The Best Crypto Wallets in 2022 for Traders and Investors

What Is a Crypto Wallet?

A cryptocurrency wallet is a wallet that allows you to store your public and private keys and passcode through which you can access your cryptocurrency on the public ledger known as the blockchain.

The wallet does not store the cryptocurrency itself. It only keeps the required information to access your cryptocurrency on your specific address on the blockchain. 

You must have a cryptocurrency wallet address to trade your cryptocurrencies either with other users or on crypto exchanges.

We mentioned earlier that there are two types of crypto wallets: hot and cold. Let's find out what each of them does.

Hot Wallet

A hot wallet is essentially any cryptocurrency wallet that has an internet connection or an online crypto wallet. It can be in the form of a mobile crypto wallet or a web-based wallet. 

The idea here is that it is always connected to the internet. Many crypto exchanges usually have their own wallets to make trading easier. 

The benefit of using a hot wallet is that you can quickly transfer crypto to and from the wallet itself. On the other hand, a hot wallet can be hacked more easily compared to a cold wallet.

Cold Wallet

On the other end of the spectrum, you have cold wallets. These wallets have no direct connection to the internet. 

Cold wallets are either physical devices or even pieces of paper. When you store crypto into a cold wallet, you essentially remove it from the internet, thus keeping it in a safer location. Since it has no internet connection, it is impossible to compromise as a result. 

Paper wallets are a bit different. These are sheets of paper with QR codes on them that can easily print at home. You just have to scan the QR codes to access and trade your cryptos. 

The cold wallets are much safer because no hacker can get to them. On the other hand, if you lose or damage them, you can say goodbye to your cryptocurrencies for good.  

Best Hot Crypto Wallets in 2022

If you decided to go with a hot wallet to make trading easier, here are some great choices.  

Exodus

Exodus crypto wallet is a multi-currency wallet that gives you access to hundreds of cryptocurrencies. Its main appeal is that it offers support for different altcoin options alongside the main cryptocurrencies such as Bitcoin. You can use it to exchange one cryptocurrency for another without registering. 

Electrum

Electrum is an online wallet that works on desktop and mobile. It specializes in the storage of the Bitcoin cryptocurrency. What makes Electrum stand out is the fact that it works on every operating system out there. 

This hot wallet keeps your keys encrypted and allows you to recover your funds with a secret phrase. Another important aspect is that it has no downtimes.

MyCelium

MyCelium is another cryptocurrency wallet specializing in Bitcoin storage while also providing excellent safety and privacy. It gives a fast connection to the BTC network, is fully open-source, and can be integrated with other wallets. 

MyCelium received several rewards for having one of the best mobile apps.

Besides these, some crypto exchanges, like Binance and Gemini for example, also offer you access to their very own wallet.

Best Cold Crypto Wallets

If you want the best privacy and security, you should go for a cold wallet. These are some of the best products on the market right now. 

Trezor

The Trezor wallets offer excellent recovery speed, which means that your wallet will always be accessible through your personal 12 to 24 words long recovery seed. The wallet is also cross-compatible, which means that it can be used with almost any crypto wallet app.

Ledger

Ledger is one of the most popular companies on the market. It released several cold wallets, all priced differently and with specific features.

Ledger keeps your cryptocurrencies secure through custom-built OS (BOLOS) and CE AEL5+ certified Secure Element (SE) chips, making it the safest crypto wallet.

SafePal

SafePal is a crypto hardware wallet that provides a high level of security for crypto investors and traders, which includes a self-destruct mechanism that prevents malware attacks. 

It has a high recovery speed, enables two-factor authentication, and has a key-deletion tool that allows you to add and delete cryptocurrencies and tokens quickly. 

Conclusion

Every cryptocurrency wallet, be it a hot wallet or a cold wallet, has its advantages and disadvantages. In the end, it all comes down to what you plan to do with your cryptocurrencies. 

If you want to invest and just store the crypto for a long time, a cold wallet is the best choice.

If you want to be a trader that buys and sells crypto even several times a day, a hot wallet is what you need. 

If you want to do both, consider getting a hot and cold wallet. 

Don't forget to check out our crypto wallet guide to find out how to properly use one.