Best Online Crypto Wallets
No matter which wallet solution you use, it’s important to remember that your cryptocurrency is only safe if your private keys were generated offline, are stored securely and remain a secret — under your full control.
Online cryptocurrency wallets are also referred to as “hot” wallets and are not considered a secure option for long-term crypto storage. Online crypto wallets are in almost every case operated by cryptocurrency exchanges and are not safe places to store cryptocurrency.
An online wallet is essential, however, for purchasing or trading cryptocurrency. Below, we’ve identified the best online crypto-wallets.
Industry-standard wallet – Ledger Nano X
Kraken: Most Secure Online Wallet
Kraken is widely considered one of the most secure cryptocurrency exchanges and, notably, has never experienced a hack or loss of user funds. Kraken provides users with access to cryptocurrency wallets for many different cryptocurrencies and offers a simple, easy-to-use wallet interface.
Wallets hosted with Kraken offer enhanced security features such as email confirmations for withdrawals, configurable account timeout, time lock settings, and two-factor authentication. While online wallets are the least secure option for holding cryptocurrency, Kraken is the “least insecure” online wallet available.
Coinbase: Easiest to Use Online Wallet
Coinbase is an online cryptocurrency exchange and brokerage that offers users a browser-based exchange UI alongside a dedicated mobile app for iOS and Android. The Coinbase wallet supports a diverse range of cryptocurrencies and integrates a number of features that allow users to participate in ICOs, access airdrops, or interact with decentralized applications.
Like Kraken, Coinbase is not considered a secure wallet, as the user’s private keys are withheld. Security features include two-factor authentication, as well as access to a 12-word recovery phrase that allows users to recover lost wallets.
Metamask: Best Online Wallet for Ethereum Users
Metamask is a cryptocurrency wallet browser extension that supports ERC-20 tokens — cryptocurrencies issued on the Ethereum blockchain. The Metamask browser plugin provides private key access and is typically used to interact with web-based decentralized applications.
Compared to a cryptocurrency hardware wallet, which is functionally equivalent to a bank vault, Metamask can be considered as the wallet or purse you keep in your pocket for everyday purchases. Metamask is not a secure means of storing cryptocurrency but is an effective and simple way to connect to and use decentralized applications online.
Best Hardware Crypto Wallets
Hardware wallets are the most secure wallet option available. Unlike the online or software crypto wallets, hardware wallets are completely offline and are virtually hack-proof. Hardware wallets allow users to send or receive funds only when the device is connected to a computer with access to the internet, and cannot send funds without a user pressing a physical switch or button on the device itself.
Ledger Nano X: Easiest to Use Hardware Wallet
France-based Ledger is one of the longest-operating hardware wallet manufacturers. The Ledger Nano X is the latest offering from Ledger and is visually identical to a standard USB thumb drive. Nano X users connect their wallets to any mobile device or computer with USB or Bluetooth and are able to store 30 different cryptocurrencies on the device.
Ledger’s Nano X is one of the easiest hardware wallets to use and is widely regarded as the “gold standard” of cryptocurrency security. The ledger includes unique security features in the Nano X, such as a “plausible deniability” function that allows users to enter an incorrect password in order to access a dummy wallet — protecting user funds from physical attacks or extortion attempts.
Trezor Model T: Highest Security Crypto Wallet
Trezor Model T: Highest Security Crypto Wallet
The Trezor is another highly popular hardware wallet manufactured by Satoshi Labs, the first crypto hardware wallet manufacturer in the world. The Trezor Model T improves on previous iterations of the Trezor product line, offering a touchscreen interface and far greater support for altcoins than the Ledger Nano X.
Trezor offers impressive functionality, allowing users to access conversion to fiat currency, atomic swaps, and additional security features that protect users from common PC threats such as keyloggers. Notably, the Trezor Model T presents all transaction requests along with details on the built-in touchscreen, ensuring users are aware of which service or cryptocurrency they are using at all times.