If you want to invest in cryptocurrency, you need a crypto wallet. But unlike a regular wallet that stores cash, a crypto wallet doesn’t actually hold your crypto. That’s all recorded on blockchains. Instead, a crypto wallet holds the private keys that enable you to send, receive, and manage crypto stored on blockchains.
Choosing among crypto wallets goes far beyond the style choices you might look for in a traditional wallet, as crypto wallets are instead differentiated in important areas such as security and accessibility.
In this guide, we’ll take a closer look at what crypto wallets are and examine some of the best crypto wallets available, from Best Wallet to Ledger Nano X.
What is a crypto wallet?
A crypto wallet is a location for storing private keys that give you access to your crypto holdings stored on public blockchains. Private keys are cryptographic codes derived from 256-bit numbers (essentially complex passwords), making hacking impractical based on current computing capabilities. Each blockchain network (e.g. Bitcoin, Ethereum) has its own private key associated with it. And since you’re not going to remember these passwords, they’re stored in your wallet.
A private key pairs with a public key, and the public key can be freely shared with others as your wallet address. Others can use that public key to send crypto to you, but the transfer only gets recorded on the associated blockchain after you input your private key to authorize the transaction. So, you need your crypto wallet to keep your private keys safe, otherwise someone could claim ownership and move crypto without your permission.
Some wallets go beyond key storage to track your crypto holdings and transactions, even though everything technically lives on the blockchains relevant to those transactions. As we’ll discuss below, there are many different types of wallets to consider.
Types of crypto wallets
Crypto wallets aim to keep private keys secure and let you manage your crypto holdings through varying approaches. One of the major differentiators is that crypto wallets can either be custodial or non-custodial; custodial wallets involve a third-party holding your private keys, while a non-custodial wallet means you hold them. Also, crypto wallets can be hot (online) or cold (offline).
Here’s a closer look at these different types of crypto wallets and why you might choose one over the other.
Custodial wallets
A custodial wallet involves a third-party custodian managing your wallet, including the private keys, on your behalf. It’s sort of like how a bank manages your checking account, rather than you holding onto the cash yourself. Just as you may trust the bank to keep your deposits safe, a custodial wallet means you’re trusting that third-party custodian to keep your private keys safe.
Whether or not this is secure depends on factors such as the custodian and your comfort level. However, custodial wallets are very common, and they’re easy to use, since a third party manages them for you. In many cases, when you create a crypto account through a centralized exchange (CEX) like Coinbase or on some brokerage platforms like eToro, you can use that platform’s custodial wallet, although you might have the option to use your own non-custodial wallet instead.
Typically, custodial wallets are best for beginners or those who prefer simplicity and are comfortable with a third-party exchange or similar platform holding their private keys.
Non-custodial wallets
In contrast with custodial wallets, non-custodial wallets do not have a third-party custodian, meaning no one has your private keys except you. These are also called self-custody wallets.
Still, you don’t need to memorize your private keys. With software non-custodial wallets, like Best Wallet, which offers a full ecosystem for managing and trading crypto, you can log into the app or browser extension, and the app can access your private keys stored locally on your device, rather than on the wallet company’s servers. Many non-custodial apps, including Best Wallet, also integrate DeFi tools like DEX access and staking, so you don’t need separate apps for investing and storage. There are also offline devices that store your private keys if you want to further reduce the risk of hacking.
With any non-custodial wallet, you can regenerate the wallet via a seed phrase. So even if a particular wallet provider goes out of business or you lose your hardware wallet, you can create a new one with the same private keys via the seed phrase.
You need to keep your devices, passwords, and seed phrases safe when you use a non-custodial wallet, but the upside is that you have more control, and you might feel more secure than with custodial wallets. However, this is a more advanced way of managing your crypto.
Cold wallets
Cold wallets are offline wallets — generally self-custody wallets — that could range from no-tech options like a piece of paper with your private keys to high-tech solutions like Trezor hardware devices that connect to computers or phones via Bluetooth or USB to digitally authenticate transactions.
