Guarda is the best software wallet for securing and managing your crypto assets
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Cryptocurrencies, such as Bitcoin and Ethereum, have established themselves as a recognized asset class with deep liquidity and a diverse investor base. However, unlike traditional assets like stocks and bonds, you can’t store your cryptocurrency assets on an online brokerage account. Instead, you need to store your digital assets in a dedicated cryptocurrency wallet.
Cryptocurrency software wallets enable crypto holders to securely store their digital currencies and tokens in one place. Cryptocurrency wallets often also allow users to buy, swap, lend and earn cryptocurrency, similar to how your bank account lets you access savings and loan products.
To help you decide which crypto wallet is right for you, we have analyzed a long list of crypto wallets to determine the best cryptocurrency software wallets for different purposes.
Best Cryptocurrency Software Wallets of 2022
- Best Overall and Best for Security: Guarda Wallet
- Best for Beginners: Exodus Wallet
- Best for Bitcoin: Electrum
- Best for Mobile: Mycelium
- Best for Low Costs: Coinbase Wallet
Investing in cryptocurrencies, Decentralized Finance (DeFi), and Initial Coin Offerings (ICOs) is highly risky and speculative, and markets can be extremely volatile. Speak to a qualified investment professional before making any financial decisions. This article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies nor can the accuracy or timeliness of the information be guaranteed.
While all leading cryptocurrency wallets provide a high level of security for safekeeping your crypto assets, improper security practices on behalf of the user can lead to a complete loss of funds. Never share your wallet’s login details, recovery phrase, or private keys with anyone.
BEST OVERALL AND BEST FOR SECURITYGuarda Wallet
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Guarda Wallet is a highly secure and user-friendly cryptocurrency wallet that allows users to buy, store, swap, and earn via staking a wide range of crypto assets. While it is one of the newest wallet providers in our list of best crypto software wallets, Guarda Wallet has passed our reputation background checks with flying colors and ticked the most security boxes among all software wallet providers.
Users can access the multi-platform software wallet via a web interface, a Chrome browser extension, a desktop client, or a smartphone, enabling seamless cryptocurrency asset management for all types of users.
While the wallet’s in-app purchase fees are quite high, Guarda offers a beginner-friendly and secure user experience, making the fees justifiable in an industry where security is of the utmost importance.
Highly secure
Supports 400k+ digital assets
Enables users to borrow, earn, and swap crypto
Responsive customer service
Face ID authentication for mobile
Multi-signature wallets
High fees for in-app crypto purchases
BEST FOR BEGINNERSExodus Wallet
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Exodus Wallet is a leading multi-asset crypto wallet that provides a beginner-friendly user experience, allowing users to manage their crypto portfolios on one interface.
Additionally, Exodus Wallet enables users to buy, trade, and earn interest via staking on their digital assets.
Supports a wide range of crypto assets
Has a built-in exchange
Supports crypto staking
Available on desktop and mobile
Software isn’t open-source
BEST FOR BITCOINElectrum
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Electrum is a secure, open-source, Bitcoin-only wallet that has been successfully enabling Bitcoin holders to store digital currency for over ten years.
Additionally, Electrum also enables users to open Lightning payment channels to send and receive Bitcoin payments over the Lightning Network.
10+ years of providing a Bitcoin storage solution
Supports Lightning Network payments
Open-source code
Only supports Bitcoin
Not beginner-friendly
No customer support
BEST FOR MOBILEMycelium
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Mycelium is a leading mobile crypto wallet that enables users to securely manage Bitcoin, Ethereum, and ERC-20 tokens. The non-custodial wallet provides a range of advanced wallet features, such as cold storage integration, spending accounts, and single address savings account.
Software is open-source
Supports cold storage integration
In-app crypto purchase option
Strong focus on user privacy
Mobile-only
Not beginner-friendly
BEST FOR LOW COSTSCoinbase Wallet
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Coinbase Wallet is a non-custodial, multi-asset crypto wallet that enables users to securely store thousands of cryptocurrencies and NFTs, and provides seamless access to decentralized applications known as dApps.
