Best Crypto Wallets

Stepping into the world of cryptocurrency can be daunting, especially with the unpredictable nature of the market.

However, safeguarding your digital assets doesn't require a degree in Cryptography or a secret handshake.

The key principle is simple: the greater the amount you intend to store, the more attention you should pay to crucial factors like fees, security features, and the kind of crypto wallet you're using.

In this guide, I've carefully selected a range of top-notch crypto wallets designed to meet various needs and preferences.

Best ‘Hot’ Wallets

Provider	Score	Details
1. Coinbase	★★★★★	Learn more
2. Exodus	★★★★★	Learn more
3. Atomic Wallet	★★★★★	Learn more
4. Coinomi	★★★★★	Learn more
5. Trust Wallet	★★★★★	Learn more
6. MetaMask	★★★★★	Learn more

Best ‘Cold’ Wallets

Provider	Score	Details
1. Ledger Nano X	★★★★★	Learn more
2. Trezor One	★★★★★	Learn more

Our selection process

Our goal is to quickly sort relevant information so that you can digest it easily.

Let’s begin with a quick rundown of the advantages and disadvantages of using digital wallets.

Pros

✅ Security. Crypto wallets, when used smartly, should provide robust security. Some exchanges are more hack-prone, but employing an offline crypto wallet with a private key adds significant protection. It's akin to owning a personal bank vault where only you hold the keys.

✅ Forward-thinking technology. Many times, those who benefit most from opportunities are the first to adopt them. Speed is everything. Some pieces of technology are just fads, whereas others turn out to be integral to the future. Crypto wallets are adapting quickly. They’ve already been adopted by major institutions — with billions of pounds being transferred to cold vaults.

✅ Opportunities. Crypto wallets give you opportunities to participate in emerging markets that can give you better capital hold and even returns on investment. Crypto wallets help you to secure this investment.

Cons

❌️ Complexity and glitches. Crypto wallets aren’t straightforward for the very reason that there are many different options. There is also a learning curve, which acts as the biggest barrier to people adopting wallets.

Virtual wallets like MetaMask Let you work with the ETH blockchain. And it can now participate in the Binance chain. But you have to make sure you connect to the correct platform. You need enough gas or tokens for transactions. At certain times, your funds do not appear, despite being recorded by the blockchain.

❌️ Bad actors. Where there is money, there are opportunists. Crypto technology and the technology of crypto wallets have varying levels of security. There are always bad actors looking for ways to run hacks or scams.

Ledger, a notable hardware wallet, wasn't immune to security breaches, with its database hack exposing user data. This led to incidents where Ledger users received scam emails, attempting to trick them into revealing their wallet details. Nonetheless, vigilant and savvy users are likely to spot and avoid such ploys.

❌️ Challenges. Crypto wallets are complex and require careful use. You must understand their workings, safely store your seed phrase, and be extra cautious with hardware wallets. Checking numeric addresses is vital. This need for precision can discourage many from using crypto wallets.

Top Crypto Wallets: Overview

The key thing to know here is the difference between “cold” and “hot” wallets. Cold wallets are generally thought to be safer than hot wallets. Hot wallets offer more convenience and a lot more simplicity. But cold wallets offer greater security.

Best ‘Hot’ Wallets

Hot wallets, running on software, provide a user-friendly platform for handling your crypto. They offer quick and convenient access, free of charge, making them a practical choice for beginners to store small amounts of cryptocurrency without hassle or extra costs.

1. Coinbase – Offered by One of the Leading Exchanges on the Planet

Names of coins available include BTC, Monero, Zcash, and a whole host of alternative coins. Tens of thousands exist. However, it is difficult for any exchange to keep up to date with the new flavours of the month.