An advantage of using a cold wallet is that you can avoid internet-based attacks, like malware infecting your computer and enabling a hacker to gain access to your wallet. However, there are risks involved in using a cold wallet, such as losing or damaging your device. And if you don’t know your seed phrase, you could permanently lose access to your crypto holdings.
Hot wallets
Hot wallets are software-based wallets that store the private keys locally on your device for self-custody options, but the wallets themselves are still connected to the internet. That could make these wallets susceptible to certain cyberattacks, like malware or phishing, that could potentially lead to others accessing your private keys.
However, you can protect against this through cybersecurity best practices, like being careful about clicking on links that may be phishing attempts. Still, hot wallets have the advantage of convenience over cold wallets, as you can access your crypto from essentially anywhere.
How to choose the best crypto wallet
Choosing the best crypto wallet depends on several factors that align with your comfort level and your investing goals. Consider these factors:
- Security features: Look for basics like private key control, multi-factor authentication, and open-source code.
- Supported blockchains: Find out which crypto are supported.
- Ease of use: Some crypto investors want a more user-friendly interface or a quick start-up, which some custodial wallets offer.
- Compatibility: Some wallets only work on mobile or desktop. You should also consider compatibility, such as with other aspects of decentralized finance (DeFi), like whether a wallet offers NFT storage. For example, a multi-chain DeFi wallet like Best Wallet can connect to different blockchains and dApps from one interface, which may appeal if you plan to use DeFi regularly.
- Backup/recovery options: Wallets can differ in terms of their backup/recovery options. Some do not have any options besides you keeping your seed phrase secure on your own and using it if needed, while others might have more integrated backup options — although that might increase security risks.
We’ve prioritized non-custodial wallets like Best Wallet that balance security with DeFi access, alongside leading hardware options for maximum cold-storage protection.
Best crypto wallets in 2026
Best Wallet — Best for overall DeFi compatibility/accessibility
Best Wallet is a self-custody wallet that supports multiple blockchains and provides access to the broader DeFi ecosystem through an integrated crypto launchpad and decentralized exchange. Along with biometric authentication, Best Wallet offers personal cloud wallet backups and easy recovery that doesn’t require a seed phrase. That makes it a natural home base if you want one place to buy, store, and manage crypto across multiple exchanges and DeFi apps.
Plus, Best Wallet also does not have KYC requirements, making it a strong choice for anonymous trading. New features are being added, such as multi-wallet compatibility for crypto portfolio management, where you can view all your holdings in one place.
Pros
- User-friendly interface makes it accessible to beginners
- Multi-chain support
- Broad DeFi features currently or soon available, including a crypto launchpad and crypto portfolio management capabilities
- Acts as a single interface to connect with multiple DEXs and presale opportunities via its crypto launchpad.
Cons
- Mobile-only
- Shorter track record than some competitors
- Relies on cloud backups and device security rather than traditional seed‑phrase recovery
Ledger Nano X — Best for security
While security preferences differ by investor, the Ledger Nano X hardware wallet (cold wallet) is considered a top pick for security across the board.
Your private keys are stored offline on a CC EAL5+ certified chip. The device can then connect to a smartphone via Bluetooth or to a computer via USB. While the approvals are sent between the hardware device and your online device, your actual private key isn’t transmitted. Instead, the authorization happens inside the device via its built-in chip, so the authentication data isn’t then passed among the devices.
Pros
- Private keys isolated offline
- Supports over 5,500 coins and tokens
- Relatively easy to set up
Cons
- Cost (typically $149)
- Physical device can add a barrier to accessing crypto from anywhere
- Additional functionality available within the broader Ledger ecosystem, which may not be your preferred way to manage crypto
MetaMask — Best for Ethereum
MetaMask is another self-custody wallet that primarily offers compatibility with the Ethereum network, including Ethereum-based tokens, though it also supports the Solana network.
