Cryptocurrencies are all the rage right now, and for a good reason! They offer a level of privacy and security that traditional currencies just can't match. Setting up crypto wallets might seem daunting if you're new to cryptocurrencies. But don't worry, we've got you covered!
A hot wallet is a form of crypto wallet that is connected to the internet. Hot wallets are convenient because you can easily access and spend your coins.
However, because they are connected to the internet, they are also more vulnerable to hacking than cold wallets. For this reason, choosing a hot wallet that is well-reviewed and has strong security features is important.
This post will share 10 of the best crypto hot wallets for beginners. So whether you're looking for a way to store your Bitcoin or Ethereum safely and securely or just getting started with cryptocurrencies and want to learn more about hot wallets, read on!
What is a Hot Wallet?
Before the meaty gritty part, let's first give you a background on Hot Wallets.
Because hot wallets are always linked to the internet, the private keys necessary to sign transactions also allow you to access them online. Transactions can be produced and stored on the blockchain in an automated manner without the involvement of any humans being required in either process.
The users can rapidly and simply trade their assets, which is the main advantage of this method.
However, if the safety of the private key is breached, this method can make the wallet more susceptible to theft. This is because the hot wallet always allows you to be linked to the internet, and the keys are kept in a single area.
Don't fret, though; many safety measures can be put into place to ensure this doesn't happen, which we will go over later in the article.
Types of Hot Wallets
Now that we have established that a crypto wallet is a digital wallet that stores your crypto assets, you have to know that there are three main types of crypto wallets: desktop wallets, mobile wallets, and web-based wallets. Each type has its own advantages and disadvantages.
Desktop wallets are the most secure type of crypto wallet. They are less susceptible to being hacked because they are not connected to the internet.
However, they are not as convenient because you have to download and install them on your computer. And it can be a little bit more challenging to set up and use, especially if you're not tech-savvy.
Mobile wallets are apps that you can download and install on your smartphone and are more convenient than desktop wallets because you can take them with you wherever you go. They are also less likely to be hacked because they are not connected to the internet.
However, they are not as secure as desktop wallets because they can be lost or stolen.
These wallets are hosted on a website and can be accessed from any internet-connected device. They offer the highest degree of convenience because you can use them from anywhere in the world with an internet connection.
Hot Wallet vs. Cold Wallet
What's the difference between hot wallets and cold wallets? In simple terms, hot wallets are best for day-to-day transactions, while cold wallets are best for long-term storage.
Hot wallets are software wallets that are connected to the internet. As a result, they're more convenient for day-to-day transactions. If you store your cryptocurrency in a hot wallet, choosing a reputable provider is important and taking steps to protect your account (such as enabling two-factor authentication).
On the other hand, cold wallets are hardware wallets that are not connected to the internet. Cold wallets are considered more secure because they're not accessible by hackers. However, they're also less convenient for day-to-day use. To store your cryptocurrency in a cold wallet, you'll need to purchase a hardware wallet and keep it safely stored offline.
A hot wallet will be more convenient if you plan to make regular transactions with your cryptocurrency. A cold wallet will be your best bet if you are looking to store your cryptocurrency long-term.
If you choose Hot Wallets, we prepared a list of the best ones for you!
Best Crypto Hot Wallets For Beginners
If you're looking for a hot wallet that can do it all, Exodus should be at the top of your list. This easy-to-use multi-cryptocurrency wallet can store a wide range of digital assets and unique ERC-20 tokens that aren't currently supported by other wallets.
Once you're inside the Exodus wallet app, the look and functionality are both enticing. Considering that the software is designed to provide cryptocurrency exchange and investment management, this is quite a feat.
A free desktop and mobile device wallet, Exodus is also supported with cold wallets and hardware wallets. For this reason, as well as its wealth of features, Exodus has been favorably regarded in the cryptocurrency community.
Exodus also has the advantage of directly depositing crypto-prizes into the wallets of its users. Thus, there is no danger to the user. Therefore, investing in Exodus is a no-brainer!
Ledger Nano S
Hardware wallets are an increasingly popular way to store cryptocurrencies, and Ledger is one of the leading manufacturers.
The Ledger Nano X is the company's latest offering, and it builds on the success of the previous Ledger Nano S, with a hot wallet as its new feature.
The Nano X is easy to use, thanks to its USB drive-like design. It's also compatible with more than 1,800 cryptocurrencies, which makes it one of the most versatile wallets on the market. And if you need to add new wallets to your device, the Ledger team has built a user-friendly interface that makes it a breeze.
With its combination of security, ease of use, and compatibility, it's no wonder that hardware wallets and cold storage from Ledger have long been the most popular choice for cryptocurrency investors.
And if you're looking for a wallet to safeguard your digital assets, the Ledger Nano X should definitely be at the top of your list!
Looking for a Hot Wallet that will ll allow you to store your cryptocurrency and trade directly from your wallet? If so, Trust Wallet is the perfect choice for you!
This popular cryptocurrency wallet is available on both iOS and Android devices. And best of all, it's completely free to use.
Trust Wallet is a decentralized wallet that stores your private keys on your device and not on a central server. This gives you complete control over your cryptocurrency and makes Trust Wallet one of the most secure wallets available.
In addition to its security features, Trust Wallet has an open code policy that gives users and professionals a sneak peek into how the wallet works.
Its interface is intuitive and functional, making it easy to use. Overall, Trust Wallet is an excellent choice for those looking for a hot wallet that offers both security, convenience, and control.
