The Best Crypto Wallets for Bitcoin, Ether, and NFTs

A crypto wallet is a necessary tool when buying, selling, or trading cryptocurrencies. The best crypto wallets provide the encryption necessary to keep your assets secure.

NFTs or non-fungible tokens also require a crypto wallet. In fact, any digital asset created on a blockchain is going to need one.

All crypto exchanges and NFT marketplaces require that a crypto wallet be connected to your profile. Once connected, you will be able to engage in transactions on the platform.

Some exchanges and marketplaces may offer an integrated wallet on their platform, but oftentimes you will need to connect a 3rd party wallet.

There are several different types of crypto wallets such as custodial vs non-custodial, hot vs cold, etc. We’ll explore the various wallets types and review the most popular ones on the market.

What is a Crypto Wallet?

A crypto wallet is a cloud storage platform or physical device that stores crypto-related passwords. The passwords can be used to access your cryptocurrency, NFTs, or other digital assets.

Crypto wallets do not store the actual digital assets within the wallet. The wallets store authentication keys that serve as passwords to prove ownership of the assets.

A crypto wallet generally uses two types of keys for authentication, public keys and private keys. They also provide a crypto address, which is usually just a condensed version of the public key.

Public keys and addresses function similar to a bank account number and can be shared with crypto exchanges, NFT marketplaces, etc.

When an exchange sends someone crypto, they send it to their public key or address. The private key is then used by the individual to access the crypto, prove ownership, and verify transactions.

Custodial vs Non-Custodial Wallets

Crypto wallets can be either custodial or non-custodial in nature. This is an important difference that can have major security implications.

Platforms offering custodial crypto wallets generally hold on to the private key themselves. They’re keeping custody of the authentication information.

This can be a concern if the platform is hacked, goes bankrupt, etc. It can also be convenient, however, by providing a backup in case you ever misplace your password.

If you’re up for the responsibility, then a non-custodial wallet is usually the way to go. You, the individual, are the sole holder of the private key so you have final say in all transactions. Non-custodial wallets are also referred to as self-custody wallets.

If you do lose your passcode information, however, you will be completely out of luck. You’ll lose access to any cryptocurrency or NFTs stored via the wallet.

Hot vs Cold Crypto Wallets

Another important distinction between crypto wallets is whether they’re hot or cold. The preference here also comes down to convenience vs security.

Hot wallets are online platforms that store your information in the cloud. They provide both convenience and a lower upfront cost compared to cold storage. They do sacrifice some security, however, since you’re ultimately at the mercy of the platform.

Unlike hot wallets, which consist of software, cold wallets are made of hardware. They’re generally small devices similar to a portable hard drive. While less convenient, a cold wallet is the most secure way to store your digital assets.

Best Hot Wallets to Store Crypto

Hot crypto wallets are the most popular way to store cryptocurrency and NFTs. The convenience of a hot wallet is unbeatable.

It’s important, however, to research and choose a reputable platform to store your crypto valuables. Data breaches from hackers and company bankruptcies are possible with any online platform. We’ve included the most secure and user-friendly hot wallet options below.

MetaMask

MetaMask is a popular desktop browser extension and mobile app that allows users to store and trade crypto assets. The MetaMask wallet is non-custodial so you retain complete control over your private keys.

Free to download, MetaMask makes money by charging service fees for transactions made using the platform. These are known as swap fees.

It’s important to note that MetaMask only works with the Ethereum blockchain. If you want to store crypto created on a different blockchain, such a Bitcoin, MetaMask will not work.

Given that 90 percent of NFTs are created on the Ethereum blockchain, MetaMask is the most popular wallet for storing NFTs.

Coinbase Wallet

Coinbase is one of the largest crypto companies in the world. They are best known for their crypto exchange, which allows users to buy, sell, and trade cryptocurrencies.

The Coinbase Wallet is separate from the Coinbase Exchange. The non-custodial wallet can be connected to any exchange you wish.

Coinbase Wallet has an easy-to-use interface that makes it great for beginners. Set-up can be done in less than 5 minutes.

If you need to store several different types of crypto assets, the Coinbase Wallet is a great choice. The wallet supports a wide array of options, including Bitcoin, Ethereum, and all EVM-compatible networks.

Exodus

The Exodus Wallet is another great choice for beginners. The wallet works with over 150 different cryptocurrencies and links seamlessly to most exchanges and decentralized finance (DeFi) apps. 

