallets so you can understand tyhe differences.
Moreover, i will help you to choose the right wallet according to your needs and usage.
What is the most secure crypto wallet ? Let’s find out !
What are the different crypto wallets ?
In this article, we are going to take a look at the different types of crypto wallets available so you can make an informed decision when it comes to choosing the right one for you.
First but most important thing, you need to understand the big difference between hot and cold wallets.
Hot and Cold Wallets
The first distinction when it comes to crypto wallets is between hot and cold wallets :
- Hot wallets : they are connected to the internet and are used for everyday transactions.
- Cold wallets : on the other hand, are not connected to the internet and are mainly used for storing longterm holdings.
First thing to understand is that whatever kind of wallet you buy or use, ask yourself, am i connected to internet ? If your wallet is a hot wallet, it means that anywhere in the world, anywone could connect to it if he has your username & password combinasion.
Here are the most common wallets used by most of the people.
Hot mobile wallets
Mobile wallets are applications that are installed on your smartphone and used for everyday transactions. They are convenient as they allow you to access your cryptocurrencies on the go but are vulnerable to malware and hacks.
Examples of mobile wallets :
- Coinbase
- Gemini
- ZenGo
- Exodus
- Trust Wallet
- Electrum
- MetaMask
Beware of these wallets : Smartphones, especially android phones, are easy target for hackers. Don’t be fooled by the ease of use and ergonomics of these products. Because everyone uses them, they are the easy target for hackers. I highly recommend to avoid keeping some money on this. Do NOT keep money on a phone wallet.
The only way i would use it is as a transitional step for your money, before sending it to a more secure wallet.
See a mobile wallet as a wallet with cas bills in your pocket. You don’t want to walk in the street with money that should be on your bank account. Use it for small amounts, then use a more secure wallet for your savings.
Hot desktop wallets
Desktop wallets are software applications that are installed on your computer. This is a level of security above mobile wallet only because you can add a two factor identification.
Warning : Not all of them allow you ton configure a two factor identification. If you don’t use it, anyone anywhere in the world with your username & password could access your funds.
Examples of desktop wallets :
- Exodus
- Electrum
- Copay
- Guardia
- Guarda
- Coinomi
- Armory
As explained for a Mobile wallet, desktop wallets are not the most advanced form of protection. I highly recommend to use this as a temporary wallet, or everyday wallet, with only a fraction of your money on it.
Hot exchange platform wallet
This kind of wallet is different. When you keep your money on an exchange, you are no longer the owner of this coins. You sign a contract with the platform which owes you the amount you lended them.
This is the same with banks today. The only difference is there is much more regulation and control now in banking system (thanks to 2008 subprimes) than there is with crypto platforms.
In other words, as we saw with FTX platform crash in 2022, if the platform you lended money on disapears, you loose all your money.
Moreover, if you are victim of a phising attack, and someone gets your username & password, you could loose everything. As i would recommend for desktop and mobile wallet, only use trusted exchange (to today only Binance, Coinbase & Kraken seems to be trusted), and only use platforms to buy and sell your coins. If you want to keep them for a longer period of time :
Buy a hardware wallet
This brings us to the most important part of this article : What is the most secure crypto wallet ?
Most secured crypto wallets : cold hardware wallets
Hardware wallets are physical devices that store your private keys offline. They are considered one of the most secure ways of storing your cryptocurrencies as they are not connected to the internet and are stored in a secure device. Examples of hardware wallets include the Ledger Nano S, Trezor and KeepKey.
Ledger wallet : How does it work ?
A cold hardware wallet like Ledger is a device who looks like a usb key, that is used to store and manage cryptocurrencies like Bitcoin. It is called a “cold” wallet because it is not connected to the internet, which makes it more secure against hackers who might try to steal the cryptocurrencies.
The way a cold hardware wallet like Ledger works is simple. First, you connect the wallet to your computer using a USB cable. Then, you use a special software on your computer to generate a “private key” for your wallet. The private key is a secret code that only you know, and it is used to access and manage the cryptocurrencies in your wallet.
Once the private key has been generated, you can use the software to send and receive cryptocurrencies. For example, if you want to receive some Bitcoin, you can provide the sender with your public address (which is generated using your private key) and they can use it to send the Bitcoin to your wallet.
When you want to spend the cryptocurrencies in your wallet, you simply connect the wallet to your computer again and use the software to access your private key. This allows you to create a “transaction” that will move the cryptocurrency from your wallet to another person’s wallet.
