Which is the best?
Cryptocurrency wallets are not “one-size-fits-all” and there is no one best choice. Each individual needs to select the wallet that suits their portfolio goals and level of expertise. Some questions to address are:
- Do you want to invest in crypto long-term or short-term?
- What cryptocurrencies do you want to invest in?
- Are you a large or small investor?
- Do you want to trade crypto?
- How secure is your computer or device that will hold the wallet?
- How technically experienced are you?
- Do you need to have mobile accessibility?
- Are wallet costs a concern?
- Will you be making crypto purchases?
- How often will you use your wallet?
- Is a user-friendly interface desired?
- How diversified is your portfolio?
- How important is your privacy?
- Do you want to provide personal data?
As you can see, the choice depends on security, convenience, intent, duration, and more. Some investors use several types of wallets, and for different reasons. It is common to have a hardware wallet for cold storage of assets for long-term investment, and a hot wallet either on a desktop or mobile device for the quick or frequent moving of funds.
What is the cost?
Software wallets either downloadable or from an online service are usually free. Hardware wallets are purchased and range from as low as $20 to as high as $500 for special versions. Ledger Nano S is one of the most affordable hardware wallets with great features and high ratings at a cost of $69 to $100. If you’re serious about investing in cryptocurrency, you should consider a hardware wallet purchase. If you’re just getting started, review the options and select the wallet that best suits your purposes.