Choosing a good crypto wallet to store digital assets in is never an easy task. This article will help you figure out the best cryptocurrency wallet for you.
How does a cryptocurrency wallet work?
Like all the currencies in the world, cryptocurrencies need a reliable vault to be stored in. While we use a wallet to store paper money, a cryptocurrency wallet is needed in the case of digital assets.
In short, a cryptocurrency wallet works as an online portal between you and your coins and has two elements: a public key and a private key. If you think of your cryptocurrency wallet as being similar to your bank account, then your public key is the account number, while the private key would be your PIN.
Every public key requires a private key for access and must be entered when the key owner wants to manage, send and receive their digital assets. For this reason, you must keep your private key confidential and if anyone else knows what it is, your assets are at risk.
Types of cryptocurrency wallets
You cannot choose the best cryptocurrency wallet for you until you know the different types of wallets. Basically, there are many different classifications of wallet and this list covers the main ones.
Cold Wallets (Offline Wallets)
Cold wallets are a means of storing your private key completely offline. These are paper or hardware devices like password-protected USB or encrypted cold storage devices.
Basically, your private key is kept far away from the internet, so it’s hard for hackers to attack your funds. However, cold wallets are not as convenient as the other kinds of cryptocurrency wallet mentioned below.
Hot wallets (Online Wallets)
Contrary to cold wallets, hot wallets are software applications installed on devices such as desktops, mobile phones, or tablets.
Hot wallets require an Internet connection to access your funds, which is why they’re also known as online wallets.
This type of cryptocurrency wallet has various sub-categories, including desktop wallets, web wallets, and mobile wallets.
Exchange wallets are preferred by those who want to trade coins frequently, as storing coins directly on the trading platform helps to shorten your trading time. This is because with an exchange wallet, you don’t need to wait for confirmation when sending crypto assets from another wallet to the exchange.
One downside, however, is that you cannot keep your private key – it’s stored by the exchange – meaning that it’s not a fully-protected wallet.
Every type of crypto wallet has pros and cons, so generally speaking, you might say that there is no ‘best’ cryptocurrency wallet. However, you can choose the best fit for you based on your evaluation criteria.
How to choose the best cryptocurrency wallet
Some crypto wallets were created for convenient daily use, including the ability to pay for goods and services. Others are optimized to provide secure protection for digital assets.
Before choosing the best cryptocurrency wallet for you, you should consider how you intend to use it. Let’s figure that out by answering these questions:
Holding or trading?
If you just want to ‘hold to die’ or make some long-term investments, an Offline Wallet is the best choice.
On the other hand, if you need a wallet for frequent trading, you should consider an exchange-based wallet or an in-app trading crypto wallet app.
Security or convenience?
An exchange-based wallet is good for trading, but not suitable for privacy preservation. If you want to completely control your funds, an Offline Wallet such as a hardware device or paper wallet is worth considering.
The top 5 best cryptocurrency wallets in 2020
After considering the variations of digital wallets carefully and making your choice, it’s time to move on to the top 5 best cryptocurrency wallets in 2020 and beyond.
Best cryptocurrency wallet #1: Incognito Wallet – The best anonymous crypto wallet
If privacy is your top concern and you cannot stop wondering ‘how to buy Bitcoin anonymously’, The Incognito Wallet is definitely the answer.
Functioning as a sidechain for all the blockchains, The Incognito Wallet connects to public blockchains via a trustless portal. Then, users can issue a privacy version of their favourite cryptocurrencies at the rate of 1:1 on the Incognito Blockchain. As a result, you can send and buy crypto anonymously without any third party involved.
After using it for private transactions, you can switch it back to the original version just with a single tap. And that’s all the steps you need to do to send Bitcoin anonymously.
When you turn the “Incognito mode” on, no one can see your balance or the details involved in a single transaction. With all its awesome features, The Incognito Wallet is one of the best cryptocurrency wallets in 2020 and beyond.
- Download the wallet: iOS | Android
- Learn more: https://incognito.org/
- Contact the team: https://t.me/incognitochain
Best cryptocurrency wallet #2: Ledger Nano X – The best coin wallet for offline storing
Ledger Nano X is one of the best cryptocurrency wallets in the form of cold wallets. The wallet can store up to 100 types of coins at the same time, including Bitcoin, Ethereum, XRP, Bitcoin Cash, EOS, Stellar and many more.
This device combines ease-of-use and flexibility while ensuring the highest standard of crypto security. Moreover, you can connect Ledger Nano X to any iOS or Android device via Bluetooth connectivity.
Best cryptocurrency wallet #3: Trust Wallet – The best crypto wallet app for multi-function
Trust Wallet is one of the best cryptocurrency wallets that enable you to explore the colourful variety of the crypto-verse.
This is a hot wallet app installed on your mobile phone, giving you access to your funds at any time with an Internet connection.
This multi-functional wallet provides you with staking coins, instant trading and dApp browser. One more benefit is that the wallet provider is Binance, which is considered as one of the most popular exchanges in the world.
Best cryptocurrency wallet #4: Coinbase Wallet for US citizens
Coinbase is not only one of the top-ranked crypto exchanges, but also a trustful online wallet.
You can access this wallet via your smartphone or web browser. It is highly secure and easy to use. Moreover, if you’re a US citizen, you can connect the wallet to your bank account to buy and sell coins directly. This is one of the rarest features of a cryptocurrency wallet.
However, users need to pass identity verification as well as verify bank account information. This means you must trade-off your privacy and the US government may know your identity.
It’s not really harmful at all. But if you ever try the anonymous crypto wallet like The Incognito Wallet, it’s not ideal to risk your privacy.
Best cryptocurrency wallet #5: Jaxx Wallet for desktops
Jaxx Wallet can be accessed via desktops, mobiles, and web browsers. The installation process for the PC is the most convenient one, making it the best cryptocurrency wallet for the desktop version.
With this wallet, the ownership of the private key is yours, meaning you can totally control your funds. Moreover, as other hot wallets, Jaxx supports a fairly large number of cryptocurrencies.
Another fantastic advantage of the Jaxx Wallet is that it has an internal exchange. Thus, you can trade your coins instantly and directly in the wallet without an exchange account.
Best cryptocurrency wallets: Other top picks
The Trezor wallet is the most worth considering hardware wallet nowadays. Being the closest competitor of Ledger in many years, Trezor has its own reputation and fans.
Kindly similar to a Ledger Wallet, Trezor is easy to use and multi-coins supported. One downside is that it’s more expensive than other types of crypto wallets.
Bitcoinpaperwallet.com Paper Wallet
A paper wallet is basically a paper that contains your public and private key printed out in the form of a QR code.
There are many paper wallet generators but Bitcoinpaperwallet.com is the most worth considering. On this site, you can use a tamper-proof design or holographic labels to add an extra layer to secure your wallet.
However, you must keep your paper wallet in a safe place. If it’s lost or stolen, your funds are hardly recovered.
Conclusion on “Top 5 best cryptocurrency wallets in 2020”
The list of best cryptocurrency wallets is not permanent forever. There are the rising ones and others may go away. Therefore, you should keep looking for the best cryptocurrency wallet on your own evaluation criteria, and you will find the best fit.
One more thing is that self-protection is never outdated in the world of privacy-preservation these days.