At a time when Bitcoin is soaring, it is wise to think about securing your cryptocurrencies. The best way to prevent losing your precious virtual currencies is undoubtedly to use a wallet. In this guide, you will find the most reliable crypto wallet references for your holdings.
Over the years, buying cryptocurrencies has become easier and easier for good reason: the birth of cryptocurrency exchanges has made the process much easier. Simply deposit money on them to buy all kinds of digital currencies (Bitcoin, Ethereum, DOGE etc.). It is mainly via these platforms that investors buy, resell and exchange their cryptocurrency holdings.
Obviously, these platforms have democratized the sector and improved accessibility. However, they are much less suitable for storing Bitcoins and other cryptocurrencies, as evidenced by the fall of Mt Gox or the bankruptcy of FTX in 2022, having caused Internet users to lose billions. To avoid finding yourself in a repeat of these unfortunate and recurring episodes, there is only one solution: keep your cryptos in a wallet, more commonly called a wallet.
Cold Wallet: the safest for storing bitcoins (BTC) and other cryptocurrencies
Cold wallets are one of the safest choices for managing your cryptoassets. These types of physical wallets, which most of the time come in the form of a USB key, have the particularity of accessing the Internet only when you want to make transactions. This significantly reduces the risk of remote hacking. Concretely, the private key essential for accessing your cryptocurrencies and carrying out transactions is stored offline, which makes it largely safe from many hackers. These are therefore the safest means, but not all hardware wallets are equal. Here is our selection of the best references.
How to talk about crypto wallet without mentioning Ledger. Founded in France, the company was a pioneer in this type of device. The Ledger Nano Today, it is still one of the best value for money choices.
With its small, simplified screen, the Nano X has retained everything from the old model, notably its shape, but has taken the opportunity to add Bluetooth connectivity. It is precisely on this criterion that it makes the difference compared to the Nano S Plus. You can access your cryptocurrencies via your smartphone and not only via the PC, which makes all the difference if you need to access your cryptocurrencies while traveling, for example.
The wallet works on Ledger Live. The application is intuitive and can be used almost like a cryptocurrency platform. Once connected with your Nano X, you can buy, sell, exchange and even save more than 5,000 cryptocurrencies as well as NFTs. It is possible to use 100 blockchains simultaneously, which should be sufficient if you do not have a very diversified portfolio.
Who is the Nano X for? Compact, easy to use and intuitive, the Nano X stands out as one of the best options thanks to its ease of use. It does the job perfectly for beginners or even the most seasoned who want to carry their cryptocurrencies everywhere with them, hanging on a set of keys, for example.
Wallets in the form of USB keys are practical, but there’s even better: a card. Most cryptocurrencies tend to become monetary alternatives, so you have to adapt the support, and what’s better than a wallet that you store in a real wallet next to your credit card?
This is precisely what Tangem, a company that aspires to offer more familiar and convenient ways to manage its cryptoassets, has done. There is no direct interface here, but an NFC chip integrated into the card which, when you approach a smartphone (Android 6.0+ or iOS 14.5+), launches the Tangem application on which you can buy, sell and transfer your assets.
These devices are generally sold in sets. So, if you lose a card, don’t panic: simply use another card and pair it with the application to enter your recovery phrase, and thus regain access to your currencies.
Who is the Tangem Wallet for? For those looking for a practical, space-saving option and above all at an affordable price. Tangem has recently offered a different support in the form of a ring using the same NFC chip principle. This can also be a good option, but remains more expensive: count approximately €150 ($160) for the Tangem Ring.
Launched at the end of 2022, the Ledger Stax stands out as the Rolls of crypto hardware wallets. While some might consider it a little excessive for a storage solution, it may appeal to people looking for a sophisticated crypto wallet with an ultra-complete touchscreen interface. Like the Nano
The Stax has a theoretical battery life of almost two weeks thanks to its e-ink technology, which is commonly found on e-readers. This choice allows it to minimize its energy consumption and offer remarkable endurance. Once it runs out of battery, it recharges via induction or a USB-C cable.
Its design is also its strength. And for good reason, it was designed by Tony Fadell, the father of the iPod at Apple.
Who is Ledger Stax for? For those looking for a beautiful device without worrying about the price (€399 remains a sum for this type of device), its interface, close to that of a smartphone, is pleasant, although it is mainly dedicated to consulting information and signing transactions. As with any cold wallet, the majority of actions take place online, via the Ledger Live application. For several months, Ledger has offered a lighter version: the Ledger Flex at €249.
Hot Wallet: the best alternative to the hardware wallet
In addition to physical cold wallets, it is also possible to store your digital assets on other storage solutions called hot wallets. These are more vulnerable on paper, since the private key is stored online, although the risks of hacking are minimal. If you are careful about the transactions you sign, there is no reason for your wallet to be compromised.
The advantage of these wallets is that they are free and accessible online via a mobile app, browser extension or software. We cannot advise you on this or that wallet, it mostly depends on the cryptocurrencies you hold. You need to look at which blockchain you mainly use and choose the one that is most suitable.
Here are some recommendations from the most well-known options.
MetaMask: what is it?
MetaMask is a bit of a reference for hot wallets. It works as a browser extension or mobile application. It allows you to easily manage different cryptos and interact with a whole bunch of dApps (decentralized finance applications). Not easy to use at first, but it can be relatively practical for advanced use.
Trust Wallet : it’s what ?
Trust Wallet is, in our opinion, one of the easiest crypto wallets to use. Offered as a mobile application on iOS or Android, it supports hundreds of blockchains and thousands of cryptos. It is also possible to buy cryptos directly via the application or to do staking for the experienced.
Why should you have a crypto wallet?
You should understand that when you buy cryptocurrencies on centralized platforms, your assets are not directly in your possession. To facilitate acquisition, your account is associated with several different cryptocurrency addresses depending on the blockchain. So, the cryptocurrencies you buy are actually held in wallets that the platform controls on your behalf. That is, although you can see the balance of your assets in your account, these funds are not directly under your personal control. It is the platform that holds the private keys associated with these addresses, and it is it that can authorize transactions. In the event of hacking, bankruptcy, or government restrictions imposed on the platform, your assets may be frozen or even lost.
How does a crypto wallet work?
A crypto wallet, whether physical or online, does not directly hold your cryptos. Your assets are in the blockchain, the cryptocurrency network. The wallet, for its part, works like a bank account, ultimately. With your credentials, you can access your funds, which are not held by you, but by the bank. In short, the wallet is like your access card to your cryptocurrencies.
How to find your cryptocurrencies if you lose your wallet?
It is precisely because they are not directly in your wallet that, if you lose your wallet, this poses no problem. When you create a wallet, you are systematically asked to save a recovery phrase or a pin code that you must keep safe (in a password manager, for example). If you lose the device, simply enter this ID to recover your funds.
Which wallet to choose?
Cold wallet storage solutions are, on paper, the most secure, but there is no crypto wallet that is better or more secure than the others. Ledger, Tangem or even Trezor all offer almost the same level of security, with EAL5+ or EAL6+ certifications (EAL7 is the maximum protection level). Your choice should focus more on the practical aspect of the wallet, namely whether it is easily transportable, but also on the additional features offered by the application. In this regard, hot wallets excel.
Source: www.numerama.com
