One of the major points of contention when entering the cryptocurrency industry either as a trader or a HODLer is the security of digital assets. Many investors are on the fence when it comes to participating in this budding industry just because of the infamous incidents of hacks and cyber-attacks on crypto exchange platforms that have swindled investors to the tune of millions of dollars. As a measure to safeguard their investments, seasoned investors store their digital assets only on the most trusted and reputable crypto wallets.
In this article, we look at three of the most trustworthy and secure crypto wallets in the market today – Ledger, Bitamp, and Electrum.
Differentiation Between Hot Wallets and Cold Wallets
Before we delve deeper into the aforementioned cryptocurrency wallets, it’s important to know about the different kinds of cryptocurrency wallets.
Primarily, cryptocurrency wallets can be divided between hot wallets and cold wallets.
What Are Hot Wallets?
Hot wallets, as the name suggests, are digital wallets that are connected to the Internet. Due to their online nature, hot wallets enable rapid access to digital assets. There is no dearth of secure hot wallets in the industry, with some of the most popular of them being MyCelium, Bread, Edge, Bitamp, and Electrum, among others.
Hot Wallets are optimal for those who require ‘on-the-go’ access to their digital assets for quick trades. As the price movement in the cryptocurrency industry is notoriously volatile, having or not having quick access to crypto investments can make or break the game for investors. Therefore, if you’re a trader or even just want to HODL cryptocurrencies for the long-term, you can bet your money on hot wallets. Investors can add an extra layer of security to their wallets by enabling PIN password and two-factor authorization.
What Are Cold Wallets?
As the name might suggest, cold wallets are ‘cold’ in the sense that they’re disconnected from the Internet. Cold wallets from companies such as Ledger and Trezor are becoming increasingly popular among novice and veteran investors alike courtesy of their unparalleled security.
However, due to their offline nature, they might not be the ideal choice for investors who are actively trading cryptocurrencies to make profits. Despite that, the stellar security provided by cold wallets makes them an ideal choice for those who want to store a large amount of crypto assets for the long-term.
Some of the Best Cryptocurrency Wallets Today
Ledger is a leading hardware or cold wallet firm based out of France. Ledger’s two flagship products – Ledger Nano S and Ledger Nano X, are often considered the industry-benchmark for hardware wallets because of their robust and cutting-edge security mechanism.
Ledger Nano S supports a swathe of cryptocurrencies, including some of the most popular digital assets, such as Bitcoin (BTC), Ether (ETH), XRP, Litecoin (LTC), and Bitcoin Cash (BCH), among others.
Further, despite being a hardware wallet, it’s not necessary for users to keep their Ledger online if they want to receive any cryptocurrency. The user can simply share their relevant wallet address and check later if the Ledger Live app whether they’ve received their assets.
A leading Bitcoin (BTC) wallet, Bitamp has established itself as a trusted name in the cryptocurrency wallet space. Bitamp is an open-source, client-side, Bitcoin wallet that enables users to seamlessly send and receive the premier cryptocurrency from anywhere in the world.
The wallet keeps user privacy at its core and requires no user information at all. Users are not required to share their email addresses or any other personal information to enjoy the benefits of this free Bitcoin wallet. Bitamp strives to preserve user’s anonymity and, in that regard, never stores the seed phrase, private key, IP address, or user browser details. What’s more, Bitamp can also be accessed through a VPN or TOR browser.
Bitamp enables users to make lightning-fast Bitcoin transactions. Bitamp believes in providing users the liberty to make transactions from anywhere in the world at the fastest speeds. Staying true to the ethos of Bitcoin, making transactions through Bitamp wallet takes minimal time compared to transactions made through traditional banks. In addition, Bitamp works without any borders in that it users to send Bitcoin to any recipient in the world without any restrictions at costs that are not even a fraction of the fees charged by banks.
Finally, Bitamp believes in the notion of giving complete control of financial assets to their owners. With Bitamp, users can rest assured about the security of their Bitcoin holdings as they get complete control over their assets. This way, they need not worry about exchange hacks and cyberattacks pulled by criminals aimed toward stealing crypto assets. With Bitamp, users need not worry about losing their data to third parties who have time and again failed to live up to expectations. Bitamp helps users self-custody their Bitcoin in a secure manner.
Bitamp also allows its users to integrate famous hardware wallets such as Ledger, and Trezor.
One of the oldest digital wallets in the industry, Electrum has successfully maintained its reputation throughout the years.
Electrum is a desktop Bitcoin wallet compatible with various operating platforms such as Windows, Mac, and Linux. Because it’s an open-source wallet, Electrum has continually undergone important additions from the best programmers and security enthusiasts in the crypto space. The continual refinement has cemented Electrum as one of the most respected Bitcoin wallets in existence today. Just like Bitamp, Electrum can also be integrated with several leading hardware wallets including Ledger, Trezor, and others.
However, unlike Ledger, Electrum is a Bitcoin-only wallet. On a plus side, however, Electrum offers the possibility of creating multi-sig wallets.
Choosing the right kind of cryptocurrency wallet largely depends on the use. If you’re an active trader and want to capitalize on the price movements of cryptocurrencies to make small and healthy profits without compromising on the security of your assets, hot wallets such as Bitamp could be the way to go.
Similarly, long-term HODLers typically tend to stick to hardware wallets such as Ledger due to their offline nature. People who have been in the cryptocurrency space since its initial days would prefer Electrum due to its rich and long history in the industry.
All in all, it goes without saying that every crypto investor must have at least one secure digital wallet. Always remember, not your keys, not your Bitcoin.