If you're new to cryptocurrencies, you'll quickly learn
that one of the safest ways to store your crypto assets is to move them
out of the exchange you bought them from and into your own crypto wallet.
That's why on today's Coinmarketcap episode, we take a deep dIve
into the best hot wallets of 2022 and make sure to check out
the timestamps in the description to easily navigate this video.
Keeping your cryptocurrencies in a private wallet to which only you hold
access has been a core safety component since the infamous collapse of Mt.
Gox in 2014.
And while today's leading exchanges have greatly bolstered up their defenses
and insurance policies, the only question for some serious HODLers is still.
Did I use a hot wallet or a cold wallet?
Hot wallets are essentially online
software used to store and trade your crypto assets,
while cold wallets are dedicated offline storage devices that do the same
without ever connecting your private key or recovery key to the Internet.
Also known as hardware wallets.
Cold wallets have made massive strides in recent years in terms of user
friendliness and features, but for pure convenience and speed of use,
hot wallets are still favored by the crypto masses.
It also helps, of course, that there are almost always free.
This guide takes a look at the best hot wallets used
for 2022 and important points to consider.
Let's review the basics.
What are hot, cold and non-custodial wallets?
Crypto currency wallets are typically split into two
or sometimes three categories.
Hot wallets are the most common and diverse
acting as an app or browser extension on your device.
Transactions are completed by signing them from within your wallet
being strictly software.
A variety of features are available thanks to many different wallets
competing to be the most user
friendly and convenient to new users or daily traders.
hot wallets generate a 12 to 24 card code that can be used to access
or recover a wallet.
And all of its addresses cold wallets are mostly focused
on security, privacy and long term storage.
Private key, or the unreadable code used to sign a transaction,
is stored offline in an electronic device that requires
physical imput and verification to communicate with the blockchain.
Cold wallets are much more restrictive since there is less demand
and they often provide storage for cryptocurrencies on multiple chains.
While it's typically only operate on a single blockchain making using
multiple necessary for most investors that diversify their portfolios.
Non-Custodial wallets are similar to hot wallets,
but their security is closely tied to the exchange that provides them.
Non-Custodial wallets are technically signed by your exchange,
meaning their permission is required to withdraw your crypto,
often with costly withdrawal fees.
The five best hot wallets in 2022 for holding your cryptocurrency.
Below are some of the best options for storing your cryptocurrency, accessing
DeFi protocols and fully exploring the current offering of Web 3.0.
Each blockchain has at least one or two established hot wallets that provide
helpful features, provide
the best user experience, and offer the best access to DEFI applications.
Therefore, we've tried to pick the best wallets for the leading chains,
starting with Metamask for Ethereum and EVM chains.
The Undisputed King of Hot Wallets.
Metamask is a Web3 wallet created by Ethereum development
giant consensus that provides users the chance
to effortlessly trade supported cryptocurrencies
and and of tees on a Ethereum and Ethereum
virtual machine or EVM compatible layer.
One Networks Polygon Avalanche, Moonbeam, BnB,
Smart Chain and Phantom are just some of the possible blockchains
metamask users can access at the click of a button ether or ERC.
20 tokens can be sent, received or managed on the Ethereum network
or the network can be switched to seamlessly manage tokens
from other ecosystems on the same wallet, address
minimus runs all of Ethereum software on its own servers.
Users can interact with websites running on Ethereum
without having to host their own node, giving millions of people
the opportunity to deploy smart contracts and access Dapp services.
Metamask can be installed as a desktop browser extension either on Chrome, Brave
Firefox and others,
and can easily be connected to Dapps such as Uniswap and Opensea.
Websites of DeFi protocols will automatically create a window
to connect your wallets and configure the correct network to interact
with the website.
The app version of Metamask for Android and iOS
is also intuitive with a built in swap feature.
An in-app browser which helps protect users against phishing URLs.
Metamask also supports cold wallets such as Ledger and Trezor,
but a new wallet address must be added to ensure your private key
is generated on the device and never exists online.
Here are some tips for using Metamask gas prices or the fee for making a
transaction can be modified to prioritize when your action is completed.
