We have all heard some expert guy telling you to “Buy a Hardware Bitcoin wallet”. But why should you, and Which Ethereum wallet is the best?, or Which Wallet you should use to buy NEO based tokens or What is the difference between software and hardware digital wallet? All these questions can be highly confusing at times. So, we have decided yo educate our readers on why and when you should use Software and Hardware Crypto Currency wallets to store your Bitcoins, Ethereum, Litecoin and other multiple coins.

crypto currency wallet

As a Crypto investor, it is never recommended to store huge sums of your crypto currency holdings in your Crypto Exchange Wallets. Exchanges can be hacked, and they possess the private keys to your wallets, meaning they can easily do any transaction from you account. We have seen many such incidents in the past, where exchanges get hacked and people have lost huge sums of their crypto holdings.

This is where the concept of crypto currency wallets come in. You are completely in control of your wallet. This means you and only you have the access to your private key. The private key must be stored by you at a very safe place, so that it can be recovered easily. Because, if you lose your private key there is no way to recover your crypto assets.

Below we have compiled a list of crypto currency digital wallets of various types. The best products in each segment and which ones to use when.

Hardware Wallets

Firstly, let’s talk about the hardware crypto currency wallets. Also known as Cold Storage wallets, these are physical devices usually of the size of a USB drive. Your altcoins are stored in the physical device and you possess the private key to it. Thus, they have very low risk of being hacked and your crypto assets are totally safe in the wallet as long as the device and the private key is with you.

But, as this is a physical device, it will not be free of cost unlike most of the software wallets. A hardware wallet is recommended for long term Holders, or as we say it in the crypto world, HODLERS. If you are into day trading but still want to use the hardware wallet, we recommend to you keep most of your holdings in the wallet and only the amount that you are willing to trade in the exchange.

Best Hardware Wallets for Bitcoins and AltCoins in 2018

There are a lot of hardware wallets available in the market. We tell you about the two market leaders which are the safest and offer the best value for money.

  • Ledger Nano S
  • Trezor

Ledger Nano S

Ledger Nano S is the most popular and one of the cheapest hardware wallet in the market. Due to huge demand, we have seen the price of the wallet has been increasing, ever since it came out. Ledger Nano S can be connected to you Android device via an OTG cable and is also compatible with Windows, Linux and Mac devices. It is very easy to use and supports a vast variety of AltCoins which you can store in it.

ledger nano s

Box Contents:

  • Ledger Nano S
  • USB Cable
  • Instructions Manual
  • Recovery Sheet
  • Accessories

Ledger Nano S Key Features:

  • Security
  • Multi-Currency Wallet
  • Built-in Display
  • Backup & Restoration
  • FIDO Certified U2F
  • Multi-Apps

Though, the Nano S ships with its own software, users also have choice to use the software of their choice like MyEtherWallet , Mycelium, Electrum .

It is available worldwide and you can order it from the below link before the next price surge.
                                                   BUY Ledger Nano S

Trezor

Another popular bitcoin wallet is Trezor. Trezor was one the first hardware wallet. It has almost all the features like Ledger Nano S but is slightly expensive than the Nano S.

trezor crypto wallet

Box Contents:

  • Trezor
  • USB Cable
  • Instructions Manual
  • Recovery Sheet
  • Accessories

Trezor Features:

  • Multi-currency Wallet
  • Secure Admin SSH Access
  • 2 Factor Authentication
  • Password Manager
  • Sign & Encrypt with GPG
  • Password-less Login
  • Sign & Verify Messages
  • Explore Integrations
  • Backup & Restoration

You can choose either of the above wallets. But for best security and regular future updates and support, we recommend you to go with Ledger Nano S.

Software Wallets

Software wallets are basically online wallets. You can store your crypto assets online or on your local computers. Still, there are three sub categories in the digital wallets,

  • Exchange Wallets
  • Standalone Software Wallets (Mainly used for ICOs)
  • Hot Wallets

Exchange wallets are those which are given to you by the Crypto Exchange that you are trading on.

In this case the exchange also has access to your private keys, and if the exchange gets hacked, all your holdings are at stake. You should only store the assets which you want to trade regularly in these kinds of Wallets. Few examples of this type of wallets are, Binance Exchange Wallet, Coinbase Wallet etc.

On the other hand, Standalone wallets will help you generate a new wallet and hand over to you the public and private key for the same. You have the full access to you wallet and the keys and it provider does not keep any records for this. You can either chose to store the wallet online, but it is considered safer if you store them on your local machine in the wallet client software. Popular examples of software wallet are MyEtherWallet and NEO GUI Wallet. 

These types are wallets are also more advanced than the exchange wallets and are usually used to participate in ICOs (Initial Coin Offering). All Ethereum blockchain based tokens, require ERC20 Wallet to participate in ICO while NEO tokens( a.k.a. Ethereum of china) require NEO Gui Wallet.

Hot Wallets are the category of wallet in which you can store your Bitcoins, Altcoins in your personal devices like mobile app, desktop or even online and use them to do regular transactions like Buying/Selling, peer to peer transfers and storing. These is still a young market and will evolve more as the use of crypto currencies become more mainstream. Some examples of these are, Mycellium, Bread App.

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