10 Best Crypto Hot Wallets For Beginners In 2022

So, you’ve decided to join the ranks of cryptocurrency buyers and HODLers?

Welcome to the party!

But first, you’ll need to set up a wallet to secure your newly acquired assets.

A cryptocurrency wallet provides an easy way to access and safeguard crypto assets. Also, wallets let users interact with decentralized applications, such as non-fungible token (NFT) marketplaces, decentralized finance (DeFi) protocols, and decentralized social networks.

However, not all crypto wallets are the same.

There are wallets connected to the internet (hot wallets) and wallets operating offline (cold wallets).

Hot wallets grant round-the-clock access to stored assets, so your crypto is available for use anytime.

You can send and receive crypto from your hot wallets and buy goods online—all from the same wallet.

Hot wallets are a great tool for new cryptocurrency investors, and this article covers the 10 best crypto hot wallets for beginners. Before that, we’ll look at how wallets function and what benefits each type one offers.

What is a Crypto Wallet?

A crypto wallet is a tool you use to transfer and receive assets on the blockchain. Think of your wallet as your bank account in the blockchain ecosystem.

Cryptocurrency wallets aren’t like your regular wallet that holds dollar bills, payment cards, and other monetary assets. Your wallet doesn’t actually hold your cryptocurrencies and other digital assets you may own.

Digital currencies like Bitcoin, Ether, and Ripple exist solely on the blockchain. Your wallet only stores your public and private keys, without which you cannot access your crypto.

Public and private keys are generated through asymmetric cryptography when you create a wallet. Your public address is an identifier linked to each user on the blockchain.

If a person needs to send crypto, they must use the recipient’s public address. Using our earlier analogy, the public address is your bank account number—and you can share this with anyone.

Your private key is used to “sign” transactions originating from your wallet. The private key guarantees ownership of cryptocurrencies, which is why people say, “not your keys, not your crypto.”

Anyone who has the private key controls the funds in a wallet. Thus, be super careful about keeping your private keys. No one should ask for your private keys, so watch out for suspicious requests.

Difference between public and private keys. Source: Medium

What are Types of Cryptocurrency Wallets?

Cryptocurrency wallets come in different types, each with unique benefits. For a beginner, your choice of a wallet may depend on some or all of the following things:

• Ease of use
• Security
• Convenience
• Multi-asset storage

Wallets work differently, which is something worth considering when weighing up different options. There are two main types of cryptocurrency wallets: hot wallets and cold wallets.

Hot wallets—the focus of this article—store your keys online and make it easier to access your cryptocurrencies. With a…