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Cryptocurrency Wallet:Beginner's Guide


Cryptocurrency Wallet

What is a Cryptocurrency wallet?

A cryptocurrency wallet Is a software program that helps you to store, send, and receive cryptocurrencies. It is made up of a private key and a public key. The private key and public key are mathematically related but cannot be made from one another, meaning that you cannot obtain the private key from the public key. Although the public key is shared but doesn’t mean that by knowing the public key you can discover the private key and manipulate it, this is impossible.

Different terms of crypto wallet

i. Hot wallet: This is a wallet that is connected to the internet 

ii. Cold wallet: This is a wallet that is not connected to the internet

iii. Wallet addresses: These are used to send and receive cryptocurrencies from one account to another. They have the same functionality as bank account numbers used to hold traditional money, the only difference is that wallet addresses are made up of digital signatures which gives them strong security to move digital cash online without the involvement of a middleman or central authority. Wallet addresses are of two types, which are public key and private key.

iv. Public key: This is an address that is shared with the public or anyone who wants to send cryptocurrency to your account.

 v. Private key: This is an address that identifies a wallet uniquely. This is not seen or shared with anyone except the owner of the wallet. It should be kept in a secure place that cannot be stolen by hackers or attacked by malicious software because once gets lost, you cannot access gain the wallet.


Different types of cryptocurrency wallet

1. Online wallets: 

These are wallets that can be accessed through the internet. 

Examples of online cryptocurrency wallets are:

  • Coinbase Wallet: Coinbase offers an online wallet service that allows users to securely store, send, and receive various cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and more. It also provides additional features like decentralized application (DApp) browsing and access to decentralized finance (DeFi) protocols.


  • Blockchain provides an online wallet that supports Bitcoin, Ethereum, Bitcoin Cash, and Stellar Lumens. It offers features such as two-factor authentication (2FA), multi-signature security, and the ability to buy and sell cryptocurrencies directly from the wallet interface.


  • Binance Wallet: Binance, one of the largest cryptocurrency exchanges, also offers an online wallet service. It supports a wide range of cryptocurrencies and provides features like staking, savings, and integration with the Binance exchange for seamless trading.


  •  Electrum: Electrum is a popular open-source Bitcoin wallet that is available online as well as for desktop and mobile platforms. It is known for its lightweight design, fast synchronization with the Bitcoin network, and support for features like multi-signature wallets and hardware wallet integration.


  • MetaMask: MetaMask is a browser extension wallet that supports Ethereum and Ethereum-based tokens. It allows users to interact with decentralized applications (DApps) directly from their web browser and provides features like decentralized identity management and integration with hardware wallets.


  • Trust Wallet: Trust Wallet is a mobile-based wallet that supports a wide range of cryptocurrencies and tokens. It offers features like staking, exchange integration, and support for decentralized finance (DeFi) protocols.


  • MyEtherWallet: MyEtherWallet is an online wallet specifically designed for Ethereum and Ethereum-based tokens. It allows users to create and manage Ethereum wallets securely and provides features like integration with hardware wallets, token swapping, and decentralized finance (DeFi) access.


Advantages of online wallets

i. Ability to manage multiple cryptocurrencies

ii. They are more suitable for active trading, as can be accessed at any time as long as connected to the internet.

iii. Help to conduct transactions at high speed.

iv. Allow crypto members to send and receive cryptocurrencies daily



i. They are more vulnerable to attacks.

ii. Risk of being attacked by viruses or malicious software


2. Mobile wallets

These are software application wallets built to simplify the process of payment online using mobile phones. They can be downloaded on the Apple Store or Google Play Store.

Examples of cryptocurrency mobile wallets are:

  • Coinbase Wallet: Coinbase is a well-known cryptocurrency exchange platform that also offers a mobile wallet. It supports a wide range of cryptocurrencies and provides features like secure storage, easy sending and receiving of digital assets, and integration with decentralized applications (DApps).


  • Trust Wallet: Trust Wallet is a decentralized mobile wallet that supports a vast array of cryptocurrencies and tokens. It's known for its user-friendly interface and its integration with decentralized exchanges (DEXs) for trading cryptocurrencies directly from the wallet.


  • MetaMask: Originally a browser extension for accessing Ethereum-based DApps, MetaMask has expanded to offer a mobile app. It allows users to manage their Ethereum and Ethereum-based tokens, interact with DApps, and securely store private keys.


  • Atomic Wallet: Atomic Wallet is a multi-currency wallet that supports over 500 cryptocurrencies. It provides users with features like built-in exchange services, staking for certain cryptocurrencies, and cross-platform support (available for both mobile and desktop).


  • Exodus Wallet: Exodus is a multi-currency wallet known for its intuitive design and support for a wide range of cryptocurrencies. It offers features like built-in exchange services, portfolio tracking, and support for hardware wallet integration.


