• A cryptocurrency wallet is a way for investors to store crypto and validate their proof of ownership
• A crypto wallet can take the form of physical hardware, as well as software installed on your PC or smartphone
• While crypto exchanges offer investors a wallet to store their assets on the platforms, using other crypto wallets is considered to be a safer option
• A hot wallet is one that stores cryptocurrencies online, while a cold wallet is disconnected from the internet
• It is believed that using cold wallets is safer, as it is harder for hackers to get their hands on it

As the cryptocurrency market continues its journey toward mainstream adoption, more people are getting involved in the market. While the market can be very rewarding for investors and cryptocurrencies are arguably one of the best investments for portfolio diversification, there are many things that traders and investors should learn before they get started. 

If you are planning to trade cryptocurrencies in very small quantities, you don't really need a cryptocurrency wallet. However, if you are planning to invest in the market and hold your investment long-term, it could be an amazing idea to take your time and get yourself a decent crypto wallet. 

Choosing a crypto wallet in 2022 is not the easiest. There are many things that you should be focused on, including, but not limited to, the safety of the crypto wallet, the type of wallet, its reputation in the market, as well as how well it is able to withstand attacks from hackers.

Over the past few years, cryptocurrency wallets have become an essential part of the crypto investing industry. As of today, traders need crypto wallets to store their crypto assets securely and to protect and validate their transaction information.

Types of crypto wallets

In general, there are two types of crypto wallets available in the market. They are:

• Hot Wallets
• Cold Wallets

Hot wallets are online software wallets that work best for day-to-day transactions and these wallets tend to be very user-friendly. With hot wallets, cryptocurrencies can be transferred quickly and can be used online.

On the other hand, cold wallets are digital offline wallets. With cold wallets, transactions are signed offline and then disclosed online. Cold wallets are not maintained on the cloud. Rather, they are fully offline. Hot wallets are a lot easier to access online 24/7 and are usually accessible using mobile and desktop devices without any extra work. However, they are not as safe as cold wallets and there is a bigger chance for them to get hacked. 

Generally, it is considered better for traders to hold their cryptocurrencies using hot wallets if they have cryptos in fewer quantities and if they are trading actively. On the other hand, if you are a long-term investor, and you hold large quantities of cryptocurrencies for months, or even years, it might be better to opt for cold wallets. 

The number of wallets created for cryptocurrencies has increased drastically over the past few years. As we have already mentioned above, there are different types of crypto wallets available in the market. Some of them are hardware-based, while others can be downloaded on your PC or smartphone. There are also some cloud-based crypto wallets. 

After doing very detailed research and analyses of the best crypto wallets in 2022, we have managed to come up with a list of the top 6 wallets retail traders can trust. Below, we will discuss each of these wallets one by one in no particular order. So follow our guide and find the best wallets you can get today.

Ledger Nano X

As we have already mentioned, there are two main types of crypto wallets available in the market: hardware crypto wallets, and online crypto wallets.

When it comes to offline crypto wallets, one of the best ones available in the market is the Ledger Nano X. It supports numerous cryptocurrencies and is known for very high-security standards. It also offers clients mobile trading capabilities.

In the crypto industry, Ledger is known as one of the best brands creating hardware wallets. One of the first wallets created by the company was the Ledger Nano S, which is a wallet providing individuals with numerous different features. 

The Ledger Nano X further expands everything the previous one had to offer and provides individuals with a special, built-in battery and also has Bluetooth. 

The price of the hardware wallet is $119, and it comes in a special matte black finish with a 128x64-pixel screen. There are over 1800 digital coins supported, which is one of the largest arrays of supported assets for a crypto wallet. To ensure that clients are protected from various types of attacks, the Ledger Secure Element chip is adopted and created for higher security solutions.

Trezor

First released in 2014, Trezor has quickly managed to become one of the leading wallets in the industry. Known for high security and safety standards, this crypto wallet can be a great option for crypto holders around the world. This is a hardware wallet, which means that it is a lot safer than hot wallets.

One of the biggest advantages of this crypto wallet is that it supports over 1,600 crypto assets, making it one of the best options for investors who like to diversify their investments as much as they can. 

While there are many things that this crypto wallet has to offer, the main advantage of it is the fact that it offers the highest safety and security standards, ensuring the safe storing of your cryptocurrencies. However, it should be noted that while this crypto wallet is very popular in the market, it can cost you a bit more than other wallets would. 

