Safety is important, especially in finances. One of the recurring questions people ask is whether they can get a more secure crypto wallet for their crypto investment. How secure are these digital wallets? The answer to that question depends on how you manage your wallet.
In this article, we will review some of the most secure wallets for cryptocurrency out there today so you can decide which one suits you best. We will also list things to consider before choosing the safest crypto wallet.
What is a Crypto Wallet?
A cryptocurrency wallet store, send and receive cryptocurrency. A crypto wallet allows you to easily check your balance, trade and send cryptocurrency easily. There are also some interest-earning crypto wallets that offer attractive APY when you stake crypto with them.
To use a crypto wallet, you need a set of private keys; otherwise, you cannot access your funds. These keys help secure the crypto coins in your wallet. Depending on how much security you require, you can choose between a hot wallet or cold wallet storage.
Hot Wallets Vs. Cold Wallets
Hot wallets are connected to the internet via computer, phone, or tablet. They’re convenient, but they lack enough security to protect you from hacking or theft. So, they’re best for storing small amounts of cryptocurrency.
Cold wallets are the safest option for keeping your funds since they are not connected to theinternet and therefore less vulnerable to hacking. These wallets use an offline device like a USB stick to securely store your private and public keys. They also come with software that helps you view and manage your crypto holdings without putting your private key at risk.
How to Choose a Crypto Wallet?
There are many different wallets available, and there are some things to look out for when selecting one. The following are essential key factors to consider:
- Security: Every crypto wallet will come with a security feature or features that make keeping your money safe easier. Some wallets encrypt all your data on your device so that no one can access it without your password.
- Reputation: Another critical aspect of choosing a wallet is reputation. Check online reviews to see if the wallet has an excellent reputation, is known to keep their wallets safe, or if it’s hackable.
- Access to private keys: Non-custodial wallets let you keep your private keys, so you have complete control over your funds. On the other hand, Custodial wallets store thekeys on your behalf. If you lose your private keys or get stolen, you will never see your cryptos again.
Best Crypto Cold Wallets
Cold wallets are probably the most secure crypto wallets because they keep your private keys offline, unlike hot wallets. Cold wallets (or hardware wallets) also come encrypted, keeping your keys safe.
A Japan-based cryptocurrency exchange lost $32 million to hackers from its hot wallet in 2019. The attackers took away the cryptocurrencies that were held in the firm’s hot wallets. However, the cold wallet and cash holdings were not affected by the incident.
The following are some of the most secure crypto wallets in the market today:
1. Trezor
Trezor is a compact mobile wallet that comes with a secure payment interface. To access your funds, you must connect the USB cable to your computer or phone and input the pin.
The seed phrase is generated using randomness from your movements, so even if you lose this device, your coins are safe because Trezor creates a 24-word seed while setting up the device. The codes can be re-generated anytime in the event of loss or damage to your assigned Trezor device. There’s an option to choose between the more affordable Trezor One and Trezor Model T.
2. Ledger
Ledger is a French business that makes security hardware for cryptocurrencies, including Bitcoin, Litecoin, and Ethereum. Since 2014, Ledger has been developing the most secure hardware wallets with the highest security standards. The Ledger Nano X, for example, protects your wallet from attacks with a dedicated chip similar to those found in credit cards and passports.
The Ledger Nano X wallet connects to a computer or mobile device via USB. When you plug in a ledger, you have to access the Ledger Wallet App on the specific device you are connecting to. From there, you will be shown options to set up a new wallet or access an existing one.
Secure Hot Wallets
Hot wallets (or software wallets) are connected to the internet via computer, phone, or tablet.
They’re very convenient to use, but they lack enough security to protect you from hacking or theft. They’re the most preferred for storing small amounts of cryptocurrency.
However, a few hot wallets come with robust security safeguards and features to protect your digital assets. Some of the most secure online wallets include:
1. Coinbase Wallet
Coinbase Wallet is probably the most secure Bitcoin wallet with a five-star reputation. It boasts of having maximum security features such as multi-sig vault storage, which requires multiple people to enter their keys to access funds in the wallet. The wallet’s highly intuitive interface and best-in-class security features make it the best option for beginners with little to no experience in crypto.
