The best crypto wallets for 2023

A crypto wallet's primary function is to keep your crypto safe and allow you to make trades. However, wallets also offer more control over your digital currency than you'll get using a standard account at a crypto exchange or brokerage.

People who are new to cryptocurrency might be wondering how to store their digital assets safely. While you could keep them in an online brokerage like Coinbase, a crypto wallet is the safest way to store your crypto assets. It can only be accessed by a unique key that can't be replicated once it's generated. That also means it's very important to store your key in a secure spot where you won't lose it and only you can access it.

Here's a guide to crypto wallets, including how to choose one, how to store your coins in a wallet and a list of the best crypto wallets for 2024.

Do I need a crypto wallet?

If you're planning to buy cryptocurrency, you'll also need a crypto wallet to store it in. You can keep your crypto assets in an online brokerage account, but a crypto wallet is a safer option.

While you could keep your assets in an online brokerage like Coinbase, a crypto wallet is the safest way to store your digital assets. It can only be accessed by a unique key that can't be replicated once it's generated. That also means it's very important to store your key in a secure spot where you won't lose it and only you can access it.

How to store your coins in a wallet

Your wallet will have a public and private key. Your private key is how you access your assets, while the public key is used to send and receive crypto. When you purchase a coin, you'll have to input your public key as the address for where the digital asset is sent.

A good rule of thumb is to always transfer a very small amount of cryptocurrency from the exchange you purchased it from, confirm that it made it to your wallet successfully and then transfer the rest. If you include the wrong address, your assets will be sent into the void with no way to be recovered.

How to choose a crypto wallet

Choosing which crypto wallet is best for you will depend on how secure you want your assets to be and how much trading you intend to do.

People who invest large amounts of money will likely opt for a cold wallet as it's more secure, while people who dabble in investing will likely be fine not spending the extra money and using a hot wallet.

Here are some things to consider when choosing a crypto wallet:

Security

When it comes to cryptocurrency, security is perhaps the most important thing to consider. You want your digital assets to be as safe as possible from hackers and fraudsters. The best defense from a hacker is going offline, so a cold wallet will be the most secure route to take. Being a physical object, cold wallets can still be lost or stolen, so it's important to store your cold wallet securely.

However, if you do lose your wallet, you can still access your crypto by using your seed phrase. Seed phrases are randomly generated combinations of words that can be used to recover or access your account in the instance you don't have your cold wallet or your hot wallet becomes disconnected. You're assigned a seed phrase, or recovery phrase, upon setting up your wallet.

Fees

While transactions on the blockchain may come with fees, hot wallets like Exodus are typically free to use, while the cold wallets on this list cost up to $149.

Ease of use

Hot wallets are typically easier to use than cold wallets, simply because you don't need to take an extra step to access them.

Hot wallets are connected to your browser via an extension to your phone if you're using a mobile wallet or via software downloaded to your computer. They can be accessed at any time, while cold wallets require a physical dongle to be connected to your computer.

Amount of trading

If you plan to do a lot of trading, you'll need a wallet with advanced features. Some wallets support a lower number of digital assets, so you'll want to opt for one that caters to a wider range of coins. You'll also need to be aware of any restrictions the wallet has around trading. A cold wallet is the better choice if you intend to trade and store higher volumes of digital currency.

Frequently asked questions

How much money do I need to open a crypto wallet?

It depends. Hardware-based wallets generally cost between $100 and $200, though many software-based wallets are free. Most don't require you to actually own any cryptocurrency.

Which wallet is best for beginners?

If you've never used cryptocurrency before, we recommend Coinbase Wallet. Coinbase is a well-known, US-based crypto exchange that's easy to use, and it works well with Coinbase Wallet.

Which wallet is best for advanced users?

Today's cold storage wallets can be quickly and easily connected to the internet for fast transactions, so most advanced users nowadays are probably most interested in a cold storage wallet. The hardware wallets sold by Ledger and Trezor are both good options.

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