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- 1. Compare the 9 best crypto wallets in 2023
- 2. Best crypto wallets overall for 2023
- 3. What are the best wallets for crypto?
- 4. Top 9 crypto wallets, reviewed
- 5. What is a crypto wallet?
- 6. How does a crypto wallet work?
- 7. How should I choose a crypto wallet?
- 8. How to set up a crypto wallet
- 9. Quick answers to key questions
- 10. Should I use a crypto wallet?
- 11. Compare wallets with the best features
- 12. How we choose the best cryptocurrency wallets
- 13. FAQs
Compare the 9 best crypto wallets in 2023
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This beginner’s guide helps you choose the best crypto wallet for your needs. Learn about the different types and their unique features, and then get all your questions answered before you pick out which one works for you.
Best crypto wallets overall for 2023Copy link to section
- eToro: Best for beginners, copy-trading & demo-account
What are the best wallets for crypto?Copy link to section
Below you will find a list of the best crypto wallets overall catering for a wide range of uses. Click any of the links below to start using a wallet to securely store your cryptocurrency.
77% of retail CFD accounts lose money.
Top 9 crypto wallets, reviewedCopy link to section
1. eToro. Best for beginners, copy-trading & demo-account
Pros & Cons
We love the eToro Wallet because it’s a great entry-level crypto wallet. Free to set up and use, it’s regulated to ensure its security and the app is available on iOS and Android devices. The wallet can hold 8 different cryptocurrencies at the moment, including Bitcoin, Ethereum, and XRP.
The eToro wallet offers a middle ground between keeping your coins on an exchange and transferring them to an external wallet. You don’t have control over your private keys with eToro but it does make it possible to recover your login details, which means it’s a better option for newbies than for advanced crypto enthusiasts.
The fees: It’s free to set up an eToro wallet but there is a 2% fee to transfer cryptocurrency from your eToro investment account to the wallet. There are no additional fees for sending or receiving transactions. Crypto conversions are charged a 0.1% fee. Blockchain fees may apply.
77% of retail CFD accounts lose money.
What is a crypto wallet?Copy link to section
A piece of software or hardware that stores your cryptocurrency. While the word ‘wallet’ inspires an image of literal coins in your pocket, it’s best to think of it as an online banking platform instead. You log in with a password and are taken to an interface where you can manage your money.
Your digital assets aren’t actually stored in a wallet, the cryptocurrency wallet merely acts as a convenient way to access money that’s stored on a blockchain.
In practical terms, your Bitcoin wallet stores two unique numbers: a wallet address (essentially an account number), and a private key (like a pin code). To make any transaction on the blockchain you need to supply both numbers, so using a wallet just makes this process a lot simpler and adds an extra layer of security.
How does a crypto wallet work?Copy link to section
A crypto wallet is a software program or hardware device that allows you to store, send, and receive cryptocurrencies like Bitcoin, Ethereum, and others.
A digital cryptocurrency wallet gives you a public key address, which is like your bank account number. You give this public key address to anyone who wants to send you crypto.
The wallet also contains your private keys, the passwords that give you access to your crypto. Your private keys allow you to authorise transactions to send crypto from your wallet to someone else’s wallet address.
When someone sends crypto to your public address, it gets added to your wallet balance. This incoming transaction is recorded on the cryptocurrency’s blockchain ledger. To send crypto from your wallet, you create a transaction request and digitally sign it with your private key. This signature verifies you own the crypto you are sending.
The transaction is then broadcast to the blockchain network and the sender’s wallet balance decreases while the recipient’s balance increases. The transaction is permanently recorded on the public blockchain. A crypto wallet allows you to see your balances, receive crypto, and sign transactions to send crypto using your private keys. The blockchain records all transactions from all wallets and keeps track of everyone’s balances.
What types of crypto wallets are available?Copy link to section
We’ve already explained what a cryptocurrency wallet is and how it works. Now, we’ll take a look at the various types of wallets and the different characteristics of each.
- Software wallets. These types of wallets are the most common and are apps or programs you download and install on your mobile device or computer. Some common examples include Exodus and Electrum wallets. Software wallets allow you to conveniently send, receive, and track cryptocurrency balances and transactions. The best mobile crypto wallets can be used on iOS and Android devices.