It is also backed by a reputable exchange, so you can worryless about losing your funds.
Users have complete control over their crypto assets thanks to the wallet’s non-custodial nature; there’s no need to be concerned about funds being locked or the Coinbase website being hacked.
2. Blockchain.com wallet
Blockhain.com is another secure wallet for storing your digital assets. It comes with cold wallet storage that enables you to keep a large portion of your funds offline and only uses the hot wallet for day-to-day transactions. It has two-factor authentication and gives you the ability to note down your recovery phrase – though the company stores the keys on their servers. The wallet also allows trading cryptos in the wallet itself – making it highly convenient for buying, selling, and converting cryptocurrency. Blockchain.com wallet is available on both Android & iOS.
3. Mycelium wallet
Mycelium is one of the most secure and convenient wallets available. This wallet works on both iOS and Android, making it simple to manage your cryptos from anywhere.
Mycelium also provides a great backup solution through its 12-word backup phrase, which you can use to restore your wallet (cryptocurrencies) if anything happens to your phone or tablet.
The wallet has a feature known as “cold storage,” which allows users to securely store large quantities of currency on external drives. This function provides additional security for people who are concerned about leaving their money on an internet server.
4. Electrum Wallet
Electrum is a safe Bitcoin wallet that allows you to easily set up a high level of protection for your cryptocurrencies. By default, your wallet is encrypted, which helps safeguard your money from hackers. For further security, Electrum also supports two-factor authentication and multi-signature capability.
Best Practices for Keeping your Crypto Wallet Safe
Securing your crypto assets does not have to be left to your crypto exchange alone.
Users hold a crucial role in securing their crypto assets. Here are precautions you should deploy to secure your crypto assets.
1. Keep Your Crypto Offline When Possible
Most crypto holders store their digital assets as a key with passwords in a mobile-based digital wallet. These wallets often connect to the internet, exposing the wallet to vulnerabilities in online environments. One way to ensure the safety of the tokens is by taking the storage offline. Termed as cold storage, using an offline wallet alleviates the potential risk of holding digital assets on hot wallets. Cold storage may be inconvenient for many daily crypto traders, so this option is viable if it suits the crypto holder’s preferences.
2. Use Multi-Factor Authentication
Choose a wallet that deploys two or multi-factor authentication to store your coins. The multiple authorizations mean that access to your wallet is highly restricted, as multiple codes and passwords will be required to unlock the wallet. For instance, a password will be required to log in, and then a code sent to the crypto holder’s
smartphone or emailed to authorize the login attempt. Biometric authentication like facial recognition and fingerprints are an added advantage for a crypto wallet.
3. Practice Due Diligence Online and Offline
Ensure you stay alert against phishing emails and potential social engineering tactics. These possible attacks could be either targeted or random and could result in loss of crypto if successful. Ensure you log out ongoing sessions after completing transactions online to avoid losing control of your wallet or even funds.
How to secure your crypto wallet?
- Use a cold wallet. It may not be very convenient to set up or use, but cold wallets are recognized as the most secure channel of storage when storing your cryptocurrency.
- Ensure your internet is secure. Use only secure internet when trading online. If possible, avoid public Wi-Fi networks or use a VPN for additional security.
- Keep your device secure. Make sure your mobile device or desktop/laptop is up to date with the latest anti-virus protection and security features.
- Change your password regularly. First off, use a strong password that is difficult to guess. Next, make it a habit to change your password on a regular basis. Also, opt for two-factor authentication (2FA) for an extra layer of security.
- Don’t get phished. Be careful while making crypto transactions and avoid any suspicious and unknown links.
hi – A Safe Crypto Wallet to Get you Started
hi wallet is one of the most secure crypto-wallets, it offers convenient and reliable crypto trading, storing, staking, and exchange services. It uses hi wallet as its native crypto wallet, which is available on Web App, Android and iOS.
In addition, hi wallet has a staking feature that offers rewards in HI – Hi’s native token – for users holding crypto in their wallets. The wallet supports all major cryptocurrencies, including Bitcoin, Litecoin, Ethereum, Dogecoin, USD Coin, Tether, Dai, Binance Coin, and HI.
