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There's a famous saying: "Not your keys, not your coins." That means you are not really in control of your crypto assets if you don't store them in your personal wallet. Even if you keep them with a centralized exchange, you may still be locked out of your coins if the exchange suffers bankruptcy, a hack, or any other calamity.
Where should you store your bitcoins in 2022? This article lists the seven best Bitcoin wallets in different categories. We will highlight what makes them the best and what to note about them. We will also explain what a Bitcoin wallet is and what to look for when choosing the right one for you.
Summary
Electrum: The best Bitcoin wallet for experts
Mycelium: The best mobile Bitcoin wallet
Ledger Nano X: The Best Bitcoin Hardware Wallet
Exodus: The Best Bitcoin Wallet for Beginners
Coinbase Wallet: The best Bitcoin hot wallet
Guarda Wallet: The best Bitcoin wallet with diverse crypto options.
ZenGo Wallet: The Best Bitcoin Recovery Wallet
Electrum Wallet
The Electrum wallet was launched in 2011, two years after Bitcoin went online. Even though it is one of the oldest Bitcoin wallets, it is still a good fit for modern investors. It started as a desktop wallet but now offers Android and iOS device support.
Features
Easy Installation
You don't have to be a tech or crypto expert before you install the Electrum wallet. It has a straightforward installation wizard that simplifies the whole process.
Cold Wallet Support
Electrum was initially launched as a hot wallet and still remains so. But hot wallets are usually prone to hacks because they are connected to the online world. Therefore, Electrum offers support for users who would feel safer storing their coins in hardware wallets. They can easily connect their Electrum wallet to any hardware wallet.
Open-source
In other words, anyone can access and modify the software.
Open-source software doesn't mean anyone can just make changes to the source code. Rather, it means anyone can analyze the source code and make suggestions for improvement. The proposals will then be looked at by the lead developers, who will decide whether or not to upload them.
Different Wallet Types
Depending on your security preference, you can choose between a multi-signature wallet, a 2FA wallet, or a standard wallet. The multi-signature wallet is the most secure and splits wallet access between different signatories. In contrast, the standard wallet is the least secure and should only be for watch-only wallets.
Best For?
Because it only works with Bitcoin, the Electrum wallet is the best Bitcoin wallet for experienced traders.
Pros And Cons
Pros
- It is very easy to install.
- It offers different security preferences.
- It is open-source and free to download.
- It offers hardware wallet support.
Cons
- It supports Bitcoin only.
- It has been hacked in the past.
Mycelium Wallet
Mycelium is a mobile-only Bitcoin wallet with strict privacy and security features. It was launched as far back as 2012 and is reproducible and open-source. The wallet doesn't have a social media account, and it only has an email address for customer service.
Features
Mobile-only Support
The Mycelium wallet doesn't support desktop or web versions. You can download the application directly from the APK file or the Google Play Store. Don't let the scanty website fool you, though. Once you download the app, you discover that it is very intuitive.
Security And Privacy
These are the main selling points of the wallet. It is very secure because it is reproducible and only available through email.
- A limited number of supported cryptocurrencies.
Ledger Nano X Wallet
This is the second wallet that Ledger, one of the largest hardware wallet companies, has made. This hardware wallet came out in 2019 and is a popular choice for people who are interested in cryptocurrencies. It is shaped like a USB drive and comes with a price tag of about $119.
Features
Battery and Connectivity
The Ledger Nano X wallet allows users to connect to mobile devices using Bluetooth. They can also connect to computers and phones with the USB cables that come with them. Also, unlike its predecessor, the Ledger Nano S, it can be used with iOS devices. Lastly, it comes equipped with a 100 mAh battery, which can last up to eight hours of continuous use.
Trading And Supported Currencies
Besides being a secure storehouse for crypto assets, the Ledger Nano X allows you to trade crypto and check balances through the Ledger Live App. You can also buy bitcoin directly through Coinify, Ledger's payment processor. Apart from Bitcoin, it also allows you to store other digital assets like Ethereum, Cardano, Dogecoin, etc.
Security
The Nano X is a powerhouse of security. It is alienated from the online world, eliminating most attack vectors that hackers use. Additionally, it comes with secure element chips and a proprietary operating system. The secure chips are EAL5+ certified, the same level of certification that MasterCard and Visa cards come with.
Best For?
The Ledger Nano X wallet is the best hardware wallet for 2022. It is suitable for anyone looking to store bitcoin for a long time. However, it may not be ideal for crypto beginners.
Pros And Cons
Pros
- It has a battery that can last several hours.
- It supports thousands of crypto assets.
- It is very secure.
- It has Bluetooth connectivity features.
Cons
- It is expensive
- Beginners starting their crypto journey may find it too complicated to use.