  • Wallet: offers a mobile wallet for Bitcoin, Bitcoin Cash, Ethereum, and Stellar. It provides users with full control over their private keys, multi-device synchronization, and the ability to buy and sell cryptocurrencies directly from the wallet.


  • MyEtherWallet: MyEtherWallet is a popular Ethereum wallet that provides users with a mobile app for managing their Ethereum and ERC-20 tokens. It emphasizes security and allows users to interact with decentralized applications directly from the wallet.



i. Are safer than online wallets

ii. They are better for use in the long run or on the go

iii. They offer many additional features such as QR code scanning



i. Not suitable for storing large amounts of cryptocurrencies

ii. High risk of being infected with mobile viruses and malware
iii. There is a risk of losing cryptocurrencies if your phone is lost or damaged


3. Desktop wallets. 

These are cryptocurrency software applications installed on your computer. They are considered safer than mobile and online wallets, but only if the computer isn’t connected to the internet. If the computer isn’t connected to the internet, then the desktop wallet becomes a cold wallet. The risk of a cold wallet becoming damaged or attacked by viruses or malicious software is low compared to a computer connected to the internet.

 Examples of desktop cryptocurrency  wallets are:

  • Exodus: Exodus is a multi-cryptocurrency wallet that supports a wide range of cryptocurrencies. It has a user-friendly interface and provides features like a built-in exchange, portfolio tracking, and more.


  • Electrum: Electrum is one of the oldest and most widely used Bitcoin wallets. It's known for its speed and simplicity. It's a lightweight wallet that doesn't require downloading the entire blockchain.


  •  Atomic Wallet: Atomic Wallet is a decentralized multi-cryptocurrency wallet with a built-in atomic swap exchange. It supports over 300 cryptocurrencies and provides features like staking, built-in exchange, and more.


  • Coinomi: Coinomi is a multi-cryptocurrency wallet known for its robust security features and support for a wide range of cryptocurrencies. It offers features like built-in exchange, support for multiple languages, and more.


  • Jaxx Liberty: Jaxx Liberty is a multi-platform cryptocurrency wallet that supports a variety of cryptocurrencies. It has a user-friendly interface and provides features like portfolio tracking, built-in exchange, and more.


  • Trust Wallet: Originally designed as a mobile wallet, Trust Wallet also offers a desktop version. It supports a wide range of cryptocurrencies and provides features like staking, DApp browser, and more.


  • Guarda Wallet: Guarda Wallet is a multi-cryptocurrency wallet available on various platforms, including desktops. It supports a wide range of cryptocurrencies and provides features like built-in exchange, staking, and more.



i. The keys are stored offline on the computer hard drive and not on the third-party server


i. Become riskier if get connected to the internet

ii. Has a high risk of losing cryptos if your computer dies and you can’t back up your wallet.


4. Hardware wallets.

Cryptocurrency hardware wallets are physical devices that securely store the private keys necessary to access and manage your cryptocurrency holdings. They are considered one of the safest ways to store cryptocurrencies because they keep your private keys offline, away from potential online threats like hackers and malware. They are called cold wallets because aren’t connected to the internet. They are very secure wallets and are good for storing large amounts of cryptocurrencies.

  •  Ledger Nano S: The Ledger Nano S is one of the most well-known hardware wallets in the market. It supports a wide range of cryptocurrencies and offers a secure element chip to protect your private keys. The device is compact and features a small screen for easy navigation.


  • Trezor Model T: Trezor is another reputable brand in the hardware wallet industry. The Trezor Model T is their flagship product, featuring a touchscreen interface and passphrase encryption for enhanced security. It supports over 1000 cryptocurrencies and has an intuitive user interface.


  • KeepKey: KeepKey is a hardware wallet acquired by the cryptocurrency exchange ShapeShift in 2017. It has a sleek design and a large screen for easy verification of transactions. KeepKey supports a variety of cryptocurrencies and integrates with the ShapeShift platform for seamless trading.


  • BitBox02:Developed by Shift Crypto, the BitBox02 is a compact and secure hardware wallet with a minimalistic design. It features a microSD card slot for encrypted backups and a secure chip for key storage. The BitBox02 supports multiple cryptocurrencies and provides strong security features.


  • Ellipal Titan: The Ellipal Titan is a cold wallet designed for maximum security. It features air-gapped technology, meaning it operates offline entirely. The device has a large touchscreen for easy navigation and supports many cryptocurrencies. It also integrates with the Ellipal mobile app for convenient management.


