Many people talk about the differences between hot wallets, cold wallets, or what is known as software wallets or hardware wallets. Some prefer hardware wallets, while others like to have consistent access to their investments on their mobile devices 24/7. But what is undeniable is that keeping your crypto safe from hackers or scammers is the most important aspect of any digital currency.

In this article, we will delve into a full crypto wallet comparison between the top 3 best hot wallets and the top 3 best cold wallets available. We will uncover which cryptocurrencies are accepted by which wallets, their pricing, apps available features and most importantly, their security. Keep reading to discover everything you need to know about picking the best option for you!

Understanding Crypto Wallets

Whether you are new to crypto investing or are a seasoned veteran, the number one thing that you have in common is the need to keep your money protected and safe. That, generally speaking, is what a crypto wallet does. It holds your public and private keys and allows you to send, receive and most importantly, store your cryptocurrencies.

A crypto wallet is where your private keys are held and stored. Similar to a physical wallet where you would keep your bills and coins, a crypto wallet does the same for your digital money. According to Forbes, a crypto wallet protects your Bitcoin and other cryptocurrencies. Imagine that your public key is something like your bank account number—you can share it with anybody, but it doesn’t provide access to your money. But it is your private key that is the password to this account. Your private keys is what your crypto wallet is safeguarding. 

Variety of Wallets Available: A Comparison of Crypto Wallets

Generally speaking, there are two types of wallets available. Hot wallets, which rely on the internet and therefore are more susceptible to hackers, and cold wallets, which do not need any third-party sources. Within these two types of crypto wallets is where you will find the concept of paper wallets, hardware wallets, and online wallets. 

Paper Wallets are as simple as they sound. You literally write your private keys on a piece of paper, tuck it away in a safe place and hope that it does not get lost or damaged. 

Hardware wallets, come in two versions. A cold wallet and a hot wallet. A hot hardware wallet example would be something like a USB. It is held on a device that is less likely to be destroyed than a piece of paper but is still plugged into a computer and therefore can be hackable. A cold hardware wallet, like that of Material Bitcoin, is usually made of steel or another type of indestructible material which protects your private keys. 

Finally, there is the online wallet which is 100% accessible on a desktop, or mobile app. These wallets need an internet connection to work and store your crypto and passwords, which makes them the least secure of all types.

Hot Versus Cold: Comparing the Top 3 Best Hot Wallets & Cold Wallets

Each type of crypto wallet has its advantages and disadvantages. Hot wallets perhaps offer better accessibility to you in more remote areas or when you are not home to access your private keys from your notebook or steel plate. While cold wallets definitely give you more peace of mind and protection. 

Let’s Dive Into Our Top 3 Best Hot Wallets

1. Best Wallet

This is a unique option as it allows you to trade and swap on multiple blockchains. Traditionally speaking, you would normally need to have multiple individual blockchain wallets to do this, but not anymore with Best Wallet.

Currently, Best Wallet functions as a mobile app, which can be downloaded from the Google Play Store or App Store. It supports all tokens on the Ethereum, Polygon and BNB blockchains. Best Wallet is free to use and has its own “ecosystem” of tokens set up, which rewards users for utilizing different aspects of the app and wallet.

There are fees applied to trading crypto and third-party charges also apply when using a credit card. 

In terms of security, the app uses two-factor authentication measures, and a four-digit pin code to enter. 

Overall, it is a convenient wallet that offers one-of-a-kind rewards for users that we haven’t seen in many other crypto wallets. 

SafePal

Our second option for the best hot wallet on the market is SafePal. It can be accessed via mobile app and web browser extension. It supports over 30,000 cryptocurrencies, including Ethereum, Bitcoin, Litecoin, XRP and BNB and allows you to trade between various chains. However, there are fees applied to doing so. 

You can easily trade your cryptocurrencies between Bitcoin and Ethereum while keeping everything in one wallet. Apart from trading currencies, you can also buy crypto, however, third-party charges will also apply when doing so. 

You can easily connect SafePal to dApps if you wish to yield farm or NFTs. Additionally, SafePal Wallet also offers a separate hardware wallet option, for those who prefer to keep their private keys physically – making SafePal both a hot and cold wallet, depending if you opt to buy the hardware version. 

