What are Digital Currency Wallets or a Crypto Wallets? The Best Secure Bitcoin and Cryptocurrency Wallets

If you are interested in the digital currency market, you have definitely heard of digital currency wallets or crypto wallets such as Trust wallet and Metamask. Like traditional currencies, digital currencies need maintenance and care. Digital currency wallets are essential tools for buying, trading and selling cryptocurrencies. Crypto market operators need a wallet to protect and safely store their digital currencies as well as validate transaction information. With a wallet or blockchain wallet, you can take steps to send and receive cryptocurrencies.

In this article from Eviralnews, while introducing you to the digital currency wallet and its uses, we introduce the best and safest wallets according to the needs of all type of users. Stay with us in the future.

The best digital currency wallets for all type of users that we introduce in this article are:

• Locket wallet
• Trust Wallet
• MetaMask wallet
• SafePal wallet
• Atomic Wallet
• Coinbase Wallet
• Ledger wallet
• Trezor wallet
• Keepkey wallet

What is a Digital Currency Wallet?

A digital currency wallet is a device or application that helps people securely store, manage, and exchange their digital currencies such as Bitcoin, Ethereum, and other cryptocurrencies. A wallet in the cryptocurrency and blockchain space acts as a digital replacement for physical wallets or bank cards, allowing users to access their digital balance. These wallets interact with the blockchain to find the cryptocurrency associated with your address on the blockchain.

A digital currency wallet usually consists of two main components: a public key and a private key. A public key, also known as a wallet address, is a unique identifier that enables others to send cryptocurrency to your wallet. On the other hand, a private key is a secret code that gives the owner access to their digital assets and is used to sign transactions. In fact, crypto wallets act as the owner’s identity and account on the blockchain network and provide access to transaction history.

Applications of Digital Currency Wallets

As we explained at the beginning of the article, doing things like receiving and sending all kinds of cryptocurrencies requires a digital currency wallet. When you intend to enter and perform activities in an exchange, you must plan to prepare a digital currency wallet. While exchanges give you a dedicated wallet and address to store your digital assets, you will need a personal wallet to use decentralized applications such as DeFi platforms. There are several reasons for using digital currency wallets, some of which are:

Security

One of the main reasons for using a digital currency wallet is to increase security. These wallets store your payment information and passwords securely. Cryptocurrency wallets protect your cryptocurrencies from unauthorized access and theft using advanced encryption techniques and security features.

Convenience

Digital wallets provide the right conditions for managing your cryptocurrencies. With a digital currency wallet, you can easily send, receive and store different digital currencies and simplify your financial transactions.

Accessibility

The digital currency wallet allows you to easily access your digital currencies anywhere and anytime. You can access Volt digital currency and make transactions with your computer or mobile phone.

Control

With a digital currency wallet, you have complete control over your funds. Digital wallets allow you to be the sole custodian of your digital currencies. You have the freedom to manage your funds, monitor transactions and choose the level of security you prefer.

Wide payment options

With the increasing acceptance of digital currencies in the society, more and more people are accepting digital currencies as a form of payment. With a digital wallet, you will have more options for transactions and payments. In addition, you will be able to deposit money to other people anywhere in the world who own a digital currency wallet without any special restrictions or obstacles.

Interaction with digital currency platforms

The interaction of crypto wallets with centralized digital currency exchanges or decentralized programs such as decentralized exchanges (DEX), NFT buying and selling markets, or metaverse and blockchain games, allows you to experience the digital world and act in the space of blockchain and cryptocurrencies.

Types of Digital Currency Wallets

There are different types of wallets available for storing and managing digital currencies. In general, cryptocurrency wallets can be classified into two groups: hot wallets and cold wallets. The main difference between the two is that the hot wallet is online and the cold wallet is offline. In the following, we will get to know these two types of wallets in more detail.

What is a Warm wallet?

