Which Crypto Wallet Should You Use?

The most popular and easy to set up crypto wallet is a hosted wallet. When you purchase cryptocurrency using an app like Coinbase, your digital assets are automatically stored in a hosted wallet. This type of wallet is called hosted because a third-party keeps your cryptocurrencies for you, similar to how a bank holds your money in a checking or savings account. You don't have to worry about losing your keys or USB wallet with a hosted wallet.

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 also a Chartered Market Technician (CMT) and a member of the CMT Association. We recommend the best products through an independent review process and advertisers have no influence on our selections.

We may receive compensation if you visit partners we recommend. Read our advertiser statement for more information. Bitcoin (BTC) is one of many digital currencies that have become quite common investment shares among tech-savvy households. Cryptocurrency advocates argue that digital currencies are easier, safer and more private than traditional currencies. Because of its limited supply, Bitcoin has appeared on some people's radar as an investment opportunity. Even the widely used PayPal mobile app offers an option to buy, sell and hold cryptocurrencies in your wallet.

However, it should be noted that cryptocurrencies are still risky investments. In short, Bitcoin wallets store a collection of Bitcoin private keys. Usually, the wallet is protected by password or otherwise against unauthorized access. A Bitcoin wallet is controlled solely by its owner, it is not distributed or shared like blockchain technology. Coinbase is primarily a cryptocurrency exchange and not a personal wallet.

While users have the ability to deposit or withdraw Bitcoin from their accounts, 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. The best-known cryptocurrency exchange Coinbase is one of the easiest ways to buy, sell and hold cryptocurrencies. With Coinbase, you can connect a U.

S. Bank account and easily transfer dollars into or out of your Coinbase trading and trading account. You can also use a separate Coinbase wallet for mobile devices. This online cryptocurrency wallet and digital exchange provider is ideal for people who are new to Bitcoin. It makes buying and selling shares very similar to buying and selling shares through your brokerage account.

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 you 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.

They vary depending on the amount of the transaction and how the transaction is processed. In addition, while they are definitely not commonplace, Coinbase has experienced disruptions in the past that have left users unable to buy or sell.

Secure Offline Storage Options

Trezor One: 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 and 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.

Desktop App Options

Exodus: Exodus is a software wallet that resides on your laptop or desktop computer. There is also a mobile app version available. This digital wallet includes an attractive user interface that puts many investor-centric tools in your hands.

The desktop wallet, which also integrates with Trezor wallets, converts your digital currencies such as Bitcoin and many others into a wallet with graphs and charts. You can exchange and store coins directly on your desktop or in the app. It also supports more than 100 different digital assets. Recent improvements include integration with FTX, Exodus Bitcoin Lightening and non-fungible tokens (NFTS).

There are no account settings so your currency and wallet are just for you. Exodus gives you a private key to access your bitcoins as well as other useful security tools to keep your assets as safe as possible.

Ledger Nano X/S

: Ledger Nano X and Ledger Nano S are hardware wallets that keep your bitcoins safe on an offline device. About the size of a USB flash drive, Ledger devices connect to your phone or computer to store and access your digital holdings.

The device is surrounded by a stainless steel cover which makes it very durable. With the included Ledger Live software you can check your balance and send and receive currency. Ledger supports more than 1,800 digital coins and tokens so it's far from being limited to Bitcoin. Ledger Live even supports coin staking in which you can earn rewards based on your balance.
Choosing the right crypto wallet depends on what type of investor you are: beginner or experienced? For beginners who want an easy setup process we recommend using hosted wallets like those offered by Coinbase or PayPal mobile app.
For those who want more control over their investments we recommend using software wallets like Exodus or hardware wallets like Ledger Nano X/S.
No matter which type of crypto wallet you choose make sure you back up all important information such as passwords PINs recovery seeds etc., so that you don't lose access to your funds.