Last updated on May 25th, 2022 at 04:35 pm.
What are the best free wallets for cryptocurrency? If you’re into cryptocurrencies or looking to start investing in them, then you really need to know how to store them.
Unlike fiat currencies, cryptos don’t exist in the physical realm and because of that can be confusing to deal with at first.
Fortunately, storing cryptocurrencies is quite straightforward. All you need actually is a crypto wallet, but many often wonder:
Best free wallets for Cryptocurrency In 2022
What is a crypto wallet?
Simply put, crypto wallets are apps or devices that hold your cryptocurrency for you.
Although, you should know that crypto wallets don’t technically store cryptocurrency, and that’s because cryptocurrencies only exist on the blockchain.
Instead, crypto wallets store private keys and that is what allows you to access and spend your cryptocurrencies.
With that out of the way, let’s now take a look at the best crypto wallets that are free.
Crypto wallets basically come in two formats and these are hot and cold wallets.
Hot wallets are the most common type of crypto storage and are a favorite of new crypto enthusiasts.
A hot wallet stores your cryptocurrencies online which allows for easy access. Additionally, they are usually free to use and come with a number of interesting benefits.
Some hot wallets allow you to buy/sell cryptocurrencies on a single platform and while others can be interfaced with a cold wallet.
While hot wallets are easy-to-use and extremely convenient, they are far from perfect. First and foremost is how often cybercriminals and hackers attempt to steal the cryptocurrencies stored on hot wallets.
Secondly, because crypto exchanges often offer hot wallet services, this puts them at major risk of moral hazard.
For example, incidents of hot wallets affiliated with crypto exchanges suddenly going under are far from rare. This means that if you’re unlucky, you could wake up one day and all of your crypto savings have suddenly disappeared.
Fortunately, hot wallets have come a long way since then. And in order to boost consumer confidence, some hot wallets even offer deposit protection and insurance.
Other hot wallets are managed by reputable crypto exchanges that have been endorsed by trusted government watchdogs.
But, if you want the final word in security, you can’t go wrong with a cold wallet.
Cold wallets store your cryptocurrencies on a USB stick or hard drive and unlike a hot wallet does not require internet access to work.
These types of wallets are favored by investors with large crypto holdings looking for a more secure way to protect their assets.
Because a cold wallet is not connected to the internet, it is impossible for a hacker to gain access to it. Additionally, cold wallets can be physically secured in a separate location for added safety.
But, despite all this, cold wallets are not foolproof. For one, connecting a cold wallet to a computer with internet access puts it at risk of being hacked into.
Secondly, cold wallets are nowhere near as convenient as hot wallets which makes them unsuitable if you regularly transact in cryptocurrencies.
All of this is why most experienced crypto investors split their assets between cold and hot wallets with the bulk of their assets stored offline. Thus, allowing them to stay safe while still having easy access to their crypto assets.
And with all of that in mind, let’s now take a look at a list of best free wallets for cryptocurrency you can use:
Best free wallets for Cryptocurrency
Supports: 500+ coins including: BTC, BCH, ETH, LTC, DOGE
Coinbase provides a combination of good security with an intuitive interface which makes it great for first-time users. Other interesting features include a cloud-based backup system to protect your cryptocurrencies in case of a system failure.
However, the steep transaction fees charged by Coinbase can be something of a deal-breaker for many users.
- Good security features
- Provides cloud backups
- Charges high transaction fees
Supports: 250+ coins including BTC, DOGE, DOT, ETH, and LTC
Managed by Crypto.com – one of the fastest growing exchanges in the world, Crypto.com’s wallet offers low trading fees alongside a selection of interesting crypto products.
For example, users can stake CRO and earn passive income or trade NFTs on Crypto.com’s own marketplace.
And as the wallet is built on open-source code, transparency and security isn’t much of a concern with this platform.
- Insures deposits up to $250,000
- Built on open-source code
- Can stake coins
- Some features can be confusing
Supports: 1000+ coins including BTC and ETH
Out of all the crypto wallets on this list, Binance supports the largest number of cryptocurrencies.
Additionally, the wallet doesn’t break the bank with its transaction fees which are relatively low. And as an added plus, Binance wallet’s charting features lets you track the performance of your cryptocurrencies as you see fit.
But, what’s disappointing is the sometimes poor customer service which can get frustrating.
- Large selection of cryptocurrencies supported
- Low fees
- Secure – 95% of assets are kept in cold storage
- Poor customer support
Read more about Binance review.
Supports: More than 150+ coins including BTC and ETH
While Exodus only supports around 150+ different cryptocurrencies, it’s good to see that the hot wallet is compatible with Exodus’s own cold wallet – a feature that provides you with much- needed flexibility.
Additionally, Exodus’s hot wallet comes with a built-in crypto exchange for you to buy/sell coins at your leisure.
Unfortunately, Exodus’s platform is based on closed-source software which limits its transparency.
- Compatible with Exodus cold wallet
- Built-in exchange
- Responsive customer service team
- Built on closed-source software
Supports: BTC only
However, it’s not the most user-friendly wallet and BTC-only support may put other users of Mycelium.
- Plenty of advanced features
- Superior levels of security compared to other hot wallets
- Excellent customization
- Only BTC supported
So there you have it, our selection of the best free wallets for cryptocurrency that you can use.
However, always remember that cryptocurrencies are a volatile asset class and should be treated with great care.