I lost my cryptocurrencies because there was a message on my PC saying “is not working properly, kindly click here to update,” when I clicked, the next day, my crypto wallet was empty – Kamaldev recounts the ordeal of losing his crypto to a phishing attack – clicking a bad link.
One of the popular ways crypto users will always be hacked is through phishing scams mostly clicking malicious links.
If you are a newbie out there you want to make sure that you use a dedicated email address for crypto activities. With this email account, you want to delete every message you don’t trust.
For instance, here is a message of Coinbase wallet app verification I got which I didn’t process.
When I saw it I knew it was a phishing attempt.
Welcome, crypto buddy.
I had to paint the picture above because no matter the Best Cryptocurrency Wallets used if crypto users are careless about their wallet info, that can’t save them.
Coming back home. If you are a beginner in the science of cryptocurrencies, your first step after knowing what it is getting a secure wallet that will store your crypto assets.
With this guide today you will be able to find out the best Bitcoin and Cryptocurrency Wallets to use both as a beginner trading cryptos and regular crypto investor.
Without further ado let’s explain the foundation on which cryptocurrencies wallets are built on.
Observation: kindly jump to the main discussion on wallets, if not, let’s see the basics together.
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Custodial vs. Non-Custodial Cryptocurrency Wallets
First off, it is worthy to note that all cryptocurrency wallets are either Custodial or non-Custodial. Let me explain.
Custodial cryptocurrency wallets are wallets where your private keys are held by a third-party service.
In this sense, it means that the third party service has full control over your funds while you only have the permission to send or receive payments. Here is it.
Cryptocurrency exchange wallets as offered on Coinbase, Luno, or Binance are examples of Custodial crypto wallet services.
On the other hand, Non-Custodial Crypto Wallets are the ones that you have total control of.
Meaning, they do not manage or store your private keys (the credentials that manage and grant access to your crypto).
Examples of Non- Custodial Crypto Wallets are Trust Wallet, the Ledgers, and the Trezors. I hope you get the points now, right?
To help you further as a newbie, let’s see the pros and cons of using either of the Bitcoin wallets.
Cons with Custodial Crypto Wallets
1. The wallet company has your money – one thing about using a custodial wallet is that the company is in the custody of your money so, you only go there to take your money when you need it without your full control.
Should you prefer to use custodial exchange wallets but with more security, the recommendation would be by integrating your custodial crypto wallet with a hardware wallet. With that, you control your asset fully as well.
2. Exchanges can be hacked – another turn off about using Custodial Crypto Wallets is that the exchanges can be hacked.
Based on testing and using a few secure custodial wallets, we will only recommend the ones we know that funds of customers are insured or their security keys are stored offline.
3. Transactions are Online – you can’t transact using a custodial wallet unless you are online. Meaning, your internet connection must be running.
There might be a few more reasons but these are the main cons of altcoin exchange wallets.
Pros with Custodial Crypto Wallets
1. Free to use – the main advantage of these wallets is the fact that they are free to use. In fact, every cryptocurrency enthusiast started with a Custodial Crypto Wallet.
2. Your assets are managed – again, as a crypto holder, you don’t need to worry about how to manage your crypto assets as the wallet company does that for you.
3. Beginner-friendly – these Bitcoin wallets are amazingly friendly for all sorts of crypto users.
4. Basic Security – all the wallet companies take security seriously hence, the optimized security options you are offered as a user.
5. Versatility – based on the advanced system some of these wallets are built on, they are versatile in that you can integrate a lot of apps and APIs to use them. For instance, you can use a hardware wallet along with your Coinbase wallet, and so on.
There might be a few more pros to using non-exchange wallets but these are the main ones for now.
Since you now understand the pros and cons associated with using a custodial crypto wallet, let’s also see the same for non-custodial crypto wallets.