Hot or warm wallets are connected to the Internet and provide easy and fast access to your digital currencies. The biggest advantage of warm wallets is their convenience. Your public and private keys are stored and encrypted in your wallet app, so you can access them anywhere with an online connection, not limited to a specific device on which the wallet is installed. Software wallet and web wallet are examples of warm wallets that we will introduce below.

Software wallet

Software wallets are programs that you install on your computer or mobile and are used to store and manage digital currencies. They can be categorized as follows:

Desktop Wallet

These wallets are installed on computer operating systems such as Windows and macOS and give you full control over your private keys. Exodus and Electrum can be mentioned as two of the best desktop wallets.

Mobile Wallet

These wallets are installed on special mobile operating systems (mobile phones) such as Android and iOS and provide convenient access to your digital currencies. Trust Wallet and MetaMask can be mentioned as two of the best mobile wallets. Lockvolt is also a special mobile wallet, Ghiramani, Farsi and one of the products of Nobitex, which allows users to fully control their digital assets.

Web Wallets

Web wallets are online wallets that can be accessed through a web browser. These wallets are vulnerable to hacking due to interaction with internet servers and are less secure than other options. MyEtherWallet and Blockchain.com are two of the most popular wallets on the web.

Advantages of warm wallet

Internet connection, easy access and the possibility of simple recovery of the wallet using the recovery phrase or private key are among the advantages of warm wallets.

Disadvantages of warm wallet

Less security than cold wallets and vulnerability to some attacks are disadvantages of warm wallets.

What is a Cold Wallet?

A cold wallet refers to any type of wallet that stores your private keys offline and away from the internet. Cold storage wallets are specially designed to be difficult to hack. Hardware wallets and paper wallets are examples of cold wallets that we will introduce below.

Hardware wallet

Hardware wallets are physical devices specifically designed to store cryptocurrencies. They provide a high level of security by keeping your private keys offline. Hardware wallets are usually in the form of a USB stick that allows you to buy, sell and transfer digital currencies while connected to computer devices. Ledger and Trezor can be mentioned as two of the largest specialized manufacturers of hardware wallets.

Paper wallet

A paper wallet involves generating a pair of cryptographic keys (public and private keys) and printing them on a physical medium such as paper. With paper wallets, your keys may be accessible via QR codes printed on a piece of paper, or engraved on some other material such as metal. They offer an offline storage option, but require careful handling to prevent loss or theft.

Advantages of cold wallets

Cold wallets provide additional security due to the offline storage of sensitive information. In addition, many hardware wallets are supported by warm wallets, and some of the features of a warm wallet can be used in cold volts.

Disadvantages of cold wallets

The time to complete a transaction or withdraw an asset with wallets is longer on average. It is impossible to recover assets in cold wallets without a key backup and a 12, 18 or 24 word recovery phrase.

How does a Digital Currency Wallet Work?

The digital currency wallet can be in the form of a software or hardware program that provides users with the necessary space to manage digital currencies. This is done by storing the user’s private and public keys that are necessary to perform transactions and access the user’s digital assets. In the following, the general functioning of the digital currency wallet is explained.

Key generation

When you send Bitcoin, Ethereum, or any other cryptocurrency to someone else’s wallet, you are actually registering ownership of that digital currency to the new person’s wallet address. In this process, you confirm that this digital currency in the blockchain is no longer yours and should be handed over to someone else. To do this process, you need two keys, public and private keys. These two keys consist of a string of letters and numbers generated by the digital currency wallet.

The public key of the wallet

It acts as a wallet address and allows others to send digital currencies to the user’s wallet.

The private key of the wallet

It is a secret and confidential code that is only available to the owner of the wallet and it is used to access and control the digital currencies associated with the wallet.

Key storage

The wallet stores private keys on the user’s device or a secure server. It is important for users to protect their private keys and not share them with a second party; Because anyone who has access to the private key can control the cryptocurrencies associated with it.

