The growing prevalence of hacks and security breaches of various cryptocurrency exchanges has increased the importance of maintaining a wallet that is secure and not dependent on a third party.
Crypto Security firm Immunefi claimed in April that so far in 2022 crypto investors had lost more than $1.2 billion to hackers. Crypto.com, one of the largest exchanges also suffered a breach where hackers were able to access users’ wallets and make away with $30 million worth of Bitcoin and Ethereum. The benefits of storing cryptocurrencies on third party sources is clear: it makes it easier to maintain access especially for active traders, and typically the user interface is superior.
For this reason, companies like Crypto.com and Coinbase have millions of users for the wallets and even relative newcomers such as Cash App and Venmo have gained a lot of traction (in fact, fees assessed from crypto trading is now one of the ways that Venmo makes money). The case for independent wallets has never been stronger; In this article we discuss what are in our view the most profitable bitcoin wallets on the market.
Trezor Model T Wallet
Made by a Czech company, the Model T is a second-generation hardware Bitcoin wallet. It comes with open-source software and high levels of encryption. Accompanying the Model T is the company’s Trezor Suite. It’s an app that allows users to manage and spend their crypto assets. The idea was to create a desktop-based interface that would offer additional security compared to the traditional web app.
It also boasts its own integrated exchange so user can shift their crypto assets between any of the 1,600 coins and tokens supported by Trezor Suite. When it comes to its physical design, the Model T looks simplistic yet functions beautifully. It looks similar to a stopwatch but with a slim build and a useful touchscreen display. Users can connect the Model T to their computers holds a USB cable.
Alternatively, the device carries a microSD card that can serve as extra encrypted storage space. Bluetooth isn’t supported. While it may be seen as inconvenient, the absence of Bluetooth connectivity helps reinforce the defensive layers of the device.
Exodus Wallet
Crypto users looking for a reliable hot wallet can turn their attention to Exodus. It’s a noncustodial storage solution in that the assets are kept online but only users can access their private keys.
Initially designed to run on Windows, Mac, and Linux devices, Exodus has since introduced a mobile app as well for Android and iOS users. The Exodus has a relatively simple user interface and a mind learning curve like many other popular hot wallets. Of course, it also provides access to the Exodus exchange to make transactions easier to manage. With that said, the Exodus wallet only supports around 130 cryptocurrencies, including Bitcoin and Ethereum.
Unfortunately, the exchange doesn’t support purchasing crypto with fiat currencies. For that, users still have to visit a centralized external crypto exchange before transferring funds to the wallet. Mobile device users have it a bit easier as the Exodus hot wallet app version allows buying Bitcoin with USD. One of the best things about Exodus is that it’s free to use. Other bonuses include its flexibility, cross-platform compatibility, and crypto-to-crypto integrated exchange.
Electrum Wallet
One of today’s top Bitcoin wallets happens to be one of the oldest. Electrum has been around since the early days of Bitcoin. Created in 2011, a mere two years after Bitcoin was launched, Electrum hasn’t seen many upgrades or changes since. It’s based on open-source software and offers a bare-bones user interface. Accepting only Bitcoin, Electrum may not be a trendy choice for the average crypto holder.
However, it offers high-end security features, perhaps more advanced than any other hot wallet alternatives available in 2022. Among its most valued features is the customizable transaction fee. Furthermore, Electrum enables users to create multi-signature wallets and tweak the seed phrase using custom words – all for layering even more security measures.
Mycelium Wallet
Another wallet that’s been around for years, Mycelium is a mobile-only solution for crypto holders and traders. It offers support for Bitcoin, Ethereum, and ERC-20 tokens, though it is not as versatile as some users may prefer and comes with a learning curve. That said, the built-in exchange and transaction fee customization options make it a solid choice.
Mycelium also supports hardware wallets, which will allow users to build even more security around their crypto funds by moving them to an offline storage device when needed. The great thing is that users can still use the Mycelium interface to manage their assets when using the app with a cold storage device.
Convenience Over Security
Hot wallets are often free and offer a wide range of features that draw crypto users. Accessing exchanges, customizing fees, and selecting the layers of security are things that make hot wallets highly desirable. It’s an exercise in convenience. On the other hand, losing a private key or getting hacked is a dreaded concern for all crypto users and investors.
It’s nearly impossible to recover lost crypto assets. Therefore, more people have started to adopt cold storage solutions to safeguard their Bitcoin, Ethereum, and other altcoins.