Cons with Non- Custodial Crypto Wallets
1. Loss of assets due to carelessness – having established what a non-custodial wallet is, the truth remains that (even though the best option is a custodial wallet), you can still lose your cryptocurrencies if you are careless about your wallet recovery codes and hardware.
Pros with Non-Custodial Crypto Wallets
1. The best wallet to take control – as the name implies, with non-custodial crypto wallets no one takes custody of your crypto assets, therefore, giving you a full delivery-protection against theft.
2. You can recover your assets – should you lose your wallet you can easily restore them to another wallet using your recovery seed phrase.
3. Transactions without a third party – with a non-custodial wallet you can move and receive funds without the need of a third-party Wallet Company.
4. Transact offline – with these sorts of wallets you can stay offline and carry out your transactions.
As always, there are more good reasons to it when it comes to using a custodial crypto wallet since you have total control of it but for now, the above are enough to understand the science behind them.
With all the above said, let’s now go on to see the best Bitcoin wallets for beginners and advanced users coming into the cryptocurrency business.
Best Cryptocurrency Wallets for Android & iPhone Users
Here is a list of both the best custodial and non-custodial altcoin wallets.
1. Coinbase Wallet – Best beginners Crypto Wallet for Android & iPhone Users
Starting your cryptocurrency journey on a platform like Coinbase makes things super simplified. How do I mean?
From her homage to the cryptocurrency wallets, everything is just super intuitive for beginners to smile with their 32 teeth.
The good thing about using Coinbase custodial wallet is that both Android & iPhone users can quickly download the app and start making use of it.
With the Coinbase wallet, you can manage and hold up to 42 cryptocurrencies. And based on security, Coinbase is known for its doggedness when it comes to security.
So, it is surely not a mistake to consider Coinbase Wallet as the best cryptocurrency wallets for beginners – but there is a catch for some users. More on that later.
Get started with Coinbase crypto wallet. To get your Coinbase wallet you, first of all, create an account on Coinbase.
2. Luno Wallet – Best Bitcoin and Ethereum Wallet for Beginners and Mobile Users
If you are from the USA and sister European nations, Coinbase is pretty much okay for you because you can easily buy crypto instantly using your credit/debit card or bank transfer. But the bad news?
The story is not the same for crypto users outside the USA and related European nations.
For users outside the regions stated above, the best Bitcoin and Ethereum wallet after Coinbase is the Luno crypto wallet.
With a lot of African countries served and other nations, Luno allows you to swiftly buy crypto instantly using many payment options based on what is available per country plus advanced security measures adopted.
As a Nigerian, Luno is your best alternative to Coinbase since you can easily transact with it effortlessly.
Get started with Luno wallet. To get your Luno wallet, first of all, create an account on Luno
3. Binance – Best Wallet for Crypto Traders using Android & iPhone
I am not here to show you how to use Binance to trade crypto but the point is, if you’re from the USA and her sister states, here is the model.
#1. Buy crypto instantly on Coinbase and #2. Transfer to Binance and start trading.
And if you are from Africa and countries not allowed on Coinbase to transact, here is the modelling.
#1. Buy crypto instantly on Luno and transfer the same to Binance and start trading.
With the narrative above, you can easily understand that the Binance crypto wallet is the wallet for crypto traders.
With the ability to trade and manage over 400+ cryptocurrencies on Binance, you can easily create a wallet for each of the traded coins, hence giving you that breathing space against using 10 crypto wallets that manage over 40 coins or thereabout per wallet.
So, when you are looking for the best cryptocurrency wallet for traders, you can trust the Binance wallet on that.
And the good thing is that there are versions for all users – desktop, APK, Android, and iPhone with high-security facilities in place.
Get started with the Binance crypto wallet. To get your Binance wallet you first of all create an account on Binance.
One of the reasons why I recommend the above three is that first, Coinbase has insurance for funds, the same as Binance, and Luno keeps a majority of users’ funds using Cold wallets.
Apart from that, their interfaces are intuitive for crypto users, most especially beginners.
