Best Crypto Wallet For 2021

Like every financial asset, cryptocurrency also needs a safe place to be stored and accessed from time to time. Today, billions of dollars worth of cryptocurrencies such as Bitcoin and Ethereum are stored in digital storage called cryptocurrency wallets. These wallets are being used for storing bitcoin or various other cryptocurrencies. But, there is a lot more to these wallets than just the storage of cryptocurrencies.

Let’s explore cryptocurrency wallets and find out the best crypto wallet that can help you manage your digital wealth efficiently in 2021.

What is a Crypto Wallet?

To begin with, let’s find the answer to “what is a cryptocurrency wallet?” By definition, a cryptocurrency wallet serves the function of our traditional pocket-sized wallet, except for the fact that it is used for digital transactions only. Before cryptocurrency wallets came into being, people were being familiarized with e-wallets or electronic wallets. These digital wallets were used to store money in fiat currencies and make online and offline transactions or transferring it to your bank account.

With the introduction of cryptocurrency, these e-wallets entered the next step of their evolution. This led to the rise of cryptocurrency wallets, investors and traders from several financial marketplaces started trusting the adoption of Bitcoin and other crypto-assets. The primary function that crypto wallets offer is the storage of cryptocurrencies. But, in addition to this, cryptocurrencies can also be added or withdrawn from these wallets to make online payments or exchange crypto coins. As a result, crypto or bitcoin wallets have become the core component of the cryptocurrency ecosystem.

Best Crypto Wallet Of 2021

Types of Crypto Wallets

There are multiple types of crypto wallets based on their storage specifications and crypto compatibility. However, each of these wallets is designed to run on blockchain technology and enable faster and secure crypto transactions. So let’s explore each type of cryptocurrency wallet in detail.

• Hot Storage Crypto Wallets

Hot crypto wallets store cryptocurrencies in online storage. These wallets do not store crypto assets in offline (cold) storage. One of the biggest reasons why people use hot storage crypto wallets is their accessibility. It is easy to access crypto assets anywhere, anytime when they are stored online. In hot crypto wallets, there are different kinds of online storage.

• Desktop Wallets

Desktop wallets are hot crypto wallets that store crypto assets on the desktop computer of the user. With these wallets, the computer needs to be actively connected to the internet. When the desktop stays online and has crypto assets, cryptocurrency wallets can help manage these assets with their desktop software application. These wallets are also called desktop exchange wallets. Exodus is an excellent example of a desktop wallet for Bitcoin.

• Mobile Wallets

Similar to desktop wallet applications, mobile platforms can also store Bitcoin and other cryptocurrencies via e-wallet application. Several leading wallets have their mobile app (Android and IOS devices), which makes them mobile crypto wallets. These hot crypto wallets make crypto transactions more accessible and easy. Cryptocurrency users can exchange or transfer their crypto money via mobile wallets and make transactions on the go.

• Web Wallets

Web wallets have a limited period yet needful usability. These hot crypto wallets run in the form of web apps on browser programs. They help in storing crypto money on the internet in a secure web domain. Web wallets can be used on desktop as well as mobile devices. Furthermore, they can be installed as plugins on web browser apps of smartphones and personal computers.

• Cold Storage Crypto Wallets

Cold crypto wallets store cryptocurrencies in offline storages (ultra secure offline storage) only. These storages are not connected to the internet. Therefore, they can be accessed and controlled at a given period. These restrictions make cold crypto wallets more secure places for storing digital money. Unlike hot storage crypto wallets, cold storage wallets have a low vulnerability to online threats and cyber thefts of cryptocurrencies (other digital currencies).

• Hosted Wallets

Non-custodial crypto wallets are called hosted wallets or self-hosted crypto wallets. The private key used for storing crypto money in these wallets are unlike the traditional methods. In hosted crypto wallets, the user retains the sole custody of the private key. As a result, the non-custodial wallets can solely be controlled by the user as hosted wallets.

• Decentralized Wallets

Decentralized crypto wallets are the newest addition to the type of wallets. These wallets enable the user to hold private keys and control access to their crypto money. Due to the decentralized nature of these wallets, the user has complete control over sending or receiving cryptocurrency from anywhere on the planet. For most people, decentralized bitcoin wallets are considered anonymous.

What to Look for in Crypto Wallets?

Before selecting the right cryptocurrency wallet for managing your digital wealth, it is essential to consider two critical factors. Security and wallet utility are the deciding factors for choosing the best bitcoin wallets for your business or use case. But, what sort of security features or wallet utilities should we look for?