Due to ethereum's notoriously low transactions per second, increasing
the gas fee limits may be necessary when the network is congested.
Each transaction
network change and smart contract requires signing with your private key.
This can be as easy
as accepting a pop up within the wallet, but it can sometimes not appear so.
Make sure to manually open the browser extension and check as it does not open
itself.
Next is Trust Wallet for Binance, Smart Chain and others.
Trust Wallet is another mobile only wallet but is fully decentralized open source
and can manage over 16,000 different cryptocurrency.
Multi coin support is not as common as you might imagine, as most hot
wallets aim to be the best option for a single blockchain.
Now Trust Wallet takes the opposite approach, combining
an assortment of features to be a one stop shop for crypto traders.
Trust Wallet can be used on either mobile or desktop browser.
The browser extension can be directly linked to your Kyber network's natively
decentralized exchange,
making it easy to move or trade your cryptocurrency
when attempting to buy crypto occurrences, a lot of new users struggle
to find an onramp that converts their fiat currency into virtual assets.
Trust Wallet lets users buy cryptocurrencies with a credit card
that can quickly be traded
or swapped for other tokens all within the wallet software.
And finally trust wallet allows staking directly from both versions
of the wallet and access to Dapps through the browser version.
Tron, Cosmos, Kava, Vechain and Callisto
can currently be staked, but more will be added in the future.
Dapps can connect to Trust Wallet through your browser and allows paying
for services or products in cryptocurrency or access to other Web 3.0 content.
Tips for using Trust Wallet.
If you're having an issue with Trust
Wallet there, contact support is easily reached by opening a support ticket.
Their help center is well aware that a large number of features
can be hard for new users to use, and they respond quickly to requests
their frequently asked questions section is also helpful
if you have questions about trust wallet before you download
the app or browser extension.
Phantom Wallet.
For Solana, Phantom wallet has quickly become the Solana equivalent of Metamask,
but with a much more simple UI and the benefits of the Solana
blockchain assets can easily be transferred between exchanges
and salon adapts thanks to nearly free transactions
and a high transaction per second of around 2500 as of recently.
Although the TPS will scale higher as the blockchain matures,
Solana was launched in 2020, so new exchanges and DeFi
protocols are constantly launching, always prioritizing.
Interaction with Phantom Phantom has taken a huge initiative
to make viewing your assets simple and quick.
A tab next to your listed assets can be selected to view all NFT
within the wallet as unlike Ethereum where NFTs have their own smart contracts.
Solana Nfts are SPL tokens similar to Altcoins on the network.
Fantom wallet is especially useful if playing blockchain games
as transactions are low and fast enough on Solana to justify
micro-transactions to move or swap in-game assets within the app.
Tips for using a Phantom Solana is very user friendly and has done
a great job at onboarding new users to cryptocurrencies
NFTs and staking for attractive APYs.
Unfortunately, making trading
so simple has attracted many scammers targeting new traders.
Empty scammers are always on the lookout to trick a novice NFT owner
or attempt to earn trust to initiate an over the counter trade.
Be on the lookout for scams that result in your digital assets
being out of your control as getting them back is nearly impossible.
Coinbase Wallet for Bitcoin, Ethereum and others.
Coinbase has introduced a non-custodial wallet
for users, preferring to manage their own cryptocurrencies.
The wallet for your Coinbase account is a custodial wall,
meaning the private key is not under your control.
Control of a private key reflects the true ownership of digital assets
within the wallet.
The new Coinbase Wallet is an app that grants full control of your
cryptocurrency, as well as features offered to users of the exchange.
Using the Coinbase wallet allows a chance for airdrops entering into ICOs access
to Dapps and participation in the upcoming NFT marketplace.
Coinbase Wallet currently supports Bitcoin, Ethereum, all ERC 20
tokens and many other currencies supported on the Coinbase Exchange.
Transferring, receiving, and storing
your crypto is incredibly easy, even for new users.
The wallet is free to download, but trading fees still apply
when converting cryptocurrencies or trading them with other wallets.
These can vary from 1.5% to 4%,
depending on the currency and where the trade is occurring.
Tips for using the Coinbase Wallet.
Coinbase Wallet is great to receive
the same benefits of the exchange while still remaining in control of your crypto.