Transactions

A digital signature created using the private key is required to confirm transactions. This digital signature ensures that the transaction is genuine and that the user is the true owner of the wallet.

Interaction with blockchain

Digital currency wallets are connected to blockchain networks. This interaction causes user transactions to be confirmed, wallet balance to be updated and transaction history to be recorded.

Security measures

Cryptocurrency wallets take various measures to prevent unauthorized access and keep the user’s private key safe. Some of these security measures include two-factor authentication (2FA), biometric authentication such as fingerprints, and hardware security modules for hardware wallets.

How to use a Digital Currency Wallet

Now that you are familiar with the types of digital currency wallets and how they work, the first step to use its features is choosing the type of wallet. Each of the hot wallets and cold wallets have different processes and settings up to the setup stage, which we will review below.

Installation of warm wallets

Download digital currency wallet

Before downloading the warm wallet, you must make sure that the version you download is a real and valid version. In the case of web wallets, you need to check that you are on the right site. Be sure to get digital currency software wallets from official sources and reputable app markets.

Account settings and security items

If you use a non-custodial wallet, your wallet recovery phrase will be a random 12-24 word string that is best written completely offline, for example by writing it down on paper and keeping it in a safe place where It is not accessible to other people and only you know about it, save it. You can also enable security tools like two-step authentication and biometrics during or after the setup process is complete. The process of setting up escrow wallets is a bit longer and you often have to go through a KYC step to verify your identity.

Deposit digital currency to the wallet

Non-trust wallets do not allow direct purchase of digital currencies with fiat currencies, and you may have to transfer cryptocurrency from another place, such as Nobitex cryptocurrency exchange, to your non-trust wallet. In safe wallets that do not provide you with a private key or recovery phrase, you can often directly buy digital currency with your fiat currency.

Installation of cold wallets

Online shopping for hardware wallets

To ensure that the device has not been tampered with before purchase, be sure to purchase the cold wallet device from reputable stores with a track record. Also, pay attention to the fact that the packaging of the hardware wallet should not be distorted or open.

Hardware wallet device software installation

Each cold wallet has its own software that must be downloaded from the company’s official website and installed on the hardware device.

Digital currency deposit

In the last step, you can transfer your digital currencies from digital currency exchanges or warm wallets to your hardware wallet.

The Best Digital Currency Wallets for all Types of Users in 2024

Below are some of the best and most famous digital currency wallets considering security, features, user interface and supported blockchain currencies and networks. In this section, we have tried to mainly introduce wallets that are suitable for Iranian users and do not create a challenge for digital currency investors to use inside the country. In addition, all the following wallets are non-custodial or non-custodial and provide the private key of the wallet to the user.

Trust Wallet

Trust Wallet is a popular online wallet especially for mobile devices. Binance Group acquired the Trust wallet in 2018. However, Trust Wallet is a non-trust wallet and its use does not require having an account on the Binance exchange. This wallet supports more than 100 blockchains and therefore can store a huge number of digital assets.

Trust Wallet is also a great option for those interested in NFTs and decentralized applications. This wallet has an in-app web3 browser that allows users to directly access decentralized applications and blockchain games. This feature makes it easy to buy NFTs or interact with different platforms.

Advantages of Trust wallet

• Support for a wide range of tokens
• Simple and easy user interface
• Built-in Web3 browser support

Disadvantages of Trust wallet

• Affiliation with the Binance team

MetaMask

Metamask is one of the most used Ethereum wallets with over 30 million monthly active users. This may be due to its ease of use and accessibility. Metamask has an attractive and simple design as well as advanced features for investors who want to interact with Ethereum-based cryptocurrencies, protocols or decentralized platforms.

Metamsk also has many fans due to its compatibility with other blockchain networks such as Binance Smart Chain, Polygon, Avalanche and Arbitrum; This means that users can add other networks to Metamask besides Ethereum. Users can also access famous NFT markets such as OpenSea using Metamask and engage in NFT creation or buying and selling of these assets.

