What's covered:

What are the types and importance of crypto wallets?

What are custody solutions in the context of crypto wallets?

What are the top crypto wallets in 2024?

What security measures should be prioritized when using crypto wallets?

What kind of wallet is best for the business of exchanging?

‍

First things first, why do you need a crypto wallet? A secure wallet is essential for managing all of your digital assets. It allows you to store your cryptocurrencies and NFT’s online. Having a crypto wallet is necessary if you want to get involved in the world of DeFi. Wallets often support many digital assets and integrate with the latest DeFi products and services. 

It also ensures you can store and stake your cryptocurrencies safely, whether through hot wallets connected to the internet or cold wallets that offer offline storage for added security.

Cryptocurrencies are quickly changing how we think about money and the way in which we transact online. With the rise of many currencies comes the need for secure storage. In this guide we will walk you through the different types of crypto wallets and custody solutions.

‍

Understanding the difference between Hot & Cold Cryptocurrency Wallets

‍

Crypto wallets are the main tool that allow you to store, send, and receive digital currencies like Bitcoin, Ethereum, and many other altcoins. Unlike traditional wallets, they do not store currency in a physical form. There are two key types of wallets on the market today: Hot Wallets and Cold Wallets.

Hot wallets are connected to the internet and include web based wallets, mobile wallets and desktop wallets. They are convenient and widely used. However they can be vulnerable to cyber-attacks.

Cold wallets are offline wallets that take the shape of hardware and offer higher security against online threats. 

Custody Solutions are another way to manage your digital assets. These are often offered by experienced third parties and used by investors who have growing crypto investment portfolios. They provide an additional layer of security and convenience. Leading custody providers include Fidelity Digital Assets, Coinbase and BitGo. Metamask and Trust Wallet offer retail custody services. 

‍

Top Crypto & Bitcoin wallets to safely store Cryptocurrencies

There are many wallets to choose from across a wide range of ecosystems and some Layer 1 blockchains will recommend using certain wallets. However, there are a few that stand out from the crowd and have secured a reputation for trust and security that any cryptocurrency trader or holder will want to see. Here is a list of the top cold and hot wallets to choose from:

‍

MetaMask

Metamask is a popular choice of wallet among newcomers and long term holders. It is quite common for Ethereum holders to have a Metamask wallet as it holds a massive number of Ethereum based assets. This wallet is free and open-source. It is available on mobile and browser and supports over 650,000 assets and DeFi apps. 

‍

Trust Wallet

This is arguably the second most popular wallet in the market. As it is the official Binance wallet it supports over 10 million assets across 100 blockchains. It is open-source and allows for staking support.

‍

Coinbase Wallet

As one of the most popular cryptocurrency exchanges in the market it isn’t hard to understand why this is a top choice for crypto wallets. This is a non-custodial wallet from the leading exchange. It supports thousands of assets with mobile and browser applications. Coinbase has a reputation for being user-friendly for beginners.

‍

Crypto.com Wallet

Coming from this crypto giant it is no surprise that the Crypto.com DeFi wallet supports over 1,000 assets. It has integration with ledger for cold storage and supports staking. 

‍

Exodus

This is a free wallet. It is available on mobile, browser and desktop. It integrates with Trezor and has developed a reputation as an educational hub. It supports over 300 assets.

‍

Best Cold Wallets

Ledger

This is the most popular cold storage wallet for cryptocurrencies. It is renowned for its security features and user-friendly experience. It integrates with some of the most popular software wallets on the market and supports over 5,500 assets.

‍

Trezor

This is another top cold wallet and integrates with wallets like Exodus. It supports over 9,000 digital assets and is seen as a premium hardware wallet.

‍

Exchange Business Wallet

At HollaEx® we have a complete white label solution for businesses looking for DeFi integration. Our embedded wallet enables seamless transition into the world of digital assets.

Navigating the world of cryptocurrency wallets and custody solutions can seem daunting, but understanding the basics is a crucial step in protecting your digital assets. When choosing a wallet or custody solution, prioritize robust security measures like multi-signature authentication, biometric verification, and advanced encryption to safeguard your holdings. 

Also, consider your comfort level with managing your keys—some prefer full control, while others opt for third-party management. User-friendly interfaces can be particularly beneficial for those new to cryptocurrency, making it easier to manage and access your funds. Ensure the wallet you choose is compatible with the cryptocurrencies you own and be sure to do your own research in advance to understand the requirements for depositing, storing and withdrawing digital assets. 

In addition to picking the right wallet, it is essential to be mindful of online security. Use strong passwords and always enable two factor authentication (2FA) for an extra layer of protection. Be vigilant against phishing scams that use suspicious emails and websites. Never click on a spam link. 

Whether you opt for a hot or cold wallet, self-custody, or a third-party custodian, prioritizing security and staying informed about best practices will help you manage your cryptocurrency with confidence. HollaEx® have designed customizable tools to support all of your requirements when it comes to designing your cryptocurrency exchange and wallet.