Best Cryptocurrency Software Wallets of 2022

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Company Number of currencies supported Supports Bitcoin Embedded exchange Customizable fees Compatible Equipment
Exodus

Ideal for beginners
150+ Yes Yes Yes Yes
Electrum

Best for Bitcoin
1 Yes No Yes Yes
Mycelium

Ideal for mobile
25+ Yes Yes Yes Yes
Keep

Ideal for security
400,000+ Yes Yes Yes Yes
Coinbase Wallet

Ideal for low costs
44,000+ Yes Yes Yes No


How to Choose the Best Cryptocurrency Wallet

How often do you plan to use your wallet?

How often you plan to use your crypto wallet plays an important role in choosing a wallet that’s right for you. For example, if you plan to use cryptocurrency to make regular payments, you’ll probably want to keep some of your funds in a mobile wallet. Conversely, if you are looking to invest and store crypto assets for the long term, it is better to secure your digital assets offline in cold storage using a hardware or paper wallet.

Are you looking to store large amounts of cryptocurrency?

If you are looking to store a large amount of digital currency, it is advisable to use cold storage solutions, such as a hardware wallet or a paper wallet.

Do you plan to use the wallet to trade cryptocurrencies on an exchange or buy goods, or both?

If you plan to actively trade digital assets, you’ll likely benefit from a cross-platform wallet that allows you to manage your cryptocurrency portfolio on your desktop computer and on your smartphone.

Are you interested in the number of cryptocurrencies supported by the wallet?

If you are looking to build a diversified portfolio made up of a large number of digital currencies and tokens, choosing a multi-asset portfolio that supports thousands of assets is probably the right decision.

Are you concerned about the user-friendliness of the wallet interface?

If you’re a beginner, you’ll probably want to opt for a beginner-friendly wallet with an easy-to-use interface.

Do you care about the level of customer support?

Not all wallet providers have customer support. Many long-standing open source wallets, for example, offer no customer support. If you think you need help with your wallet, choose one that lets you interact with a human customer service agent by phone or live chat.

How important is it that your software or exchange-based wallet is compatible with the hardware wallet?

Are you looking to store a substantial amount of money in cryptocurrency? In this case, you should consider using a software wallet that offers compatibility with hardware wallets for cold storage.

How important is security?

Are you looking to store only a small amount of cryptocurrency to test the waters in the brave new world of crypto? Or are you looking to make a substantial investment? Depending on your plans, security will play a relatively small or very important role in choosing a wallet.

What levels of security are you looking for?

Are you happy with a desktop wallet on your laptop that you secure with an encryption password or do you want the best security that crypto storage solutions can offer? The answer to this question will play a role in choosing a wallet.

How important is corporate reputation?

Are you confident that a wallet’s open source code has been sufficiently audited by the crypto community or would you rather trust a company with a good reputation? If you prefer to download a wallet from a reputable service provider, this will be another factor to consider before choosing a crypto wallet.

How important is owning your private key?

Are you comfortable with a third-party provider holding the private keys to your wallet (and therefore de facto ownership of your virtual assets)? Alternatively, you can choose a non-custodial wallet where you are responsible for managing your wallet’s private keys.

Although these wallets are considered best practices because you have full control over your virtual assets, if you lose access to your wallet or forget your encryption password, you will lose all funds held in that wallet.

How important is it to be able to customize fees?

Do you plan to do a lot of transactions and worry about spending too much on blockchain fees? In this case, choosing a wallet with customizable fees is the right decision.

How important are wallet backup features?

Whichever wallet you choose, backing up your wallet is one of the most important aspects of crypto wallet management. Do you just write down and securely store a recovery phrase, or would you rather only have to remember a username and password?

Choosing a wallet with a backup feature that works for you is another essential ingredient when it comes to choosing a crypto wallet.


Frequently Asked Questions

What is a cryptocurrency wallet?

A cryptocurrency wallet is a digital wallet that lets you store the unique digital codes needed to send and receive crypto assets, such as Bitcoin, Ethereum, and Dogecoin. It is important to point out that these wallets do not store your actual cryptocurrencies, despite what their name may lead you to believe.

Cryptocurrency wallets are actually more of a ledger, as they hold the keys to the identity of the owner, allowing them to access a blockchain network and transaction history. These wallets need to locate the cryptocurrency associated with your address in the blockchain, which is why they need to interact with it.

What are the types of cryptocurrency wallets?

Software, hardware, and paper wallets are the three main types of cryptocurrency wallets that fall under the two main categories of wallets known as hot and cold wallets.

Cold wallets have no connection to the internet and come in a physical form, like a hard drive or a piece of paper, making them the most secure wallets possible. Hot wallets, on the other hand, have some form of internet connection, which makes them more susceptible to security breaches.

Hot wallets are favored for their flexibility, such as the ability to access your funds or trade on the go. These software wallets come in the form of web wallets, desktop wallets, and mobile app wallets. It is important to point out, however, that this availability results from the web connectivity of a hot wallet, which inherently leaves your funds open to some form of vulnerability.

In the case of cold wallets, the only way to lose your funds is if the wallet itself is lost or stolen and no backup procedure has been put in place. Unfortunately, this higher level of security does not allow your funds to be readily available for trading or trading when you are away from your computer.

Most major crypto wallets today are hybrid wallets that offer desktop and mobile access, with the ability to connect to a hardware wallet for maximum backup protection.

How do cryptocurrency wallets work?

Cryptocurrency wallets provide public keys and private keys to allow crypto users to interact with their digital assets stored on public blockchain networks. A wallet’s public key is the wallet address you can receive funds to and the private key is what you use to access your funds to complete transactions.

Think of the public key as your bank account number and the private key as your bank account PIN that you use to log in and make payments.


Methodology

One of the most important things to consider before trading and storing cryptocurrencies is that you have a proper crypto wallet. To help you decide which wallet is best for you, we conducted a comprehensive review process of the best cryptocurrency software wallets.

Our review process is built around a quantitative rating model that rates key factors such as security, cost, privacy, usability, customer support, and features based on their importance. Our team of researchers gathered over 40 data points and conducted extensive research for each of the 19 companies we reviewed. Our team of editors, experts in this field, then tested each wallet to provide their qualitative point of view.

Our model gave preference to companies with the strongest security measures and reputations. Companies with rich features, such as support for a large number of crypto assets, the ability for users to sync with hardware wallets, and the ability to customize fees, also rank highly.

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