Depending on your location, you should be expecting to pay at least $100 for this crypto wallet. With that said, you can’t put a price on safety and security. This crypto wallet has everything that a modern wallet should have - safety, security, support for numerous digital assets, and so on.

.

Exodus

Exodus is a very famous crypto wallet that aims at simplifying the access, management, and use of digital coins. Just like many other wallets available in the market, Exodus works by managing a series of codes that help individuals store their cryptocurrencies. 

Instead of storing actual coins, the wallet stores a set of 3 different codes, which include primary keys, seed phrases, and public addresses. Exodus also comes with a special application, which can be used by clients to check out the cryptocurrencies they own and take care of their activities in a more efficient manner. Exodus comes with many great features, including a free-to-download wallet, which does not require traders to go through any registration processes or provide personal information. 

This is a one-click and very easy-to-use wallet, which comes with hardware wallet support as well as a 24/7 customer support team. Exodus is a noncustodial wallet that gives you the opportunity to control your digital coins. 

It supports TREZOR wallets for the highest safety and security. Among its products are a mobile and desktop wallet, which gives clients better control over their assets. While very popular, there are several disadvantages of this crypto wallet that traders should know about. 

For example, it should be noted that the wallet is not the safest one available in the market, and it also lacks important security features, such as multi-signature support or two-factor authentication. Also, Exodus does not support crypto-to-fiat transactions.

Coinbase wallet

If you are a beginner in the crypto investing market, one of the best wallets you could get is the Coinbase Wallet. This is an excellent choice for beginners as it is very intuitive and easy to use. Other than being super user-friendly, the wallet is also supported by one of the best-known crypto exchanges in the industry and is very secure. 

The app is able to connect with the majority of bank accounts and consists of a very simple three-tab layout. One of the best things about the Coinbase Wallet is that it can also store non-fungible tokens, NFTs, which have become very popular assets recently. Supporting over 500 crypto assets, Coinbase Wallet can be a great option for investors of different backgrounds. 

In fact, Coinbase Wallet is among the hot wallets supporting the largest number of crypto assets. It is also very important to know that the crypto wallet can be used without having to open an account with the Coinbase crypto exchange. It is a noncustodial wallet, which means that it has a private key that is stored in your device, rather than in the servers of Coinbase. 

For additional safety, the wallet uses the Secure Enclave chip which is available on most Android and iOS devices, providing users with biometric authentication.

MetaMask

If we are talking about hot wallets, then there is one wallet that can not be left out of the conversation, and that’s MetaMask. This is a hot crypto wallet operating on the Ethereum blockchain and supports almost every ERC-20 token.

Founded in 2016, currently, this is one of, if not the most popular crypto wallets in the world. As we mentioned earlier, this is a hot wallet, which means that it comes in the form of software; a browser extension to be precise. Currently, it supports 5 browsers with the likes of Chrome and Edge included.

What makes MetaMask so popular is how easy it is to use. When you want to create your own MetaMask wallet, you simply need to install the browser extension and then follow the simple registration process. 

We mentioned at the beginning that this is an Ethereum network wallet. But you are not limited only to ERC-20 tokens. MetaMask has a simple bridge function where you can change networks and use cryptocurrencies of other standards than ERC-20 tokens.

Another great function that MetaMask wallet has is that you can purchase cryptos such as Ethereum straight from the wallet using payment methods such as Credit card and PayPal.

Mycelium

Due to the strong focus on security and advanced transaction history information, Mycelium is known as one of the best crypto wallets in the market, primarily focusing on Bitcoin.

It is known as one of the oldest wallets in the market, being established back in 2008. Having such a long history, Mycelium offers users of both Android and iOS its services. Among the biggest advantages of this wallet are high security and transaction options. Mycelium features custom transaction fees, and the four recommended levels are as follows:

• Low priority
• Normal
• Economic
• Priority

Mycelium also features advanced transaction history, providing users with block height, miner fees, and many other options. 

There is also a special “watch-only” mode available for the clients of the wallet, which lets users disable outgoing transactions while also being able to keep track of their trades and assets.

• There are two types of wallets available in the market: hot and cold wallets
• Hot wallets are online-based, and cold wallets are hardware-based
• If you are an active trader, it is better to use hot wallets, while for long-term investors cold wallets might be a better option
• Cold wallets are usually viewed as being highly secure and safer than hot wallets
• Hot wallets tend to be easier to use for individuals and can be used with desktop as well as mobile devices