I’m Jennifer, and I’m a crypto newbie who’s decided to take the plunge and learn crypto, and I hope some of you out there will help me on my journey. If you’re just joining my journey–welcome! You can check out the previous post in the series where I discuss how I’m managing my new portfolio.
Since then, I decided to take the leap and invest in Avalanche! So my portfolio now includes three cryptos.
While my investment goals remain the same—hold over the long term—I’m now considering different ways that I can earn more from my investments, such as crypto staking. I’m not sure I’m ready for staking yet, but I have been wanting to learn more about different types of cryptocurrency wallets and how the differ.
In this post, I’m sharing some more about what I’ve done to explore several different wallets to potentially move my Solana and Avalanche investments into.
Why I’m considering a new wallet and what I’m looking for
Moving to a crypto wallet seems like an important step in my journey to learn crypto. So I’ve been considering a new wallet for a couple of reasons.
First, I am interested in gaining direct ownership of my cryptocurrency, which would give me more control and security.
Typically, crypto experts advise investors to get a wallet because leaving your crypto on an exchange increases the risk of having your investments stolen. This is particularly true if you are using an exchange that doesn’t have a great reputation or has been hacked in the past.
In addition, I’m considering a wallet that allows me to earn rewards from my investments, such as staking, minimizing wallet fees, or other opportunities.
Ideally, the wallet will have low fees for buying and selling, support multiple cryptos, allow for staking, be available for desktop and mobile, and be secure.
How I’m researching crypto wallets
The biggest way wallets differ is what format they come in. First, there are software wallets, known as “hot wallets“. These are either web-based, a program you can install on your desktop, or accessible on a mobile device.
The other option I’ve discovered is hardware wallets, also known as “cold wallets“. These are physical devices that keep cryptocurrency offline. This seems like the best option if I’m planning to have a large amount of crypto one day, or just want the maximum level of security for my investments.
These types of crypto wallets connect to a computer, typically through a USB drive, and it seems like I can buy, sell, or stake my crypto without moving it to an exchange. They can also come in the form of paper, which is simply a piece of paper with the required information to access your investment. Typically, this looks like a QR code.
Wallets also differ in their fees, rewards opportunities, and how many cryptos they support. There are so many options, but I still believe the ideal way to find the best crypto wallet is to first consider your personal financial goals.
Some of the things I’m weighing:
- Am I going to be making a lot of trades? If so, I might prefer the quicker access that comes with hot wallets or even leaving crypto on an exchange.
- Or is my plan just to hold over the long term? If so, a cold wallet would likely be best, especially if I plan to eventually have a large investment.
Security is my primary concern when researching crypto wallets. For this reason, I’m evaluating the reputation of the company behind the hot or cold wallet.
- What do other people have to say about the product or service?
- How does the company store users’ data?
- Do they use cold storage servers?
- How safe is it from a potential hack?
- Do they require 2FA (aka “2-factor authentication“) and other security measures?
I also care about how user-friendly the wallet is, especially since I’m a new investor and just starting to learn crypto. For example:
- Is the interface easy to navigate?
- Is their customer service ready to help me if I have any problems?
Four wallets I’m considering
Because of my personal investment goals, my research has been focused on looking for wallets that have crypto staking and rewards options for the crypto purchases I’ve made so far. Overall, I seem to be leaning toward hot wallets, with a preference for those that have favorable Solana rewards.
Here are the four wallets that I’ve researched the most extensively for a potential transfer along with some more info on what I like about each of them and how the wallet and security features compare.
The Exodus wallet is considered a great beginner-friendly choice for new cryptocurrency investors. This is because it is very user-friendly, has a beautifully-designed user interface, and is easy to use.
What I like about Exodus: Exodus supports over one hundred different cryptos, and it’s free for anyone to use. The main dashboard is also user-friendly and shows a pie chart with all of the account holder’s investments and their current market values.
Wallet type: Hot wallet (desktop-based)
Wallet features: Exodus supports crypto staking and comes with a built-in crypto exchange so I can buy, sell, send, or receive crypto all in one convenient location. It also features 24/7 customer support, which is reassuring for new investors like me who may have questions as they navigate the platform.
Security features: Security is front and center with Exodus. First, Exodus will allow me to retrieve my account through email if I happen to lose access to your wallet. In comparison to other wallets, where, you lose your private key, you will lose access to your cryptocurrency investments. This makes many beginner investors nervous.
Also, while an email retrieval system might concern more advanced investors because of the potential security risk, Exodus also has a partnership with the hardware wallet Trezor for those looking for an extra layer of security. Since the Exodus wallet also doesn’t have 2FA, using Trezor along with Exodus might be a better choice for those with large investments.
Phantom is one of two official Solana wallets, which means it’s specifically designed to be compatible with the Solana blockchain.
