What is a Software Wallet?
Cryptocurrency software wallets are a great way to store, buy, lend, and trade digital assets and tokens like Bitcoin and Ethereum. They are available online to access your funds from any computer or device. You can even install them on your phone for quick and easy deposits.
If you’re a data enthusiast, you can download an entire blockchain for a more robust experience. Plus, the code is open source so you can take advantage of added layers of security.
How to Choose the Best Cryptocurrency Wallet
When selecting the best crypto wallet for your needs, it’s all about frequency of use, supported coins, customer support, security, and ownership of private keys. If you’re an active trader, you will benefit from a multi-platform wallet that works both desktop and mobile.
If you want to diversify your portfolio, you’ll need a wallet that supports a variety of coins. Additionally, you may want to consider a wallet with customer support. For security, look for wallets with encryption passwords and backup options. Lastly, decide if you prefer a third-party provider to hold your private keys or want to control them yourself.
Software cryptocurrency wallets come in three forms:
- Crypto exchanges
- Downloadable programs
- Smartphone apps
Because they are connected to the Internet, they are considered hot wallets, meaning they are more vulnerable to hackers than hardware wallets, which provide cold storage of funds offline.
Account Access Method
When selecting a wallet, make sure it allows for multiple forms of authentication, such as usernames and passwords. This will keep your funds extra secure.
Transaction Authorization Method
Making a purchase with a debit or credit card is an authorized transaction when the cardholder’s bank has given the shop or vendor the OK. Authorization-only transactions, meanwhile, involve placing a pending transaction on the cardholder’s account to be settled sometime in the future. This differs from a regular authorized transaction, where the payment is cleared immediately.
Seed phrases are a string of random words that hold the key to your digital assets. Crypto wallets offer software to generate seed phrases, and it’s essential to write them down and keep them somewhere safe. This way, your cryptocurrencies are always secure.
Look at the reputability-indicating factors such as customer reviews, global recognition, and awards and certifications. Don’t forget to look into the founders’ backgrounds and the company’s overall profile. This will give you a better idea of the level of trust you can place in the wallet.
When it comes to choosing a crypto wallet, there’s no one-size-fits-all. Do your due diligence and consider the aforementioned indicators when deciding which one to choose.
Hierarchical deterministic (HD) keys are a type of Bitcoin wallet derived from a known seed and can create child keys from a parent key. This adds an extra layer of protection to help prevent your wallet from being hacked.
Open Source Code
Open-source wallets are a great option because their code is available for peer review. This allows for improved transparency and trust, as the community can examine and make changes to the code to fix bugs and make other enhancements.
The Best Software Wallet List
Here are some of our top picks that seem to be making waves in the industry:
Electrum is the ideal Bitcoin wallet for gamers looking to make an initial deposit in a crypto casino. Not only does it allow users to export their private key, but it also supports multi-sig wallets, so users can share accounts with others. With Electrum, gamers have access to all the best options.
Guarda is one of the newest wallet providers on the market, offering a secure and user-friendly experience. It supports over 400k digital assets, provides face ID authentication for mobile users, and offers responsive customer service.
Mycelium is an open-source, non-custodial wallet that puts user privacy first. It offers a range of advanced features, like cold storage integration, spending accounts, and single-address savings accounts.
Exodus is a multi-asset crypto wallet that allows users to manage their portfolios from one interface. It supports a wide range of crypto assets, has a built-in exchange, and even supports crypto staking.
Coinbase is another multi-sig wallet allowing users to create shared accounts. Plus, it offers instant coin conversion and is approved by US authorities. It supports BTC, ETH, BCH, DOGE, and 12 other cryptocurrencies.
Metamask is open-source software that’s easily accessible through several browser networks. Its user-friendly interface makes it easy to use, supports ERC20 and Ethereum tokens, and integrates with ledger devices. Plus, it has automatic account backup.
Samourai is the ultimate in security, offering a range of top-notch privacy features. Users have full control over their private keys, and an infallible system manages the transaction fees.
Blockstream Green is designed for more advanced BTC traders. It’s open source, has excellent security features, including Multisig and multiple layers of 2FA, and is ideal for crypto gambling.