Summary: The best hardware wallet by a wide margin is the Ledger Nano X. It is the gold standard hardware wallet for traders, institutional investors and everyday digital currency investors due to its security and great user experience.
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Cryptocurrency wallets are critical infrastructure that enable digital asset investors to securely hold their coins. There are two main types of crypto wallets, offline wallets and online wallets which have different security guarantees and overall user experiences.
In this guide, we will walk you through what the different types of cryptocurrency wallets are, which one is the best for you, and why.
Australia has had an influx of investors in the last two years, with platforms reporting 2.5 million new investors. Savvy savers are leveraging the explosion of online investment and finance platforms, joining the ranks of first-time investors in cryptocurrencies, bonds, and stocks.
However, the Australian Competition and Consumer Commission (ACCC) has sounded the alarm bells warning of rising investments scams amongst new investors. As per the consumer protection watchdog, Aussie investors had lost close to $70 million in savings to fraudulent schemes by mid-2021.
The watchdog had received 47000 reports, a 53% rise in investment fraud in a year. The ACCC has warned that over half of these fraud reports were in the digital currency investment scene. Bitcoin scams were the most common form of investment scams costing hapless investors $25 million in losses.
Best Hardware Wallet Australia
The Ledger Nano X is one of the most advanced hardware wallets in the market. It has features such as Bluetooth connectivity, a USB-C connection, and has a custom operating system. The BOLOS OS keeps your private keys offline even when you connect the Ledger Nano X to your laptop.
The Ledger Nano X chip has CC EAL5+ certification. Its other benefits include its super sleek look, 100mAh battery, and ease of use. In addition, ledger Nano X is compatible with most operating systems and has mobile and desktop applications.
It supports 1800 crypto assets, and you can make direct crypto assets purchases from the Coinify exchange through your Ledger Nano X. On top of that, it has DeFi features through its partnership with Compound.
Types of Crypto Wallets
Hardware wallets are hardware devices that often resemble a USB storage drive. They are called cold wallets since they separate your private keys from internet connections for ultimate safety. Newer hardware wallets may have an OLED screen, while older wallets use a side button for navigation.
Hardware wallets are most secure, as they store your keys offline, away from hackers. Some of the best hardware wallets in the market include Ledger Nano X, Trezor Model T, Ledger Nano S, Exodus, and Mycelium.
These are printed QR-code wallets. You will have your private key and the address on a piece of paper. Paper wallets are cold wallets and were considered safer than hot wallets in the past. Print your crypto keys on them, and store your paper wallet out of sight. Unfortunately, it is easy to lose, misread or damage a paper wallet.
Online, mobile, and desktop wallets.
Mobile, online and desktop wallets run atop internet connected devices, so they are referred to as hot wallets. Hot wallets are low-hanging fruit to hackers and are therefore not as safe as cold wallets are. Exchanges provide their users with an online wallet address on their first purchase.
As the name suggests, mobile wallets are free applications that you can download to your phone. Most cryptocurrency exchanges have mobile wallets on their applications. Some of the best mobile wallets for Australians include the Trust Wallet and the ZenGo app.
Desktop wallets, on the other hand, install on computers or laptops. As a result, they may have additional security layers and support more cryptocurrencies than mobile wallets. Examples of great desktop wallets include the Exodus, Ledger Live, and Electrum desktop wallet.
Best Online Crypto Wallet Australia
The Coinbase wallet is a self-custody wallet that gives you full control of your crypto assets. It stores your private keys via its Secure Element technology. Consequently, the Coinbase platform cannot access your funds without your authorisation.
The Coinbase wallet can also store your NFTs and supports over 4,000 tokens and decentralised apps. Its crypto apps support debit and crypto cards purchases in over 90 countries. You can back up your Coinbase wallet's seed phrases to the iCloud. Restore your wallet via the standard 12-word BIP39 recovery phrases if you lose your device.