Exodus provides the ability for users to earn rewards on their crypto holdings through a process called staking. This process is similar to earning interest with a savings account.

You can stake cryptocurrencies with your Exodus wallet that use the Proof-of-Stake model to verify transactions on the blockchain.

You can count on your personal pin staying safe with Exodus since it’s also a non-custodial wallet.

Electrum

Created in 2011, Electrum is one of the oldest crypto wallets on the market. Electrum is one of the most popular Bitcoin-only wallets.

Electrum only supports Bitcoin so if you’re interested in storing Ethereum assets or alt coins, then Electrum is not the best choice.

Electrum is non-custodial, which provides an additional layer of security. Electrum also consists of open-source software, which means many developers have contributed to the platform’s usability and security features.

Mycelium

Mycelium has extensive features and security protocols that make it a great option for more advanced crypto users.

Mycelium supports Bitcoin, Ethereum, and several ERC 20 tokens. While the most popular blockchains are covered, this wallet would not be a good choice if you wanted to store a wide array of crypto assets.

Mycelium can easily connect to cold storage devices to take your crypto offline at a moments notice.

Mycelium is available only via a mobile app. If you would also like desktop access, then be sure to choose an alternative.

Best Cold Wallets to Store Crypto

A Cold crypto wallet is not connected to the internet so it faces a much lower chance of being compromised. All cold wallets are non-custodial.

If security is your primary concern, then a hardware-based cold wallet is the answer. These physical devices are impenetrable by anyone except the private key owner.

Trezor Model T

In 2014, the original Trezor hardware wallet, the Trezor One, became the world’s first cold crypto wallet. The Trezor Model T is the upgraded successor known for it’s large touch screen and extensive security features.

You can purchase cryptocurrencies with fiat currency within the wallet. The coins that can be purchased are limited, but the wallet supports storage for over thousands of coins and tokens.

The Trezor Model T has an integration with the Exodus hot wallet. When used together, you get the convenience of a hot wallet with the security of a cold wallet.

The Trezor Model T is more expensive than most other hardware wallets. It’s debatable as to whether the premium cost is worth the added features, but there’s no question that the Trezor Model T is one of the best cold wallets available.

Ledger Nano X

Ledger is the second largest hardware wallet company behind Trezor and has quickly become the preferred wallet for many crypto investors.

The Ledger Nano X supports thousands of coins and tokens. The wallet allows you to access up to 100 simultaneously-installed DeFi apps.

Ledger also supports staking for some Proof-of-Stake assets, allowing you to earn interest by putting your coins to work validating blockchain transactions.

The Nano X was among the first cold wallets to offer Bluetooth connectivity. This allows you to cordlessly connect to compatible mobile apps and exchanges. Bluetooth offers convenience, but may introduce some security vulnerabilities.

Ledger Nano S

The Ledger Nano S is arguably the most popular cold storage option. The Nano S is the predecessor to the Nano X and serves as an affordable alternative for cost-conscious consumers.

Like the Nano X, the S allows you securely store your crypto assets offline. The Nano S has approximately 1/5 of the storage space for apps as the Nano X.  

The Nano S does not have a battery or Bluetooth connectivity so the device must be plugged in to access. Fewer features mean lower cost. The Nano S costs approximately half as much as the Nano X.

How to Choose a Crypto Wallet?

With so many options and features available, it can be difficult to choose the perfect crypto wallet for your situation. 

If convenience and easy access to your crypto assets is your priority, then a connected hot wallet would be the way to go. The Coinbase Wallet is our pick for an online wallet due to it’s ease of use and support for a wide variety of coins and tokens.

Note that the Coinbase Wallet is separate from the Coinbase Exchange and must be set up separately. If you do not set up Coinbase Wallet, funds will be held in the custodial Coinbase.com wallet, which provides less protection.

If you only intend to invest in NFTs or other Ethereum-based projects, then the MetaMask hot wallet is the most popular choice. If you’re interested in Bitcoin or other alt coins, you should stick to the Coinbase wallet.

If you’re willing to sacrifice some convenience for security, then a cold wallet is the best choice. The Trezor Model T is the best cold storage device on the market.

Connecting the Model T to an Exodus hot wallet affords the best of both worlds, but can be expensive. If you’re looking for a middle ground between price and features, then the Ledger Nano X is the obvious choice.

If you’re looking for the cheapest option that still provides the security expected from a cold wallet, then the Leger Nano S is the wallet for you.

For more ways to invest, check out the 13 Best Ways to Invest Money for Any Budget.