But be careful of the trading fees associated with the Coinbase Exchange.
Also consider that unlike the non-custodial wallet
that Coinbase offers, the Coinbase wallet is open to the same cyberthreats.
Other hot wallets are vulnerable to Nova Wallet for Polkadot and Kusama.
No, not NOVI wallet.
The software being designed by Facebook NOVA is the premier mobile solution
for the Polkadot and Kusama ecosystems.
All tokens for both blockchains can be stored and eventually staked
due to being a new app for a relatively new blockchain.
Nova wallet currently only allows the staking of Polkadot Kusama and West End.
Nova is specifically designed for Polkadot and Kusama
and the pair of chains they have elected to exist in their networks.
Inside the wallet UI.
Each parachain has its native assets organized together.
NOVA makes owning cryptocurrencies for each protocol easy to view and manage.
It can also be used to contribute polkadot to future crowd loans and receive
their rewards.
The wallet is currently only available on mobile and
is not as well established as other hot wallets on this list.
But not for a lack of trying.
Polkadot and Kusama wallets are still very limited and none have as pleasant of a
UI or user experience as Nova Wallet, making it a great way
to participate in the Polkadot ecosystem and participate in the future.
Crowd Loans. Tips for using Nova Wallet.
Be aware that staking DOT tokens or contributing them to crowd
loans is a long term commitment of your capital
and your dot will be untouchable for an extended period of time.
Once you have selected one or multiple validators for your DOT
tokens, a week must pass for receiving rewards
and the undertaking period is 28 full days of no rewards.
Contributed to crowd loans are locked even longer as they enter into a secure,
smart contract for the entire period of the pair chains rent period.
Usually 96 weeks.
Here are some honorable mentions.
Atomic wallet for multiple assets, general wallet for Cardano,
Keplr wallet for Cosmos, Exodus for Bitcoin, my ether wallet for Mew.
The Advantages of Using a Hot Wallet.
Hot wallets are the most common
wallet used by cryptocurrency traders and investors and for good reason.
Firstly, hot wallets can be used on a mobile phone,
a handheld device such as a tablet or a laptop or a computer.
They're free to download and easy
to use and serve as the starting point for almost all crypto beginners.
Usually users only graduate to a cold wallet after
amassing a large portfolio or fully understanding
how wallets are used to secure cryptocurrencies and other virtual assets.
Hot wallets also have the most operability out of all forms of cryptocurrency
storage users can quickly connect their hot wallets of various
DeFi protocols and exchanges and immediately trade tokens.
If you privileged information or access staking pools or yield farms,
cold wallets, on the other hand, usually require the physical device
to be connected via USB or Bluetooth, have their PIN entered and then the correct
app selected before signing a transaction or connecting to a website.
This of course is great for security but can be complicated going through
so many steps may be okay with a long term holder or someone
with a sizable portfolio who prefers more security
but may not be suitable for swing traders that make many transactions per day.
At present, both hot and cold wallets offer enhanced anonymity for users,
as there is no know your customer or KYC identification required
or enforced as with exchange accounts.
However, this is something that may very well change in the coming years,
as there are signs that regulators across the world are also looking
to enforce KYC registrations on private wallets.
Using a hot wallet is super convenient and a great way for beginners
to get a grip on crypto, but it also comes with serious risks.
For example, if your computer or phone security is breached and bad actors
gain access to the wallet software, they will likely to be able
to steal your crypto in short order.
In many cases, users may even unwittingly do all the heavy
lifting for cybercriminals by blindly signing the wrong smart contract
or falling for phishing tricks via malicious email or bad links.
So it's important to make sure that your hot wallet software is up to dates,
and it's advisable to not hold the bulk of your portfolio on hot wallets,
but rather in a hardware wallet if you carry some serious bags.
It's also smart to use different hot wallet applications on different devices.
Spreading out the risk using 2 factor authentication or two offer,
such as Google Authenticator where possible is always advisable.
Just make sure that you keep all the private key or recovery details
in a safe place offline, which only you can access.
While it may be true that not your keys equates to not your coins,
the same can be said for no keys and no coins.
So hold on tight to yours.