Digital currencies especially Bitcoin has gained more than usual popularity over the last couple of years. Because cryptocurrencies are unlike government supported currencies i.e. fiat currencies, people take great interest in these digital currencies especially for investment purposes. Before making up your mind to invest in cryptocurrencies, first you need to understand the available risks one of which is to securely store your cryptocurrency. Same like a physical wallet that you keep in your pocket and it includes your essential items; credit cards, ATM cards, cash and other documents, there are digital wallets available to store your cryptocurrencies. Some of these wallets are digital that you can operate on your smart phone or computer while some wallets come in form of physical devices that you plug-in to your computer.
Key Elements to consider before Selecting a Cryptocurrency Wallet:
- Having good experience in handling and holding a cryptocurrency wallet or being a newbie to this system.
- Using the wallet for regular purchases or using it just to store digital currency for investment purposes.
- Putting single type of cryptocurrency in the wallet or storing multiple currencies at once.
- Using the wallet just from a single location i.e. your home or want to access it from anywhere.
- Deciding on number of security layers to add protection to the wallet.
Top 7 Cryptocurrency wallet of 2020:
1 – Coinbase:
This is by far one of the most famous and top of the line wallet for keeping, securing and trading digital currencies. The best thing about this wallet is that it can easily connect to your bank account and you can use the money in your account to buy cryptocurrency and transfer it directly to your wallet. You can even keep fiat currency i.e. dollars in this wallet if you want. The top cryptocurrency that Coinbase can store is Bitcoin but there are further available options as well including; Bitcoin Cash, Litecoin and Ethereum. There is no confirmation but some rumors indicate that Coinbase also supports Ripple which is a popular cryptocurrency. With continues updates of security system and improvements in user experience, Coinbase is considered a secure wallet for multiple cryptocurrencies.
2 – Electrum:
This is again a digital wallet that you keep on your computer or laptop. One of the important benefits of using Electrum is that it can work with almost all sorts of operating systems. Another advantage of Electrum is that it is compatible with physical wallet or devices so you can even connect Trezor with Electrum for added security. There are data backup options available with Electrum but keep in mind that if the computer crashes or it is hacked, you might find it complicated to get the wallet back.
3 – Trezor:
Unlike most of the digital cryptocurrency wallets out there, Trezor is a physical wallet that comes in form of a USB device that you connect with your computer or laptop. Because it is type of a physical wallet, there are added benefits of great security to secure your digital currencies. One downside of Trezor is that it can only hold your cryptocurrency but can’t be used for trading or selling or buying the currency. The basic idea of having a physical device as a wallet is to keep it secure from hacking and unauthorized use but if the device is lost, you might find it difficult or complicated to restore the data or find the device itself.
4 – Exodus:
Exodus is also a very famous wallet that is gaining popularity among users in 2020. This is a digital wallet like Coinbase without the need of a physical device. Unlike some other wallets, you can only use Exodus on a computer which means it doesn’t operate on a mobile or smart phone. One of the unique features of this wallet is that it turns your digital currencies into charts and graphs in form of a portfolio. Keep in mind that this wallet is not as secured as some other wallets but the feature that attracts traders to this brand is the review of stored currency in form of portfolio.
5 – Blockchain:
Blockchain is also one of the most famous and well known digital wallets in 2020. This is actually the base of the cryptocurrency which means you will hear Blockchain more often than you expect while trading cryptocurrencies. This wallet can hold multiple types of digital currencies and it can be used for storing and trading these currencies in more than 30 countries around the world. One of the key benefits of using Blockchain is that it’s one of the wallets that allow you to send or receive digital currency directly with some processing fee.
6 – Mycelium:
This particular wallet is best known for being used on a smart phone and users find it appealing that because it can’t be used on a desktop computer, it’s less complicated with just the essential tools and features. New users might find it complicated but anyone with background in trading cryptocurrency can easily wrap their heads around the security features of Mycelium. The best thing about Mycelium is that even if it’s not built for desktop computers, the security layers are very similar to online banking and the best thing about this wallet is that it’s on your smart phone which means it stays with you all the time.
7 – Robinhood:
Robinhood was first seen as a platform for trading stocks but in recent years, it’s upgraded to a digital wallet that can keep multiple cryptocurrencies in one place. Same like top of the line wallets, you can use Robinhood to store and trade cryptocurrencies but one downside is that it can’t be used to transfer digital currencies into another wallet. The ideal benefit of Robinhood for most people is that there is no fee or charges for storing cryptocurrencies and some might see it as a less secure platform but if it’s secure for stocks, it’s certainly secure enough for digital currency as well.