What I like about Phantom: Since I’ve chosen to invest in Solana on my journey to learn crypto, I like the idea of a wallet designed with SOL in mind that is also free to install and use.
Wallet type: Hot wallet (works as a browser extension and can also sync to a hardware wallet, such as Ledger)
Wallet features: Phantom comes with a built-in decentralized exchange. It will allow me to buy, sell, and stake my Solana, as well as buy and access NFTs and dApps in the Solana ecosystem.
Security features: Phantom also offers Web3 support, and is non-custodial, meaning the company does not have access to your data.
As the official wallet of Binance, Trust Wallet is a great option for investors looking for a secure wallet with a solid reputation behind it.
What I like about Trust Wallet: Trust wallet is a free wallet that is only available as a mobile app. This is perfect for an investor like me who is looking for security but not willing to sacrifice the convenience of being able to access their crypto straight from a mobile device.
Wallet type: Hot wallet (non-custodial)
Wallet features: The wallet supports hundreds of different cryptocurrencies and 40 different blockchains. Besides being able to buy or sell crypto through the app’s built-in exchange, I can also stake cryptocurrency and access NFTs. Trust Wallet also features a mobile-optimized dApp browser that will allow me to access dApps straight from my smartphone.
Security features: I feel assured of Trust Wallet’s security because the code for the platform is open source*. This means that anyone can verify the code and ensure that it is safe and working properly.
*Note: Open source versus closed source software for wallets is a hotly debated topic, though, and I’m still learning more about the pros and cons.
Solflare is the other official Solana wallet. It is available as a desktop, mobile app, and browser extension.
What I like about Solflare: The Solflare platform is free and is designed for all experience levels and offers a one-stop-shop for making the most out of my SOL investment.
Wallet type: Hot wallet (full-featured, non-custodial)
Wallet features: It only supports the Solana blockchain, and as a result only lets you buy, sell, and stake SOL and SPL tokens. You can also purchase and view your Solana NFTs through the platform.
Security features: Solflare comes with an included decentralized exchange, and is non-custodial, meaning they don’t have access to your data. This makes the platform feel very secure, and it’s compatible with the Ledger Nano X hardware wallet if I ever need an added layer of security.
My top two crypto wallet options (for now)
As you can imagine, I’m a bit torn if the pros outweigh the cons of moving my crypto investments to a new wallet. Based on what I’ve read so far, Exodus and Phantom are interesting to me as a new investor if I do move to a new wallet. However, I know that as I invest more – and learn more – my investment goals may change.
For now, I want to share with you some of the pros and cons of Exodus and Phantom wallets that I’ve learned.
EXODUS
Exodus claims to be the world’s leading desktop and mobile crypto wallet. I’m drawn to the layout of the portfolio dashboard, as well as the fact that it has live charts, a built-in exchange, and different apps within the platform, such as apps for earning crypto rewards and compounding your finances.
And since I’m just starting my journey to learn crypto, I also like that it was designed with beginners in mind, though it appeals to every type of crypto investor.
Phantom
As a wallet specifically designed with SOL in mind, Phantom seems like a good choice if I’m looking for the best rewards for my SOL investment. It’s also popular with the Solana community, which gives it a good reputation.
Will you follow along as I learn crypto?
I’m looking for help on my journey to learn crypto; will you please weigh in online if you have any good wallet recommendations outside of the ones I’ve chosen? To get involved in my journey, take the poll over at Decentral Publishing’s Twitter, Instagram, Facebook, or other social media and share your thoughts with me as I figure out what to use.
I’m still looking for options for other investments I’ve made, and overall, I could use some advice for:
- Should I consider a hardware wallet, especially if I’m investing over the long term?
- Or, do I even need a new crypto wallet in the first place? Can I just keep my cryptocurrency on the Coinbase exchange where I already have them?
- Also, how much priority should I place on wallets that offer the best rewards for Avalanche and Solana?
And if you’re a fellow newbie, hopefully, you will join me so we can learn more together about the world of crypto and become more confident investing in and understanding crypto together!
Be sure to check back next week to see if I decided to switch wallets and what I’m learning about crypto staking and rewards. I will post an update on my blog next Monday. To follow along with my journey to learn crypto and get involved, you can follow any of Decentral Publishing’s social media pages listed below.
And thank you, again, to everyone who has taken the time to give me advice or sent me funny memes and messages of support. I’m so grateful for everyone who’s gotten involved in my journey and commented on any of our Decentral Publishing social media sites. I can’t wait to read what you think about my next move!
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About the Author
Michael Hearne
About Decentral Publishing
Decentral Publishing is dedicated to producing content through our blog, eBooks, and docu-series to help our readers deepen their knowledge of cryptocurrency and related topics. Do you have a fresh perspective or any other topics worth discussing? Keep the conversation going with us online at: Facebook, Twitter, Instagram, and LinkedIn.