Stablecoins are generally considered less volatile than other cryptocurrencies since they're pegged to national currencies. However, with the current fluctuations in global currencies, volatility is a widespread issue. Despite this, if social trading isn't a concern for you, this platform could be your top choice for an exchange and wallet. The streamlined wallet offers the following features:

• High security: Bolstered by multi-signature and two-factor authentication.
• Speed: Connected directly to the main exchange.
• Investing: Diversify your different crypto, by choosing from more than 3,000 coins, as well as traditional assets like stocks and bonds.

Setup for Coinbase Hot Wallets

Custodial crypto wallets help you safely store your coins. This provider offers a software solution, hosting its wallet online. Here is the registration and setting up process:

1. Install

Compatible with iOS and android, this installs on your mobile phone. After downloading, install and select “create a new wallet,” then accept the terms and conditions. Once you set up a username and password, choose from public or private — private wallets will not be visible to the public.

Ensure that your wallet is protected with a recovery password by heading to that section in the application.

2. Connect to the exchange

To start using it with the exchange, you need to connect your account. This is as simple as heading to the “connect to” section in the settings area and going through each step onscreen. This lets you trade, store, and transfer crypto.

Pros

✔️ FCA regulations

✔️ Simple UI

✔️ Very convenient with cheap fees

✔️ Hot wallet: link to Coinbase

Cons

❌ No social trading

2. Exodus – Great for Any Stage of User

Exodus has both a mobile and a desktop wallet that allows you to enjoy the following: 

• Review your portfolio
• Swap out digital assets as desired
• Access to multiple blockchains

This app provides an all-in-one functionality that is pretty impressive overall. From basic management of your holdings, to adding new holdings, swapping, and exploring the crypto world on several different playing fields. 

They believe in offering you a secure and reliable platform, and they go above and beyond in some areas. If you use a pro hardware, or want the ability to switch to one later, you can store keys to other assets within Exodus and then upgrade when you’re ready without problems. 

One reason that it’s a top choice for beginners is this added security, and the ability to upgrade easily. However, they are also well-known for their support staff and excellent customer service. They are always responsive and friendly. They are also incredibly quick, easily putting some of the biggest names to shame in that department. 

Setup of the Exodus Wallet

It’s really easy to get started with Exodus. You just need to download the app, or access the desktop version. Once you’re there, simply set up your account, and you can fund immediately if you want to.

Check out the process. 

1. Set Up Account

This step includes personal identification information, setting up your username, password, and security details. 

2. Fund Assets

Once you’re set up, you can fund your account right away. Exodus even has the capability to bring in other crypto assets you already own. Add them to your wallet with ease. 

There are some great video tutorials for Exodus customers that walk you through this process. Once you’re set up and funded, you can manage and make transactions from there.

Pros

✔️ User-friendly platform that is great for all skill levels

✔️ Access to a large variety of cryptocurrencies, including the biggest names

✔️ Easy to build or store your assets

✔️ Awesome support and service, with tons of tutorials available

✔️ Both mobile and desktop versions are available

Cons

❌ No 2-factor authentication for added security

❌ The software is almost too simple for some needs

3. Atomic Wallet – Best Choice for Desktop Users

With an intuitive interface, and access to more than 500 different coins or tokens, you pretty much have the world at your fingertips. Those 500 coins cover more than 50 blockchains, including the biggest names in the industry. 

Since you’re on a desktop, there is no concern of functionality, as long as you really do use the desktop app. It’s really easy to use and follow, with interactive protocols and user-friendly steps all along the way. 

This wallet has just been around for a few years now, but it’s proven to be an excellent resource. The creator was the CEO of Changelly, and so Atomic Wallet carries pieces of the Changelly crypto exchange within it. It was built by someone who understands the systems and their needs. 

You can do crypto swaps, or you can purchase outright, all right here in your crypto wallet. In fact, this wallet even has an NFT gallery, which is something far rarer to find here. 

Setup for Atomic Wallet

Since this is a desktop crypto wallet, you will need to use a desktop computer, or a laptop, in order to get it going. Plan to utilize it from a computer and not from your mobile device. The wallet could also be exported into other devices if you have to change or move devices at some point. 

