Why self-custody your cryptocurrency?
Many cryptocurrency newbies simply put all their cryptocurrencies on the same exchange where they were purchased. While this is by far the most convenient method, it’s not the best idea. If you keep your cryptocurrencies on exchanges, you give up ownership and control over them. The exchange owns the cryptocurrency and ultimately has control over it.
If you keep your cryptocurrency on an exchange, you basically just hold an IOU from the exchange that promises that if you choose to sell, the exchange will let you get the monetary value of those funds, or if you choose to put the cryptocurrency Move out of the exchange and it will give you the asset.
You’ve probably heard the cliché “not your keys, not your crypto”, but you probably don’t really understand what it means. This sentence applies to keeping your cryptocurrency on a centralized platform like Coinbase, Binance or Celsius, rather than using a non-custodial software wallet (like the software wallets on this list or hardware wallets like Trezor).
When a user downloads a non-custodial software wallet or buys a hardware wallet, the wallet comes with a unique set of private keys, and whoever holds the wallet’s private key controls the assets in the wallet. If you put your funds on a centralized platform or exchange, they will hold the private keys and therefore have control over the funds.
Even if you have an account on the platform, it does not mean that you have your own private keys and self-custody of the funds. You’re unlikely to give your $500 to your neighbor for safekeeping, right? So why would you trust a centralized exchange to keep your cryptocurrency safe for you?
Another good reason to move cryptocurrencies off exchanges is that there have been hacks of crypto exchanges in the past that have resulted in the theft of millions of dollars worth of user funds. When choosing to self-custody your cryptocurrency, it is very important to ensure that the wallet is downloaded from an official source.
There are tons of fake websites and apps in the app store, causing users to download fake apps that look exactly like the real thing, and once they transfer funds to fake wallets, it can cause total loss of cryptocurrency, so be vigilant, Make sure to download the official wallet from the correct source.
Once you’ve downloaded your wallet of choice, the most important first step is to make sure you’ve backed up your wallet, written down your recovery phrase, and stored it in a safe place. If something goes wrong with your phone, no one will be able to help you recover those funds without this recovery phrase.
Each wallet on this list comes with a unique recovery phrase upon download, which users will be prompted to write down when they go through the installation process for the first time. Be sure not to skip this step and do not share these phrases with others.
Benefits of Software Crypto Wallets
Cryptocurrency holders have several different options when it comes to choosing how to store their cryptocurrency. When it comes to encrypted storage, there is always a balance between security and convenience, that is, the more convenient is often the less secure, it is up to the individual encryption user to decide what balance is right for them.
By far the safest way is to store your cryptocurrency in a hardware wallet, which is also known as using cold storage. The downside of hardware wallets is that they cost some money to buy and are not very portable or convenient to use.
On the other hand are the software wallets discussed in this article. Software wallets are not as secure as hardware wallets because they are installed on devices with internet access and if the user is not careful, there is a risk of viruses and malware that can compromise the security of the wallet.
Most software wallets are free to use and very user-friendly. They are also more convenient because most people already have their mobile devices with them 24/7 so their cryptocurrencies are always at their fingertips, which allows them to easily view their portfolios, trade on the go, and use cryptocurrencies in a physical shop shopping. Another major benefit of software wallets is that many of them have handy features like in-app transactions.
Top 8 Mobile Crypto Wallets
Exodus Wallet – the best choice for security and design
My top pick is the Exodus for the simple reason that they have top-of-the-line safety features. The team at Exodus takes security very seriously and respects the privacy of users, which is why they are one of the most popular and widely used wallets and are highly regarded in the crypto community.
It doesn’t matter if the wallet looks amazing or if it has a ton of useful features without security. In addition to a high level of security and a wealth of features, there is no prettier wallet in the cryptocurrency industry. The Exodus team has taken functionality, design and aesthetics to the next level, and their design team deserves huge accolades. Forget Feng Shui and Martha Stewart, I’m all for the Exodus design team to design my bleak looking apartment.
Exodus Wallet comes with a beginner-friendly user interface that enables you to easily monitor and track your portfolio. Exodus mobile encrypts your private key and stores it on your device, meaning your data remains private and under your personal ownership. No KYC registration or account setup is required to use this wallet.
Exodus is available in multiple currencies, supports over 225 assets, and offers two different options that allow users to trade assets directly within the wallet. Users can trade their favorite assets in their wallets through third-party API trading providers without KYC.
