Gordon Scott has been an active investor and technical analyst in securities, futures, currencies and penny stocks for over 20 years. He is a member of Investopedia's Financial Review Board and co-author of Investing to Win. Gordon is a Chartered Market Technician (CMT) and a member of the CMT Association. Cryptocurrencies have become increasingly popular investment shares among tech-savvy households due to their limited supply and potential for growth.
Bitcoin (BTC) is one of the most well-known digital currencies, and many people are looking for the best crypto wallet to store their investments. A crypto wallet is a secure digital wallet used to store, send, and receive digital currency like Bitcoin. It is protected by a password or other security measures to prevent unauthorized access. The wallet is controlled solely by its owner, and it is not shared like blockchain technology.
Coinbase is one of the most popular cryptocurrency exchanges, but it is not a personal wallet. Users can deposit or withdraw Bitcoin from their accounts, but they do not have access to the private keys of the cryptocurrency found on the exchange. As a result, they may face a higher risk of loss due to hacking, and assets held on the exchange are not insured by the Securities Investor Protection Corporation (SIPC). However, Coinbase does allow users to keep cryptocurrencies traded on its platform.
Coinbase trading accounts offer over 100 different tradable cryptocurrencies, including Coinbase USD Coin, which is pegged to the dollar. Some currencies can even earn interest. Another great feature is Coinbase Earn, which gives users free cryptocurrencies in exchange for watching videos and taking quizzes. Coinbase Pro is an active trading platform with its own high-end interface, application programming interface (API) support, and fee structure.
If you use Coinbase, pay attention to fees and costs as they vary depending on the amount of the transaction and how it is processed. The Trezor One is a secure device that includes multi-factor authentication and supports more than 1500 digital currencies. The more expensive T model supports more coins and offers a better display and interface with some other useful functions. Just make sure you never lose your Trezor or your recovery information (password, PIN and recovery seed), or your Bitcoins could disappear forever.
Exodus is a software wallet that resides on your laptop or desktop computer with an optional mobile app version available. This digital wallet includes an attractive user interface that puts many investor-centric tools in your hands. The desktop wallet converts your digital currencies such as Bitcoin into a wallet with graphs and charts. You can exchange and store coins directly on your desktop or in the app, and it also supports more than 100 different digital assets.
Recent improvements include integration with FTX, Exodus Bitcoin Lightening and non-fungible tokens (NFTS). SoFi Invest also allows users to manage investments and cryptocurrencies with a single account with lots of additional free financial tools and features for customers. However, SoFi only supports 30 cryptocurrencies so it's not as impressive as some of the other wallets available. We chose Exodus as the best crypto wallet for beginners because it is free and has good customer service and optional support for cold storage.