- Web/online wallets. These wallets are accessible through your web browser without downloading software and are offered by most crypto exchanges and platforms. Some of the best online crypto wallets are the Coinbase wallet and the Binance wallet. Online wallets make it easy to access your crypto anywhere but can be more prone to hacking.
- Hardware wallets. Hardware wallets are physical devices like the Ledger Nano and Trezor that store your private keys offline for safety, usually on a USB stick or similar. You plug them into your computer to authorise transactions when sending crypto. The best hardware crypto wallets offer excellent security against theft however, if you lose your wallet, you’ll likely be unable to recover your crypto.
- Paper wallets. When you use a paper crypto wallet, your private keys are printed or written physically on a piece of paper. This creates a backup that’s not exposed digitally. However, paper wallets can be easily lost, so are more of a back up.
- Cold wallets. These types of wallets are among the most secure and similar to hardware wallets; they keep your private keys offline and away from the internet, where hackers can steal them. Using the best offline crypto wallets with cold storage provides robust protection for your crypto assets.
What type of wallet is best depends on your own requirements. The different wallets have trade-offs in terms of convenience versus security. The best crypto wallets for beginners are usually web or software wallets, while large crypto holders should prioritise security and use the best crypto hardware wallets to manage their digital assets.
How should I choose a crypto wallet?Copy link to section
Like when it comes to choosing a bank, there are lots of factors to think about as you choose which platform to use. Here we have listed the most important ones, with some advice on how to use the information.
SecurityCopy link to section
This is the most important factor, as extra security is the whole point of using a wallet rather than leaving your coins in your exchange or broker account. Hardware wallets, offline wallets, or ‘cold storage’ wallets are the most secure. These types of wallet keep your keys offline, usually on some form of device, like a USB stick.
If you do want to use an online, or ‘hot’ wallet, then choose a platform that offers additional security features, such as two-factor authentication (2FA), and make sure to set a recovery key and store it in a safe place. The recovery key is a string of unique words that have to be used in combination to unlock your account if you ever forget your password.
Low feesCopy link to section
There aren’t usually any fees for using an online or mobile wallet, but you will be charged for any additional features.
Sending or receiving Bitcoin can come with a transaction fee, while an integrated exchange will charge some form of commission – either as a percentage of the total value or a flat fixed fee – on every trade.
If you’re going to use a hardware wallet, you will have to pay a one-off amount to buy the device first. Prices start from around $50.
Number of cryptos supportedCopy link to section
If you plan on holding other coins alongside Bitcoin, then you want to be able to keep it all in one place. Nowadays, most leading wallets have the capability to store multiple coins, and some can hold thousands of different ones. Check that the platform you choose can store all the coins you want to own.
Additional capabilitiesCopy link to section
Security might be the first consideration when you look for a wallet, but many platforms now offer extra features that can make your life a lot easier. Some wallets offer a range of added benefits such as staking, lending, and trading.
These can save you money by reducing transaction fees, or help you earn more by putting the coins to work. Some platforms offer built-in exchanges so that you can buy or sell coins directly from the wallet. Others offer rewards in the form of interest payments for holding certain coins.
How to set up a crypto walletCopy link to section
You can start using a crypto wallet very quickly and easily, but the type of wallet you use will have a slightly different setup process. Follow the tips in the step-by-step guide below to learn how to set up a hot and cold crypto wallet.
How to set up a hot wallet:Copy link to section
- Download the wallet app on your mobile device or visit the wallet provider’s website. Popular options are Exodus, Coinbase, or Blockchain.com.
- Follow the on-screen prompts to create a new wallet account and set a strong password.
- Set up two-factor authentication for additional security. This is an optional step, but recommended for added security.
- Write down and securely store your wallet recovery phrase in case you forget your password.
- Deposit crypto into your wallet address to start using it.
How to set up a cold wallet:Copy link to section
- Purchase a Ledger Nano device or similar and connect it to your computer when it arrives. This is usually done via a USB connection.
- Follow the instructions to configure a new device PIN and recovery phrase.
- Use Ledger Live software to initialise your device and create wallets for different cryptocurrencies.
- Send crypto from an exchange or hot wallet to your cold wallet’s public addresses.
