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11 October 2022

Updated: 20 October 2022

Types of Crypto Wallets — Which One Is Best For Me?

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Types of Crypto Wallets — Which One Is Best For Me?

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Hardware, software, and paper crypto wallets are all options for storing your funds. This guide helps you decide which crypto wallet type is best for you.

What Is A Crypto Wallet?

A crypto wallet is a place for storing cryptocurrencies such as Bitcoin or Ethereum and may be used for completing transactions on blockchains.

For example, crypto wallets make it possible to trade one crypto for another on decentralized exchanges (DEXs), purchase non-fungible tokens (NFTs) on digital marketplaces, receive crypto-based loans on crypto lending platforms, and much more.

Top 3 Properties of A Secure Wallet

Regardless of which wallet type you choose, here are a few things to consider before putting your funds into a crypto wallet.

1) You Own Your Keys

Wallets that don't store your private keys are safer than those that do. The wallet you choose should enable you and you only to control your private keys, which means only you have the ability to move your funds. Large-scale data breaches that result in lost user funds are a potential threat for wallet providers that store this information.

2) User Support

If you run into an issue with your wallet, who can you ask for help? In some cases, community members help. However, you also need to be aware of scammers who might try to steal your funds. Wallet providers that provide user support themselves are generally a better choice.

3) Active Development

When was the latest release of your crypto wallet? If it's been several years since an update, the wallet may be deprecated, which could mean it is vulnerable to certain security threats. Wallets that remain up-to-date are generally more secure and feature-rich. Plus, they likely support newer protocols and coins than older wallets.

Cryptocurrency Wallet Types

Crypto wallets are available in several formats which we'll outline below. Depending on whether you plan on HODLing crypto or transacting via decentralized applications like DEXs, some wallet formats may be a better choice than others. Note that each wallet type has its own unique set of pros and cons.

Desktop Wallet (Software)

A desktop wallet is a cryptocurrency wallet that users download to their desktop devices. Most desktop wallets support a variety of operating systems, such as Windows, macOS, and Linux.

Desktop Wallet pros and cons

Mobile Wallet (Software)

A mobile wallet is a cryptocurrency wallet that users download to their mobile devices. Most mobile wallets support both Android and iOS operating systems.

Mobile Wallet pros and cons

Hardware Wallet

A hardware wallet is a cryptocurrency wallet that generally includes a small physical device along with a USB cable. Users connect the hardware wallet to their desktop or mobile device.

Hardware Wallet pros and cons

Paper Wallet

A paper wallet is a cryptocurrency wallet that includes relevant information (e.g. public address, private key, and seed phrase) written on paper.

Paper Wallet pros and cons

Try AtomicDEX Wallet

AtomicDEX is a non-custodial multi-coin wallet, cross-chain/protocol bridge, and cross-chain/protocol DEX rolled into one app. AtomicDEX is available as a desktop wallet and a mobile wallet. Store BTC, ETH, BNB, MATIC, and many other cryptocurrencies in your own wallet. When you're ready to trade, AtomicDEX supports cross-chain trading. Your keys, your coins.