Using the right crypto wallet when investing and expecting payments is essential. Whether you’re receiving payments, making transactions, or simply holding USDC assets, users should research and choose the best option that suits their needs. With numerous options available, it can be challenging to decide which one to choose.
That’s why in this guide, we’ll cover the basics of crypto wallets, explain the differences between hot and cold wallets, and provide some recommendations for trusted options to help you manage payments.
- What you need to know about crypto wallets
- Understanding hot vs. cold wallets: what makes them different
- Key features to look for in a wallet
- Top cold wallets
- 1. Ledger Nano X
- 2. Trezor Model T
- Top hot wallets
- 1. Coinbase wallet
- 2. Exodus
- 3. MetaMask
- How to choose a crypto wallet
- Take charge of your Yieldfund payments
What you need to know about crypto wallets
A crypto wallet is a tool used by cryptocurrency users to store and manage their assets. Whether it’s Bitcoin, Ethereum, or USDC, a crypto wallet has two core functions: to hold assets and store both private and public keys that enable access to your assets on the blockchain.
Wallets work differently than you might imagine. They secure the digital and private keys of the asset owner, which help prove ownership and facilitate transactions. There are two types of wallets investors can use: cold wallets and hot wallets.
Deciding between these two largely depends on how often you transact and your overall security needs.
Understanding hot vs. cold wallets: what makes them different
To find the wallet that aligns with your financial goals, it’s crucial to understand the fundamental differences between hot and cold wallets.
Hot wallets
Hot wallets are software-based and rely on an internet connection to make transactions or check balances. They are ideal for frequent transactions, offering easy access, quick integration, and compatibility with decentralized applications.
Cold wallets
Cold wallets are physical devices that remain offline, making them the gold standard for security-conscious investors. They’re often used for long-term storage or safeguarding large amounts of cryptocurrency. Since they aren’t connected to the internet, the risk of hacking is significantly reduced. Cold wallets are best suited for long-term holders who rarely transact or prioritize maximum security.
Key features to look for in a wallet
Choosing the right wallet depends on several important factors. These should be carefully analyzed to ensure your USDC payments are stored securely. Here’s what to look for:
- Security measures: Encryption, two-factor authentication (2FA), and biometric authentication.
- Compatibility: Support for multiple blockchain networks, including ERC-20 tokens.
- User experience: Wallets should be easy to use for beginners and retail investors while also offering advanced features for experienced users.
- Backup options: Recovery phrases, cloud backups, or alternative recovery paths in case you lose access to your account or device.
Top cold wallets
1. Ledger Nano X
The Ledger Nano X is one of the few cold wallets that provide a high level of security for users’ assets. With high-security measures, including two-factor authentication (2FA), PIN protections, and access to private keys, investors can access thousands of cryptocurrencies and blockchain networks. Its Bluetooth feature allows for limited mobile use, striking a fine balance between cold storage and convenience.
- Price: €149
- Security: EAL6+ certified, Bluetooth connectivity, and PIN protection
- Supported cryptocurrencies: Over 5,500, including Bitcoin, Ethereum, and ERC-20 tokens
2. Trezor Model T
The Trezor Model T is another excellent cold wallet option. What sets it apart is its touchscreen interface and seamless integration with the Trezor Suite app. While it lacks Bluetooth, it prioritizes security, making it an ideal choice for long-term investors.
- Price: €219-€280
- Security: Open-source secure element and PIN protection
- Supported Cryptocurrencies: Over 1,800, plus ERC-20 tokens
Top hot wallets
1. Coinbase wallet
Backed by one of the most trusted names in crypto, Coinbase Wallet combines user-friendly features with high-level security. It’s ideal for investors who want to receive and manage their crypto without incurring extra costs for usage yet still benefit from a level of security.
- Price: Free
- Security: Secure enclave, biometric lock, and optional cloud backups
- Supported cryptocurrencies: Thousands, including Bitcoin, Ethereum, and Solana
2. Exodus
Exodus stands out for its intuitive design and cross-platform functionality. It provides quick customer support and doesn’t require investors to store their private keys. It’s ideal for investors who seek utility, and if you want more diversity, the platform only supports a limited number of assets.
- Price: Free
- Security: Integrated Trezor support and encryption
- Supported cryptocurrencies: 260 assets with ERC-20 compatible
3. MetaMask
MetaMask is a leading wallet for Ethereum and ERC-20 tokens, known for its ease of use and compatibility across multiple devices, including web browsers. While it’s user-friendly, adding networks beyond the default Ethereum requires a basic understanding of the crypto space. As one of the most popular platforms, MetaMask provides robust security measures, ensuring users maintain full ownership of their private keys.
- Price: Free
- Security: Local encryption and password-protected keys
- Supported cryptocurrencies: Ethereum and other EVM-compatible chains
How to choose a crypto wallet
The first step is deciding whether you want the convenience of a hot wallet for frequent transactions or the security of a cold wallet for long-term storage. All the wallets listed above support USDC, enabling seamless receipt of stablecoins and regular cryptocurrencies.
Another important consideration is whether you want full control over your private keys or prefer not to manage that responsibility. Look for wallets with strong security features, such as two-factor authentication (2FA) and encrypted storage, to reduce phishing and hacking risks.
Finally, choose a wallet that suits your level of experience. As you grow more confident in managing USDC, you can explore additional options and custom setups.
Take charge of your Yieldfund payments
Your crypto wallet should make it easy to receive, store, and manage your digital assets—whether you’re investing weekly or planning for the long term. Cold wallets are ideal for long-term security, while hot wallets offer quick access and seamless transfers.
If you already have a cryptocurrency wallet and want to invest and diversify your portfolio, Yieldfund, a quantitative trading company, offers three investment plans with annual returns of up to 60%, depending on the plan you choose.
Sign up for Yieldfund today and start investing.