Cryptocurrency wallets mark the beginning of every market participant’s entry into blockchain space. The wallet will host the trading operations, the transfers, the exchanges, the storage, provide a convenient showcase for NFTs, and even generate unique addresses. The storage place for e-currencies is thus the gateway into the world of digital currencies essential component that not only individual users have to have but also an inextricable component of any decentralized application worth its place on the market.
In essence, all crypto wallets are divided into two large categories – hot and cold. Hardware wallets, or cold wallets, as they are often called, are the impenetrable offline storage medium for users who value privacy and the safety of their belongings above all else. Cold wallets are notoriously hard to penetrate, since only the owner has access to the private keys and they are disconnected from the internet, except for when any operations are carried out Such wallets are the safest and reliable for storing large amounts of digital assets, but their lack of convenience for on-the-go crypto operations puts them out of the scope of the given material.
Hot wallets, on the other hand, exist online in the form of applications for mobile devices, or as extensions in browsers. Most of the famous Bitcoin wallets are hot, since they are based on crypto exchanges. There is a mind-numbing variety of wallets available, it is staggering, since not every service out there, including digital asset trading platforms, issues their own applications, even GameFi and DeFi services have their own versions. Such wallets are more vulnerable to hacks and lack the benefit of high safety that is provided by hardware devices. In addition, the vast majority of the ones available are custodial, which means that the service that provides them retains the users’ private keys.
Nonetheless, the online-based storage medium a range of conveniences, which cover the drawbacks. Among the most important ones are instant accessibility to the network choice, trading amenities, complete lack of responsibility for maintaining security, and ease of recovery in case of private key loss. The latter factor is impossible in the case of a cold wallet.
In the given material, we will explore a small portion of the best cryptocurrency wallets and discover the pros and cons, taking the standpoint of usability, price, functionality, and much more.
As for pricing, Coinbase will charge anywhere from 4 to 5% per transaction, depending on its volume. But in addition, Coinbase will also charge around 3.99% for purchases made using a credit card, an additional 1.49% for purchases using a bank card or account, and anywhere from $10 to $25 as a fee for withdrawals and wire transfers.
All in all, Coinbase is one of the most straightforward solutions for users who have the money to spend on its rather high commissions. The vast functionality and high degree of comfort more than compensate the drawbacks.
Nonetheless, the interface may prove challenging for beginners and the support service leaves more to be desired. Electrum operates on virtually all known framework systems and devices – Linux, Microsoft, iOS and Android. And though using Electrum does not charge users anything, an exchange fee in the form of 0.2 millibitcoins applies based on the speed of the operation’s processing. The more the user pays, the faster the transaction goes through.
With support in 185 countries and a long list of assets connected, ZenGo does have some setbacks, such as the lack of support for BUSD, DOGE and USDC, among others. Android and iOS support come as standard along with free transaction processing. Some commissions do apply for advanced features, like MoonPay, which is specific to some regions.
Supported on mobile devices, the Binance wallet represents a solid choice for users who operate on the exchange regularly. Still, they will have to pay 0.1% as commissions for trading, as well as 0.5% on all purchase and sales operations. The upside is the large discount on commissions for use of the BNB coin.
With a standard lineup of services and facilities, Exodus is an excellent choice for users who do not want to pay any fees, given the fact that Exodus charges none on transfers. The service has other models of monetization that it applies for maintaining its operations. Among them are partnership agreements, various events and other options.
Crypto wallets are a must for any crypto enthusiast. Without them, transfer operations will be impossible, the blockchain will not have a target address as a destination for making transactions, and users will not have addresses. The abundance of options in the space makes selecting a storage medium challenging that would be considered the best, since no single service has yet been able to achieve perfection. Each service in the list has its advantages and disadvantages, leaving it up to each individual user to decide which overall combination of services and conditions best applies to them.
Still, users must always pay attention to the safety of stored funds, the lineup of services applied and the commissions the service charges. Free wallets are preferable to save on commissions, but they too have limitations, such as short lists of supported assets, or poor connectivity with blockchains. Ultimately, the choice is up to the user who will have to rely on the wallet for safekeeping their portfolios.