1. Initial Setup

To use Atomic Wallet, you will want to head to their website. While this is a desktop model, you will still need to download the software on to your device. Start with those steps to get going. It’s compatible with Mac, Windows, and Linux devices.

Once you've downloaded it, proceed to setting up your account.

2. Adding, Storing, and Swapping

Once you’re all set up, you can add or store your cryptocurrencies. Atomic Wallet is compatible with more than 500 coins and tokens, making it easy for you to store just about anything you could possibly have. You can also add new cryptocurrency to your holdings as well. 

Funding your wallet is simple, but it may require a bit of setup on your end to connect payment methods. Other than that, you just choose when and what to transfer, enter amounts and destinations, and then go through your security measures. 

You can use Atomic Wallet to make swaps, although this is more challenging and requires additional research beyond the scope of this guide.

Pros

✔️ Super easy to use and learn

✔️ Access to more than 500 coins and tokens

✔️ 24/7 customer support available

✔️ Access to 50+ blockchains, and even NFTs

✔️ Free to download and use

✔️ Supports swapping features

Cons

❌ 100% built for desktop use only

❌ Security is up to you, but there is nothing private stored

❌ Some of the fees for purchases and exchanges are pretty high

4. Coinomi – Best Wallet for Multiple Cryptos

When you look at other wallets, you rarely see more than 500 assets available. And for many users, that is enough. But what if you aren’t the same as many other users? It’s perfectly ok to have different needs and demands. If you like browsing through the weird and wonderful, Coinomi is your one-stop-shop to a Willy Wonka-esque factory of all the cryptocurrencies going.

Another variable you will find here is that you can make swaps and investments on the decentralized exchange that is a part of this wallet. You don’t have to pull in to a centralised wallet to take care of business, and that’s definitely a nice feature. 

This was one of the first multichain crypto wallets ever available, and they have maintained one of the highest levels of service and security since their start in 2014. 

Setup for Coinomi

Coinomi is available via both desktop and mobile apps, so you can use one or both of them. You can also set up and get started on whichever one you prefer. Either way, you will need to download the application, and set up your profile. 

1. Create an Account

Start with your free download. Whether you download to mobile or desktop (or both) is totally your choice, but you will need the download. Once you’ve got that out of the way, create your account and set up your information.

2. Store, Manage, Swap, and Buy

Once you’re all set up, you can easily access those 1700+ assets available. You can choose whether you simply store and manage, or whether you want to step it up a bit and swap or even purchase crypto. 

The great thing is that it’s all available right here, and it’s easy to take care of business.

Pros

✔️ 150+ blockchains and 1700+ assets

✔️ Never had any hacking issues since startup

✔️ Usable on desktop and mobile apps

✔️ Ability to store, manage, purchase, or even swap crypto

✔️ Wide variety of NFT availability

Cons

❌ Hardware wallets are more secure, but this has never been hacked

❌ Staking ability is slightly limited

5. Trust Wallet – Top Choice for Mobile Wallets

If you’re impressed by high access to assets, get ready to be blown out of the water. Trust Wallet has more than 4.5 million assets available to their users, and 65 different blockchains to build on. You can do it ALL right here on this one mobile app thanks to that. 

These are the things you can do here:

• Import custom tokens to the wallet
• Connect to dApps and DEXs easily
• Purchase third-party crypto

It’s really pretty unusual to have this much capability on a mobile device. Many wallets that aren’t hardware or desktop often struggle to give their users maximum capability. But that isn’t a problem here. 

How many crypto users do you know that have multiple wallets because they simply can’t do it all in one spot? Think of the possibilities when you only need one wallet for everything crypto in your storehouse. 

There is a lot of support in the system, and it’s really simple and efficient to use as well. 

How to Setup Trust Wallet

This app used to be mobile only, but recently they have added a desktop extension. They are still working out some kinks, but you certainly can use that if you want a desktop model. Otherwise, plan to access from your mobile device, which is the common preference anyway. 

