So you are about to buy some cryptos... how do you figure out which wallets to store them in?

In this post I go over the pros and cons of the different types of wallets available including online, software and hardware and finally highlight which cryptocurrencies can be stored in each wallet.

Before I begin I’d like to clarify that I am not a financial adviser and this guide is not financial advice. However I will be sharing my knowledge and experience of the crypto world to help you manage your investments easily and securely.

Type of wallets

1. Online "Exchange" wallet

Stored at the exchange (i.e. Bittrex, Coinbase or Liqui)

2. Local "Software" wallet

Saved on your computer (e.g. Exodus, Jaxx or Crypto's own wallet)

3. Offline or Cold "Hardware" wallet

Stored on a physical Device like a Trezor or Ledger

The purpose of each type of wallet

I like to use software wallets for smaller amounts acting as my current accounts which I use to trade and spend with. The hardware wallets I use for larger amounts representing my savings accounts.

Avoid using online Exchange wallets

All Cryptocurrency wallets have two components, namely a "public key" which you use to buy cryptos from the exchange, move funds between wallets and buy and sell products with - no one can steal your cryptos with this key. The other part is a "private key", which if you disclose to anyone means they can spend the contents of your wallet. If you store your cryptocurrency in an online exchange's wallet, you do NOT know the private key or have control of your cryptocurrency - hint: "Do not store your currency in an online exchange wallet"!

Obviously, if you have used an exchange to by cryptocurrencies like on Bittrix, Coinbase or Liqui then you will need to temporarily store your cryptos in the exchange wallet to then move out into your own software wallet.

At the time of writing this, there are a few exceptions like "TenX" and "District0x" that don't have software wallets so an online exchange wallet is your only choice - make sure you follow the developments for these cryptocurrencies to see when a software wallet becomes available.

Choosing a Software Wallet

Lets assume you are moving funds from an online exchange to a software wallet on your desktop computer (Apple, Windows or Linux). I use a mixture of Exodus and Jaxx wallets to store most of my cryptocurrencies (for example at the moment EOS is only supported by "Exodus" and "Civic" by Jaxx). For most of the more popular Cryptos, both of these wallets will cover your investments, however currently coins like "Monero", "Neo" and "IOTA" cannot be stored in Exodus or Jaxx and you need to download and install each crypto's own software wallet on your computer.

Download Exodus wallet here
Download Jaxx wallet here

Both Exodus and Jaxx use a combination of pincodes, passwords and seeds (long list of words) to protect your wallet and without these you cannot access the funds inside them.

Are software wallets safe?

The short answer is "yes" they are safe so long as you remember the password and seed to open the wallet. However if your computer is infected with a virus, malware or keylogger it is possible for a hacker to gain access to your computer and the wallet. This is why I always recommend formatting a computer and reinstalling the operating system (Windows, Apple or linux) before installing a software wallet (get in touch if you need help with this) - this way you know your computer is clean!

Why use a hardware wallet?

Remember in Crypto land you are the bank and there is no freephone number to call if you have lost your wallet seed and password or someone has stolen your funds - in fact it's game over if you don't have them and thats why I recommend backing them up somewhere safely!

A hardware wallet (also known as a cold wallet) like a "Trezor" or "Ledger" is an offline and encrypted device that holds the private keys to your wallet. Hardware wallets are protected by a seed and pin number and without them you cannot access your funds. It is only possible to move funds out of a hardware wallet if the device is plugged into your computer and you have entered the seed and pin number.

Buy your Ledger hardware wallet here
Buy your Trezor hardware wallet here

What if the Trezor or Ledger malfunctions?

No problem! All you need to do is order a replacement device, enter the Seed and pin number and your funds are there!

Which wallets support each Cryptocurrency?

Below is a link to my "Crypto Wallet Matrix", a Google sheet which shows which wallets can store each cryptocurrency. If the crypto is not supported by Exodus, Jaxx, Trezor or Ledger, hover over the relevant cell in the spreadsheet to see the download link for the Crypto's own wallet.

Click here to see my "Crypto Wallet Matrix" to help you decide which wallet to use

Always backup your wallets

Finally, please remember to backup up safely each wallet's seed, pin number and passwords...

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Need more help with Cryptocurrencies?

My name is Carl the “Crypto Hound”, a Cryptocurrency and Blockchain consultant.
I love helping you manage your cryptocurrency portfolio easily and training you how to use crypto wallets securely. If you need assistance do get in touch.

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[email protected] | +447919 562 418 | www.cryptohound.me

Buy your Ledger hardware wallet here
Buy your Trezor hardware wallet here
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