Just like you pocket your dollar bills in tangible wallets, if you want to invest in cryptocurrencies you need to securely store them in crypto wallets.
There are two types of crypto wallets in terms of hosting: Custodial and non-custodial wallets.
Custodial or hosted wallets, hence the name, are a service that is hosted by a third party. You can think of it as how a bank holds your money on your behalf. The most practical feature about this kind of wallet is that in case you have forgotten your passwords they can still retrieve your crypto while if you used the non-custodial wallets, your money would be lost forever.
While noncustodial crypto wallets can be a physical hardware device, a program, or an app on your mobile or can be a hosted service wallet. Non-custodial wallets don't rely on a custodial or a third party so you would be fully in charge of your crypto possessions.
Another important thing you should know is that crypto wallets are also classified in terms of where they store your wallet’s private key (which is practically your password) if they’re stored online it is called a "hot" wallet and if they’re stored offline they’re called "cold" wallets.
Of course, cold wallets ensure the highest level of security for your crypto.
Ever since bitcoin and other crypto have acquired global recognition, this non-traditional investment popularity is growing wild.
If you are looking to invest but have no idea, then check out this article: How to Invest in Crypto: Beginners’ Guide
If you already know your crypto; here are our Top Picks for Best Crypto Wallets of 2021
1. Blockchain Wallet - Best for Beginners
Being an early pioneer and the world’s most popular way to buy, sell, and trade crypto, the Blockchain wallet is indeed the best crypto wallet for beginners to use! This wallet is designed to be an easy approach to the crypto market, earning the trust of millions and has been at crypto fan service for a decade with over $1 Trillion in crypto transactions.
The Blockchain wallet allows the instant purchase of bitcoin and other cryptos with credit card, debit card, or by linking your bank with 13.5% in rewards.
Did you know that the third of bitcoin network transactions are done via Blockchain.com!
2. Trust Wallet - Best for Mobile
Known as the most trusted & secure crypto wallet, Trust Wallet lets you enjoy the benefit of great trading experience as well as keeping your crypto safe from hackers & scammers.
Also, this wallet doesn’t require a lot of verification so no forms, no selfies and you can trade crypto anytime in under five minutes. With support for 53 blockchains and 1M+ assets, this app lets you store all your coins and tokens in a single, secure, and easiest to use mobile wallet.
3. Trezor Model T - Best Cold Wallet for Bitcoin
If you’re looking for the best offline hardware wallet to store and manage your bitcoins, Trezor Model T is an excellent option! This hardware wallet allows you to take back the ownership of your data: it is a reliable solution that can protect your bitcoin, passwords, and other digital keys from hacks and thefts as your keys never leave the device, keeping them isolated from online vulnerabilities. Trezor Model T supports more than 1200 coins.
4. Ledger Nano X - Best Cold Crypto Wallet
Considered one of the best affordable wallets on the list, Ledger Nano X is the most secure wallet to HODL crypto. It supports a wider variety of coins with the biggest capacity among other wallets – you can install up to 100 apps at the same time: including Bitcoin, Ethereum, XRP and more than 1,800 different tokens.
Nano X is very mobile friendly also making it the perfect hardware wallet for managing your crypto on the go. It connects to your phone with Bluetooth and has a large screen for ease of use.
5. Metamask - Best for Desktop
Metamask is not just a crypto wallet, it is your gateway to blockchain apps also in the simplest yet most secure way to connect. Trusted by over 21 million users worldwide, Metamask is available as a browser extension and as a mobile app, MetaMask equips you with a key vault, secure login, token wallet, and token exchange— basically everything you need to manage your digital assets online.