Advantages of hardware wallets

i. It is one of the safest cryptocurrency wallet 

ii. They are very secure

iii. They are used to store large amounts of cryptocurrencies for a long time


Dis advantages

i. They are very expensive

ii. They are not user-friendly


5. Paper wallets.

These are super cold wallets. Private keys and public keys are printed first before use. You can send or receive your digital cash by entering your private keys or by scanning the QR code on the paper wallet

  • Bitcoin Paper Wallet: Bitcoin Paper Wallet is a popular option for generating a paper wallet for storing Bitcoin securely offline.
  • This platform supports generating paper wallets for various cryptocurrencies including Bitcoin, Ethereum, Litecoin, and others.
  • is another well-known platform for generating Bitcoin paper wallets. It provides a simple interface for generating and printing paper wallets securely.
  • MyEtherWallet: While primarily known for Ethereum wallets, MyEtherWallet also supports the generation of paper wallets for Ethereum and Ethereum-based tokens.
  • Similar to, allows you to generate paper wallets specifically for Litecoin. It provides a straightforward interface for generating and printing Litecoin paper wallets:


Advantages of paper wallets

i. They are not stored on the computer, mobile phones, or any third-party server.

ii. They are more secure than any other wallets.



i. Not user-friendly

ii. Difficult to use for daily transactions than any other wallet

iii. Can be damaged by fire


 How to choose a crypto wallet?

1. Based on security: 

Choosing a secure crypto wallet is good for the safety of your cryptocurrencies. For example, hardware wallets are very secure compared to other crypto wallet. I recommend you consider buying a hardware wallet if you have a large number of cryptocurrencies that you don’t invest daily or don’t use for shopping instead you hold them for a long time. When looking for the most secure wallet, check the authentication used by the wallet, and find out what online reviews are saying about the wallet. This will help you to know if the wallet is secure or not.


Sites that provide reviews about crypto wallets





2. Based on crypto ownership: 

Some wallets do not hold more than one cryptocurrency because they have been built for only one cryptocurrency. For example, myceliumelectrum, and Bitcoin core wallets are built to hold Bitcoin only and not any other cryptocurrencies. If you have more than cryptocurrencies to store, look for multicurrency wallets that can carry many cryptocurrencies without any problem. Examples of multicurrency wallets are Exodus which is a desktop wallet, and Coinnomi.


3. Based on transaction fees:

Consider this factor if you’re an active trader or you want to spend everyday cryptocurrencies for buying goods and services online and for exchange on different platforms. You should make sure you pay less in transaction fees and earn more.


4. Based on anonymity:

This is the ability to hide your personal information from being tracked or seen by the public or external entities. Anonymous wallets help to separate your personal information from your funds, in which no one can figure out which person carries this amount of funds or has conducted this type of transaction. Whether to choose an anonymous wallet or not, depends on your goal. If your goal is to make your transactions secret, then an anonymous wallet is your choice. But keep in mind that anonymity affects your transaction fees and the price of the wallet. Examples of anonymous wallets are: 





How to keep your wallet secure?

i. Back up your wallet: 

This helps to recover your wallet in case any failure or damage to your computer happens. All backup data should be kept in a safe and secure place apart from the original wallet. Backup should be done regularly to ensure that all recent crypto addresses are included in your original wallet.


ii. Update your software regularly. 

This helps to ensure all new security features are available to the software. By updating the software, you minimize the risk of being vulnerable to attacks, because when a company discovers vulnerabilities in its software, it starts fixing them and coming up with a new version that has no loopholes for attackers to penetrate as previously, that’s why updating software to the new version is very important, not only for mobile or desktop crypto wallets but all software of the other businesses should be updated regularly.

iii. Use two-factor authentication(2FA):

Use two-factor authentication like the Google Authenticator app, mobile phone number, and email addresses. You should check if the wallet provides this type of security feature to use.


iv. Use a strong password.

A strong password has a mixture of characters, small letters, capital letters, and numbers, and must be at least 16 characters long. Strong passwords are difficult for hackers to crack. Avoid using known words as passwords. Don’t use small letters only or capital letters or numbers only as your password because hackers use dictionaries with millions of words to brute force and discover the password, that’s why it is recommended to use a very strong password which is hard to discover.


v. Encrypt your wallet: 

If this feature is available in your wallet, you should consider using it as another layer of security for your wallet. Encryption prevents anyone from accessing your wallet except you.


vi. Have multiple wallets:

This helps to take advantage of services from different wallets. For example, you can have a hardware wallet for storing large amounts of cryptos. Online wallet for active trading and desktop and mobile wallets as well.

vii. Use antivirus on your computer and smartphone, and should be updated regularly. You can use strong passwords and encrypt your wallets very well, but this method cannot prevent you from keyloggers’ software. This software records everything you type on the keyboard and sends data to the remote servers of the hackers. Using antivirus helps to block this malicious software and discover all current running viruses on the device.


NB: Security is a very important issue in an online environment, so make sure you keep it as the first priority to take into consideration.


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