The platform offers a wide range of Web3 features, such as the ability to buy and sell crypto, swap crypto, and earn staking rewards. It even offers a MetaMask Mastercard that connects to your wallet, enabling you to pay for traditional retail transactions with crypto.
Pros
- Broad access to Web3 applications
- Strong security features, like real-time threat monitoring
- Available on desktop and mobile
Cons
- Limited support for different blockchains (no direct compatibility with Bitcoin)
- Gas fees for swaps can be high, connected to the wallet’s focus on Ethereum
- Platform can be overwhelming for beginners
Exodus — Best for beginners
Exodus is also a self-custody wallet that’s a great pick for beginners, thanks to its user-friendly interface and support for 281 crypto assets. Plus, you can add custom tokens across 17 supported networks.
You can also use it on desktop or mobile devices, and it has intuitive, native integrations with Trezor and Ledger hardware wallets. This is helpful if you want the security of cold wallets while gaining the portfolio management capabilities of a software wallet.
Pros
- Clean, intuitive interface
- Wide-ranging support for cryptocurrencies across 17 networks
- Built-in staking rewards
Cons
- Not as comprehensive as some other DeFi wallets
- Browser extension is only available on Chrome and Brave
- Swap fees may be higher than some other platforms
Trezor Safe 7 — Best for advanced security
Another strong pick for those who prefer a hardware wallet is the Trezor Safe 7, which is new to the market.
Trezor touts features such as a next-gen, auditable TROPIC01 chip and quantum-ready architecture that can potentially protect against future threats posed by quantum computing advancements. Plus, the device can receive quantum security-related updates.
Pros
- Potential future-proofing with quantum-ready security
- Auditable chip
- User-friendly touchscreen
Cons
- Relatively high cost (currently $249)
- New product lacks track record
- Lacks the accessibility of a software wallet
Best Crypto wallets at a glance
Security tips for using crypto wallets
No matter which wallet you ultimately choose, there are some best practices to help keep your wallet and crypto holdings safe, such as:
- Keep private keys offline if possible: While this doesn’t apply to custodial wallets, if you do have control of your own private keys, consider always keeping them stored offline to reduce the risk of losing them in a cyberattack.
- Enable 2FA: Add an extra layer of security, especially for custodial wallets that connect to the internet, by enabling two-factor or multi-factor authentication.
- Watch for phishing scams: Be careful before clicking links or responding to emails. Look for misspellings in URLs, for example, which could indicate a fake website is trying to steal your wallet info.
- Regularly update firmware and software: You can help keep your devices and apps secure by making firmware and software updates whenever available. This could include updates for your wallet itself, or it might include updates to your computer, which can reduce the risk of cyberattacks that could ultimately expose your private keys.
Frequently Asked Questions (FAQs) about crypto wallets
What is the most secure crypto wallet?
The most secure crypto wallet is difficult to determine, but some investors prefer hardware wallets over software wallets to minimize the risk that can come from internet-connected devices. The Trezor Safe 7 is a new hardware wallet that claims to have quantum-ready security.
What wallet is best for beginners?
The best crypto wallet for beginners depends on your preferences, such as the crypto assets you want to trade and the interfaces you like. Best Wallet is a beginner-friendly wallet with broad DeFi accessibility, while options like Exodus also offer simple interfaces with strong multi-asset support.
Are hardware wallets worth it?
Hardware wallets may be worth it if you have substantial crypto holdings and want to minimize the risk of an internet-based attack. However, if the wallet costs more than your crypto holdings, or even a similar amount, it’s hard to justify the ROI.
Can I store multiple cryptocurrencies in one wallet?
Yes, many wallets support multiple cryptocurrencies. However, compatibility varies by wallet, which can influence your choice. Or, you might hold different wallets for different coins and tokens.
What’s the difference between custodial and non-custodial wallets?
Custodial wallets involve a third party that holds your private keys on your behalf, while non-custodial wallets do not store your private keys on servers. Instead, your keys are held locally on your own device.
Created by the Commerce team at Business Insider with Best Wallet.