Ledger wallet : the best protection against hackers
The good thing about cold wallet is that you physically need to press a button on your key in order to validate the transaction. In other words, this means that no one could ever take your crypto coins if they don’t have the Ledger wallet in their hands.
Overall, a cold hardware wallet like Ledger is a secure and convenient way to store and manage your cryptocurrencies. It allows you to access your cryptocurrencies without having to trust a third-party service, and it also protects your cryptocurrencies from being stolen by hackers.
Warning : If you are interested by buying a product from Ledger, or any other cold wallet, make sure to buy it from the official website only. Do not buy from any other website, never buy a second-hand product. Your private keys might be compromised by doing so, you could loose everything.
The links below are directly from the Ledger official website. I earn a small commission from Ledger of any sale made through this link. This helps me to pursue my work. Make sure to always double check the URL of any website you purchase from.
Ledger brand offers 3 kinds of crypto wallets. Here is a presentation to each product :
Ledger Stax
The ledger Stax is the new product from Ledger, born from a cooperation between Ledger & the I pod creators. With a new design, the screen allows you to interact within the app easily.
There a more than 500 different crypto & tokens supported on the Ledger Live app. If one of your coin is not supported by Ledger Live (the software), you can still use the Ledger wallet to access a third party wallet, adding a security layer.
More than 5000 crypto, tokens, and NFTs supported when using a third-party wallet.
Pros
- Large touchscreen
- Bluetooth
- Wireless Qi charging
- Enables clear signing for transactions with smart contracts
- Can be customized
- Strong casing (made of aluminum and plastic)
- Cool design (designed by the creator of the iPod)
Cons
- The most expensive ledger wallet (279€)
- You can’t stack all coins from ledger live (just like any other Ledger wallet)
- A bit too fancy for its purpose
You can have more information on this product by clicking on the picture. The website Ledger will provide you any further information on the product.
My personnal opinion about Ledger stax
This is a new product who will be appreciated by people who likes gadgets. However, it does not clearly add a strong value to its predecessors except by its cool look. It is not safer, your cryptos are as much as protected as they are with a nano S plus or a nano X. If you are concerned by the price, i would strongly advise to have a look on the two other products Ledger has to offer.
Ledger Nano X
Pros
- Supports over 1300 crypto assets and tokens
- Bluetooth
- Supports all major desktop and mobile operating systems (Android & iOS)
- Security
- Capacity (about 100 applications simultaneously)
Cons
- Fairly expensive (150€)
- Bluetooth only compatible with mobile app, not desktop
- No Wireless charging
You can have more information on this product by clicking on the picture. The website Ledger will provide you any further information on the product.
My personnal opinion about Ledger Nano X
This is the middle ranged product on Ledger. My personnal opinion is that the extra benefits of this product compared to Nano S Plus are not essential. Bluetooth ? Convenient, but not life changing. More storage ? You will never have more than 100 different coins on your wallet.
As a conclusion, this is a very good product, and still very safe for your crypto assets, but if the price is important to you, i would personnaly recommend buying the Ledger Nano S Plus/
Ledger Nano S Plus
Pros
- Security
- DeFi app support
- Store over 5500 assets, install up to 100 apps simultaneously
- Low price for its added value (79€)
- Larger display screen
- NFT support (with Ledger Live)
Cons
- No Bluetooth
- No Wireless charging
- Not available on iOS
You can have more information on this product by clicking on the picture above. The website Ledger will provide you any further information on the product.
My personnal opinion about Ledger Nano S plus
In my opinion, this model is the best way to protect your assets. The Nano S plus is as safe as the other more expensive products, and the major differences are with bluetooth & capacity, which is not really a big deal. However, if you don’t have more than 50 different coins, this capacity difference won’t matter to you. The nano S Plus is half the price of the nano X, (from 150€ to 79 €), which is quite a big difference.
I personnaly use this product to secure my coins for more than a year now, and i’m very happy about it.
Conclusion about crypto wallets and safety
In conclusion about this topic, i would say that crypto wallets come in a variety of different forms and it is important to choose the right one for you. Hot wallets are best for everyday transactions while cold wallets are best for longterm holdings.
Hardware wallets are the most secure while desktop and mobile wallets are more convenient but are vulnerable to malware and hacks.
I personnaly use Binance wallet to buy and trade a few coins, and Ledger nano S plus to store 90% of my coins safely.
Choose wisely according to your usage and needs !!
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