A Comprehensive Guide to Crypto Wallets: Understanding the Latest Trends for 2025

Cryptocurrency wallets allow you to send and receive digital currencies such as Bitcoin and Ethereum by maintaining the security and accessibility of your private keys, which act as the passwords giving you access to your assets.

In contrast to a traditional wallet that holds physical cash, a crypto wallet does not store your cryptocurrency. Your holdings exist on the blockchain, and only a private key can grant access to them. These keys enable you to execute transactions and validate ownership of your digital currency.

This article will cover what a cryptocurrency wallet is, the differences between hot wallets and cold wallets, and highlight some of the best crypto wallet applications available.

What is a crypto wallet?

A crypto wallet is an application that functions as a wallet for your digital currencies. It operates similarly to a traditional wallet where you keep cash and credit cards, providing an interface that allows you to access your cryptocurrency while storing the passkeys necessary to authorize transactions, unlike physical objects.

Modern blockchain wallets enable widespread access to the blockchain. Initially, sending cryptocurrency involved laboriously entering long keys, but today, much of that process is automated by software.

The first wallet was created by Satoshi Nakamoto, the founder of Bitcoin (BTC), followed by Hal Finney, who is said to have run the first BTC client software wallet and communicated with Nakamoto. The cryptocurrency craze began when Nakamoto sent Finney ten BTC as a test transaction.

Nearly all cryptocurrency wallets come equipped with dedicated applications that allow users to store and withdraw crypto from online exchanges.

Having established what cryptocurrency wallets are, let’s explore the main differences between cold and hot crypto wallets.

Types of crypto wallets: Hot wallets vs cold wallets

Cryptocurrency wallets primarily fall into two categories: hot wallets and cold wallets. Let’s delve into each one in detail.

What is a hot wallet?

Hot wallets, also referred to as online or custodial wallets, are hosted by third parties who manage your keys. These wallets may offer advanced data security solutions typically used by businesses to protect sensitive information. Certain cryptocurrency exchanges provide access to hot wallets.

Hot wallets are available as applications for both desktop and mobile devices. They allow users to access their cryptocurrency, conduct transactions, view account balances, and more. Some software wallets associated with cryptocurrency exchanges may include features like exchange integration.

What is a cold wallet?

Cold wallets, or non-custodial wallets, put you in charge of protecting your own keys. Most crypto hardware wallets fall into this category and are considered a more secure option than online wallets.

Crypto cold wallets enable you to store and retrieve your private keys directly from your device. These devices often resemble USB drives and contemporary hardware wallets incorporate multiple functionalities.

Transactions can be executed by connecting the hardware wallets to your computer or smartphone. Most of these devices can sign cryptocurrency transactions instantly, eliminating the need to input your key and thereby protecting against screen recording and keystroke logging by hackers.

Now that we have outlined the primary distinctions between hot and cold wallets, let’s address the crucial question: what are the best cryptocurrency wallets?

What is the best crypto wallet?

With the emergence of numerous crypto wallets since their inception, identifying the best option can be a challenge. To simplify this process, we’ve compiled a list of the top five hardware cryptocurrency wallets.

1. Trezor

Trezor is a leading name in the realm of hardware wallets, offering devices like the Model One and Safe 5. Renowned for their security, user-friendly interface, and compatibility with various cryptocurrencies, these devices are a favorite among crypto enthusiasts.

While Trezor does not natively support staking or NFT management, it offers a touchscreen for complete on-device access and an exceptionally secure offline storage option. Additionally, Trezor devices do not have Bluetooth connectivity.

Trezor provides top-tier hardware for crypto storage. The Trezor Model One is an entry-level model priced around $49, while the more advanced version with a touchscreen retailed at $169 at the last update.

While Trezor’s software packages provide built-in services such as staking and crypto purchases, they also seamlessly integrate with other crypto platforms like Exodus. Trezor Suite Lite is available as a mobile app for both Android and Apple users.

2. Exodus

Exodus is a non-custodial wallet that supports a variety of cryptocurrencies, including Bitcoin, and has created quite a buzz since its launch in 2016.

This aesthetically pleasing wallet is packed with features, allowing users to swap cryptocurrencies right within the app and stake assets for passive income. The Exodus wallet supports thousands of assets, with users able to exchange over 100 digital currencies securely thanks to its rapid exchange integration.

Responding to user demands for two-factor authentication and enhanced security, Exodus has partnered with and integrated Trezor hardware wallets, combining the functionality and user-friendly interface of the Exodus software wallet with the security of a hardware wallet. The Exodus wallet itself is protected by a secure password, adequate for most users.

3. Ledger

Ledger is one of the most established brands in the cryptocurrency wallet market. With prices ranging from approximately $79 to $249, Ledger can work with several renowned software wallets like Crypto.com and Guarda.

Ledger provides a standalone desktop client, a browser extension, and a well-reviewed mobile application. Moreover, it offers two-factor authentication and a user education library.

