Best Crypto Wallets of August 2023: A Comprehensive Guide

By Rahul Rajput On Aug 18, 2023

Best Crypto Wallets of August 2023: Crypto wallets are safe places to store cryptocurrency, but they work a little differently than putting cash in a billfold. There are many choices to choose from. The first step is to figure out which one fits your needs. Some wallets can only hold Ethereum, while others can hold any type of cryptocurrency. There are two main types of wallets: hot wallets, which are connected to the Internet, and cold wallets, which are not connected to the Internet.

Forbes Advisor has looked at the top options and picked the best crypto wallets on the market to help you find the right wallet for you. To make your search easier, we’ve split our list into the best hot wallets and the best cold wallets.

What Is a Crypto Wallet?

A crypto wallet, also called a digital wallet, is a piece of software that saves private and public keys used to interact with a blockchain network and handle cryptocurrency. It lets people send, receive, and keep digital assets like Bitcoin, Ethereum, and other cryptocurrencies.

There are two main types of crypto wallets: hot wallets and cold wallets. Hot wallets are linked to the internet and are more likely to be hacked. Cold wallets, on the other hand, are not connected to the internet and are safer.

Desktop wallets, mobile wallets, web wallets, hardware wallets, and paper wallets are all popular types of crypto wallets. Each type of wallet has its own pros and cons. Users should choose a wallet that fits their needs best based on things like protection, how easy it is to use, and how easy it is to get to.

If you want to use more features, it helps if your wallets are compatible with each other. But a word of warning: if you have multiple wallets for the same crypto or token, your security risks may be higher because there are more ways for your crypto keys to be revealed.

Best Bitcoin Wallet of August 2023

Crypto Wallet Name	Wallet Type
Coinbase Wallet	Hot
Crypto.com DeFi Wallet	Hot
Exodus	Hot
Ellipal Titan	Cold
Ledger	Cold
Trezor	Cold
SafePal	Cold/Hot

By market value, Bitcoin is still the most valuable cryptocurrency. Like other coins, Bitcoin can only be stored in a crypto wallet. Most of the best hot and cold crypto wallets handle BTC.

Some special-purpose wallets don’t work with Bitcoin. MetaMask, for example, doesn’t handle Bitcoin directly, but that’s because the wallet was made for Ethereum-based crypto tokens. Some wallets may have some odd features. For example, Coinbase Wallet Web3 only lets you use Bitcoin through its mobile app.

On the other hand, some crypto banks are only for the big “B.” Only Bitcoin can be used with Electrum. If that’s the only cryptocurrency you’re going to own, Electrum could be a good pick. It has never been hacked, and it works with both Ledger and Trezor.

Methodology

Forbes Advisor looked closely at the features and choices that the best crypto wallets have to offer. The information was gathered from August 1 to October 7, 2022. Based on the information collected, each wallet was given a score and grade based on seven key factors:

Stablecoins: The number of popular stablecoins that are supported, with Tether, USDC, Dai, TrueUSD, and Paxos Standard getting the most attention.

Top Cryptocurrencies: The number of important cryptocurrencies that can be used based on their market capitalization. We focused on how easy it is to get the 20 most popular cryptocurrencies.

Usability: Best Exchange/Hot Wallets and Best Cold Wallets used different ways to measure this statistic. But both types of wallets were tested to see how well they worked with exchanges and how easy it was to stake. This gauge also looks at how it is used, like how easy it is to change coins in the wallet.

Helping customers: There are different ways to get customer service, like by phone, email, live chat, or even all the time.

Fees and costs: Best Exchange/Hot Wallets and Best Cold Wallets were judged differently based on how their fees were set up. Fees for Best Exchange/Hot Wallets were based on a number of user costs, such as fees for moving coins into or out of a wallet, exchange costs, and transaction costs. Costs and fees for Best Cold Wallets were looked at with the help of more data sets, such as the starting cost of a hardware storage solution.

Safety and protection: Since security is the most important thing when it comes to storing crypto, security was a big part of how the Best Exchange/Hot Wallets and Best Cold Wallets were scored. In both ranks, some of the things that are looked at are whether the wallet can get back stolen money and if it has multiple security features like two-factor authentication, password encryption, etc. Also mentioned were security holes or hacks that had happened before.

Additional Features: Other things that are looked at include, but are not limited to, whether the wallet has learning tools, live charts, and support for tokens that can’t be exchanged for cash.

For each ranking, the total rank of each crypto wallet was based on the sum of the weighted values for all or some of these key factors.

Why Do You Need a Wallet for Your Crypto?

Cryptocurrency is just a string of code on a bigger ledger called a blockchain. When you buy a cryptocurrency like Bitcoin or Ethereum, you get a public key and a private key. These keys show that you own the cryptocurrency.

Your bank account number is like your public key: It tells you where your crypto is, but you can’t get to it with it. With the secret key, you can prove that you are the “true owner.”

You could lose access to your crypto if you lose the secret key. In the same way, anyone who gets their hands on your secret keys can use all of your cryptos.

“Not your keys, not your coins” is a phrase often used in the crypto world. If you don’t have the keys to your crypto assets, you don’t have full access to them.