Exodus has also partnered with the popular FTX exchange to provide users with FTX accounts the ability to trade assets directly from within Exodus, so your cryptocurrency never needs to leave the security of your wallet. The wallet also supports QR code scanning for cryptocurrency purchases and makes it easier to send and receive transactions. Exodus wallet users can also stake some of their assets directly within the wallet for passive income rewards.
Another reason this wallet is a top product is its customer support. Anyone who has been in the crypto space long enough knows that the industry is not known for being very well supported. The team at Exodus shatters that stereotype, offering world-class 24/7 customer support with response times typically within 10 minutes.
The Exodus team is very passionate about cryptocurrencies, spreading awareness and supporting adoption. They even sent customers thousands of dollars worth of free pizza coupons to celebrate Bitcoin Pizza Day, marking a real milestone in Bitcoin history,
Aside from incredible customer support, beautiful design, convenient in-app transaction options, free pizza, Exodus is my first choice because it takes security to a new level by working with Trezor hardware wallets build partnerships and integrations, and Exodus wallets are for even the most security-conscious individuals.
Additionally, the Exodus wallet can be secured with face or touch ID and passcode. The only downside to Exodus is that at the time of writing, the wallet does not support the storage of NFTs, and it does not include browser support for integration with many decentralized financial platforms, making this wallet not the best choice for DeFi enthusiasts .
Coinomi Wallet – the best rare altcoin support
Coinomi is a great wallet choice for gem hunters of rare altcoins, Coinomi supports over 125 blockchains and 1770 assets, which gives it the right to support more networks than any other mobile wallet. Coinomi is the first publicly released multi-currency wallet and has grown rapidly since 2014.
The wallet has never been attacked by any known hack since its launch. With such a good track record, users can have confidence in the security of the wallet. Coinomi also has one of the largest user bases, trusted by millions of people around the world who love to use this wallet on IOS and Android.
Coinomi does not require KYC or account verification, they take privacy very seriously, with advanced privacy and anonymity features, the app is designed with no IP address association, no identity link, no transaction tracking, Coinomi servers or even downloads to the app Requests are anonymized to protect the privacy of their users’ IP locations.
The wallet’s private key is encrypted and stored locally on the user’s device and is never exposed or shared across servers or networks. Coinomi Wallet also has the convenience of a built-in exchange, allowing users to trade their favorite assets, while also enabling their users to benefit from cold wallet token staking, a safer way to allow users to trade their favorite assets from passive income from assets.
The wallet has built-in Web3 DApp browser support, allowing users to interact with some of the top DeFi services without compromising security. For fans of digital collectibles, Coinomi supports ERC721 tokens so users can store and manage their Ethereum-based collectibles and NFTs.
This wallet is also great for any crypto user holding a blockchain domain name, and unlike many wallets that don’t offer customer support, Coinomi’s interface is incredibly easy to use, for DeFi and wallet users who want an all-in-one wallet For that matter, it’s perfect.
Coinomi also simplifies tax reporting and bookkeeping, and users can export their crypto transaction history. The wallet supports QR code scanning to facilitate cryptocurrency transactions and in-store purchases.
Atomic Wallet–the best wallet for staking
Atomic Wallet is a beautifully designed, easy-to-use wallet for iPhone and Android. This is a wallet that I regret not using early on in my crypto adventure, as it is a comprehensive, intuitive, simple-to-use wallet that is full of great features and offers the best support for staking assets.
I’ve been holding cryptocurrencies in other wallets for years, letting them collect dust, not knowing that I could have kept them in the Atomic wallet for passive income. While most wallets on this list offer staking for several different cryptocurrencies, the Atomic wallet currently supports staking on 12 different assets, with more to be added soon.
Atomic Wallet also supports purchasing cryptocurrencies directly with a bank card inside the wallet, but does not currently support sending funds back to the bank.
Atomic Wallet supports over 400 cryptocurrencies and users can download and use the wallet without the need for KYC, account creation and verification processes. Atomic Wallet is 100% open source, so users can verify the code, and the user’s private key is encrypted and stored on their device for security. Atomic wallets can also add custom tokens and participate in airdrops, and feature a QR code scanner to make purchases at any time.
Users can trade cryptocurrencies within the wallet through integrations with Changelly and ChangeNow, while also taking advantage of an in-app decentralized exchange feature called “Atomic swap” that sets Atomic Wallet apart.