Both versions of the Ledger wallet can support over 5,500 assets and grant access to decentralized finance applications (dapps), but the Nano Ledger S no longer supports NFT management. With integrated desktop and mobile apps, you can buy, stake, and exchange cryptocurrencies.

While Ledger Live software is open source, the device firmware is not, and Ledger wallets provide multisignature security with Coinkite integration and two-factor authentication.

4. SafePal

Founded in 2018, SafePal provides a comprehensive suite of secure crypto management solutions for both novice and experienced cryptocurrency users. Notably, Binance Labs made its initial hardware wallet investment in SafePal’s S1 wallet. Today, SafePal serves over seven million users globally with its range of unique hardware wallets, software wallets, and browser extension wallet products.

The SafePal app facilitates pairing and management, enabling users to conveniently store, manage, exchange, and swap their assets. As of this writing, SafePal supports more than 100 blockchains (both EVM and non-EVM) and 16 languages, with plans for continual expansion. The ultimate aim of SafePal is to empower investors in realizing financial independence and opportunities in a decentralized environment.

The S1 hardware wallet is priced at $49.99, making it a competitive option for a crypto hardware wallet with a digital interface and a sufficient array of features.

5. KeepKey

Since its acquisition by ShapeShift in 2017, KeepKey has gained a reputation for being an offline wallet that enhances cryptocurrency security against hackers. Although KeepKey has transitioned to an independent entity following ShapeShift’s conversion to a DAO, collaboration with ShapeShift continues, providing users with access to various decentralized applications linked to the wallet.

KeepKey’s open-source code allows anyone to examine its construction, ensuring safety and fostering trust among users.

When it comes to pricing, KeepKey has significantly lowered its price from its previous $239 to around $50 at the time of writing.

What is the best crypto mobile wallet?

While hardware wallets are typically more secure, they can be less convenient due to their often limited online interfaces. This is where hot wallets come into play, offering user-friendly applications that anyone can utilize to store and withdraw cryptocurrencies via their smartphones. Let’s explore some of the best options.

1. Coinbase Wallet

Coinbase Wallet, developed by the prominent U.S. cryptocurrency exchange Coinbase, is a self-custody wallet that gives users exclusive control over their funds and private keys—distinguishing it from custodial wallets provided by exchanges.

This decentralized wallet is designed for managing NFTs (non-fungible tokens), storing cryptocurrencies, and interacting with decentralized applications (dApps).

Coinbase Wallet supports numerous cryptocurrencies, including notable options such as BTC, Ethereum (ETH), Litecoin, and ERC-20 tokens. Users also have the ability to store NFTs on blockchains like Polygon and ETH.

The wallet’s user-friendly interface allows for easy managing, transferring, and receiving of cryptocurrency assets, making it appealing to beginners while also providing advanced capabilities for experienced users.

Employing non-custodial technology, the private keys are only accessible to the user and stored locally on the device in an encrypted form. For enhanced security, Coinbase Wallet includes biometric verification such as fingerprint or facial recognition, making it more challenging for unauthorized access to funds. A 12-word recovery phrase is provided by Coinbase Wallet, which is essential for restoring access should your device be lost or compromised.

2. Metamask

MetaMask is a popular browser extension wallet that connects users to the Ethereum blockchain. It allows users to engage with the Ethereum ecosystem—home to an extensive range of decentralized applications (Dapps)—without needing to download the entire blockchain.

This wallet is a top choice for easy access to gaming platforms, gambling websites, decentralized exchanges (DEX), and numerous other applications that utilize Ethereum. MetaMask is compatible with leading browsers such as Chrome, Firefox, Brave, and Microsoft Edge.

In addition to ETH, MetaMask supports tokens adhering to the ERC-20 and ERC-721 protocols.

3. Trust Wallet

Trust Wallet, procured by Binance in 2018, is a secure, open-source cryptocurrency wallet designed for mobile users. Support for a wide array of blockchain networks and currencies—primarily based on Ethereum and other EVM-compatible chains—makes it versatile for cryptocurrency transactions.

Offering a user-friendly interface, Trust Wallet simplifies the process of sending, receiving, storing, and staking cryptocurrencies for both novices and seasoned users.

Private keys are stored locally on devices instead of online servers, ensuring robust security measures. While its straightforward layout appeals to beginners, experienced users can also access advanced features. However, it lacks a desktop interface, making it less convenient for those who prefer desktop access. Furthermore, like most mobile wallets, Trust Wallet requires an internet connection for transactions, making it less secure than cold wallets.

4. Phantom Wallet

Phantom is a non-custodial wallet and browser extension that allows users to manage digital assets and interact with decentralized applications and smart contracts. Being non-custodial means you retain ownership of your confidential information instead of relying on a centralized entity.

Just as it’s essential to protect your physical wallet from theft, users are responsible for safeguard