If you don't want to store your crypto in someone else's pocket, you'll want to use a non-custodial wallet.

Introduction

Although there are many different types of cryptocurrency wallets, they all offer a mechanism to safeguard confidential information that allows you to control your digital assets. You don't want to leave this up to chance since you could never get your tokens back if you lost these "private keys."

Because they provide you control over your own personal data, non-custodial wallets are the sort of storage solution that many cryptocurrency users choose. Compared to storing your assets on a cryptocurrency exchange, you don't have to rely on a third party to protect your private keys when using a non-custodial wallet.

The use of non-custodial wallets is not risk-free, though. You must have faith that the hardware and software in your wallet will function as planned, and they are less forgiving of mistakes like forgotten passwords.

You should also note that the transaction fees imposed by the underlying blockchain networks can make transferring assets between wallets expensive. Because of these factors, some cryptocurrency users have different sorts of wallets: some for long-term storage and others for frequent trading.

In order to select a wallet, you can visit the website of the token you wish to store. Many specialized tools have been developed to handle specific digital currencies. However, it is wise to look around if you intend to store numerous types of cryptocurrencies in one location. Here's how to figure out what's best for you.

How to pick the right wallet

The first consideration when using a non-custodial wallet is whether you prefer a hot wallet or a cold wallet. Though the concepts may be foreign to you, the primary distinction between a "hot wallet" and a "cold wallet" is whether or not they are connected to the internet.

A hot wallet is connected to the network. Most of the time, you don't have to pay to use these. For a fee, you can get extra services like trading or staking. A hot wallet makes it easy to send and receive cryptocurrency, but hackers could be able to get to your tokens over the internet.

A cold wallet is connected to the network. You usually have to pay for these because you have to buy a piece of hardware that is set up to store your cryptocurrency. Since they are not connected to the internet, it may be harder for other users to reach them. But if you lose the device itself, there is no backup.

Here are 3 hot wallets to look into

There are many hot wallets available, and most of them can handle thousands of cryptocurrencies. They can also usually hold at least some NFTs and many of them are directly connected to exchanges where you can trade crypto.

The 3 questions you need to answer when choosing a hot wallet

What kinds of digital assets can it hold?
How easy is it to transfer cryptocurrency offline into a "cold wallet"?
Does it support in-app staking or reward programs?

Coinbase Wallet

You know about Coinbase. The company runs the largest cryptocurrency exchange in the United States. But Coinbase Wallet is a separate product that lets users store their own cryptocurrency instead of letting Coinbase hold it. Since Coinbase made the Coinbase Wallet, it works well with their exchange and may be a good starting point for people who have never used a non-custodial wallet before.

The free app also has some other great features, like the ability to connect to decentralized apps from mobile devices and browsers. It also doesn't have some features that its competitors do, like a desktop app. However, its browser extension can connect to the Ledger hardware wallet.

Tokens supported? 1,000s according to Coinbase's marketing material.
Able to transfer to cold wallet? Yes.
Supports DeFi/Staking/Reward? Yes.

MetaMask

If you use Ethereum blockchain applications on a regular basis, you've probably come across MetaMask. MetaMask, which is free and open-source, can store any digital asset generated on Ethereum (there are more than 500,000). MetaMask also connects with many of the Internet's "Web3" applications that require crypto transactions to function.

MetaMask does not have a desktop app but does feature mobile and browser-based wallets. Similarly, the MetaMask app does not support staking out of the box. Nonetheless, tokens can be staked without any difficulty utilizing web-based tools that integrate with MetaMask. Keep in mind that MetaMask may not be of much use to you if you don't make frequent use of Ethereum and its associated tokens.

Tokens supported? > 500,000.
Able to transfer to cold wallet? Yes.
Supports DeFi/Staking/Reward? Yes, through connected apps.

Trust Wallet

Another wallet service that works in tandem with a large cryptocurrency trading platform is Trust Wallet. Users can trade digital assets straight from their wallets thanks to the app's status as the official wallet of Binance, a global digital asset corporation. Though it claims to work with a million different token types, it falls short in a few key areas. Although it doesn't offer a browser add-on, it does provide a mobile app that can be used to engage with decentralized apps. Unfortunately, there is no clear mechanism for moving assets from hot to cold storage. Yet only a small number of rivals can match its complete open-source status.

Tokens supported? > 1,000,000.
Able to transfer to cold wallet? No.
Supports DeFi/Staking/Reward? Yes.

Here are 3 cold wallets solutions to explore

Cold wallets allow you to keep your private cryptocurrency keys safe on a device that isn't always connected to the internet.

Although there are methods for accomplishing this on your own, hardware wallets typically include preinstalled software as well as usability and security features.

Cold wallets are more expensive than hot wallets, in part because you are purchasing a physical object. Considerations like cost and safety features should be taken into account while comparing crypto wallets. You should make sure the hardware you're investigating is compatible with your software wallet if you use a hot wallet in addition to your cold storage.

Here is our selection for cold wallets.

Trezor

When it comes to crypto storage hardware, Trezor is among the best. It offers an relatively affordable variant ( $70), and a more expensive, advanced model (price:$ 243) with a touch screen and capabilities to store other tokens. As well as offering third-party interfaces with companies like Exodus, Trezor's software has in-built support for activities like staking and buying cryptocurrency. While a PC client is available, Trezor does not currently have a mobile app.

Tokens supported? > 1,800.
Able to transfer to hot wallet? Yes.
Supports DeFi/Staking/Reward? Yes.

Ledger

When it comes to crypto wallets, Ledger is a household name. Ledger is compatible with multiple well-known software wallets, including Crypto.com and Guarda, and costs between $79 and$ 149. Ledger features a highly regarded mobile app, a dedicated desktop app, and a browser plugin is now in development. In addition to offering two-factor authentication, Ledger also provides its customers with extensive educational resources.

Tokens supported? > 5,500.
Able to transfer to hot wallet? Yes.
Supports DeFi/Staking/Reward? Yes.

SafePal

SafePal can be thought of as a cross between a traditional wallet and a digital one. It's a hardware device that holds your crypto and only costs about $50. This device can then be used to access SafePal's services, which include a mobile app and a browser extension that make it easier to conduct transactions. Unfortunately, there is no companion desktop application for it. Among the hardware wallets evaluated by MoneyStories.net, it claims to support the largest number of digital assets, at around 30,000.

Tokens supported? > 30,000.
Able to transfer to hot wallet? Yes.
Supports DeFi/Staking/Reward? Yes.