A crypto wallet is a place where you can securely keep your crypto. There are many different types of crypto wallets, but the most popular ones are hosted wallets, non-custodial wallets, and hardware wallets. Which one is right for you depends on what you want to do with your crypto and what kind of safety net you want.
Hosted wallets
The most popular and easy-to-set-up crypto wallet is a hosted wallet.
- It’s called hosted because a third party keeps your crypto for you, similar to how a bank keeps your money in a checking or savings account.
- The main benefit is that if you forget your password, you won’t lose your crypto.
Non-custodial wallets
Put you in complete control of your crypto
- Don’t rely on a third party
- Unlike a hosted wallet, you do not need to share any personal info
- The private key is presented as a random 12-word phrase
- If you forget it, you cannot access your crypto
Hardware wallets
These are a physical device about the size of a thumb drive that stores the private keys to your crypto offline.
- Most people don’t use hardware wallets due to their complexity and cost, but they do have some benefits such as being able to keep your crypto secure even if your computer is hacked.