Metamask wallet extension is available through Google Chrome, Microsoft Edge, Firefox and Brave browsers. Users can also install the Metamask app on their Android or iOS mobile devices.

Advantages of Metamask wallet

• Simple user interface in the application and browser extension
• Ability to connect to decentralized applications
• Support for professional features and settings

Disadvantages of Metamask wallet

• Not supporting Bitcoin on the mainnet

SafePal

Safe Paul is a provider of software and hardware wallets. Its software wallet is available in the form of Android, iOS and browser extensions, and the X1 and S1 models are among its hardware products. The software version of Safe Paul wallet supports many features such as internal exchange with the help of centralized and decentralized exchanges, staking and connection to decentralized applications. Safe Paul hardware models are also reasonably priced compared to other brands in the market, and at the same time, they support a variety of features.

Advantages of the SafePal wallet:

• Simple user interface
• Support for various networks and more than 10,000 tokens
• Support for internal exchange and staking

Disadvantages of SafePal wallet:

• The need to perform authentication to use some services related to Binance

Atomic Wallet

Atomic Wallet is one of the most popular and practical wallets in the field of digital currencies. This wallet uses the Atomic Swaps feature, which allows direct exchange between different digital currencies without the need for a central intermediary. Atomic Wallet supports more than 1,000 types of digital currencies and tokens, including Bitcoin, Ethereum, and Litecoin. It is possible to use Atomic Wallet on Android, iOS, Windows and macOS devices, but its browser extension is not available.

Advantages of Atomic wallet

• Support for more than 1,000 digital currencies
• Support for exchanges in the wallet

Disadvantages of Atomic wallet

• Inability to integrate with hardware wallets
• Lack of wallet browser extension version

Coinbase Wallet

Coinbase Wallet is a wallet suitable for newcomers to the digital currency market. This wallet provides the user with the private key or recovery phrase and is a non-trusted wallet. The Coinbase wallet is able to store popular currencies such as Bitcoin, Litecoin, Dogecoin, BNB, as well as all ERC-20 tokens and Ethereum Virtual Machine (EVM) compatible tokens, totaling more than 5,500 digital assets. includes It is worth noting that there is a difference between the Coinbase exchange and the Coinbase wallet. The Coinbase exchange is one of the oldest and most well-known cryptocurrency trading platforms in the United States. The Coinbase wallet can be used without having to create an account on the exchange; This means that the private key is stored on your device.

Advantages of Coinbase wallet:

• Simple user interface
• Support for more than 5,500 digital assets
• Ability to set two-step authentication
• Support for staking, swap and bridge services

Disadvantages of Coinbase wallet:

• Restrictions for use with countries
• Development by an American company and the possibility of more sensitivity on sanctioned country users in the future

Ledger

Ledger is one of the most well-known brands in the field of hardware wallets. The products of this brand are known for using a common security element known as “Secure Element”. Secure Element is a type of chip that is often used in passports, credit cards and payment systems, providing added security to users. The brand’s initial wallet, the Nano S model, was released in 2016 and was upgraded to the Nano S Plus in 2022, with an improved screen, much more storage capacity, and a USB-C cable port. .Nano X is another popular ledger model.

Advantages of ledger wallet

• Support for more than 5,000 digital currencies
• Ability to connect to Android, iOS, Windows and MacOS devices
• Compatibility with other hardware wallets

Disadvantages of ledger wallet

• High price
• Custom OS is not open source

Trezor

The Trezor wallet is one of the first Bitcoin hardware wallets introduced to the cryptocurrency market. As a hardware wallet, Trezor has high security benefits and is capable of holding a large number of digital currencies. Trezor and Ledger are known as two very safe and reliable hardware wallets in the digital currency market. Model T, Safe 3 and One are three Trezor brand products.