Trust Wallet

One of the most popular and well-known crypto wallets out there, Trust Wallet is an extremely user-friendly wallet, perfect for crypto investors who are just getting started. It can be used as a mobile app for both iOS and Android, and has a Chrome browser extension for desktop use.

Like the other two hot wallets we have previously mentioned on our list, Trust Wallet also allows you to swap on multiple blockchains without leaving the interface of the app or browser page. 

There are no fees for storing cryptocurrencies or for receiving them however, there are GAS fees applied based on each blockchain. It supports Bitcoin, Ethereum, Binance Smart Chain and many other tokens. 

Trust Wallet uses private keys for user access and a 12-word passphrase for security. This gives you the option to recover your crypto if you lose or forget your password. Remember, however, that whoever has access to your seed phrase will have access to your funds. I recommend storing your phrase in a cold seed phrase wallet.

Overall, there are plenty of hot wallets to choose from. Many of them offer a “standard” list of features, such as trading and swapping on different blockchains, while some provide better security options and measures than others. The most important thing when deciding on which hot wallet to use comes down to safety and accessibility. 

Our Top 3 Best Cold Wallets

Cold wallets are best described as an offline wallet for your cryptocurrencies. This is not to say that they cannot be connected in one way or another to an online platform if you want, but refers to the fact that they do not need an internet connection or third-party associates to function and store your digital investments.

Here are our picks for the best cold wallets available for safeguarding your crypto. 

1. Material Bitcoin

We present Material Bitcoin as an unbeatable cold wallet option, offering a variety of different hardware wallets, pricing starting at 89€. 

This wallet is a great option for those who like to have the security of physically holding their private keys in their hands. The hardware plate is made up of 100% stainless steel and is fire and water-resistant. 

There are different options for different cryptocurrencies. The general Material Bitcoin plate only holds BTC, but, you can purchase Material Ether, created to store Ethereum tokens and Material USDT to store USDT. 

You can easily store your funds and make transactions using the QR code found on the steel plate as well as share your address with others to quickly send and receive bitcoin. 

Overall, if security and safety is the number one feature you are after. There isn’t any other cold wallet on the market that can protect you like Material Bitcoin’s hardware cold wallet. 

2. Ledger Nano S Plus

This well-known and reputable cold hardware wallet comes in at $79. It is a great and affordable option for anyone looking for top-of-the-line security. It gives you the option to set up backup pass-phrases and 24-word seed codes and PIN all for added protection. 

The Ledger Nano S Plus supports over 5,000 cryptocurrencies across many different networks and holds Bitcoin, Binance Smart Chain, Ethereum, Polkadot, and XRP to name a few. 

Apart from the initial fee of $79, swapping, staking, and fiat purchases are all subject to fees. This cold wallet also comes with Ledger Live, and it can be accessed via mobile app or browser. 

These types of wallets are also cold but they are on an electronic device, so you will need to be careful to take care of the device and updates to keep your funds safe.

3. Blockstream Jade

Perhaps a lesser-known cold wallet, but one worth mentioning due to its affordability and high-security features. Coming in at $64.99, Blockstream Jade is a bit cheaper than the Ledger Nano S Plus. 

As this is a hardware wallet, it offers offline private key storage and supports Bitcoin and Liquid Network assets like Liquid Bitcoin (L-BTC) and Liquid-based Tether (USDt). Unfortunately, it is only limited to these.

Apart from the initial fee of the hardware cold wallet, there are no additional fees, not even for the mobile app or web browser feature.

What makes Blockstream Jade super safe is its security measure, which includes a self-destructing PIN if entered incorrectly 3 times. 

Choosing the Right Wallet: A Key to Crypto Success

As you have seen throughout this post, there are many options available when picking a wallet for your crypto.

It is obvious that there is no right answer to safeguard your digital currency, but there are many key elements that can help when deciding which wallet is best for you. We hope that our comparison of crypto wallets has helped you in deciding the best option.

Whether you decide on a hot wallet, cold wallet, paper or hardware, make sure you take into account its accessibility and security. The final choice is in your hands!