Let’s understand these two features in-depth and find out how they help us finalize the best crypto wallets for 2021.

Security

The major game-changer for crypto wallets has been the security features. Every year, crypto wallets upgrade their security measures to curb all kinds of online and offline thefts. Best bitcoin wallets with offline, cold storages are more secure than hot crypto wallets. Moreover, best bitcoin wallet developed with robust blockchain mechanisms can store and transfer crypto funds securely. Therefore, cold wallets are more secure than hot wallets, which is a significant consideration when selecting the most secure cryptocurrency wallet.

Wallet Utility

When it comes to utility, hot wallets are more practical and user-friendly than cold wallets. A hot software wallet can get more things done than a hard hardware wallet. Due to online accessibility, hot wallets are far more helpful than cold wallets. Similarly, using hardware wallets can be improved to make it as applicable as software wallets.

With the help of these two factors, it is easy to select the best crypto wallet for managing your digital funds.

Top 10 Best Crypto Wallets for 2021

Now, let’s get to the crux of this quest. We are here to find the best crypto wallets for 2021 or we can also say digital wallet providers. And, here are the top cryptocurrency wallets that have gained popularity for their security and utility in recent years.

1. Exodus
2. Electrum
3. MyCelium
4. Trezor
5. Ledger Nano X
6. Coinbase
7. SoFi
8. Robinhood
9. Atomic
10. Trust Wallet

1) Exodus

Exodus is one of the most popular multi-currency wallets in the world and also popular as one of the best bitcoin wallets for beginners. As a cross-platform cryptocurrency wallet, Exodus is a strong leader in this list. Exodus wallet is used by people new to the crypto space. The wallet makes crypto transactions more accessible and understandable to the novice user base. Exodus Wallet Review

Pros:

• Exodus wallet is currently supporting more than a hundred cryptocurrencies. It continues to add new cryptocurrencies to its support list every year.
• The wallet has an intuitive user interface. The UI features of the wallet make it very user-friendly and easy to navigate.
• It supports all platforms used for crypto transactions.
• Security features of Exodus wallet are upgraded after every two weeks.

Cons:

• The wallet is not entirely open-source and has several proprietary software services.
• The wallet charges custom transaction fees only for high-volume Bitcoin transactions.

2) Electrum

Electrum is considered the first Bitcoin wallet in the crypto market. It is one of the oldest crypto wallets and offers high-speed and low-resource crypto services. Developed on Python, this open-source wallet helps manage Bitcoin cryptocurrency by using online servers indexed on the BTC blockchain.

Pros:

• The best part of Electrum wallet (bitcoin wallet) is its transactional fees. The user can control fees based on transactional volume and market price.
• This wallet can also rotate the wallet address for making transactions more anonymous and safe.
• Users can export Electrum wallets to several exchange platforms and standalone devices.
• The wallet has advanced features that support Bitcoin trading.

Cons:

• The wallet only stores Bitcoin and BTC-supported cryptocurrencies (digital currency).
• Users require a sharp learning curve to get used to the Electrum wallet.

3) MyCelium

MyCelium cryptocurrency wallet is a popular Bitcoin wallet. It is available exclusively as a mobile wallet. MyCelium works on all mobile platforms also considered as the best bitcoin wallet for mobile users. Since its launch in 2013, MyCelium is actively used as an Android app and iOS app by millions of crypto holders worldwide.

Pros:

• MyCelium is an end-to-end open-source wallet. It does not have any proprietary software issues.
• Users can open multiple types of crypto accounts on the wallet.
• The MyCelium exchange offers an integrated Bitcoin marketplace within the wallet. 

Cons:

• MyCelium is an exclusive Bitcoin-only wallet (bitcoin wallet).
• There is no desktop wallet version of this mobile wallet.

4) Trezor

Trezor is a popular digital wallet for cryptocurrencies. Developed by SatoshiLabs, Trezor is one of the pioneering of hardware crypto wallet or we can say physical wallet in the world. It was launched in 2014 to make the Trezor Model T is a premium cryptocurrency wallet (Trezor hardware wallet) offered for Bitcoin HODLers and active crypto traders and considered as one of the best bitcoin wallets for a large number of cryptocurrencies.

Pros: 

• Trezor is an open-source wallet that has several offline features.
• It has the best color touchscreen dynamics for its mobile app version.
• The wallet can be set up easily on devices and can be used from anywhere.
• Trezor supports more than 1600 stable coins and altcoins.