Exodus Wallet
Created in 2015, the Exodus wallet is another non-custodial crypto wallet that started with a desktop version. It is now a desktop and mobile wallet. You can download this wallet for free, just like Electrum.
Features
Multiple Wallet Types
There are three wallet types that Exodus supports. The desktop wallet is the oldest. It lets you store bitcoins on your computer and trade them for other assets. The mobile wallet enables you to take your coins anywhere you go. The third wallet type is the browser extension, which introduces you to the world of DeFi and Web 3.
Support For Add-ons
The Exodus wallet allows you to add other applications to manage your crypto holdings better. You can make your Exodus portfolio even safer by adding the Trezor hardware wallet. You can also add other crypto apps that allow you to stake, trade, and analyze your trading strategies.
Partnership With FTX
The Exodus wallet website now has the exchange feature of the FTX cryptocurrency platform. This FTX extension allows you to trade with as little as $1 and as much as $10,000. It also offers two-factor authentication for withdrawals.
Best For?
The Exodus wallet is the best Bitcoin wallet for beginners because it is easy to set up and has a simple interface.
Pros And Cons
Pros
- The interface is easy to use.
- It allows you to trade your crypto assets and monitor your portfolio.
- It can be integrated with the Trezor hardware wallet.
- Anyone can download it for free and have access to its source code.
- It doesn't require KYC verification.
Cons
- It is not so secure as it does not directly enforce 2FA verification. You only get it if you use the FTX extension.
Coinbase Wallet
The Coinbase wallet is a hot wallet backed by the Coinbase exchange, the second biggest crypto exchange in the world. Even though it has affiliations with the Coinbase exchange, this wallet is non-custodial, i.e., the keys are owned and stored by the wallet's owner, not by Coinbase. So, even if there is some kind of attack on the Coinbase exchange, it will not affect the wallet.
Features
Wide Cryptocurrency Support
The Coinbase wallet supports various cryptocurrencies, numbering in the tens of thousands. Apart from novel cryptocurrencies, the wallet offers support for various NFTs and decentralized apps.
Easy link with Coinbase
That should not be a surprise since Coinbase indeed produces the wallet. Therefore, you can buy your crypto assets with your Coinbase account and send them to your Coinbase wallet to be confident that you are the only one with access to them.
Built-in Browser
The Coinbase wallet has a browser built in that lets you access different parts of the DeFi world. There is a 0.5% conversion fee if you want to use this function to exchange your bitcoin for other digital assets.
Best For?
The Coinbase wallet is the best hot wallet for 2022. The fact that it is associated with the Coinbase exchange makes it trusted, even though it is a hot wallet.
Pros And Cons
Pros
- It supports a vast number of cryptocurrencies.
- It has a mobile app as well as a built-in browser.
- It is a secure wallet backed by the largest US-based cryptocurrency exchange.
- It is free to download.
Cons
- It is not as secure as cold storage hardware wallets.
Guarda Wallet
Guardaco LDA made the Guarda wallet in 2017, and it is one of the most flexible crypto wallets out there. It is more than a wallet. It is an all-in-one platform for crypto asset storage and a one-stop shop for major aspects of the crypto world.
Features
Varied Wallet Selections
There is a wallet for everyone on the Guarda website. You can choose between a desktop wallet, a mobile wallet, and a web wallet (a browser extension). All the major operating systems are supported.
Fiat On-ramp For Crypto Purchases
With your Guarda wallet, you can buy Bitcoin directly with your bank cards. The wallet uses two payment processing companies, namely Simplex and Guardarian. Apart from Bitcoin, you can also buy more than 300 different digital assets.
Crypto Loans And Lending
Besides crypto storage, Guarda allows you to borrow crypto with Bitcoin as collateral. You can also lend bitcoin on the platform through Guarda's partnership with CoinRabbit.
Diverse Crypto Support
The Guarda wallet supports over 50 different blockchains and the tokens that make those blockchains their homes. Altogether, there are more than 400,000 cryptocurrencies that you can store on Guarda. This staggering number makes it the most versatile Bitcoin wallet on our list.
Best For?
The Guarda wallet is the best choice for crypto investors who want a secure software wallet that offers a wide range of supported assets.
Pros And Cons
Instead of using private keys and seed phrases to protect access to your crypto assets, ZenGo uses biometric encryption and three-factor authentication to protect your digital wealth. ZenGo doesn't use private keys and seed phrases to protect your digital wealth. Instead, it uses biometric encryption and three-factor authentication. So, it is proud of being the first crypto wallet app that doesn't need a key, which is a good thing.