Atomic swap is a cryptography-driven smart contract that enables two parties to trade different cryptocurrencies or tokens without the risk of one party defaulting. The benefit of this is that transactions between two parties can be conducted in a trustless manner without relying on a third party. Many assets supported by the Atomic wallet can be used for Atomic swap, which can be done with very low fees.
Even more surprising than the Atomic Swap feature and comprehensive staking options is that users can even earn 1% cashback on over 60 different currency pairs when making swaps. Atomic Wallet is also one of the few wallets that offers 24/7 support and is used by over 1 million users worldwide.
Trust Wallet–Best Wallet for Binance Smart Chain Users
Next up is Trust Wallet. In 2018, Binance acquired Trust Wallet and made it the official wallet of Binance in response to Coinbase’s move to create its own wallet. Backed by one of the largest companies in the cryptocurrency space, Trust Wallet is massively adopted with over 10 million users worldwide.
When cryptocurrency users know that a wallet is backed by a big company like Binance, they have more confidence in that wallet. Trust Wallet provides a secure wallet with private keys stored and encrypted locally on the device and never broadcast to any network, meaning private keys are kept away from potential snoopers. Additionally, the wallet can be secured with pin codes and biometrics.
Trust Wallet can be used completely independently of Binance, and over 10 million users enjoy this simple and easy-to-use interface on both Android and IOS. Trust Wallet supports over 1 million assets….yes, you read that right, 1 million assets and 53 different blockchains, so you’d be hard-pressed to find an unsupported currency.
Trust Wallet has a built-in full-featured Web3 DApp browser that unlocks the utility of DeFi, and the wallet can be used to interact with basically any DApp that exists on the Ethereum or Binance Smart Chain network, such as Uniswap, Aave, Compound Finance, PancakeSwap, etc. . Trust Wallet also has strong NFT and digital collectibles support, supporting ERC721 and ERC1155 tokens.
Trust Wallet is completely open source, and users can pledge 11 assets directly in the application to obtain popular assets. Users can buy cryptocurrencies directly within the wallet, and in addition to being able to access the DEX, there is a built-in crypto exchange where users can trade coins instantly and seamlessly without KYC or identity verification, and your funds never have to leave Wallet security protection.
Trust Wallet is also equipped with a QR code scanner, which makes this wallet a good choice for users who want to spend cryptocurrencies on the go, and makes it easier to send and receive transactions. Trust Wallet has an extensive support and knowledge base FAQ section where users can submit a support ticket if they need help, but there are many complaints online about poor support timelines.
Coinbase Wallet – the best wallet for DeFi users and second layer scaling solutions
Next came the classic Coinbase wallet. Since Coinbase is a reputable and trusted brand, this wallet is very popular among both new and experienced cryptocurrency users. Cryptocurrency users feel comfortable using a wallet powered and backed by a company with a solid reputation and credibility like Coinbase.
This is an awesome wallet that gives users trust and confidence in this wallet, it provides users with everything one could want and expect in a wallet offered by one of the world’s leading exchanges. Notably, Coinbase Wallet and Coinbase Exchange are two separate applications and platforms. While Coinbase itself is a centralized exchange, the Coinbase Wallet is similar to the other wallets mentioned in this list and is a non-custodial wallet available for IOS and Android.
Coinbase Wallet supports Ethereum Layer 2 scaling solutions including Polygon network and optimistic. This is very important for users who prefer to use DeFi platforms such as Aave, Compound Finance, Uniswap, etc., or who wish to mint NFTs on platforms such as Opensea, because using these second-layer solutions built into the wallet, Users will be able to avoid many high Ethereum gas fees and long confirmation times.
As a centralized exchange, Coinbase gives users incredibly convenient and easy access to decentralized exchanges (DEXs) and DeFi protocol applications through their wallets, which is a bit surprising, but I guess it just goes to show that centralization and Decentralized platforms can coexist harmoniously, and it’s great to see users being able to benefit from both in one place. Coinbase Wallet users can also link their Coinbase exchange accounts to easily store and transfer cryptocurrencies between the two.
Coinbase wallet is also one of the best wallets for users who want to be able to participate in airdrops and ICOs, and the wallet supports the storage of digital art, gaming NFTs and other collectibles, it covers all DeFi libraries, making it more attractive force. Coinbase Wallet can be used to make native payments cryptographically and supports hundreds of thousands of tokens, including all ERC-20 tokens and all tokens on EVM compatible chains such as Avalanche C-Chain and Polygon, as well as those supported by Coinbase Wallet Stablecoins (like USDC and DAI) on all networks.