Cons:

• Trezor wallet is one of the costliest in the market.
• No two-factor authentication.
• Trezor Model T wallet, the latest version, is currently supporting only Android mobile platforms.

5) Ledger Nano X

The Ledger Nano X wallet is used for premium storage services of cryptocurrencies (digital currencies) and also one of the best bitcoin wallets among other best hardware wallets. It is a hardware-only wallet and developed for securing digital wealth and personal data at the highest level. Being a cold wallet, Ledger Nano X is not vulnerable to online attacks. The Nano X ecosystem is a network of storage devices that work with offline private keys only.

Pros: 

• It is one of the most easy-to-use cold crypto wallets.
• The safety features of this wallet are uncontested.
• The wallet also has a high-end DeFi functionality, which is a plus-point for building smart contracts.
• Overall the wallet has an attractive UI design.

Cons:

• The navigation of the wallet can be more simple.
• This wallet stays on the expensive side of this list.
• There has been a recent data breach in the Nano X network.

6) Coinbase

Coinbase is one of the largest cryptocurrency exchanges in the world. The Coinbase wallet (decentralized wallet) supports all transactions made on the crypto exchange platform. As a result, it is one of the most sought-after digital wallets in the crypto market.

Pros:

• Coinbase wallet is user-friendly and has several features of the exchange platform.
• It is designed to support off-chain BTC transfers and non-blockchain DeFi projects.
• Coinbase wallet also supports the storage of multiple fiat currencies, acting as an electronic wallet for traders and investors.

Cons:

• The fee structure of the Coinbase wallet app gets tricky with multi-currency transfers.
• The wallet also keeps track of crypto usage, raising concerns about its anonymity features.

7) SoFi

SoFi is a digital investment platform that offers personal finance services in the crypto space. Platform users and investors primarily use the SoFi wallet. It is one of the widely-used in the US. Currently, SoFi is expanding its capabilities into cold storage for cryptocurrencies (digital currencies).

Pros:

• It is one of the cheapest wallets and has an easy operational flow.
• The User Interface of the SoFi wallet is designed to appeal to young crypto investors.
• The SoFi mobile app is also packed with advanced features.

Cons:

• SoFi wallets are available to only US-based residents.
• It supports only limited cryptocurrencies.
• Transactions made on the SoFi wallet are supported by USD fiat currency only.
• It does not allow crypto transfers (digital assets) to other private wallets.

8) Robinhood

Robinhood is a trading platform that gained global popularity in 2021 after the GameStop stock price surge. Currently, Robinhood has its cryptocurrency wallet that offers storage and transactional features. Robinhood wallet is suitable for crypto investors. It is best used for learning cryptocurrency trading and becoming an expert crypto trader.

Pros: 

• Robinhood mobile wallet has high-end capabilities, including crypto trading functions.
• It supports Bitcoin and other leading cryptocurrencies.
• It also has a simple interface to help novice investors with crypto trading.

Cons:

• It is available for US-only crypto investors.
• There are a few hidden fees when the wallet is linked with the platform.

9) Atomic

Atomic Wallet is the native cryptocurrency wallet for the decentralized exchange application called Atomic Swap. It supports the storage of more than 500 altcoins and stable coins. It also stores platform-native tokens across the world.

Pros:

• It can store over 500 different types of crypto coins and tokens.
• It is designed for beginners in the crypto space.
• Atomic Wallet is free to use and has no hidden costs.

Cons:

• It is not as secure as other hardware wallets.
• There have been instances of a few coins getting ‘automatically swapped’ due to technical glitches.

10) Trust Wallet

Designed for simplicity, the Trust cryptocurrency wallet is used by beginner investors on exchange platforms. It is easy and has a straightforward operational flow. In addition, a trust Wallet is efficient in storing private keys on the device.

Pros:

• It is available for free download on iOS and Android platforms.
• It supports a wide range of cryptocurrencies.
• It is very convenient to use for new crypto adopters.
• Trust wallet users can also enable staking on their crypto assets to earn good returns.

Cons:

• It will never be as secure as a hardware wallet

Which Bitcoin Wallet is Best for You?

After exploring these ten best crypto wallets, we can indeed find the best option for you. The best cryptocurrency wallet for you would depend on how you’d be using it. For storage-only purposes, cold wallets like Trezor or hardware wallets like Ledger Nano X can be useful. Coinbase wallet, Exodus wallet, or Electrum can be the best options for you.