1. Download and Get Started

The first step will be to download the Trust Wallet app. For most users, this will be on the mobile device. It’s available in Google Play, Apple App Store, and Android markets. If you do want to use a desktop app, you will need Chrome to do so. The browser extension is on the website, and it’s a new feature. 

Once you download, you can set up your account and go through your security process. 

2. Buy, Manage, Track, & Store

Trust Wallet allows you to buy Bitcoin (and other assets) quickly. You just need to set up a card in order to make your purchase. You can also exchange just as quickly on their platform. The wallet lets you manage and store just about anything, with more than 4.5 million assets here alone. You can track collectibles and NFTs too. Storage is safe and secure, with no hacker problems reported.

Pros

✔️ Use a credit or debit card to purchase crypto quickly

✔️ Supports NFTs, arts, and other collectibles

✔️ Transfer and stake with various cryptos

✔️ Decentralized exchange system is built in

✔️ Awesome mobile platform to work on

✔️ More than 4.5 million assets

Cons

❌ The browser extension is still new so there are some bugs to work through

❌ You cannot connect a bank account for withdrawals

❌ Limited assets supported on DEXs

6. MetaMask – Best Choice for Web3 Wallets

What makes MetaMask unique? These things do: 

• Optimal encryption capabilities
• Directly connect to Ethereum, and other apps too
• Specialty design for Web3

This Ethereum wallet is more focalised, but it makes management of this blockchain far more simple. The nice thing is that if you have other networks that you need to access, there are additional options here. The platform was simply designed for Ethereum. 

While it’s Ethereum focused, you can easily access decentralised exchanges and apps through your crypto wallet. They have a desktop app, mobile app, and web extensions so you can work in whatever kind of setting best meets your needs. The smartphone app is still slightly new, but definitely a great tool. 

When you use other tools that aren’t Ethereum based, you have to run specialised modes to work with Ethereum, but that’s not the case here. In short, it is far more user-friendly for the Ethereum space. 

How to Setup Metamask

In order to get going, you need to either use the mobile app, or you will need access to a compatible browser to work on your desktop. You can use the browser extension, or a desktop app but you have to start through Chrome, Brave, or Firefox. 

It might be easiest to set up on the desktop, and then sign in on your mobile later, but either way does work. 

1. Install and Sign Up

To get going, you have to head over to MetaMask and determine what browser or device you are downloading onto. It’s a step-by-step process that requires you to know your device a little bit, but it’s not overly challenging to complete. 

2. Get Started & Create a Wallet

Once you get the download completed, you can click on the get started button, and then you create your wallet. Here, you will accept the terms, create your login details, and start setting up. This will also take you through the recovery and backup steps, which includes creating a seed phrase. 

Once your wallet is set up, you can add crypto easily, purchase, or manage your Ethereum all in one place. Metamask is secure, but remember that it’s solely internet-based, so it’s up to you to also help protect your private data.

Pros

✔️ Specialty platform designed for Web3 and Ethereum

✔️ Simple to use and get started

✔️ Completely secure, with no private information stored

✔️ Back up your account with a seed phrase

✔️ Connects to many decentralised exchanges and apps

Cons

❌ This is solely internet-based, making you more susceptible to hacking

❌ Limited support to anything outside of Ethereum

❌ The technical support available could be better

Best ‘Cold’ Wallets

Imagine the buffer sign when your YouTube video stops loading because you are no longer online.

Hard or cold wallets are given this name because they are not connected to the Internet, other than when you need to make a transfer in or out. Because cyberattackers simply can’t see your device, this makes them, in one sense, the safer crypto storage solution. Not completely. Even British banks may be vulnerable to fraud.

For this reason, major institutions have transferred billions of pounds of crypto from centralised online exchanges into specialised, enterprise-level course storage units. As discussed, two of the most used cold storage wallets…

1. Ledger Nano X – Best-Reviewed

It gives you private keys that only you have, allowing exclusive access to your account. You need to keep these keys secure so that nobody else dips into your funds. Hackers can’t see into your accounts — even when you connect to your laptop.

