A cryptocurrency wallet refers to a virtual wallet that stores your cryptocurrencies and is characterized by a private key that validates transactions made using cryptocurrency. In essence, a wallet not only provides secure storage and safe transactions but further manages your cryptocurrencies. Cryptocurrency wallets are categorized as hardware, desktop, mobile, paper and software wallets. There are many wallet options in the market and as such, it is important to evaluate and compare features of myriad wallets before settling on one.
The security, affordability, and flexibility (in terms of ability to store multiple cryptocurrencies) should be among the core factors to look for when selecting your wallet. When selecting your wallet, it is important to determine your purpose for the crypto usage to ascertain its viability for your intended purpose. For instance, determine whether you need the wallet for daily transactions, long-term savings, short-term HODL or daily crypto trading.
In this checklist, you will be taken through the key factors and features to look out for in an ideal cryptocurrency wallet.
Security
1 How secure is the wallet?
2 Does it have a first line of defense in case of a compromise?
3 Does it integrate facial or fingerprint recognition?
4 Does it integrate facial or fingerprint recognition?
Private Keys
5 Do you have access to your cryptocurrency’s private keys?
6 Are your wallet’s private keys generated exclusively to your wallet?
7 Are you the only party with access to your private keys?
8 Is it non-custodial?
Fee Customization
9 Does the wallet contain fee customization features?
10 Is it flexible in terms of allowing users to determine exact pricing for specific crypto transactions?
11 Does it have preset options such as fast, medium and slow?
Reputation
12 How reputable is your wallet?
13 Does it offer readily available customer service (preferably 24/7 customer service)?
14 Are there in-built integration features?
15 How active is the wallet’s developer community?
Backup Features
16 Does it have backup features for your private keys?
17 Is the backup process automated?
User Interface
18 Is the wallet user-friendly?
19 Is it easy to set up and navigate?
20 Have you evaluated its mobility?
Shared Wallets and Other Features
21 Does the wallet offer a multisig option?
22 Does it have an unlimited wallet creation feature?
23 Does the display currency toggle between crypto units and local currency?
24 Is there access to decentralized exchanges and dApps?
25 Does it generate new addresses?
26 Is it a non-KYC wallet?
27 Is the wallet hot or cold?
Notes:
- Some of the best wallets for security include Trezor Model T
- Other wallet options include Ledger, Nano X, Mycelium, Exodus, Electrum
- Search for forums and social handles such as Reddit associated with your wallet to see how it is reviewed
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