Believe it or not, but you can have full ownership over your cryptocurrencies by moving it into your own software or hardware wallet. In this article we will take a look at the options available, both for software wallets and for hardware wallets.
Every user interacting with a blockchain, requires a wallet. Generally a wallet consists of two things; a public key, or wallet address, and a private key. Never share the private key with anybody.
To use your wallet, you need an interface. This can either be a hardware wallet or a software wallet. In this article we take a look at some of the most popular, technologically advanced and user friendly software and hardware wallets.
Why do you need a wallet for your crypto?
When you put your crypto on an exchange, you put trust in the ability of the exchange to remain solvent. However, the past has shown us that even the biggest exchanges can fall. Just look at Sam Bankman-Fried and the FTX collapse. Centralized exchanges also get hacked, simply look at Mt. Gox, but also more recently Kucoin, Huobi (now HTX) and Binance.
To ensure that you keep full control over your assets, it’s best to store your crypto in your own wallet. We call this self-custody. You can do this either through software wallets or hardware wallets.
What is a hot wallet?
A hot wallet is a wallet that users actively use for trading and purchasing. They connect this wallet to other services, potentially making it vulnerable to hacks or scams. You only have to click a wrong link once to have your wallet drained.
When using hot wallets, it’s best practice to create a couple of hot wallets. And it’s even a better idea to replace your hot wallets once in a while.
What is a cold wallet?
A cold wallet is a wallet you never connect to a blockchain or dapp. Instead you keep this wallet “off the grid” to simply store and keep your assets safe. If you make a nice trade or purchase a gem, then transfer these assets from your hot wallet to your cold wallet for safekeeping.
Cold wallets should by definition not be wallets you connect to the internet. So don’t put your cold wallet in a browser extension like METAMASK or Phantom. Instead, use hardware wallets or generate a wallet and print its private key on paper.
Best software wallets for 2024
Software wallets are best used as hot wallets. You can either use a software wallet through an app on your smartphone or tablet, or you can use one through a wallet browser extension. Generally there’s a software wallet for every chain, and below we’ve listed a selection:
MetaMask
MetaMask is the leading self-custodial wallet for easy access to applications and all of Web3. Supports every EVM chain, and users can add their own RPC nodes. This is the most used wallet tool to interact with dapps, play games, mint NFTs and access your DeFi liquidity.
Rainbow
Rainbow is a Web3 wallet with support for leading browsers, and with its own mobile app. Rainbow shows all your assets across different chains in one wallet overview. This visually pleasing wallet features all kinds of Web3 features, ranging from DeFi management to minting NFTs.
Phantom
Phantom became a leading brand in the Solana ecosystem, and has expanded its reach towards the Ethereum community. Built-in bridging software allows for a smooth transition from Ethereum to Solana and back again. Phantom also features a very nice NFT gallery, swapping and staking features.
Keplr
The Keplr wallet is made for browser and mobile devices, and allows users to utilize the Cosmos Interchain ecosystem. Among these IBC blockchains you find Cosmos, Osmosis, Celestia, Injective, Stargaze and Evmos. The wallet offers a web-based dashboard, allowing users to directly stake their funds to validators, supporting the network and earning an APY.
Petra
While all other wallets in this list so far, offer a wide range of support across the industry, Petra is made with one purpose. Petra is a wallet made by Aptos Labs, and therefore it supports the Aptos blockchain.
Temple
In a similar vein, Temple has been designed as an easy-to-use crypto wallet for the Tezos ecosystem. Temple is an open-source wallet, and allows users to store, stake and transfer cryptocurrencies. Temple is available as a mobile wallet and browser extension.
OKX Wallet
Instead of only building a centralized exchange, the OKX team sees value in growing their presence in Web3. The OKX Wallet is their effort in bringing millions of crypto investors closed to the decentralized web. OKX Wallet supports EVM-chains, but also Solana, Cosmos, NEAR, Doge, Litecoin and more.
Coinbase Wallet
One of the biggest wallets alongside MetaMask, should be Coinbase Wallet. This wallet incorporates various features from the COINBASE exchange platform, while offering Web3 support for EVM chains, Solana, Bitcoin, Litecoin, Dogecoin and more.
Rabby
The last software wallet in this list is definitely not the least, as Rabby has been positioning itself as a strong alternative to market leader MetaMask. Rabby is an open-source wallet available for desktop, browsers and mobile devices. Rabby comes with additional security features, including the ability to “test” a transaction before approving it. Rabby supports Ethereum and all over EVM chains.