With zero-knowledge encryption, Ledger themselves cannot see your coins either. This is very important, considering that a substantial proportion of cyber attacks happen when staff members of service companies work duplicitously with outside agents — or are hackers themselves. This is a stark contrast to custodial wallets, which are technically under the control of platforms.

Here are a few key features that come with using the Ledger Nano X wallet:

• Compatibility: Considering that thousands of coins and tokens exist, including alternative coins, you will want something robust enough to store unusual names. Ledger is able to store many ERC-20 tokens. However, you need to use extra software and connect it to your wallet.
• Industry-leading Security: Private keys are stored on the hardware chip, the only thing that is transmitted is public keys via Bluetooth. Everything is end-to-end encrypted. This adds an extra layer of security that hot wallets do not have.
• Starter-friendly: You can’t avoid the learning curve, but wallets have come a long way since the old days when storing crypto was a major headache. The Ledger Live app helps to manage the registration process, possessions, and more. You can even fold the wallet to make it more portable.

Registering your Ledger Wallet Using Ledger Live

1. Setting up your new device

The first step is to hold the button located next to the USB. The logo should pop up. Now go through the registration process to set up the device.

2. Make PIN

You need a PIN. This is something you’re going to create by scrolling through with the right and left buttons. Your PIN can be up to eight digits and no less than four. Once ready, approve with the tick button.

3. Backing up

One interesting addition to the risk management for crypto wallets is the recovery phrase or seed. You aren't able to complete your Nano X registration until you have created one. The phrase pops up automatically — it’s a 24-word list that you need to keep somewhere safe, and recorded.

Now you’re finished, activate the application on your device of choice so that you can start handling crypto in real-time.

Pros

✔️ Straightforward app

✔️ Handle tokens and assets

✔️ Cold wallet: Not online unless transferring

✔️ Ready to handle cyber attacks

Cons

❌ Premium

❌ Learning curve

❌ Customer service by Ledger is poorly reviewed on TrustPilot

2. Trezor One – Sleek and Advanced Top Crypto Wallet

• Compatibility: More than a thousand tokens and coins can be stored, as well as traditional currencies — drop them onto the wallet directly (you are not able to do this with Nano X).
• Strong Security: Automated restoration and high levels of trust from the community.
• Simple App: They try to make this as similar to using a hot wallet as possible. Once you buy crypto, you can immediately store them in the wallet, giving you the best of both worlds. No registration is even needed — most wallets do not let you do this!

Using the TrezorOne Wallet

The Trezor One app tries to simplify things as much as possible. You do not even need to register on an exchange in order to start trading. So you get higher security with extra speed.

Pros

✔️ Very trusted bitcoin wallet

✔️ 3-Step setup

✔️ Strong compatibility

✔️ Perhaps simpler than the Ledger

Cons

❌ Steeper learning curve than hot wallets

The best crypto wallets – A guide

Okay, now that we’ve covered the top crypto wallets in the UK, let’s look at some of the key surrounding topics related to crypto wallets, in order to give you more context before you choose a new provider.

What are crypto wallets?

Cryptocurrency exists in two primary forms: software and hardware wallets. The former is virtual, while the latter combines physical devices with software, enhancing security for both storing and transacting with cryptocurrencies.

It's like carrying a physical wallet, but rather than containing folded banknotes, your assets are digital, existing either in the digital ether or on a tangible device like a USB flash drive.

This dichotomy partly explains why cryptocurrency adoption is still emerging, despite its burgeoning usage by consumers and institutions alike. We've transitioned significantly from the traditional gold standard, now relying on cryptographic technologies to securely record transactions and store value over time.

Beyond the blockchain, with its robust security and cryptographic framework, each crypto wallet is safeguarded by its unique PIN and operates using private keys, which are long hexadecimal strings known only to the keyholder. Public keys, in contrast, are openly visible and associated with a specific address. For transactions, private keys must correspond with their public counterparts, ensuring secure and verified exchanges.

