4 Best Crypto Hot Wallets for 2023
Filip Dimkovskion October 25, 2022.
The 2022 year had a couple of devastating events in the crypto industry. In addition to the collapse of multiple projects, many exchanges also suffered great losses: some declared bankruptcy, while many faced disastrous cyber attacks. In fact, one estimate sets the total amount of money stolen from crypto hacks to be around $3 billion in 2022 alone. Even the biggest exchange, Binance, was a target of a $500 million attack in October 2022.
Due to these attacks and collapses, many investors lost some or all of their assets at these exchanges, and will probably never get them back. So, with so much at stake, it's probably a good idea to start thinking about getting your own crypto DeFi wallet if you're an investor.
Namely, DeFi wallets are cryptocurrency wallets that you are the sole owner of. This isn't the case with exchanges, as the keys to the wallets are never revealed to you, the investor. Regarding DeFi wallets, there are two primary types: crypto hot wallets and cold wallets. In this article, we will cover the details of different kinds of hot wallets, so you can find the right one for you.
MetaMask is the most popular hot wallet on the market and is primarily used to store, send, and receive Ethereum (ETH) and other ERC20 tokens. As you can already guess, MetaMask's default network is the Ethereum blockchain, but you can switch to other networks too, like Polygon, BSC, Avalanche, and more.
In addition to being a wallet for storage, MetaMask also allows you to access decentralized applications (dApps) on the blockchain without running a full node. Moreover, the wallet is incredibly beginner-friendly and intuitive to use, though it can occasionally be slow. Overall, we would rate it as the best wallet for beginners that aren't looking for too many complex features. The wallet is available on all platforms, including PCs, iOS, and Android devices.
2. Coinbase Wallet
The Coinbase Wallet is a hot wallet that was developed by the popular cryptocurrency exchange, Coinbase. The wallet supports a wide variety of cryptos, including:
Notably, the app allows you to buy, sell, and store cryptocurrencies, as well as track their prices in real-time.
It's also worth mentioning that the Coinbase Wallet is quite rich with features, offering a lot more than your typical DeFi wallet. In addition to offering access to dApps, users of the Coinbase Wallet can take part in airdrops (free crypto giveaways) and acquire NFTs in the form of digital art. Just like Metamask, the wallet is available on all platforms, including PCs, iOS, and Android devices.
However, the Coinbase Wallet is also more expensive to use than the other wallets on this list. Although there is no upfront fee or subscription required to use the wallet, conversion and trading fees vary from 2-4% per transaction, which can quickly add up.
» Interested in NFTs? Be sure to choose from the best NFT marketplaces.
3. Trust Wallet
Acquired by Binance in 2018, the Trust Wallet is a reliable and convenient DeFi wallet available on iOS and Android devices. In addition to being used for storage, the Trust Wallet can also be used to buy, sell, and trade over 1 million different coins and tokens with ease. Moreover, the wallet also has a unique "earn" feature, allowing you to stake your crypto for a modest return. Regarding the user experience of the app, the Trust Wallet is quite intuitive to use regarding its basic features. Additionally, downloading the app is free and the wallet has minimal fees and charges.
Still, it's worth mentioning that the Trust Wallet isn't perfect, as it isn't available on PCs, so you can only manage your assets from a mobile device. Also, there is no concrete documentation for the app, so you'll have to resort to reading from external resources if you're a beginner in the crypto space. We can conclude that it's an overall reliable wallet as long as you have some experience in the crypto space.
4. Binance Wallet
Developed by the largest cryptocurrency exchange, Binance, the Binance Wallet is built on the Binance Smart Chain (BSC). In addition to being used to buy, sell, and store cryptos on BSC, the wallet also has a cross-chain feature, allowing you to interact with other blockchains. Moreover, you can use it to interact with dApps and discover new projects, though this is limited only to projects on the BSC blockchain.
Overall, the Binance Wallet is quite reliable and intuitive for experienced crypto users on both PCs and mobile devices. However, we wouldn't recommend it to absolute beginners as they can quickly get lost in the features the wallet offers.
To sum it up, the MetaMask Wallet, Coinbase Wallet, Trust Wallet, and Binance Wallet are currently the best hot wallets on the market. They all have their own unique features and benefits, so be sure to go with the right one for your needs.