When it comes to efficiency and low fees, Electrum is hard to beat. This desktop wallet for Windows, Mac, and Linux has been around since 2011 and is one of the most popular cryptocurrency wallets available.
Electrum is a lightweight wallet that doesn't require you to download the entire blockchain to use it. This makes it much faster than other wallets that need to sync with the blockchain before they can be used.
In addition, Electrum uses an innovative system called Simplified Payment Verification (SPV) which allows it to verify transactions without downloading the entire blockchain.
In terms of features, Electrum offers support for multiple wallets, as well as for hardware wallets like the Trezor and KeepKey. It also has an exchange feature that allows you to trade directly from your wallet.
And if you're looking for a little extra security, Electrum allows you to create a multi-sig wallet- this security feature requires a user to have more than one person (including the user) to sign off on a transaction in the platform before it can be processed.
Overall, Electrum is a great choice for those looking for a fast and lightweight wallet that doesn't sacrifice security or features.
Mycelium is the wise old veteran of the cryptocurrency wallet world. This Android and iOS wallet has been around since 2013 and has built up a solid reputation over the years.
Mycelium is known for being one of the most secure wallets available. It uses industry-leading security practices, including 2-factor authentication and hardware wallet support.
In addition, Mycelium has a basic UI that is easy to use, even for those new to cryptocurrency.
One of the most unique features of Mycelium is its decentralized network called Hive. This allows users to connect directly with each other and trade cryptocurrencies without the need for a central exchange.
However, the platform doesn't allow signed messages, and its support for Bitcoin Cash is currently in beta. But, don't worry, its security is on par with the other wallets on this list!
Robinhood is not the good bandit that gives money to the poor and steals from the rich. No, this Robinhood is a commission-free stock trading app that also happens to support cryptocurrency trading.
While Robinhood started out as a stock trading platform, it has since expanded its services to include cryptocurrency trading. And in 2018, it became one of the first mainstream brokers to offer commission-free crypto trading.
The wallet itself is very simple and easy to use. It's also one of the only wallets on this list that allows you to buy and sell cryptocurrencies directly from your wallet.
The interface design is sleek and modern, making it easy to navigate. Overall, Robinhood is a great choice for those looking for a simple and convenient way to buy and sell cryptocurrencies.
Edge is a smartphone wallet for Android and iOS that was originally developed under the name AirBitz. In 2017, the wallet was rebranded to Edge and has since become one of the most popular cryptocurrency wallets available.
Edge is a Hierarchical Deterministic (HD) wallet; this type of wallet uses a master seed to generate all of its addresses. This makes it more secure than other wallets that use a single address.
In addition, Edge uses 2-factor authentication and fingerprint recognition to further secure your accounts.
Edge also offers unique features, such as its support for atomic swaps and instant exchange. Atomic swaps allow you to trade one cryptocurrency for another without needing a central exchange. And the instant exchange feature allows you to convert one cryptocurrency into another without first converting it to fiat currency.
Overall, Edge is a great choice for a secure, feature-rich, cutting-EDGE wallet.
Blockchain Wallet uses company servers to store your private keys. This means your keys are not stored on your device and are instead stored on the blockchain servers.
While this might make some people uneasy, it does have some advantages. For one, it means that you can access your wallet from any device with an internet connection. And two, it's one of the most secure wallets available because your keys are not stored locally.
Their design is user-friendly with a simple interface. They also offer some advanced features, such as multiple address support and hardware wallet support.
Blockchain Wallet's main selling point is its non-custodial main wallet, which means that you are the only one with access to your private keys and the only one that can process funds.
As in, the whole ownership is in your hands! So, if you're looking for a wallet that puts you in full control, Blockchain Wallet is a great choice.
Hands down to this wallet for giving us the ability to use Ethereum dApps in our browser without having to run a full node!
Metamask is a light wallet that is capable of storing ETH and other ERC20 tokens while also giving you access to dApps. It's available as a browser extension for Google Chrome, Mozilla Firefox, and Brave.
Metamask is very easy to use and has a simple, user-friendly interface. It's also one of the most secure wallets available because it uses a combination of both software and hardware security measures.
Security is not the issue with this one, as they send verification for every action or transaction you make.
Overall, MetaMask is a great choice for those looking for an easy way to access dApps and store their ETH and ERC20 tokens.
Last but certainly not least is Atomic DEX, a non-custodial wallet that allows you to trade cryptocurrencies directly from your wallet.
Atomic DEX is a Hierarchical Deterministic (HD) wallet, which means it enables you to generate an unlimited number of addresses from a single seed. This makes it more secure than other wallets that use a single address.
In addition, Atomic DEX is compatible with MetaMask and other popular Ethereum wallets.
Atomic DEX also offers a great "atomic swaps" feature like Edge, which allows you to trade one cryptocurrency for another without needing a central exchange.
Users can trade peer to peer without worrying about their funds' security because the Atomic DEX wallet uses end-to-end encryption.
Atomic DEX is a great choice for those looking for a secure and feature-rich decentralized exchange.
Many great cryptocurrency wallets are available, but your best wallet will depend on your needs. If security is your main concern, a hardware wallet like Ledger or Trezor is a good choice. If you're looking for an easy way to access dApps, then Metamask is a great choice. And if you're looking for a wallet that allows you to trade cryptocurrencies directly from your wallet, then Atomic DEX is a great choice.
No matter your needs, there's a great cryptocurrency wallet out there for you. So, make sure to do your research and choose the best wallet for your needs. Until our next EXCHANGE!