Owning crypto assets is one thing, but keeping them safe is a different conversation. Initially, trust was a ubiquitous sentiment in the crypto sphere, but as hackers brushed away millions of dollars from popular exchanges, people realized they needed an alternative(a fact that was reaffirmed by the FTX collapse), and that’s when crypto wallets came into the picture. 

As a crypto investor or an NFT collector, you need a crypto wallet, one that’s safe, reliable, and most importantly accessible when you need your assets. Now, there are hundreds if not thousands of crypto wallets in the crypto sphere, hot wallets, cold wallets, custodian wallets, non-custodian wallets, and more to choose from. 

How does one make sure he/she picks the best crypto wallet?

Simple. Just read this extract and by the time you reach the last full stop, you’ll have the answer, because we have curated a list of the 5 best crypto wallets out there, you just have to pick one to secure your assets.

So let’s get started!

Electrum

‍Electrum is one of the most trusted cryptocurrency wallets across the crypto community owing to its lightning-fast transaction speeds and support for a wide range of cryptocurrencies including Bitcoin, Ethereum, and Litecoin. You can download this wallet on your phone or PC directly from the website.

Electrum uses a hierarchical deterministic (HD) wallet structure, which creates a unique address for each transaction you make. This helps to enhance privacy and security by preventing anyone from tracking your transactions. Electrum also enables you to create multiple wallets within the same software, allowing you to organize your digital assets easily. The platform also supports hardware wallets and offers custom transaction fees for people with advanced use cases.

Pros:

• High transaction speeds
• Wide range of cryptocurrencies
• User friendly
• Custom transaction fees
• Supports hardware wallets 

Cons:

• Does not offer as many features as some other software wallets
• Not beginner friendly
• Security vulnerabilities reported in the past year_‍

ZenGo

If you’re looking for a reliable, secure, and easy-to-use non-custodial wallet, ZenGo is the way to go. It is one of the first crypto wallets to solve the private key vulnerability i.e., frauds that occur due to the misplacement of the private key. It does that by removing the private key from the equation altogether by leveraging encrypted biometrics, making it one of the simplest wallets to use. You can download the app on your android or IOS device by scanning the QR code in the image below.

You can make your account with ZenGo in less than 60 seconds and transact in 70+ crypto assets. With a guaranteed recovery model and built-in Web3 firewalls, it is one of the safest crypto wallets out there. ZenGo eliminates the possibility of phishing scams by using MPC cryptography instead of private keys and offers a safe environment for users to buy, sell, and trade crypto assets.

Pros:

• Non-custodial
• User-friendly 
• Secure and keyless
• Private

Cons:

• Limited support for coins and tokens
• No desktop version
• No in-app trading

Read Also: Navigating Canadian Crypto Tax Brackets 2023: The Ultimate Guide

Trezor Model T 

Trezor Model T is one of the most technically advanced cold wallets in the digital wallet space. The cold wallet comes with a touch-screen display to navigate the device, and a dedicated processor to make those transactions lightning fast, not to mention the high levels of encryption on the device to secure your assets. It supports more than 1,440+ crypto assets. Trezor is a subsidiary of Satoshi labs and it was launched back in 2016. You can buy it directly from the website.

Although it’s a cold wallet, you can download the desktop app of the wallet for easier access. It is one of the few cold wallets to implement the Shamir Backup to protect your security seed and clubs it with a catchphrase recovery model, making it the best crypto wallet out there as far as cold wallets are concerned.

Pros:

• Touchscreen display
• Open-source firmware
• Easy to use
• Highly encrypted

Cons:

• A bit expensive
• Lack of customer support

Exodus

Every entry on this best crypto wallet list has a USP apart from all the basic functionalities. Exodus is on the list thanks to its visually attractive and super intuitive user interface, which makes using it, a delightful experience for the users. Initially launched as a desktop-only wallet, it’s now available for download across Android and iOS devices. However, the desktop version of the app is still the primary offering, being updated every 14 days to make it more secure. 