Physical crypto wallets 💼

In comparison to software wallets, hardware wallets offer a more tangible experience, reminiscent of the traditional wallets we carry our cards and fiat cash around in. These devices, akin to encrypted flash drives, are physically held and necessary for accessing your funds, thereby providing a clear demarcation from online platforms.

While ‘hot wallets' maintain a constant online connection to the exchange, most platforms now secure the majority of assets offline, only accessing them for active transactions. However, the tangible nature of hardware wallets offers additional reassurance, ensuring your funds remain disconnected and less vulnerable to the risks associated with online devices.

Once assets are transferred from the exchange to your hardware wallet, they reside solely within that device. The caveat here is that access to these funds is exclusively through the private keys. The question arises: what if the wallet is damaged or lost?

Fortunately, modern hardware wallets come with protective measures. For instance, if you were to accidentally drop your Nano X into water, your assets are still retrievable. With your recovery phrase securely stored, purchasing a new Ledger allows you to restore your account and retrieve your cryptocurrency. Hence, maintaining a robust backup system for your recovery phrases is crucial for ensuring the safety of your funds.

Hot wallets explained 🗂️

As should be clear by now, hot wallets are software services that act as virtual crypto wallets similar to a personal bank account.

Similar to opening an account with a financial broker, setting up a hot wallet involves registering and securing it with a password. After verification, you gain control over the funds in the wallet, often reinforced by two-factor authentication. Each transaction within this system is encrypted, ensuring an additional layer of security.

The recovery process for hot wallets mirrors that of hardware wallets. In the event of a compromised password, your recovery phrase serves as a fail-safe, allowing you to regain access to your funds. This setup is widely favoured for its convenience and the absence of initial costs.

However, this convenience comes with its vulnerabilities. Each online session potentially exposes you to surveillance from undisclosed parties. Despite this risk, many users find the ease of access and operation to be a fair trade-off.

To mitigate these risks, robust security measures are in place. These include secure server protocols, cold storage policies for the bulk of assets depending on the provider, and in some cases, compensation for losses incurred through breaches in the exchange's security, as long as the compromise didn't occur through the user's own device.

Is it best to get a software or hardware wallet?

Physical wallets have inherent isolation from the continuous bombardment of online attacks.

The downside of physical wallets comes in the need to faff around with hardware for each transaction.

You might want to opt for a best-of-both worlds scenario by having both a software and a hardware wallet. That way, you could keep some crypto on exchanges for ease of access, while holding back the portion you don't have any short-term plans of spending in an uber safe hardware wallet.

In short, the answer to this question comes down to convenience versus security and the magnitude and type of risk you can afford.

Common types of scam attacks

Most crypto owners don't run into security problems. However, you can maximise your chances of remaining out of danger by acquainting yourself with some of the most common tactics used by hackers and jackers to get their hands on crypto illicitly:

Phishing scams

Phishing is a deceptive tactic where perpetrators lure individuals by crafting convincing imitations, such as a website that closely resembles a genuine bank. The victim is enticed into clicking on a link and inadvertently inputs their credentials into this counterfeit site, thereby granting the fraudster access to their sensitive information.

This technique is akin to a catfish scenario, where the authenticity of the site or platform is so convincingly mimicked that unsuspecting users are duped into divulging their legitimate details. The attacker promptly capitalises on this, logging in with the stolen information, assuming the victim's identity on the platform or exchange, and subsequently draining their funds. In such scenarios, two-factor authentication serves as a crucial line of defence, providing an additional layer of security against unauthorized access.

⭐ One of the most effective ways of working against this is to simply never log into a platform or website directly from an email. And always double-check credentials.

False wallets

In this scenario, a target is sent a fake hardware wallet. This hardware wallet has been modified so that hackers can use it to break into your account funds later on. It’s programmed to transmit private keys to them anonymously.