Unlike the popular Coinbase.com app, Coinbase Wallet stands out for having some of the lowest fees in the cryptocurrency wallet ecosystem, making it an attractive choice for active Web3 users.
Only charges network fees
Supports 500+ digital assets
Provides a dApp browser to access Web3 applications
Enables users to store NFTs
Coinbase has a history of bad customer support
Software isn’t open-source
Final Verdict
When looking for a cryptocurrency wallet, it’s important to find a provider that has a strong and stable history, provides a high level of security and transparency, offers a range of crypto asset management features, and allows you to seamlessly trade crypto.
Our research has concluded that Guarda Wallet is the best overall crypto wallet. Guarda Wallet supports 50+ blockchains and 400,000+ assets, provides a range of crypto earning opportunities, comes with easy-to-use in-app crypto purchase and swapping features, and ranks highly based on our model's security criteria.
While Guarda’s in-app purchase fees are relatively high, the wallet’s user experience, robust security, and wide range of features justify paying a premium.
Compare the Best Cryptocurrency Wallets
| Company | Number of Currencies Supported | Supports Bitcoin | Incorporated Exchange | Customizable Fees | Compatible Hardware |
|---|---|---|---|---|---|
| ExodusBest for Beginners | 150+ | Yes | Yes | Yes | Yes |
| ElectrumBest for Bitcoin | 1 | Yes | No | Yes | Yes |
| MyceliumBest for Mobile | 7+ | Yes | Yes | Yes | Yes |
| GuardaBest for Security | 400,000+ | Yes | Yes | Yes | Yes |
| Coinbase WalletBest for Low Costs | 500+ | Yes | Yes | Yes | Yes |
Want to learn more about digital currencies? You're not alone.
Most adults have a beginner's understanding of cryptocurrency, but plan on using such assets as a key source of retirement funds, according to the 2022 Investopedia Financial Literacy Survey.
Compare the Best Cryptocurrency Wallets
| Company | Number of Currencies Supported | Supports Bitcoin | Incorporated Exchange | Customizable Fees | Compatible Hardware |
|---|---|---|---|---|---|
| ExodusBest for Beginners | 150+ | Yes | Yes | Yes | Yes |
| ElectrumBest for Bitcoin | 1 | Yes | No | Yes | Yes |
| MyceliumBest for Mobile | 7+ | Yes | Yes | Yes | Yes |
| GuardaBest for Security | 400,000+ | Yes | Yes | Yes | Yes |
| Coinbase WalletBest for Low Costs | 500+ | Yes | Yes | Yes | Yes |
Want to learn more about digital currencies? You're not alone.
Most adults have a beginner's understanding of cryptocurrency, but plan on using such assets as a key source of retirement funds, according to the 2022 Investopedia Financial Literacy Survey.
How to Choose the Best Cryptocurrency Wallet
Choosing the best cryptocurrency wallet depends largely on your personal needs. Here are some helpful tips to choose the wallet that's right for you.
How frequently do you plan to use your wallet?
How frequently you plan to use your crypto wallet plays an important role in choosing one that’s right for you. For example, if you plan to use cryptocurrency to make regular payments, you probably want to hold some of your funds in a mobile wallet. But if you are looking to invest in and store crypto assets over the long-term – and if you're looking to store a large amount of digital currency – you're better off securing your digital assets offline in cold storage using either a hardware or paper wallet.
If you plan to actively trade digital assets, you will probably benefit from a multi-platform wallet that allows you to manage your cryptocurrency portfolio on your desktop and on your smartphone.
Are you interested in the number of cryptocurrencies the wallet supports?
If you are looking to construct a diversified portfolio composed of a large number of digital currencies and tokens, choosing a multi-asset wallet that supports thousands of assets is probably the right decision.
Do you care about the level of customer support?
If you are a beginner, you probably want to go for a beginner-friendly wallet with an easy-to-use interface.
