How to find the best crypto wallets

Traders and investors can do little in the world of cryptocurrency without a good digital wallet.

Crypto enthusiasts need a wallet to buy, hold and sell their coins, tokens and NFTs.

Out of the hundreds available, iExpats has looked at some of those marked as the best and in no particular order, here are some that we felt lived up to their praise.

Hopefully, they will protect your crypto holdings and help make managing a portfolio easier.

What is a digital wallet?

A digital or electronic wallet is a program that stores encrypted financial and personal data related to cryptocurrency. The software runs on smartphones, tablets and other computers.

Most digital wallets can handle multiple cryptocurrencies and connect to dApps (decentralized applications). dApps are blockchain-based financial apps.

Our favorite digital wallets

This list is based on the preferences of iExpats staff. The aim is to provide a starting point for research into digital wallets, and should not be taken as a recommendation.

Mycelium

Mycelium is one of the early digital wallets and is considered a step up from a basic entry tool. One of the preferred features is the ability to set transaction fees to hold a payment until the required fee is reached on the Bitcoin and Ethereum blockchains. Mycelium supports Bitcoin, Ether and ERC-20 based NFTs. Another much-liked feature was Mycelium’s connectivity with offline storage. Less confident users can benefit from a wide range of support available online.

Price: Free

Find out more or download Mycelium

Crypto

A digital wallet aimed at investing expats at any stage of their cryptocurrency adventure. The smartphone app from the financial firm deVere Group has an intuitive design and has been downloaded thousands of times. Crypto links with more than ten popular cryptocurrencies, including Bitcoin and Ether. Users can switch from fiat currencies, such as US dollars and British pounds, to cryptocurrency. Crypto connects to the leading exchange Kraken.

Price: Free

Find out more or download deVere Crypto

Trezor

If you are concerned about protecting your crypto assets, Trezor is the wallet for you. Trezor has some of the strongest digital wallet security features. Reviewers point out that the fee for using Trezor does not outweigh the benefit of extra features if you don’t use them. Trezor supports nearly 2,000 cryptocurrencies – practically every one on the market. However, new users are reporting some issues setting up the wallet, especially with the touchscreen interface.

Price: $195

Find out more or download Trezor

Exodus

Exodus is an entry-level digital wallet with a choice of linking to 150 cryptocurrencies and a built-in exchange. However, intermediate or advanced users may find the software too simple with a lack of feature selection. These users may find Trezor a better wallet option. A winning feature of Exodus is helpful support to help newbies in their cryptocurrency journey. The wallet is available for desktop computers and smartphones.

Price: Free

Find out more or download Exodus

Ledger Nano X

A digital wallet that connects to secure cold storage that also connects to up to 20 apps at once. Critics claim that the wallet’s Bluetooth capability has not yet been fully perfected, which could leave the wallet open to attack by hackers. Ledger lost data to hackers in July 2020, which did not compromise personal keys but allowed the theft of other user data. The Nano’s predecessor, the Ledger Nano S, was one of the first wallets on the market and led the sector for some time.

Price: $119

Find out more or download Ledger Nano X

Ledger Nano S

Old but still functional wallet technology without Bluetooth and limited to storing three dApps. As a former market leader, Nano S is associated with more than 1,800 cryptocurrencies. Storage is limited if you have a large crypto portfolio. The Ledger Live software is a breeze to use for smartphone or desktop beginners, but more experienced investors and traders will find the technology limitations a problem. Ideal for new investors seeking simple, hassle-free storage of a few cryptocurrencies.

Price: $59

Find out more or download Ledger Nano S

Electrum

Electrum is a one-trick pony designed to do one job well – manage Bitcoin investments. The stripe-supported, intuitive interface is likely to attract more advanced crypto traders and investors due to its advanced functionality. Electrum comes with custom fees and optional security levels that are most useful for traders. Other disadvantages are that Electrum only connects to Bitcoin, and user support is scarce if not impossible to find. As the crypto market expands, users will find Electrum’s limitations too great.

Price: Free

Find out more or download Electrum

Why do I need a crypto wallet?

A cryptocurrency wallet gives investors and traders a direct connection to the blockchains of their chosen coins or tokens. When a transfer of a coin or token’s ownership occurs, the blockchain automatically updates the wallets of all parties involved.

Bitcoin wallets can hold as much of the cryptocurrency as you want.

Storing cryptocurrency is free, although buying and selling may incur fees. A setting to adjust the fees is important for traders who do a lot of transactions. The setting allows them to hold charges until the network is quieter and costs are reduced, making transfers cheaper.

Many exchanges offer wallets as part of the service, with the cost absorbed in a fixed monthly administration fee.

Another point to watch is when owners can withdraw their money in cash after a cryptocurrency transaction. Each wallet has specific rules for when fiat money is transferred, so make sure you know the limits of your wallet before withdrawing.

The average downtime is three days between completing a crypto transfer and converting the value into hard cash.

Our favorite crypto wallet FAQ

What is a fiat currency?

Fiat currency is a government-backed currency that is not backed by another asset, such as gold, but a promise by the issuing government to honor the face value of the coin or note. A fiat currency is recognized as a country’s legal tender. Although many governments recognize cryptocurrency as a commodity, few have adapted it as legal tender.

What is hot and cold wallet storage?

Wallet storage can be hot – online all the time – or cold – kept on an offline device. Cold storage is preferred by many as the data is only open to hackers while the drive is connected to an internet-enabled device. Hot storage is available at all times. The best security is cold storage, provided software and passwords are kept up to date.

Can I store NFTs in a digital wallet?

A crypto wallet will handle the buying, selling and holding of NFTs (non-fungible tokens).

How do I choose a digital wallet?

You should consider four factors:

• Wallet security
• Ease of use
• Functions
• Compatibility

Security allows you to keep your investments safe. Ease of use makes the investment less hassle-free. You also need to make sure that the wallet contains the features you need and is compatible with the cryptocurrency you want to trade.

Can I use a wallet without connecting to an exchange?

No. You must connect to an exchange. Both services refer to different jobs:

• A wallet is a storage device for cryptocurrency investments
• An exchange is a platform for buying and selling coins and tokens

Some wallets come with integrated exchanges, while some exchanges offer their own white-label wallets.

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