Overview of Crypto Wallets
Hosted wallets or hot wallets are blockchain-based applications in which you store your crypto and you can transfer these assets to any other crypto application. These are user-friendly applications that utilize blockchain technology and can be used for various purposes. One unique feature is that they are versatile. If crypto investors want to participate in airdrops, trade NFTs or transfer crypto to any person, they can use dedicated wallets.
These wallets are connected to internet and their security relies on infrastructure and security measures taken by the wallet provider. That’s why, always choose reliable and reputed wallet provider. Though these wallets are not immune to hacks because they are connected to internet.
Top Reliable Crypto Wallets
In crypto exchanges, if you put crypto in your account, these crypto assets are actually stored in custodial wallets integrated into crypto exchange. Separate web3 wallets are better for storing crypto if you want to utilize crypto for multiple purposes rather than trading. For example, if you want to trade NFTs, or utilize crypto for other purposes, you need to set up a hosted wallet.
- MetaMask
It is one of the most reliable crypto wallets that supports ETH coin and tokens built on Ethereum blockchain. MetaMask was developed by ConsenSys, a blockchain software company. The interesting thing about this wallet is that, it supports wide range of ETH-based tokens. This wallet does not support staking. But if you want to trade NFTs, MetaMask would be a good option for you.
- Coinbase wallet
It is a web3 wallet provided by Coinbase for storing crypto and NFTs. This wallet is considered a very secure and reliable wallet. It supports diverse range of coins and tokens not limited to ETH-based tokens. Most importantly, this wallet is a self-custodial wallet which means you have complete control over your private keys just like MetaMask.
- Crypto.com Wallet
This is another self-custodial wallet provided by Crypto.com. Being a DeFi wallet, it supports wide range of coins and tokens. Despite the fact that it is self-custodial wallet, it is integrated with Crypto.com services. You can also deposit NFTs on it. It is one of the most reliable crypto wallets.
Complete Process to Set Up Wallet
With a crypto wallet, you can transfer crypto assets to anyone and also access various DeFi services. Being a blockchain-based application, this wallet directly interacts with blockchains. Which means you can transfer your assets to any other DeFi application using these wallets.
Once you have selected a reliable wallet provider, next step is to download the wallet for PC or android. Also ensure you download it from legitimate site of provider and not from a fake similar-looking website. Double-check the URL of the site from where you download it. Hackers often create fake wallets to access users’ funds.
In next step, create account by filling information like name, email, and password. Some wallets also require identity verification where you may need to submit picture of your government-issued ID card.
Finally, you can transfer crypto assets to your wallet. Though, you can also transfer fiat to it using bank payment or debit/credit card and then convert them into crypto. You can also transfer crypto from other platforms. Once, you have assets in your wallet, now you also have to keep your private key or seed phrase safe. This key is necessary to access your crypto.
Conclusion
Crypto wallets are blockchain-based applications built for storing crypto. They enable transfer of crypto to any DeFi application like staking platforms or decentralized exchanges. These wallets also enable trading of NFTs. Because these wallets are self-custodial, you have to take care of the private keys of the wallet to keep your funds safe. It is important to ensure, you always choose wallet from reliable providers so you can be rest-assured your assets are safe.