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Best Crypto Wallets of September 2023

Zac McClure
ByZac McClure, MBAReviewed byArthur Teller, CPAUpdated on September 20, 2023 · minute read
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  • Learn about the best crypto wallets available today, chosen and reviewed by our crypto tax professionals and tailored to various user requirements and expertise levels. Our top picks include Coinbase Wallet, Exodus, and Ledger.

  • Our crypto wallet reviews offer insights into a range of crypto wallets, so you can quickly discover the right one for you based on your goals, security preferences, and crypto holdings.

Our top picks: best crypto wallets in 2023

Our crypto tax professionals reviewed and selected the best crypto wallets. Here are our top picks, followed by a comprehensive list of the best crypto wallets available, to help you find the wallet best suited to your level of crypto experience and goals.

Coinbase Wallet

Coinbase Wallet

Best hot crypto wallet overall

Exodus

Exodus

Best crypto wallet for Bitcoin overall

Ledger

Ledger

Best cold crypto wallet overall

Best hot wallets

Hot wallets are pieces of software that grant users access to their digital assets for managing transactions and storage. These are our expert picks for the best hot wallets available on the market today.

Coinbase Wallet

Best hot crypto wallet overall

Coinbase Wallet is a stand-out option for those just beginning in crypto through to advanced traders looking for a hot wallet for quick and active trading. It supports a wide range of assets, is easy to use, and is backed by one of the most reputable centralized crypto exchanges on the market.

MetaMask

Best crypto wallet for Ethereum users

MetaMask is a popular cryptocurrency wallet tailored to Ethereum-based tokens, available as a browser extension and a mobile app. MetaMask facilitates transactions, buys, sells, swaps, and decentralized applications (dapps) access. The wallet offers staking and supports non-fungible token (NFT) marketplaces through its mobile app.

Trust Wallet

Best crypto wallet for mobile

Trust Wallet is a popular and user-friendly mobile app designed for self-custody of cryptocurrencies. It empowers users to take full ownership of their digital assets rather than relying on custodial exchanges.

Best cold wallets

A hardware wallet provides much-needed security and peace of mind for the serious crypto investor. Our experts have identified the top three cold, hardware wallets available in crypto today.

KeepKey

Best cold wallet for beginners

KeepKey is a leading cold wallet choice for accessing Web 3.0 decentralized applications (dApps) while prioritizing security. It offers multiple secure methods for interaction. The KeepKey Client software can be downloaded on desktop devices (Windows, Mac, Linux), or the KeepKey device can be connected to smartphones via USB.

Ledger

Best cold crypto wallet overall

Ledger stands out in the market for crypto hardware wallets because of its popularity and quality. The company offers two versions of its compact device, one with Bluetooth connectivity and one without, both at an affordable price point.

Trezor

Best hardware crypto wallet for Android users

The Trezor One stands out as a top hardware wallet for cryptocurrencies, offering affordability without compromising security. Developed by SatoshiLabs in 2014, it was the world's first hardware wallet for cryptocurrencies. Renamed Trezor One, this hardware wallet pioneered features like recovery seed and passphrase protection.

Best Bitcoin wallets

If you’re looking to trade and hold Bitcoin and only Bitcoin, or want a wallet for your Bitcoin specifically, consider one of these three wallets.

BitBox

Best Bitcoin hardware wallet for beginners

BitBox offers a Bitcoin-only edition for users solely interested in storing bitcoin, enhancing compatibility with popular applications such as BitBoxApp, Electrum, Specter, Sparrow, and Wasabi.

Electrum

Best Bitcoin wallet for advanced users

Electrum is a top choice for the best Bitcoin wallet for advanced users and is known for its user-friendly setup, hardware wallet compatibility, and open-source nature. It offers a high level of customization, making it suitable for experienced traders and users with programming skills.

Exodus

Best crypto wallet for Bitcoin overall

Exodus offers versatile solutions for crypto enthusiasts seeking to store, spend, and trade cryptocurrencies across multiple devices. While it may not encompass the full spectrum of cryptocurrencies, Exodus provides a comprehensive experience for users dealing with popular digital assets including Bitcoin.

How to choose the best crypto wallet

It’s important to fully understand crypto wallets and how you intend to use them before choosing the best crypto wallet for your purposes. Before selecting a crypto wallet, consider this short list to further guide your decision, in addition to our recommendations above.

Different Types of Crypto Wallets
There are various types of crypto wallets, each with distinct features and purposes. These include

  • Cold, hardware wallets (physical devices)

  • Hot, software wallets (apps and desktop software)

  • Paper wallets (physical printouts of your keys)

Choose Based on Your Needs
Select a crypto wallet based on your intended use of cryptocurrencies. If you frequently make transactions, a mobile or online wallet might be suitable. For long-term storage, a hardware wallet offers enhanced security. We strongly recommend hardware wallets whenever possible, for security reasons.