Now that we are done with the best custodial crypto wallets let’s see the non-custodial where you take total control of everything.
4. Trust Wallet – Best Multi-Cryptocurrency Non-Custodial Wallet for Mobile Users
Who wouldn’t like to access his or her crypto assets and corresponding details without having to login into a Custodial wallet and make a request to a centralized authority? None, right?
Again, who wouldn’t like to keep his or her private keys with/to themselves? Again, No one, right?
If yes, then that is the audacity you get for using a super non-custodial crypto mobile wallet like the Trust Wallet.
In case I happen to be the first to break the news, kindly know that Trust wallet does not charge you any fees. Yes, you heard that right.
The versatile crypto wallet is completely free to use.
As a user, you can store and manage thousands of digital assets with the wallet, including the TWT token which I am sure you might not have heard of.
TWT – Trust Wallet Token.
More so, with crypto users using Ledgers or Trezors, the Trust Wallet has a feature to watch your address (open import wallet screen).
With it, you can just provide a public wallet address and see transactions, tokens and receive notifications for activity on your wallet. Amazing, right? Yeah.
And lastly, the Trust wallet works for both Android & iPhone crypto users.
Hang on. I did say that Trust Wallet charge you zero fees, should you still be thinking how, here is it.
The transaction fees you were supposed to be charged are charged by miners to carry out your transaction on the blockchain.
5. Trezor or Ledger – the Best Hardware Wallets for Cryptocurrencies Users and Investors
We already saw the efficacy of Trust wallet as the best mobile non-custodial wallet.
If you are considering the best hardware wallet then the best 2 have always been the Ledger wallets or the Trezors.
Unlike TW that is not physical, both of these wallets are physical devices that further help you take control of your crypto assets against any form of theft.
With your Ledger Nano S or X wallet or Trezor One or T, your blockchain information remains with you thus reducing the risk of data being stolen.
The Trezor Wallet(s).
The good news is that either of these wallets holds thousands of digital assets so you are covered without the need for an extra wallet.
You can check out Ledger prices here as well.
Should you be questioning when to use the hardware wallet, see the list.
- If you are saving your crypto for the future.
- If you are holding a large number of cryptos.
- If you don’t want to use a custodial wallet anymore.
- If you want to take your crypto assets safety into your hands
- When you are more advanced in cryptocurrency and the modalities.
So, the question “this is not for beginners earning crypto” can be correct.
As a beginner, you are good to use any of the custodial wallets till you get a bit deep then you advance to Trust Wallet and then to hardware.
If you are ready to take your crypto security by the hand click below to get either of the wallets.
A final note on the best bitcoin wallet for new users and advanced users
The science of cryptocurrency was that everyone would be able to move away from centralized controls – governments, hence the birth of blockchain tech.
Comparing it to managing your digital assets using wallets, when a lot of people have their money on an insured custodial exchange wallet, it means that you trust the exchange or the insurance firms they are insured with to pay you back your money when the exchange gets hacked or any of sort.
To be frank, while these exchanges are giants in the crypto industry we can’t depend on them wholly (as in, 100%), hence the reason you should take matters into your hands by owning your wallet keys.
And when you do, no one can take away your coins except you yourself.
For mobile users, you can start with Trust Wallet before you go on to get a hardware wallet.
The main advantage of a non-custodial is that you have total control and your wallet’s private keys are isolated from your computer and not vulnerable to theft from Trojans or other malware – except you use such infected systems.
Again, the hardware wallet USB interface is tightly constrained and only allows a few operations like “sign this transaction”, none of which allow the keys to be retrieved from the device thereby furthering the security of your cryptocurrencies in it.
All in all, the safety of your crypto wallets is dependent on you. If you are careful about how you use it, then you are safe.
#Take all precautionary measures.
Over to you.
Which of the 5 wallets are you currently using, and if you are a beginner, which of the 3 custodial crypto wallets would you like to start with?
Ref. Graphics – Canva.com