- Confirm transactions on the Ledger device when making transfers or withdrawals.
Quick answers to key questionsCopy link to section
Do I have to pay for a crypto wallet?Copy link to section
No, for most wallets. Online, desktop, and mobile wallets are generally free, and you should be wary of any platform that tries to charge you. Hardware wallets normally cost between $50-200, but that’s just a one-off cost for the device. There are no recurring fees just for storing your coins.
What are the fees for Bitcoin wallets?Copy link to section
Wallets don’t tend to have any subscription or ongoing fees. But you need to take into account the gas fees, or blockchain fees, when moving coins from your exchange to your wallet. These fees apply regardless of wallet and they vary depending on how many other people are trying to move money at the same time.
If you sign up to a wallet with a built-in exchange platform, you may be charged transaction fees for buying and selling coins. Each platform will have its own fee schedule, so it’s worth checking the terms before using one.
Will I be charged blockchain fees for transfering Bitcoin to and from my wallet?Copy link to section
Yes. Whenever you move coins around you are adding a transaction to the blockchain. There is a fee for every transaction, which is paid to the miners as a reward for creating new blocks. Usually, the transaction fee is around $1, but it can be much higher – $50 or more – during busy periods. It’s like using an Uber: when everyone’s trying to book one, you have to pay more to get home.
Can I spend Bitcoin straight from my wallet?Copy link to section
Not with most platforms, but nowadays some wallets have the capacity to do this through a crypto debit card. It exchanges your crypto for fiat currency at the point of purchase, but otherwise works just like a regular bank card.
Why should I use a wallet rather than holding coins on an exchange?Copy link to section
The most common reason is to keep large amounts of Bitcoin that you want to hold for long term security. By moving coins to a wallet you remove the risk of anything happening to the exchange and have total control over your money.
There are times when leaving them on the exchange is better, however. If you’re trading regularly, then it makes sense to keep coins in your crypto exchange account rather than constantly transferring them back and forth. Just remember that you can find a wallet with an in-built exchange and use that instead.
Can I use more than one cryptocurrency wallet?Copy link to section
Yes, there is no limit to the number you can use. So you can divide your money between platforms with different features, or as a way to add even more layers of privacy and security.
Can I access my Bitcoin wallet if I forget my password?Copy link to section
Yes, most ‘hot’ (online) wallets or mobile apps have a ‘reset password’ function. For hardware wallets it’s more difficult, and might mean you have to recite a list of random words you were given when you set up the device to be able to reset it.
Do I need a cryptocurrency wallet for staking?Copy link to section
Yes, you need a cryptocurrency wallet to participate in staking. Staking is when you hold crypto to help operate a proof of stake blockchain network. You must hold your tokens in a digital wallet in order to stake it and earn rewards. Many of the best crypto wallets for staking are already set up for staking activities.
Do I need to use a wallet for NFTs?Copy link to section
You need a cryptocurrency wallet to purchase, sell, and hold NFTs. There are some limitations with NFT marketplaces that only support certain wallets so you need to use a trusted wallet with NFT capabilities. When choosing the best crypto wallets for NFT it is important you ensure your choice is compatible with the marketplace you use.
Should I use a crypto wallet?Copy link to section
Ultimately, it depends on your trading style and how privacy or security-conscious you are. We generally recommend it as wallets are often free, more secure than leaving coins on an exchange, and there are lots of different options available so you can easily find one that suits you.
There is an excellent range of Bitcoin wallets available, so the best choice depends on what’s most important to you. A platform with quality exchange features is ideal if you plan on buying and selling coins often. If you want to hold for the long term, and either save or spend your crypto, then look for top level security, a payment card, and high rates of interest.
Pros and cons of BTC walletsCopy link to section
It’s always worth taking a bit of extra time to make decisions about money, and especially with cryptocurrency. To help you, here is a summary of the pros and cons to help you choose whether or not to use a BTC wallet.
ProsCopy link to section
- Wallets provide extra security features which you won’t find on an exchange .
- Some wallet platforms offer extra services like earning interest, staking, and lending.