Key Features
Depending on your priorities, you'll want to consider features like security measures (encryption, multi-factor authentication), user-friendliness, compatibility with the cryptocurrencies you own, backup and recovery options, and customer support.

Effective Management of Multiple Cryptocurrencies
If you hold various cryptocurrencies, you'll want a wallet that supports the range of coins you own. Some wallets are designed to handle multiple cryptocurrencies, simplifying your management process.

Exchange vs. Personal Wallets
Cryptocurrency exchanges often provide wallets for users, but there are advantages to using personal wallets. Personal wallets offer more control over your private keys, reducing the risk associated with potential exchange hacks and collapses.

Security and Convenience
Balancing security and convenience is crucial. While hardware wallets are among the most secure options, they might be less convenient for everyday transactions. On the other hand, online wallets might offer convenience but could be less secure.

By understanding these points, you can make informed decisions about the right crypto wallet for your specific needs and ensure your coins are both secure and accessible.

How do crypto wallets work?

Crypto wallets function differently from the common perception of physically holding cryptocurrencies, as traditional wallets do in a person’s pocket. Instead, they safeguard the essential public and private keys for purchasing cryptocurrencies and generating digital signatures to validate transactions.

A crypto wallet stores your private and public keys, which are essential to access and verify ownership of your cryptocurrencies on the blockchain.

Why do you need a crypto wallet?

Crypto wallets are an essential part of crypto because they securely store your private keys. Private keys are necessary for authorizing transactions and accessing your funds. Without a wallet, you can't access or use your cryptocurrencies.

Before delving into cryptocurrency investments, it's helpful to set up a crypto wallet, which will serve as the central hub to organize your portfolio. Each wallet is equipped with a private key, providing exclusive access to its contents. However, this wallet setup process also enables secure transactions, facilitating the sending and receiving of a range of cryptocurrencies.

Frequently asked questions about the best crypto wallets

Here are answers to frequently asked questions about the best crypto wallets and which wallet is best for crypto in various circumstances.

What kind of crypto wallet is best?

The best kind of crypto wallet depends on how you use crypto. For those just starting and for those who make frequent transactions, a hot software wallet may be more suitable. A cold, hardware wallet is generally recommended for increased security for long-term staking or storage.

Advanced crypto users typically employ a combination of different wallets suitable to various activities in crypto. We strongly advise using a hardware wallet whenever possible, particularly for large amounts of crypto, for the additional security these provide.

How to get a crypto wallet

Getting a software crypto wallet is simple. First, select a reputable wallet provider and download the chosen wallet app. Then, create an account by entering basic information and potentially undergoing an identity verification process. Finally, transfer your assets into the wallet by various means, such as bank deposits, cryptocurrency exchanges, or transfers from other wallets. 

The process to acquire a hardware wallet is similar, with the additional step of purchasing the physical device. Only purchase hardware wallets through verified retailers, and when possibly directly from the company’s own store.

What is a hot wallet?

Hot wallets, such as MetaMask, Coinbase Wallet, and Edge Wallet, are linked to the internet and the cryptocurrency ecosystem that provide users with access to their digital assets. These wallets are easily accessible interfaces to manage crypto transactions and storage, and as such can be subject to phishing or other cyber attacks.

What is a cold wallet?

A cold or hardware wallet securely stores cryptocurrency private keys offline, typically on a physical device. It protects against online hackers by using a disconnected flash drive-like device, physical control of which is required to make transactions. Private keys are accessed via USB or Bluetooth, using a password-protected mobile/desktop app. 

Even though cold wallets are less prone to remote hacking, physical theft of the device can be a threat. If a cold wallet is lost, Funds can be recovered using the seed phrase to generate a new key in another wallet. 

Simple paper wallets with printed QR codes can also be considered cold wallets.

Which crypto wallet is safest?

Cold hardware wallets are generally safer than hot software wallets, which can be subject to phishing or other attacks online. We recommend Ledger hardware wallet as a proven, credible, and reliable hard wallet for beginners and advanced crypto users.

To stay up to date on the latest, follow TokenTax on Twitter @tokentax.

Zac McClure
Zac McClureCo-Founder & CEO at TokenTax
Zac co-founded TokenTax after his career in international finance and accounting at JPMorgan, Imprint Capital and Bain. He has worked in more than half-dozen countries and received his MBA from the UPenn Wharton School.
Arthur Teller
Reviewed byArthur TellerCOO at TokenTax
Arthur came to TokenTax after 12 years at KPMG. A specialist in partnership taxation and enterprise tax software, he is a licensed CPA in both California and Illinois and a member of the AICPA.

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