This scam is devilishly effective when used against people who already own hardware wallets.

Victims get tricked into thinking a replacement is due. They receive a replacement wallet, accompanied by an official-looking letter warning them that their wallet has been compromised.

The replacement has usually been modified to request they plug it into the device and enter the recovery seed. As soon as they do this, vital information gets transmitted to the attacker.

⭐ Awareness is often the best safeguard against malicious actors.

Cryptojacking

This form of exploitation, while peculiar, is considered less financially destructive in certain respects. Since around 2017, coinciding with the surge in cryptocurrency varieties, it has emerged as a frequently employed method of attack.

In this scenario, the theft isn't of cryptocurrency directly, but rather of the device's idle processing power. Attackers clandestinely harness this resource to fuel their covert crypto mining operations, often focusing on Monero due to its enhanced privacy features.

In this ‘cryptojacking' process, the victim's device is surreptitiously commandeered, with the user typically unaware that their machine's resources are being utilised for mining activities. The mined cryptocurrency is then silently forwarded to the attacker, all without the device owner's consent.

The method of infiltration is notably subtle, often occurring through the victim's internet browser. No explicit software download is required; instead, the attack is executed via seemingly innocuous JavaScript, known as a browser mining exploit. Android devices are particularly vulnerable, not only to the exploit itself but also to the physical repercussions, such as overheating and battery swelling, that can result from the intensive, unauthorised use of their processing power.

⭐ Antivirus systems can help safeguard against this. Have you noticed your CPU is increasing in use? A loud fan or an unusual level of processing power are signs. Close your browser and end the session.

Regular malware

Don’t forget that malware exists to find all kinds of exploits and systems. One of the most dangerous exploits related to crypto attacks is one that impacts clipboards.

This kind of malware is designed to know whenever a crypto address has been copied onto the clipboard, recognising the hexagonal strings. Behind the scenes, the malware then changes the actual copied address so that it instead sends to the attacker's accounts.

It was once the case that hackers need to get their targets to download specific software. However, it’s now possible for hackers to simply redirect you to an infected UR After accessing that site, anonymous trojans infiltrate your computer and search for ways of watering your clipboard modules.

⭐ With times in Britain getting hard, basic best practices like an antivirus, perhaps a VPN, or even a secure web browser, could be more vital and can help to safeguard your machine.

Tricks involving 2FA via SMS

This one is especially high-level. Two-factor authentication is an SMS, industry-standard protocol for encryption. This verification step means it’s not enough to have a password — somebody needs to have access to your phone before they can complete a particular transaction or login.

There is a vulnerability, however. Exploits of 2FA use special social engineering tricks. A telecommunications company is deceived.

The SMS signals are intercepted by an attacker via “SIM swaps” — the attacker successfully pretends they are you and asks admins to change SIM details so that they have ownership of that SIM. From thereon, the malicious actor can act as the middle person, able to intercept 2FA transmissions connected to your crypto accounts.

Some of the more sophisticated users exploit SS7’s weaknesses. The system is important for telecommunications and is also an aspect of 2FA.

⭐ The best way to reduce the odds of this is to make sure your provider uses two-factor authentication that is app-based rather than via SMS.

The Verdict

Ultimately, the choice of hot wallet largely hinges on the exchange you opt for, as many provide custodial wallets as an integral service. The decision often boils down to the most favourable fee structure, making such wallets an attractive option. However, given the dynamic nature of the cryptocurrency landscape, it's essential to stay informed and consider regional variations.

When it comes to cold wallets, at first glance, the differences between the options presented in this guide may not seem significant. Therefore, the decision becomes a matter of personal preference, focusing on the specific features you value most. While the TrezorOne offers certain unique efficiencies, the Ledger is renowned for its robust security measures. Your choice should align with your priorities, whether they lean towards operational efficiency or security assurances.

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• Types of Cryptocurrencies — 2024 Guide
• Best Crypto Trading Apps UK