Just like a regular wallet, you may need a cryptocurrency wallet to hold and protect your Bitcoin and other types of cryptocurrency. While a crypto exchange might offer a basic wallet, a specialized crypto wallet brings extra security to your holdings, reducing the chances they can be stolen.
Here are some of the best crypto wallets and the basics to know about how they work.
Best Bitcoin or crypto wallets
The most popular digital crypto wallets include the following:
- Exodus Bitcoin & Crypto Wallet
- Trezor T
- Mycelium Bitcoin Wallet
- Ledger Nano X
- Wasabi Wallet
What is a crypto wallet and what does it do?
Like a physical wallet, a digital wallet can hold your currency, in this case cryptocurrency. And since your digital currency exists nowhere but in the decentralized electronic network that manages and tracks it, your digital wallet must be able to interact with that network.
While experts use the term “wallet” to describe what secures your crypto assets, it might be more accurate to think of it as a (heavily fortified) address to which your money is accounted. So in a crypto’s distributed ledger – like a long-running receipt of all the transactions in the currency – a wallet says “any assets directed to this address belong to the owner of this wallet.”