Exodus wallet also supports the Trezor hardware wallet for users who want to have easier access to their assets stored on cold wallets. Among the 260 odd crypto assets it supports, XRP, BCH, Ether, Litecoin, and Dogecoin are some of the popular holdings. It also advanced features like customizable transaction fees for Bitcoin, Ethereum, and ERC-20 transactions. The transaction speeds are unbelievably fast because, unlike other soft wallets, it does not download entire blockchains to verify a certain transaction.

Pros:

• Easy to use
• Supports Apple Pay
• Customizable transaction fees
• Supports 260+ assets

Cons:

• Less secure mobile version
• No Native 2-FA
• Multisig not supported

Blue Wallet

If you want a bitcoin wallet for your smartphone, BlueWallet is the logical choice thanks to its feature-rich mobile app. The wallet supports cold wallets to easily manage their cold storage, and also allows users to create multiple spaces in case of forced disclosure. You can easily bump, cancel, or batch transactions by tweaking the dynamic transaction control feature on the app.

The app has a beginner-friendly interface that allows new users to easily navigate through the sea of functionalities offered within the app. Moreover, it supports complex features like customizable transaction fees and torr connectivity for enhanced security. Just like most of the wallets on this best crypto wallet list, it supports cold wallet integrations for efficient management of cold assets. It also supports integrations with lightning network, a layer 2 protocol that makes P2P transactions unbelievably fast and reliable.

Pros:

• Beginner friendly
• Supports lightning transactions
• Customizable transaction fees
• Multisig support
• Create and manage proxy storage spaces

Cons:

• No in-app tutorials for advanced features
• Does not support 2-FA

Conclusion:

From enhanced security to streamlined access to your cryptocurrency assets, the wallets on this list provide top-notch protection for your digital assets. While the ultimate choice will depend on individual needs, rest assured that any of the options listed here will keep your crypto safe. 

And regardless of which wallet you choose and what transactions you participate in, your tax obligations remain constant. However, navigating cryptocurrency taxes can be complicated, as different countries have varying rules and regulations, and tax authorities are continuously updating their guidelines. To ensure accurate reporting, you need to keep track of all your crypto activity across all exchanges and wallets and stay up to date on the latest tax laws and that’s challenging.

One way out of this mess is to leverage tax automation software like Kryptoskatt. You just need to connect all your wallets and crypto exchange profiles on the platform, and it will auto-fetch all the necessary information and generate an accurate tax report based on your location. The platform even suggests tax-saving strategies like HIFO accounting and tax-loss harvesting, so that you don’t have to pay an extra dollar in taxes.

Frequently Asked Questions

1. What are the safest crypto wallets available?

If you’re looking for the safest crypto wallets out there, hardware wallets are the best alternative for you. These are physical devices that are designed specifically to secure cryptocurrency. They store your private keys offline, making them immune to hacking attempts and other online threats. Trezor Model T is one of the best cold wallets out there with a simple interface and includes many security features to protect your assets.

2. Which crypto wallet should I use?

There’s no “one size fits all” answer to this question. It’s a choice that is subjective to your priorities and expectations. If you want the best bitcoin wallet for your smartphone, do with BlueWallet, if you need a more secure alternative, pick a cold wallet like Trezor, if you want something that works well on your desktop, Electrum is the right choice, and if you need something that fits all your needs with a little compromise on security, go with Exodus. One thing that’s certain is that all the wallets on the list are good ones and you will not be disappointed if you choose to go with anyone of them.

3. What are the best Crypto Wallet apps?

If you’re looking for a crypto wallet app that’s compatible with your smartphone and easy to navigate, BlueWallet is the way to go. However, it only supports bitcoin transactions and that can be a handicap for some users. Some of the popular crypto wallets for smartphones are Mycelium, Trust Wallet, BRD, ZenGo, and Exodus. There are many cryptocurrency wallets available for smartphones, and the best one for you will depend on your specific needs.

4. What are the best Bitcoin wallets?

There are multiple bitcoin wallets available in the crypto sphere, however, we recommend going with Electrum if you’re a desktop user, and BlueWallet if you prefer using your smartphone.