Best Cryptocurrency Wallets 2024: How to choose a secure vault for your assets?

03, Sep - BLOG

Cryptocurrencies are becoming increasingly popular as a secure means of payment and a promising investment, but with their growth comes an increase in cyberattacks. Cybercriminals are actively hacking into digital wallets, stealing hundreds of millions of dollars, as was the case with the FTX attack in 2022 when $600 million worth of cryptocurrencies were stolen. With the increasing security threat, choosing a trustworthy cryptocurrency wallet becomes critical. In this article, we will explain what types of wallets exist and how to choose the right one for you.

Types of cryptocurrency wallets

Today, there are two types of cryptocurrency wallets: cold wallets and hot wallets. Which are the best cryptocurrency wallets?

1. Cold cryptocurrency wallets

Cold wallets are hardware devices that are not connected to the internet and store your private keys offline. This provides a high level of security as a physical presence is required to access the funds, which protects against online threats such as spyware and malware. These wallets are often compared to safes as they offer extra protection for long-term storage of cryptocurrencies. Cold wallets include devices such as Ledger and Trezor, which are installed on a computer or smartphone and allow you to sign transactions offline.

Cold wallets can also be paper-based, being sheets of paper with keys printed as QR codes. Users send cryptocurrencies to and from a specified address by scanning the code on the paper to conduct transactions. While paper wallets were popular in 2013-2014, they are now considered less secure than physical hardware devices. Hardware wallets remain the most reliable solution for protecting large assets in the long term.

2. Hot cryptocurrency wallets

Hot wallets are software wallets that are always connected to the internet, making them convenient for frequent use. They come in several forms: desktop wallets that are installed on a computer, mobile versions for smartphones and tablets, and browser extensions integrated into web browsers. Because of their ease of installation and ease of use, hot wallets are a great choice for beginners and users who care about fast and convenient transactions. However, being constantly connected to the web makes them more vulnerable to cyberattacks, viruses, and phishing.

Hot wallets offer convenient access to funds and allow you to quickly manage cryptocurrencies anytime and from anywhere in the world. They are ideal for those who conduct frequent transactions, invest in multiple cryptocurrencies or actively interact with decentralised applications (dApps). However, even using a VPN cannot fully protect hot wallets from potential threats, so users are advised to employ additional security measures such as two-factor authentication. It is important to realise that hot wallets are best used to store small amounts intended for daily transactions, leaving the main assets in safer, cold wallets.

Criteria for choosing a cryptocurrency wallet

To choose the right cryptocurrency wallet, there are several important criteria to consider:

• Security: Cyberattacks are becoming increasingly sophisticated, so choose wallets with cold storage and two-factor authentication, which require you to enter a code to access the wallet;
• Compatibility: Make sure the wallet supports different cryptocurrencies and blockchains so you can easily interact in a decentralised ecosystem and diversify your investments;
• Ease of use: Choose a wallet with an intuitive interface and an app that makes it easy to complete transactions and manage your funds, even if you're a beginner;
• Cost: Compare wallet prices by considering security, usability and transaction fees to avoid unexpected costs.

Best cold cryptocurrency wallets in 2024

Here are the best cold wallets for safe cryptocurrency storage in 2024:

• Ledger Nano S and Nano X: Provide a high level of security with a 24-word recovery phrase. The Nano X uses two chips and end-to-end Bluetooth encryption, making it ideal for power users. The Nano X is priced at $170, while the Nano S, without Bluetooth, is suitable for beginners and costs $90;
• Trezor Model T and Model One: Open source wallets with passphrase support for added security. The Model T has a touchscreen and supports more than 1,800 cryptocurrencies, including Bitcoin and Ethereum, priced at $149. The Model One has a monochrome display and more limited cryptocurrency support, but remains a popular choice for beginners due to its ease of use. It's priced at $59.

The best hot cryptocurrency wallets in 2024

For those looking for convenient hot wallets, these options are considered the best in 2024:

• Trust Wallet: Supports multiple blockchains and cryptocurrencies, easy-to-use interface for asset management;
• MetaMask: Ideal for ERC-20 tokens and dApps, offers strong security and ease of use;
• Exodus: Stylish interface and inbuilt features for convenient cryptocurrency portfolio management.

Comparison cryptocurrency wallets and recommendations

For day-to-day transactions, hot wallets are best as they are easy to use and provide quick access to your assets. For long-term cryptocurrency storage, cold wallets are a safer choice due to their offline security. To maximise security and flexibility, it is recommended that you use a combination of cold and hot wallets and update your software regularly.

Conclusion

Choosing the right cryptocurrency wallet plays a key role in protecting your assets. Consider your needs and security level when choosing between hot and cold wallets. Combine both types for maximum flexibility and protection.