Features
Keyless Technology
The ZenGo wallet does not come with private keys. Instead, you get a recovery kit that includes your email, a recovery file previously saved on iCloud or Google Drive, and a facial signature. These three things are enough to recover your coins if you lose your device. However, you will not be able to retrieve your coins if you lose your iCloud or Google Drive accounts.
Buy And Swap Bitcoin
ZenGo has teamed up with Banxa, a platform for processing cryptocurrency payments, so that users can trade Bitcoin for 22 fiat currencies. You can pay with Visa or MasterCard, and your Bitcoin is sent directly to your wallet. You can also swap Bitcoin for another cryptocurrency through Changelly, another payment partner of ZenGo.
Beginner Bonus
You can get free Bitcoin on ZenGo by making your first crypto purchase. The platform caps the welcome bonus at $10. You can get more through referrals.
Zengo Savings
You can use ZenGo's savings feature to earn interest on your Bitcoin instead of just storing them there. This feature is in partnership with Nexo, a crypto lending firm. Thus, you can loan your bitcoins out to Nexo and earn up to 8% APY on them while still benefiting from the unique security of the ZenGo wallet.
Best For?
ZenGo is the best Bitcoin recovery wallet. Gone are the days when losing your keys meant losing your coins. With ZenGo, you don't have to worry about seed phrases. Your recovery kit is enough.
Pros And Cons
Pros
- It is very easy to set up.
- It offers Bitcoin trading and purchase functions.
- It offers a welcome bonus (for now).
- You can also earn on your stored crypto in the wallet app.
Cons
- It is a relatively new wallet (introduced in 2020) and has not yet stood the test of time.
What is a Bitcoin wallet?
A Bitcoin wallet is any type of wallet that allows you to store your bitcoins securely. The wallet essentially acts as a gateway to access your Bitcoin holdings. It doesn't exactly house your coins, since they live on the blockchain. Instead, it houses the private keys that give you access to those coins.
There are different classifications of Bitcoin wallets. There are:
Custodial Wallet Vs. Non-custodial Wallet
In terms of ownership, your wallet could either be custodial or non-custodial. A custodial wallet is a Bitcoin wallet whose keys are not in your control. Examples are wallets you create with crypto exchanges like Binance, Huobi, Gemini, etc. Since these centralized platforms control the private keys of the wallets, they also control the coins in those wallets.
Non-custodial wallets, on the other hand, are wallets that give you complete control over your private keys. This means you are also in total control of your coins. It also means that your coins are lost forever if you lose access to the wallet's private keys. Examples include the wallets discussed in this article.
Web Vs. Mobile Vs. Desktop Wallet
In terms of how it works, your wallet could be on the web, on your phone, or on your computer. Mobile wallets are wallets that run on Android or iOS devices. An example is the Mycelium wallet. Desktop wallets are customized to run on computers, while web wallets run on web browsers, mostly as extensions. In most cases, a wallet can run on two or more of these.
Hardware Wallet vs. Software Wallet
Lastly, your wallet can be classified based on exposure to the online world. Hardware crypto wallets are wallets that are alienated from the online web. Ledger wallets are good examples of these. Because of their offline nature, these wallets are the safest crypto wallets in the digital currency world.
Apart from being a cold wallet, your wallet could also be a hot or software wallet. These wallets are always online and make it easy to use Dapps and other DeFi features. In contrast to cold storage wallets, they are more convenient but less secure.
How To Pick The Best Bitcoin Wallet
Before going for a Bitcoin wallet, you should do research to ensure that you're getting the best one for you. After all, your wallet is the key to your crypto wealth. If you choose the wrong one, you may pay dearly for it. With that in mind, here are some of the factors you should consider when choosing your wallet:
Security
Putting your bitcoins in an unsecured wallet is like keeping your cash in an unguarded bank. That is why the security of your crypto wallet is a critical point to research. Find out if it has ever been hacked. If it has, has it worked on the weakness(es) that provided entry for the hackers? Also, research the company behind the wallet and find out how reputable they are.
Convenience
This depends on your crypto strategy. If you're more of a trader, you might keep some of your assets in mobile hot wallets to access them quickly. On the other hand, if you are a long-term investor, cold wallets might be your best bet.
Recovery Options
If you are the type that often loses or forgets things, you might want to go with a wallet company that has partial or complete control over your private keys. That way, you can recover your coins if you lose your wallet. On the other hand, if you are a supporter of the complete decentralization that Bitcoin offers, you should go for a wallet that gives you full control over your private key and your coins.
Concluding Thoughts
If Bitcoin is the gateway to financial freedom, your Bitcoin wallet is the key. This article has covered the best Bitcoin wallets in various categories. We have also discussed what a bitcoin is. wallet is, and how you can choose the one that'll work for you. We hope these facts will be enough to help you reach the best decision on how to safeguard your precious bitcoins.