- Virtually all wallets are free, hardware wallets are available for a one-off cost
Compare wallets with the best featuresCopy link to section
|Wallet||Wallet type||Cost||Exchange?||Does it pay interest?|
How we choose the best cryptocurrency walletsCopy link to section
Helping people make better financial decisions is at the heart of our mission at Invezz.
We periodically test more than 19 crypto wallets to provide our users with clear, accessible guidance on the storage options available. All testing is carried out by our panel of crypto experts, analysts, and active traders who sign up to each wallet, conduct research, and score each service.
Our tests are designed to find services that offer a beginner-friendly, secure crypto storage experience at a fair price. To supplement our practical testing and experience, we research each wallet to gather any further relevant information. We read online customer reviews, app reviews on the Play Store and App Store, and conduct user surveys to get feedback from real people about what works, and what doesn’t.
Each Bitcoin wallet is awarded a final score based on 130+ data points across 8 ranking categories: cost, reliability, user experience, deposit & withdrawals, investing options, range of products/markets, research & analysis tools, and the availability of educational & learning resources.
We work closely with individual wallet brands to ensure all factual information displayed here is accurate. All data is then fact-checked by an independent reviewer. You can learn more about our expert panel and how we test, rate, and review platforms in our review process.
FAQsCopy link to section
No. Wallets aren’t a requirement and you can simply head over to an exchange if you want to buy crypto.
No. There is no regulatory body that oversees wallets.
Hardware wallets provide the most security, because they are offline until you connect one to a computer. But they are less convenient than online wallets, you can’t access them as easily and it’s more convoluted to move crypto coins around.
It’s very difficult to ‘hack’ them, but malevolent actors can gain access to your wallet if they find out your password or private key. Keep those details secure, and beware if any other program or person asks you for them.
No, but your private key is stored within your wallet. If you have the password to access your wallet, then you will be able to get the private key. If you don’t, then you can try to reset it. If you lose your private key, password, and the means to reset it: you’re in trouble.
No. Like any mobile banking app, the mobile wallet is just a means to access what’s inside. So long as your account still exists and you know your login details, your coins are safe.
Yes, in some countries and for some coins, like Bitcoin and a couple of other leading cryptocurrencies. You can actually hold your Bitcoin in a PayPal account now, or use it to send and receive coins.
No, because the coins don’t actually live in your wallet. The wallet is just a means to access coins that exist on the blockchain. There might be limits to how much you can send to someone else (minimum trade limits, usually) but you can hold as much as you like.
Yes, if you want. A paper wallet is low-tech and, arguably, one of the most secure types of wallet available. It’s just your wallet address and private key printed on a piece of paper. You can go to a wallet generator website to create them, along with a QR code, and print it out. Just don’t lose the piece of paper.
To get a crypto wallet, choose a provider like Exodus, Coinbase, or Ledger and follow their setup steps. For hot wallets, download the app or sign up online. For cold wallets, purchase the physical device and initialise it.
A fiat wallet allows users to store and transfer fiat currencies like US dollars, euros, GBP on crypto platforms. It acts as a traditional bank account connected to the crypto ecosystem. Fiat can be deposited from a bank to buy crypto or from crypto sales to cash out.
It depends on your requirements and whether you favour security or convenience. Hardware wallets like Ledger and Trezor are generally the best for security since the private keys are stored offline.
For convenience, mobile and web wallets allow easy access to crypto but are more prone to hacking. Cold storage is best for large crypto holdings, while hot wallets are good for frequent transactions.
To open a hot wallet, simply download the wallet app or sign up on the provider’s website, then follow the setup prompts. For cold wallets, purchase the hardware device, connect it to your computer, and initialise it using the provider’s software to create a wallet. Use our guide above for the exact steps to set up a cryptocurrency wallet.
Yes, there are many excellent free cryptocurrency wallets available. Use our expertly recommended sections to find the best free crypto wallets in our comparison table above. these free crypto wallets still provide top security while allowing you to store, receive, and send crypto at no cost
There is a wide selection of the best crypto wallets for iPhone including Trust Wallet, Coinbase Wallet, and Crypto.com DeFi Wallet. These wallets are a popular choice for iOS users in the crypto space.
Lots of mobile crypto wallets work on an Android device such as the Coinbase Wallet. Android wallets make it easy to transact and monitor your portfolio while on your Android device, while still providing high security.
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >