9 Types of Crypto Wallet: Choose Wallet for Crypto Security

Crypto wallet is the place where you can store your cryptocurrency or digital assets. When you have crypto coins and want to store or send it; you need a wallet. But the question is this; what type do you prefer?

There are majorly 2 types of crypto wallets: hot wallets and cold wallets. You can use it according to your needs. Each wallet has different features and security measures. Mainly you will use crypto wallets instead of crypto exchange because of their different security measures.

When you have decided in which crypto wallet you will save your money, then you should know the steps of how to set up a crypto wallet. 

If you are doing a job in Web3 let’s you are doing a discord moderator job, definitely you can earn in cryptocurrency. For storing this currency you should have a secure wallet account. 

Hot wallets have different other wallets like; desktop wallet, mobile wallet and web wallet. On the other hand, a cold wallet has two wallets: a hardware wallet and a paper wallet. 

Beyond these wallets we will discuss 9 wallets that you can use for sending, receiving and storing crypto coins. 

9 Types of Crypto Wallets with Different Features

Crypto wallets will save your money with secret phrases or master keys. But each crypto wallet has different but unique features. You can use the wallet that is perfectly suitable for your work. If you only want to store the crypto coins, you should use the hosted wallet. 

But if you want the full control of your wallet you may use the custody wallet. If you want offline storage you should use the hardware wallet. For multi currency wallets you may use the trust wallet. Let's discuss all of them. 

Type 1. Hosted Wallets

The hosted wallet is controlled by a third party on your behalf. It is an easy to use wallet with reliable security measures. Just like banks, the hosed wallets store your crypto money and provide you full security. You can store, buy and sell crypto coins using your wallets. 

Mostly you heard from your colleague about the losing of wallets keys and they could not recover their accounts. But if you are hosted wallet users you would not be worried about your cryptocurrency. 

A drawback is also associated with a hosted wallet is that you can access everything that crypto offers. The third party is the custodian of your wallet. 

Type 2. Coinbase Wallets

For beginners who are trying to store and deal with crypto currency they should use coinbase wallets. The interface of these wallets is easy to use and while designing developers keep in mind the pain points of the new crypto users. 

For security purposes coinbase wallets offer two factor authentication that is very lovable by its users. Every investor who is dealing in crypto and wants to keep their crypto in safe wallets, they should use coinbase wallets. 

Coin base app is available for users for easy access. Your stolen assets will be recoupled because it is backed by reputable trading platforms. That’s why coinbase users are not worried about losing digital currency. 

But coinbase wallets are only available for mobile or tablet users. There is no chrome extension available for the desktop users. The app can store all major coins like Litecoin, Ethereum, Bitcoin, DOGE coin and  ERC-20 tokens. 

Type 3. Self Custody Wallets

Unlike banks, self custody wallets are in your control. The third party is not associated with custody wallets. You are the only owner of your wallet account. They provide you with software that will store your cryptocurrency.

If you lose your seed phrase or secret keys you can’t access your crypto wallet. Because you are the only person who saved private keys or secret phrases. The custody wallet told you while you had setting up your crypto wallet that you please remember your key we are not saving your private key.

Also if someone finds your private key he can access your custody wallet and now he will be the owner of your digital money. Please while you are using the custody wallet try to write your private key on a notebook for future use.

But with the full control of wallets you have access to advanced features like, borrowing, staking, lending, and yield farming. 

Type 4. Hardware Wallets

These wallets can individually handle public addresses and keys. They are the physical devices that will not be hacked. Hardware wallets are the most secure wallets but not easy to use for the beginners. 

Moreover, you can use biometric locks for better security. Your digital money will only be sent or received from others in wallets only when you connect it to your PC. For sending and receiving money you need to attach a hardware wallet device to the PC and then run a software for secure money transfer.

Hardware wallet devices are only $70-$150 but you will be secure as a result of this spending. But in the market there are also fake hardware wallets that can steal your private keys and you may lose your cryptocurrency. 

Buy your hardware wallet device from the reputable sellers. Your device's security is your cryptocurrency security. They are not as secure as desktop wallets and web wallets. The most reputable hardware wallets are Ledger and Trezor. 

Type 5. Desktop Wallets

Do you want to keep your crypto coins in exchange? Don’t do this. This is not a secure way to store your cryptocurrency. The third most secure way to store your digital earnings into desktop wallets. 

There are software packs available in order to run desktop wallets. You also need to install an anti-virus because your system is connected to the internet and you may also have security issues. 

You need to do regular backups of your PC for better security. It is a hot wallet because it needs to connect with the internet to perform storing and receiving crypto.  

Type 6. Mobile Wallets

Trust, Coinomi and Mycellium are mobile wallets working just like desktop wallets. You are given a QR code for transferring crypto money. You can perform daily operations with full security in your pockets. 

Mobile encryption is required for using these wallets. You will be the owner of your wallet if you are using the trust wallet. Mobile wallets are based on mobile Apps like Trust: Crypto & Bitcoin Wallet for your ease. 

Type 7. Software Wallets

For computers and mobile phones software is available that you can download and install on your PCs or phones for better security. These are applications or programs. There are further two types: desktop wallets and mobile wallets. 

Both are hot wallets because for using these wallets you should have an internet connection. To stay away from hackers follow the instructions you are provided while you are installing it. The most popular software wallet is rainbow wallet. 

Type 8. Paper Wallets

Paper wallets are the cold wallets that will provide you QR code in printed form on paper, that is why they are called paper wallets. Some of the wallets allow you to download QR code for sending and receiving digital money. 

Exodus and Electrum are the most popular wallets. They can easily be damaged and lost. You should have safety deposit boxes for long term storage. 

Type 9. Web Wallets

Web wallets store your data to a web server that is controlled by a third party. The third party is often an exchange. They are vulnerable to hacking. For this wallet you should also have an internet connection. 

You can access these wallets from any desktop device. These wallets are prone to DDOS attacks. These wallets are not as secure as hot wallets. For rapid transactions and small investments these wallets are the most popular. 

5 Best Crypto Wallet to Store, Send and Receive Cryptocurrency

Based on hot and cold crypto wallets people are looking for the best crypto coin based wallets. Next, we will discuss the wallets that are the best with perfect security measures and advanced features. 

1. Trust Wallets

Trust wallets are hot wallets whose app is available for mobile and tablets users. Moveover, desktop users can use their chrome extension for sending and receiving crypto money. If your mom wants to run an online business or wants to do crypto investment you must use the Trust wallet app.

Trust: Crypto & Bitcoin Wallet, you can send, receive your cryptocurrency using this app. We have discussed the trust wallet in detail in our previous guide on how to set up a crypto coinbase wallet. 

2. Ledger Nano X

By using Ledger Nano X you can manage and use your digital assets from one place. Its total cost is €156.67. You can buy, sell and swap your crypto currency with full confidence. Also you can stack crypto while using Ledger Nano X.

Physically secure your transaction while using this ledger nano x wallet. Thousands of coins are supported like bitcoin and ethereum. These are hot wallets because we require the internet to benefit from it.

3. MetaMask

MetaMask is used for exploring blockchain, web3 applications in seconds. Over 100 million users are trusted on metamask worldwide.  It provides you with a key vault and you can also secure wallet logins, token wallets with crypto wallets. 

This crypto wallet generates a private key on your device so that you will be the only owner of your crypto wallet. You can fully control it when interacting with a new decentralized web. 

4. Trezor wallet

There are three main Trezor wallet products that you can access from their official website according to your use. This hardware wallet included; Trezor Safe 5, Trezor Safe 3 and Trezor Model One. 

You can get them from $49 to $169 if we want security. We should not worry about the budget. It is an online device that protects you from cyber attacks. If you lost or stolen your private or secret phrase you can easily recover your wallet.

5. Coinbase wallet

By using your coinbase wallet you can store your NFTs, crypto and multiple wallets. This wallet will support multiple coins including, Solana, Bitcoin, Ethereum, and Dogecoin. This is a purely self custody wallet, giving you full control over your crypto assets. 

It is just like a passport  to your decentralized web. It uses a crypto liquidity pool to supply or borrow crypto. Join a DAO to manage major Web3 projects. If you are an investor and want to know ways of Web3 investment. You should visit our previous guide. 

Wrapping Up

Crypto wallets are the places where crypto users can store, send and receive their crypto money. Above we have discussed the types of crypto wallets in detail. Cold and hot wallets are the two major types of wallets.

Hot wallets are those wallets for which we require internet connection. We can’t send, store, and receive money without the internet. Hosted wallets, Trust wallet, mobile and desktops wallets are included in it. 

Secondly cold wallets are those wallets for which we don’t require internet connection. You can download a QR code and use it to send, store and receive money from other crypto wallets users. 

Trust wallet is the best wallet for mobile, tablets and desktop users. For mobile and tablets “Trust: Crypto & Bitcoin Wallet” is the app you can use with ease. Trust wallet chrome extension is also offered by Trust wallet official platform for desktop users. 

You can Gas fees and network priorities for sending and receiving money in lower fees. 

FAQs

Which wallet is best for crypto?

If you want to use the crypto wallet on mobile you should use the Trust wallet. It is an easy to use app for beginners. You can even use the chrome extension of this wallet on your laptop. A trust wallet is the best wallet to store, send and receive crypto. 

Is a trust wallet 100% safe?

Yes, a trust wallet is a hot wallet because you require an internet connection. When you are setting up your wallet it will provide you with a secret phrase that you should note down in your notebook. Because it is not saved by trustwallet. You are the only owner of your wallet. That’s why it is so secure. 

Which crypto wallet has the lowest fees?

Fees of crypto wallet depends upon the type of wallet and blockchain associated with them. Non custodial wallets let’s say Exodus or Trust Wallet have lower fees because you can control sending and receiving by adjusting gas fees or network priorities. 

Which wallet is best for beginners?

Coinbase wallet is the best wallet for beginners because its interface is easy to use. Developers keep in mind the pain point of the wallet users during designing.