Advantages of Trezor wallet

• Graphical user interface and comfortable
• Support for more than 9,000 digital currencies

Disadvantages of Trezor wallet

• More expensive than other hardware wallets with similar functionality
• No support for iOS devices

KeepKey

KeepKey hardware wallet is available in only one model and is one of the popular wallets in the field of digital currencies. This wallet is used to store and manage digital currencies by providing high security features and supporting a large number of cryptocurrencies and tokens. KeepKey ensures security against virus attacks and hackers by storing private keys in a separate and offline environment. This wallet supports cryptocurrencies and tokens including Bitcoin, Ethereum, Bitcoin Cash, Litecoin and Dogecoin. Due to its security features and extensive currency support, KeepKey is a recommended option in the field of digital currency hardware wallets.

Advantages of KeepKey wallet

• Reasonable price
• Support for more than 7,000 digital currencies

Disadvantages of KeepKey wallet

• Lack of support for Android and iOS

How to Choose the Best Digital Currency Wallet?

Remember that choosing the best digital currency wallet requires complete knowledge and awareness of the information of various wallets. The most important thing that makes the difference between digital wallets is the way of storage and also the different methods of accessing digital currency. In the following, we mention some of the features that should be considered for choosing the right digital currency wallet.

Digital currency wallet safety

When choosing Bitcoin and cryptocurrency wallets, safety is the most important concern. Keep in mind that wallets with biometric, two- or multi-step authentication, multi-signature support, open source code, and strong security protocols for transactions are better options to choose from.

Digital currency wallet capabilities

Features include the overall functionality of any cryptocurrency wallet. Wallets with more tradable cryptocurrencies, live charts, and Staking and Lending capabilities have a higher priority for selection.

Digital currency wallet fee

Using cold wallets comes with an upfront cost due to the initial hardware equipment that needs to be purchased. There is no cost to install and set up warm wallets, but there is a cost to carry out transactions in both models. When choosing a wallet, it is very important to check the costs.

Supported currencies

A general rule of thumb for cryptocurrency wallets is to choose a wallet that supports at least a few popular altcoins such as Ethereum, Cardano, and Solana. The wallets that currently have many users are often multi-chain wallets and are compatible with many blockchains.

User interface

A wallet with a graphical user interface and easy access can be a good option for the user to choose. The issue of using the wallet with which operating systems or devices is possible should be investigated.

Conclusion

A digital currency wallet is an essential tool for managing assets and making transactions. Unlike traditional wallets that hold cash, digital currency wallets do not store the currencies themselves, but instead display the cryptocurrencies associated with user addresses on blockchain networks and allow users to manage them. These wallets also store the private keys that are necessary to authorize transactions. With Cryptocurrency wallets, people can send and receive cryptocurrencies, view their balances, and have full control over their digital assets. Whether through software, hardware, or online wallets, wallets provide users with a safe and convenient way to interact with the world of digital currencies.

Frequently asked questions(FAQ)

What is the best cryptocurrency wallet?

Trust Wault, Metamask and Ledger are some of the best cryptocurrency wallets.

What is the most secure digital currency wallet?

In general, hardware wallets such as Ledger and Trezor are more secure than software wallets.

Does it cost to make a digital currency wallet?

There is no fee to use software wallets, but hardware wallets require the purchase of a device.

What is the price of a digital currency hardware wallet?

The price of hardware wallets ranges from $50 to $280 depending on the features they provide to the user.

What to do if the wallet is deleted from the phone?

You can install the wallet application on the same phone or another device by entering the wallet recovery phrase you wrote down in advance and restore your access to the wallet.

How do I receive digital currency in my wallet?

To receive digital currency, you must find your public address from the Receive section and send it to the sender. If you want to deposit yourself, you should buy the desired digital currency from a digital currency exchange and withdraw it to your public wallet address.

How to send digital currency in your wallet?

Get the address of the person to whom you intend to deposit digital currency and deposit the desired amount from the Send section. Note that sending digital currency to others requires payment of an amount as a fee, which is paid in the native digital currency of the network hosting the transaction.