Best hardware wallets for 2024
Using a hardware wallet adds an extra layer of security to your crypto holdings. Most software wallets can also interact with a hardware wallet, but these then require the hardware wallet to be connected. Therefore, your funds will be safer from hackers. For every (hardware) wallet the following rules apply:
- Buy it directly from the company, and do not go for discounted models on Ebay or other marketplaces.
- Always use strong passwords, and store the backups of for example your mnemonic or seed phrase securely.
- Never, ever, share your seed phrase with anybody.
All hardware wallets support BTC, ETH and most other top currencies. However, if your portfolio includes lesser-known altcoins then these hardware wallets may not be the best fit.
Trezor Safe 3
Alongside Ledger, TREZOR has been a household name in the crypto space. Their Model T is very beginner friendly. However, with the Trezor Safe 3 the company has a new flagship product on the market. The Trezor Safe 3 hardware wallet costs $79, and is one of the best entry points into the market.
The Trezor Safe 3 is not only safer, but it’s also cheaper than its predecessor. The Trezor Safe 3 supports over 8,000 cryptocurrencies.
Trezor wallets work with mobile devices, through the Trezor Suite Lite app. Of course the hardware wallets also work with Windows, Mac and Linux operating systems. Visit the official Trezor website.
Cypherock X1 Vault and Cards
Cypherock is a newcomer in the hardware wallet space. What’s nice about the Cypherock is that you don’t have to store recovery phrases on a piece of paper. Instead it uses a dual chip architecture for offline computation and verification. Simply put, it verifies itself without the need to be online.
To really make your setup rock solid, you could buy the Cypherock X1 Vault, a hardware wallet shaped like an USB stick. And in addition, buy four X1 Cards as well. Through this combination you can always recover your funds. Because each Cypherock device only stores a part of your seed phrase. As the wallet owner, you should add an extra layer of security through a pin code. Visit Cypherock.
Ellipal Titan 2.0
The Ellipal Titan 2.0 has become a favorite among security enthusiasts, because this hardware wallet for mobile devices uses air-gapped cold storage. Sure, this wallet has no support for desktop users, yet its mobile functionality is outstanding. The Ellipal Titan 2.0 hardware wallet costs $169.
The Ellipal Titan allows users to easily connect their wallet to decentralized applications, while using a very secure air-gapped connection. There’s no support for bluetooth, WiFi or cables. Instead it does everything through QR codes.
Ellipal Titan 2.0 supports 46 blockchains, and with that a total of over 10,000 crypto assets. From the wallet users can even stake, earn interest, and access DeFi platforms. However, there are some limitations in usage because of the lack of access to Xpub keys. As a result this wallet may not work for every service or ecommerce solution out there. Visit Ellipal.
BC Vault
With the BC Vault we have one of the newest hardware wallets on the market, and this one uses seedless cold storage. In addition, its recovery method involves an encrypted SD card. The wallet comes with a FeRAM chip, which will function up to 200 years, while users can also generate their own private keys. The BC Vault hardware wallet costs at least $156.
Users can generate up to 2,000 wallets on the device. These wallets can be protected by a pin or password, allowing multiple users to utilize the same BC Vault wallet. The team at BC Vault is very confident about their security, and allows any wallet access to a locked account with 1 BTC in it. The person who manages to hack the device, can keep the bitcoin. So far, nobody has managed to do it. Visit BC Vault.
Ledger Nano X
Ledger has been the most popular choice for many Web3 enthusiasts. The wallet supports a plethora of currencies and chains. A LEDGER Nano X hardware wallet costs $149.
However, Ledger did have some security issues over the past few years. Ledger has seen a major data breach, and develops their wallet closed-source. They also introduced a very odd recovery service, and allow their Ledger Nano X to connect to phones through bluetooth. That’s not the safest way!
Keep in mind, Ledger is well respected. They are still among the biggest wallet companies in the Web3 space. But they’ve fallen from grace. Yet, the Ledger Nano X is a nice device that’s very user friendly and quite secure.
However, if you would be storing millions in your hardware wallet, then perhaps pick one that does not feature bluetooth connections. Visit Ledger.
Interested in more about wallets and security?
At DappRadar we find it important to educate our community about account security. We don’t want to see you fall victim to a hack, or other types of security risks. Therefore it could be a good idea to continue your journey towards becoming a cybersecurity expert by reading this articles, or visiting these pages:
- Web3 wallets listed on DappRadar
- How to keep your seed phrase safe on your iOS mobile device?
- How to Protect Yourself From Seed Phrase Scam
- 8 Ways to Check If It’s a Token Scam
- How to Prevent Scammers from Draining Your Wallet