The wallet’s private key is encrypted and stored locally on the user’s device, and apps can also use biometrics and passwords for security. I feel one of the downsides of Coinbase Wallet is that it doesn’t have an exchange feature built in. I guess they thought that providing users with the ability to link their wallets to their Coinbase exchange accounts, and provide easy access to the decentralized exchange via Dapps, would be enough for any trading need.
Mycelium – Best Bitcoin Wallet
For Bitcoin extremists, look no further than Mycelium to find the top Bitcoin wallets. While I don’t know why they chose the name Mycelium or what Mushroom has to do with Bitcoin, Mycelium is a fully functional wallet perfect for the beginner or most advanced Bitcoin user. Mycelium offers the option to set customizable transaction fees, supports hardware wallets which is a huge benefit for added security, and it’s open source so you know you can trust its code.
While Mycelium has only supported Bitcoin for years, they have recently added support for Ethereum and some major ERC20 tokens, so there are no obscure altcoins here. Mycelium provides very simple usage and basic built-in exchange, but no DApp support.
In 2008, a team of hardware engineers came up with the vision to create the first and best Bitcoin wallet, and in 2012 the company was officially launched, making Mycelium one of the first Bitcoin wallets. Mycelium has a very positive track record and its users have never reported any hacks or compromised wallet security. Knowing that a wallet has stood the test of time should give any Bitcoin user looking for a secure software wallet confidence in the product.
While the wallet’s interface isn’t the best, nor the most intuitive or user-friendly, Mycelium does offer more functionality than designed, with support for Hierarchical Determinism (HD), single address accounts, watch-only accounts, Bit ID Accounts and hardware wallet accounts, etc., and also provide custody protection transactions and encrypted asset creation functions.
Mycelium added the FIO protocol for inter-wallet operability in 2018 and supports the BIP-70 protocol. A really cool feature of Mycelium is that it offers offline cold storage and the wallet is available for both Android and IOS. The wallet also supports QR codes, which can be used for peer-to-peer transactions. Mycelium allows users to buy cryptocurrencies directly in their wallets via a credit card or bank account.
The Mycelium Marketplace is a unique and interesting feature where users can find other Mycelium users who are buying or selling Bitcoin for peer-to-peer transactions, allowing users to chat, meet, and seamlessly go from wallet to wallet through the app Bitcoin transaction. Mycelium is able to route transactions through the Tor network, masks users’ IP addresses for maximum privacy, and its security features are fantastic with multiple layers of pin protection, pattern sniffing protection, and variable keyboard layouts.
Mycelium supports multiple fiat currencies, makes buying cryptocurrencies widely available, and allows users to export transaction history, making tax payment and bookkeeping fast and easy. Mycelium does offer customer support, but one downside is that they do not offer any guides or tutorials to help users locate or navigate the wallet or its features, however there is an active community on Reddit where users can ask questions.
Electrum Wallet – the best wallet for advanced bitcoin users
Electrum is another OG in the Bitcoin wallet space since 2011. One of the first and most respected Bitcoin wallets, Electrum is open source and anyone can go and verify the software code and make sure it is compliant with standards, without suspicious hidden agendas or obvious bugs or errors. While the user interface looks a bit dated, its GUI hasn’t changed much since the wallet was introduced a decade ago, but its layout is simple enough and all functions are executed very well, which is what it was designed for.
Although Electrum’s layout may not be the most friendly or intuitive for beginners, Electrum is considered the first choice for advanced Bitcoin users due to its stability and reliability. Electrum is not ideal for new users as it doesn’t have a guide or FAQ to help beginners learn.
Electrum also doesn’t have customer support, but has an active community on Reddit, and Electrum users are happy to help, but make sure you don’t give out private keys or recovery phrases, as anyone asking for this information may want to steal your bits currency. Electrum also doesn’t offer transaction functionality as it only focuses on the king of cryptocurrencies — the almighty Bitcoin.
Electrum runs on decentralized redundant servers that can be run by anyone, ensuring the wallet never experiences downtime. In terms of security, private keys are encrypted and stored securely on the user’s device, and the desktop version is compatible with hardware wallets. Wallets can be further secured with passwords, pin protection, and two-factor authentication. All transactions through the electrum wallet are SPV verified, and users can set custom transaction fees and choose between SegWit and traditional Bitcoin addresses.
The Transactions tab will give users the option to use single or multiple address changes, use only confirmed currencies, enable output rounding processing, and support RBF and parent-child transactions. Electrum provides users with access to private key export and provides a powerful feature called “multiple payment” where users can choose to send cryptocurrency to multiple addresses in one transaction, saving transaction fees and enabling batch transactions made simple and cheap.
