Cryptocurrencies are traded on the exchanges but if you are planning to hold on to them for some time then you need to store them on a secure wallet in order to keep your virtual coins safe. We did some intense digging for the best cryptocurrency wallets on the Reddit platform. Eventually, we came across five best cryptocurrency wallets Reddit recommends using.
What is a Cryptocurrency Wallet?
Consider a cryptocurrency wallet just like your bank account where you can store, send, and receive your digital currency to another wallet or simply use it for the shopping purpose. Leaving your cryptocurrency on an exchange may subject you to the risk of losing them in case the site is hacked or breached by some party. This leaves you with the option of storing your digital currency on a cryptocurrency wallet.
A cryptocurrency wallet is simply a piece of software that stores public and private keys and also interacts with the blockchain. It provides security for your cryptocurrency while still allowing you to send and receive payments with any compatible cryptocurrencies.
Types of Cryptocurrency Wallets
There are several types of cryptocurrency wallets available, each one of them supporting various cryptocurrencies. In case you hold a cryptocurrency other than Bitcoin, you will need to make sure that the wallet you’ve chosen is compatible with your selected cryptocurrency or coin.
At the most basic level, a cryptocurrency wallet is of two types: hot and cold. Both of these wallets are used for different purposes. While a hot wallet is typically connected to the internet, the cold wallet is offline and is not stored on any device that is connected to the internet. Which is why a cold wallet cannot be hacked since it is not connected to the internet. This makes a cold wallet more secure as compared to the hot wallet. A desktop wallet is an example of a hot wallet whereas hardware and paper wallets are examples of cold wallets.
Best Cryptocurrency Wallets Reddit Recommends Using
We have mentioned some of the best cryptocurrency wallets Reddit recommends using. You can choose the one that best suits your needs, your financial budget as well as how you use your cryptocurrency.
Trezor is a hardware wallet, which makes it fall into the cold wallet category. Being a cold wallet, it provides a safe environment to trade and stores your digital currency even if you are using a compromised computer.
Trezor comes with a USB cable which can be connected to your PC. In case someone knows your pin code, without the Trezor device they won’t be able to withdraw funds from your wallet. What makes it even more secure for your digital currency is the fact that it provides two-factor authentication, providing an extra layer of security for your coins.
Trezor does not come for free and costs around $110. It is a multi-cryptocurrency wallet which makes it easier to switch to other cryptocurrencies. Furthermore, it is compatible with all leading platforms such as Windows, OS X, Linux, and Android. In case you lose your Trezor wallet or do not have it with you, you can restore your cryptocoins using your recovery seed in any other compatible wallet.
Ledger Nano S
Ledger Nano S is considered as one of the best cryptocurrency wallets. It is similar to Trezor in so many ways but can be considered a better cryptocurrency wallet. Compared to Trezor, this multi-currency wallet gives off a nicer look and is also less expensive with a price set for $100. It is a hardware wallet, providing a safe environment to store and trade your cryptocoins.
On setting up Ledger Nano S, you will be required to create a PIN code to secure your wallet. This PIN will provide you with a backup phrase comprising of 24 words which can be used to recover your wallet in case it is lost or stolen. It is advised to keep your backup phrase safe so you can use it if the need arises. The same PIN can also be used to restore your cryptocoins on a newly purchased Nano Ledger S if you happen to lose your previous one.
Ledger Nano S has its own interface of wallet called as Ledger app which is basically a free Google Chrome app. Other compatible wallets can also be used in this app. The developers of Ledger Nano S claim that it cannot be hacked. It successfully supports platforms like Windows, Mac, Linux, and Android. You can connect it with your USB cable to your computer and then begin using it.
Unlike Trezor and Ledger Nano S, Exodus is a desktop wallet with a user-friendly interface. It is regarded as one of the best desktop bitcoin wallets, providing you complete access to your private key. What separates Exodus from other cryptocurrency wallets is the presence of a built-in shapeshift feature, enabling you to exchange dozens of other cryptocurrencies with your bitcoins without the need of using any other exchange platform.
Exodus came around as being the first multi-currency wallet, allowing you to store cryptocurrencies other than Bitcoin. It is completely free to use and stores all your cryptocoins on the device per se. You do not need to fill in any personal information, provide any registration or identity verification to use the device.
You will be sent a one-click recovery feature in your email box to back up the seed key which you can always use it for your wallet recovery with the link and your password.
Jaxx is most commonly known as a mobile-based wallet for the cryptocurrency but it also successfully works on Windows and other operating systems apart from the mobile devices. Jaxx is not specifically created for the cryptocurrencies. In fact, it was developed to store all the digital assets and to keep them secure from the hackers.
Providing several security features, Jaxx aims to secure your cryptocurrencies by also integrating a shapeshift feature to enable you to exchange your cryptocurrency with another within your wallet. When you create a private key for the wallet, it will not be saved on the Jaxx server or any other place but on your mobile device. Even the company won’t be able to see how much funds you’ve been holding in the wallet.
Though like Exodus, Jaxx is free to use, it also has a premium version which provides additional features compared to the free one. This wallet is compatible with several platforms such as Mac, Linux, iOS, Android, Windows, and tablet. It is free to use and compatible with nine different platforms with easy sync feature. Further to that, it can be added as an extension in web browsers.
As the name suggests, Ledger Blue is the other hardware wallet offering of the company who developed Ledger Nano S. As it was developed later, it comes with more advanced features, a stylish design, and also in bigger size. It is built around a Secure Element, including a touchscreen and USB connectivity.
The Ledger Blue has integrated the dual chip architecture technology to keep your digital currencies intact and protected. Apart from that, it also comes with an integrated firmware to protect your digital coins. It is a commonly believed that a device and its software can be easily attacked by a hacker or an online virus but Ledger Blue is malware-proof which indicates that it remains completely secure from any such dangers.
Like the majority of other hardware wallets, Ledger Blue is also a multi-currency wallet, supporting dozens of cryptocurrencies. So far, it has been regarded as one of the most expensive cryptocurrency wallets available. However, along with a high price, which is around $250, it also offers a bunch of incredible security features.