How does a crypto wallet work ?
The wallet is the technology that gives you access to your tokens on the blockchain. You need a private cryptography key to access them. This key is the only element that determines the ownership of the blocks and therefore of the tokens.
With a physical wallet (or “cold wallet”), your private keys are electronically registered in the wallet support.
With an online wallet (or “hot wallet”), your keys are provided to you when it is created and are to be kept in a safe place by you alone.
With a custodial wallet (a wallet made available by an exchange and hosted by it), the keys are in a way held by the application. You trust him to return your funds. Exchange platforms as well as brokers fall into this category of wallets.
The advantage of custodial wallets is to have access, with low transaction fees, to advanced trading tools.
What are the best crypto wallets of 2023 ?
To give you the best wallet offers on the market, we will distinguish three categories :
- The physical wallet ;
- The online wallet ;
- The custodial wallet.
The physical wallet
Physical wallets are the most secure : they look like USB keys and allow you to store a selection of crypto-currencies. The encryption keys are registered on your physical wallet, so you are completely in control of your wallet.
And you are safe from hacking !
What are the hardware wallets on the market ?
We first think of Ledger, the French start-up behind the Ledger Nano S which offers an inexpensive crypto wallet solution (less than €60): you can store your Bitcoin and Ethereum plus a wide selection of other cryptos.
We can also mention Trezor which offers miniature physical wallets that you can also plug into your mobile phone. Trezor has also designed so-called “crypto steel” capsules which allow you to physically store part of your assets in a metal bar. We love the avant-garde side !
Be careful not to lose your wallet !
The keys to your physical crypto wallet are stored hard on the device. So it is a valuable tool that deserves your full attention ! Store it in a safe place and be careful not to lose it! As with a “hot wallet”, you will have to record a sequence of words in writing which constitutes the user key of your wallet. Store this keyphrase in a safe place !
The “hot wallet” or online wallet
However, the physical wallet is not the only solution : you can also lean towards a so-called hot wallet (“hot wallet”) or online.
It is a network application stored on your computer or on your mobile. It will ask you to store a passphrase when creating the wallet.
Easy to use and practical (PC and mobile), hot wallets only have the possibility of hacking more increased than with a physical wallet.
Examples of browser wallets
ZenGo is a “hot wallet” that offers you to store your cryptos securely on your mobile. It also offers to store NFTs from different blockchains and to participate in DeFi (decentralized finance) applications.
Metamask, the best known of them, also offers a very simple and quick installation. This wallet allows you to connect to most online platforms and it is possible to add many networks.
XDEFI Wallet, the new one that comes to compete with the biggest ! This recent project offers a very intuitive and ultra-complete browser wallet. There are many networks and an NFT functionality through which non-fungible tokens can be stored easily.
The custodial wallet
The custodial wallet is not a real wallet, because you do not have the encryption keys. Indeed, if the platform goes bankrupt, you risk losing your funds.
However, the custodial wallet is on the rise for its ease of use: easy to access on PC and mobile after authentication, you can deposit funds easily and manage them in a fun and efficient way. Access to a wide choice of markets and savings offers make these wallets the tenors on the market.
Which platforms for a custodial wallet ?
There is the eToro broker which has the particularity of also giving you access to the stock markets. You therefore have access to a very diversified offer of markets in which to invest. Please note eToro is a trading-oriented platform!
In the top we also find Binance : more than 3000 accessible tokens. It is the most important of the exchange platforms. You have access to a bank card to pay in crypto directly in your shops.
You can also try small ones like Bybit, a new exchange platform with very interesting trading possibilities.
Double authentication and KYC verification
We advise you to activate double authentication on your preferred platform (verification by SMS or authentication application). This way you protect yourself from most pirate attacks. These platforms will give you access to all the features after verifying your identity and your address (KYC).
Which crypto wallet to choose in 2023 ?
How to choose the wallet that suits you? It depends on what you are looking for: high security, transaction fees, diversity of cryptocurrencies, reputation, …
For a beginner, we recommend using a custodial wallet on eToro, Binance, Bybit or any other platform. You will be able to learn about cryptocurrencies before considering a more secure solution in the event of future investments.
If you want to be the only owner of your goods and want to secure them effectively, we recommend a physical or online wallet. A physical wallet will be more effective if your capital is higher and less diversified (perfect for a big saver).
An online wallet will be quite secure if you are careful to never save your secret key in digital format : always write it down on paper and put it away ! Online wallets are simple to use, and some will allow you to connect to dApps on your browser.
Costs above all
Custodial wallets offer you the lowest fees for small investments (up to €10,000), and you will be able to access easy-to-access trading tools and advantageous savings options.
For larger investments, we recommend securing your funds on different physical or online wallets.
Physical and online wallets are limited to a selection of blockchains and tokens (sometimes this selection can still be quite large).
These are the custodial wallets of trading platforms that offer the widest range of investments, with thousands of markets and savings solutions.
“Street cred” first and foremost
Both physical and online wallets give you ownership of your funds, and it’s up to you to decide which solution works best for you.
Pour les plateformes d’échange et les brokers, vous faites confiance à l’organisme où vous déposez vos fonds, donc vérifiez toujours la probité de la plateforme d’échange sur internet ou vous pouvez opter pour des valeurs sûres comme eToro ou Binance.
For trading platforms and brokers, you trust the organization where you deposit your funds, so always check the probity of the trading platform on the internet or you can opt for sure values like eToro or Binance.