Not all wallet providers have customer support. Numerous long-standing open-source wallets, for example, don’t offer any customer support. If you think you will require help with your wallet, choose one that allows you to interact with a human customer support agent via telephone or live chat.
How important is security?
Are you just looking to test the waters in the brave new world of crypto? Or are you looking to make a substantial investment? Depending on your plans, security will either play a relatively small or a very big factor in choosing a wallet.
You may be looking for a desktop wallet you can secure with an encryption password. Or maybe you want the best security that crypto storage solutions can offer.
Backing up your wallet is one of the most important aspects of crypto wallet management. Are you content with writing down and safely storing a recovery phrase, or do you prefer to only have to remember a username and password?
Choosing a wallet with a backup feature that works for you is another essential security measure when it comes to picking a wallet.
How important is it to have ownership of your private key?
Are you comfortable with a third-party provider holding your wallet’s private keys (and thus having de facto ownership of your virtual assets)? If not, you can choose a non-custodial wallet where you are responsible for managing your wallet’s private keys.
While these wallets are considered best practice because you have complete control over your virtual assets, if you lose access to your wallet or forget your encryption password, you will lose all funds held in that wallet.
Frequently Asked Questions
What is a Cryptocurrency Wallet?
A cryptocurrency wallet is a digital wallet that allows you to store the unique digital codes needed to send and receive crypto assets, such as Bitcoin, Ethereum, and Dogecoin. It’s important to reinforce that these wallets don’t store your actual cryptocurrencies, despite what their name may lead you to believe.
Cryptocurrency wallets are actually more of a ledger, since they hold the keys to the owner’s identity, allowing them access to a blockchain network and transaction history. These wallets must locate the cryptocurrency associated with your address across the blockchain, which is why they must interact with it.
What are the Types of Cryptocurrency Wallets?
Software, hardware, and paper wallets are the three major types of cryptocurrency wallets that fall under the two main categories of wallets known as hot and cold wallets.
Cold wallets have no connection to the internet and come in some physical form, such as a hard drive or a piece of paper, making them the most secure wallets possible. Hot wallets, on the other hand, do have some form of an internet connection, which causes them to be more susceptible to security breaches.
Hot wallets are favored for their flexibility, such as the ability to access your funds or trade on the go. These software wallets come in the form of web wallets, desktop wallets, and mobile app wallets. It’s important to reinforce, however, that this availability comes as the result of a hot wallet’s web connectivity, which inherently leaves your funds open to some form of vulnerability.
In the case of cold wallets, the only way for your funds to be lost is if the wallet itself is either lost or stolen and no backup procedures have been put in place. Unfortunately, this superior level of security does not allow for your funds to be readily available for trading or commerce while away from your computer.
Most leading crypto wallets today are hybrid wallets that offer desktop and mobile access, with the option to connect to a hardware wallet for maximum backup protection.
How do Cryptocurrency Wallets Work?
Cryptocurrency wallets provide public keys and private keys to enable crypto users to interact with their digital assets stored on public blockchain networks. A wallet’s public key is the wallet address you can receive funds to and the private key is what you use to access your funds to make transactions.
Think of the public key as your bank account number and the private key as your bank account PIN that you use to log in and make payments.
Methodology
One of the most important things to consider before you transact in and store cryptocurrencies is that you have a suitable crypto wallet in place. To help determine the wallet that works best for you, we conducted a comprehensive review process of the top cryptocurrency software wallets.
Our review process is built around a quantitative ratings model that weighs key factors like security, costs, privacy, usability, customer support, and features according to their importance. Our team of researchers gathered over 40 data points and conducted extensive research for each of the 19 companies we reviewed. Our team of writers, who are experts in this field, then test drove each wallet to lend their qualitative point of view.
Our model gave preference to companies with the strongest security measures and reputations. Companies with rich features, such as supporting a large number of crypto assets, giving users the ability to sync with hardware wallets, and allowing for fee customization, also ranked highly.
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