How to choose a crypto wallet?
Which wallet fits your task
- If you pay and send crypto often and in small amounts, a hot wallet is more convenient, that is, a phone app or a browser extension.
- If you are putting an amount aside for a long time, its key belongs in a hardware wallet, a separate device that keeps the key with no internet connection. The article hot vs cold crypto wallet explains how a hot wallet differs from a cold one and at what amount a hardware wallet makes sense.
- If you connect a wallet to websites, such as a decentralized exchange, set up a separate wallet with a small amount for that. The article staying safe when connecting a crypto wallet explains what a website may ask you to sign.
- If your crypto is still on an exchange, the guide how to store crypto shows how to set up your own wallet and move it there.
What to check in any wallet
Who has the key to the crypto
The crypto itself is recorded on the blockchain, and the wallet holds the key you use to approve transfers2. Wallets differ by who has that key. In your own, non-custodial wallet non-custodial wallet you control the key and are responsible for keeping it safe. With a custodian company, such as a crypto exchange, the company controls it3.
The difference is like that between your own apartment and a hotel room. You have the key to the apartment, and if you lose it along with the spare, you cannot get in. The hotel room is opened by the front desk, which can also one day refuse to let you in. The article what is a private key explains why the key matters so much.
Where the key is stored
A hot wallet keeps the key on a device that goes online, while a cold wallet keeps it on a separate device with no internet3. What a cold wallet protects against and what it does not is covered in hot vs cold crypto wallet. Buy a hardware wallet from the maker or its official reseller. The same article tells you how to check the device when it arrives.
Which networks the wallet supports
A network is the shared system where crypto transfers are recorded, such as the Bitcoin, Ethereum or Tron network, and each network has its own addresses. A wallet works only with the networks it includes, and the list can differ even between two versions of the same wallet. In the Base App wallet (formerly Coinbase Wallet), for example, bitcoin is available in the phone app but not in the browser extension4. Before choosing, find the list of networks in the wallet's help section and check that your crypto's network is on it.
How to restore access
Access to a wallet is usually restored with the seed phrase. If both the key and the seed phrase are lost, the crypto becomes inaccessible for good5. Some wallets also offer other ways, for example backup keys held by trusted people instead of a single phrase5. Before you move money into a wallet, find out how its recovery works and test it in practice. The article what is a seed phrase covers how to write the phrase down and whether it will work in another app, and the guide how to store crypto walks through testing recovery step by step.
What a swap or purchase inside the wallet costs
A swap inside a wallet costs money too, even when you see no separate "fee" line. MetaMask, for example, breaks the price of a swap into three parts: the exchange rate, the network fee and MetaMask's own fee6. Before confirming, compare how much crypto you give and how much you will get. The fee changes, so look it up in the help section.
Purchases with ordinary money inside a wallet are handled by a third-party provider on its own terms; the guide how to buy crypto covers that route.
Where to install the wallet from
Download the wallet app from the maker's official website or from your phone's official store, and type the website address yourself. Fake apps and lookalike websites look like the real thing and ask you to enter your seed phrase; the article phishing and scams shows how to spot them. Whether a wallet has had incidents, and how its maker handled them, is in the wallet's review.
Wallets with a review on this site
The reviews on the site include, in alphabetical order, Ledger (a hardware wallet) and Trust Wallet (a wallet app for phones and a browser extension). The reviews cover security, known incidents and risks, with sources.
Ledger — a review of the hardware wallet, its security and risks A hardware (cold) wallet: keys offline, every send confirmed on the device itself. The offline key reduces the risk of remote theft. This type is usually chosen for savings; paid and less convenient for everyday use.
Storing and wallets
Trust Wallet — a review of the crypto wallet, its security and risks A popular non-custodial hot wallet: many networks under one seed phrase. Free, but the earning hides in the spread and the markup.