Cryptocurrency (criptomoneda) doesn’t function the same as normal currency does, especially when it comes to storage. With regular money, you can store your cash in your wallet. If you have a bank account, your bank stores your funds and you’re able to withdraw or spend them as you see fit.
In the case of crypto (Moneda digital), you’re going to have to use special software known as wallets. But what exactly are wallets, and how do they work? If you want to store your own crypto, here is a brief run-down on wallets and the best crypto wallets to consider.
What are crypto wallets, and how do they work?
A cryptocurrency wallet is a software solution designed specifically to hold crypto assets. Think of your wallet as a hybrid between your bank account and your actual, physical wallet (billetera) for cash (dinero). Much like you would put your money in your bank, you transfer all of your funds to one or multiple wallets for safekeeping. However, unlike banks and more like physical wallets, crypto wallets give you full control over your funds. No institution can freeze your money as it’s under your ownership and you have full access (acceso) whenever you need it.
Crypto wallets are quite simple when broken down. These solutions consist of two keys: Public keys and private keys. Public keys operate in a similar manner to email addresses in that you need to provide yours to another or receive a public address from someone else in order to send and receive crypto (this is true for all tokens, whether Litecoin, Dogecoin, or Ethereum). Meanwhile, the private key acts as a way to access your funds and essentially verifies that you have the authority to send money out. Now that we have a better understanding of what wallets are, which ones should you choose?
What are the best crypto wallets to turn to if you want to hold crypto?
There is not just one type of crypto wallet, but many types. In this section, we will break the wallets down and provide you with the best recommendation for each.
Best Hardware Wallet: Ledger Nano X
A hardware wallet is a wallet that utilizes an additional device to safeguard your funds against hackers and other malicious parties. The Ledger Nano X is one of the mejor monedero criptomonedas among hardware wallets as it’s very affordable, comes with a built-in battery that allows it to function wirelessly, offers Bluetooth connectivity, and offers support for over 100 cryptocurrency assets (BTC, Doge, LTC, ETH, and more). If you need a reliable hardware wallet that offers an extra layer of protection and is quite affordable, the Ledger Nano X is a great pick.
Best Desktop Wallet: Exodus
Desktop wallets are crypto wallets that are installed directly onto your computer, giving you full control over your funds (in comparison to wallets on exchanges, which are subject to exchange rules and regulations). Exodus is an excellent desktop due to its user-friendly interface and operation. Unlike other desktop wallet options, Exodus also offers support for multiple cryptocurrency options, making it so that you don’t have to download multiple wallet solutions for all of your different cryptocurrencies.
Best Mobile Wallet: Coinbase
A mobile wallet is a wallet that you can access on your phone, making it possible to send, receive, and spend money on the go. Although there are a lot of smartphone wallets out there, the Coinbase wallet is arguably the most convenient as you can manage it alongside your main exchange app. Additionally, it comes with the added security that the Coinbase exchange is known for as well as reasonable fees and support for multiple crypto assets.
Making the decision to invest in cryptocurrency also means making the decision of which wallet to use. However, if you don’t know anything about wallets or what options you have, getting started can be confusing. If you plan on storing your digital assets outside of your chosen exchange, use the guide above to learn more about what wallets are, how they function, and which wallets will offer the best support for your needs.