Users can create standard wallets or multi-signature wallets with two-factor authentication and the unique ability to select words from the Electrum seed phrase dictionary to customize seed phrases.
Samourai Wallet – Best Bitcoin Wallet for Privacy and Anonymity
The last wallet on the list is a really cool wallet with the most advanced and incredible features I’ve ever seen. The only reason why Samourai wallet ended up on the list is that they misspelled the word Samurai. I’m kidding, I don’t know why they chose this spelling, but this wallet is mentioned last in the list because it’s not ideal for the average crypto user.
Samourai Wallet is best for a specific niche of crypto users as it only supports Bitcoin and is suitable for more advanced users. The developers of this wallet were tasked with creating the most private and anonymous Bitcoin wallet, and they have undoubtedly managed to do so.
This non-custodial wallet has been praised by the top security experts in the field for its strong privacy features including TOR and VPN support, no address reuse, AES-256 encryption, offline funds transaction support, and more. Samourai Wallet is designed to keep transactions private, mask users’ identities, and keep their bitcoins safe.
The wallet’s developers have also created additional desktop wallet solutions to complement Samourai’s mobile wallet, creating a complete privacy-focused ecosystem. This Fort Knox-like secure ecosystem includes a self-hosted full node server DOJO that syncs with the Samourai wallet to keep the wallet functioning and decentralised, in addition to a feature in the wallet that disconnects user wallet balances from previous transactions History link function Whirlpool.
Samourai mobile wallet is only available for Android system, and some functions of the wallet are limited due to Apple’s restrictions, so it is unlikely to be released to IOS system. The Samourai wallet uses alternating addresses to prevent transaction tracking, and stonewall technology for added security, which obfuscates metadata that can be used by third parties to identify relevant wallet addresses.
During setup, the wallet prompts users to create a PayNym ID, a special pseudonym that allows users to have an identity that can be shared online but cannot be traced back to a BTC address. This is an incredibly powerful feature that prevents first touch attacks where wallets are identified and tracked individually.
Downloading Samourai Dojo provides a complete tool for running a node, giving users direct access to BTC transactions. Dojo is a non-controversial full-node server that seamlessly and privately powers individual users’ Samourai wallets, further improving privacy and helping support a stronger network of users.
The wallet can also be used offline for added security, or combined with a hardware wallet, which greatly increases the security of the wallet. The Samourai wallet also supports additional security features, such as the ability to block apps on the phone screen, and the password entry screen will be scrambled to avoid guessing passwords by watching the movement of the user’s fingers on the password screen.
The Samourai team even integrated a very interesting and unique remote SMS command feature that allows users to disable the wallet, and also created a “self-destruct” option that can be used via SMS messages if the phone is lost or stolen. As with every wallet on this list, a wallet can be fully recovered by using a secret recovery phrase unique to that wallet, so users should record and store the phrase securely.
Samourai Wallet is open source and supports dynamic transfer fees as well as SegWit supported addresses, which reduces transaction costs and speeds up transactions. The wallet can also use the BIP 47 protocol feature to create a payment channel between the two wallets by scanning a public payment code, creating a special transaction on the blockchain that allows users to anonymously send bitcoins to another wallet.
The Samourai wallet also supports Ricochet transactions, which can improve privacy by misleading people trying to monitor blockchain transactions. The wallet is military-grade encrypted, using advanced AES-256 encryption to protect the wallet from malware and server attacks, while the private key is fully encrypted and stored on the user’s device. The wallet is encrypted with a bip39 passphrase, providing an extra layer of security and a 5-8 digit password to access the wallet itself.
As if I haven’t said enough about the security of this wallet, Samourai has another great thing, it offers a very unique and excellent feature called “Incognito Mode” which hides shortcut icons and any Traces of the app, the only way to recover it is to enter your pin code on the phone keypad.
This is the next generation of security for mobile wallets, and we would like to congratulate the team at Samourai for implementing all these astounding features and for setting themselves apart from the competition with so many innovations.
Best Mobile Wallets: Conclusion
That concludes my review of the most popular mobile wallets on the market today. This article covers just about every option a mobile wallet user might need and provides my top picks for the different categories. I hope this article gives you a good starting point and helps you get in the right direction.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/a-must-see-for-newbies-8-safe-reliable-and-portable-cryptocurrency-storage-wallets/
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