Best Bitcoin or Crypto Wallets 2021: How To Choose

bitcoin wallet for online cryptocurrency trading.
serpeblu / Getty Images/iStockphoto

Cryptocurrencies are all the rage right now. Even though cryptocurrencies can be highly volatile at times, people are more and more interested in purchasing them each day, and many big companies are starting to accept them as a payment method. One of their main appeals is that they’re practically impossible to double-spend or counterfeit because they’re protected by cryptography.

Bitcoin (BTC) is the leading name in the game, but several other options might appeal to you if you’re interested in investing in the digital currency world. However, before you join the bandwagon and get started on your cryptocurrency journey, you need to learn how to store your digital money safely using a crypto wallet.

What Is a Crypto Wallet?

A crypto wallet is a safe place to store your private keys to access your cryptocurrencies. A crypto wallet gives you peace of mind every time you access, use, or exchange your virtual money. You don’t have to fear that a third party will manipulate your transactions in any way without your consent.

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What Are the Best Crypto Wallets in 2021

There are many alternatives to choose from when it comes to crypto wallets, all with different features and characteristics. It can be a bit daunting to pick the right one, but all you need to do is compare and contrast the most popular options to find the one that suits your needs. Here are some of the best crypto wallet options in 2021.

Wallet Type Cost Compatible Hardware Wallet Incorporated Exchange
Electrum Hot wallet with cold storage options Free Trezor, Ledger, and others No
Exodus Hot wallet Free Trezor Yes
Ledger Nano S Cold wallet $59 n/a Yes
Mycelium Hot wallet with cold alternatives Free Trezor, Ledger, and KeepKey Yes
Trezor Model T Cold wallet $181 n/a Yes

1. Electrum: The Best Bitcoin Wallet

Electrum is explicitly made for Bitcoin users. It has many advanced features for those who have been in the game for a while. This wallet is open-source, and you can customize your transaction fees and determine your preferred security level. Electrum allows you to:

  • Pick between legacy Bitcoin and SegWit
  • Customize your seed phase
  • Use two-factor authentication
  • Have a multi-signature

2. Exodus: The Best Crypto Wallet for Beginners

This wallet is great for getting acquainted with cryptocurrency transactions and exchanges. It has a clean and straightforward interface and allows you to swap between over 100 cryptocurrencies with ease.

Exodus offers customer support so that beginners can get some backup while they become more confident with their transactions. It leaves little to no room for confusion, but advanced users can get a bit frustrated by its simplicity.

With Exodus, you can set your own fees and complete transactions quickly. The Exodus crypto wallet, however, is closed-source, which might raise some eyebrows when it comes to security concerns.

3. Ledger Nano S: The Best Hardware Wallet

The Nano S is one of the first hardware wallets ever made. Introduced by Ledger in 2016, this crypto wallet is compatible with over 1,100 cryptocurrencies. Being an older alternative, the Nano S does have some technological setbacks. For example, it does not come with a USB Type-C cable, making it more challenging for some smartphone users to connect it to their devices.

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Ledger’s Nano S costs only $59, which is a steal for those who only want to store up to three cryptocurrency apps. It gives you access to Ledger Live, where you can manage your cryptocurrencies with ease.

4. Mycelium: The Best Crypto Wallet for Mobile Users

This crypto wallet has been around for a while now. It’s open-source and is exclusive to mobile devices. Mycelium supports the most common cryptocurrencies, including:

The interface allows you to set custom fees for your transactions and select the amount of time you want to wait for them to be completed [2]. Mycelium offers hardware wallet support so that you can store your cryptocurrency offline.

5. Trezor Model T: The Best Crypto Wallet To Store Several Cryptocurrencies

This second-generation hardware wallet is the best for cold wallet storage. It allows you to access third-party exchanges through the Trezor website. Equipped with a touch screen, this wallet is user-friendly and ideal for beginners. It supports over 100 cryptocurrencies.

The Model T also comes with:

  • USB Type-C cable
  • Micro SD card slot

Pick the Right Crypto Wallet for You

Having a crypto wallet is a must if you’re going to start investing in cryptocurrency. Choosing the right one is easy if you compare the most popular options and stick to what suits your needs best. The information in this guide should help you better understand the features available with the best crypto wallets in 2021.

Good To Know

Some crypto wallets are more advanced than others. If you’re new to cryptocurrency, try sticking to a simpler option so that you can become familiar with its features before moving on with something more complicated.

Crypto Wallet FAQ

Here are the answers to some of the most frequently asked questions about crypto wallets.
  • How does a crypto wallet work?
    • Crypto wallets can store as much cryptocurrency as you'd like. They use a database technology called blockchain to conduct your cryptocurrency transactions. In a nutshell, blockchain is a digital ledger that stores and records all sorts of data.When you move your favorite cryptocurrencies from one crypto wallet to another one, each wallet uses its own secret data to validate the transaction and sign it. This action proves that the parties involved actually own the wallet.
  • What's the difference between a hot and cold wallet?
    • Hot wallets are connected to the internet and allow a faster way to manage all sorts of transactions. Cold wallets, on the other hand, are not available online, which makes them more secure for long-term storage but somewhat slower for transactions.
  • How much does a crypto wallet cost?
    • Using a crypto wallet to store your cryptocurrency is typically free of charge, but purchasing a wallet can cost you up to $200. Using the crypto wallet's features to complete transactions or exchange devices will also result in additional fees.
  • Can you cash out your crypto wallet?
    • While converting cryptocurrency to cash whenever you want is not currently possible, you can always sell your virtual money in exchange for it.
  • How can you exchange cryptocurrency for cash?
    • You'll need to find a buyer and do an anonymous crypto exchange through the blockchain. Keep in mind that each wallet has its own rules when it comes to cash transfers into a bank account.

GOBankingRates’ Crypto Guides

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

About the Author

Daniela Rivera is a bilingual freelance content creator with an advertising and media background. She has a Communication Science degree and 10+ years of work experience as a copywriter. She specializes in generating engaging and creative concepts and texts for advertising, e-commerce, blogs, podcasts, and social media.

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