Digital assets can be one of the most lucrative investments currently. But to succeed in this business, there are several factors you need to consider, including the digital wallets you’ll be using.

You can use several types of crypto wallets, each with different characteristics. Because of this, choosing the web3 wallet that best fits your needs and objectives is indispensable for reaching the best results.

Even though using digital wallet functions is easy, choosing the best one may pose a challenge. From the blockchain network it uses to the security features the wallet supports, everything needs to be carefully considered before adding your Bitcoins and other digital assets.

If you’re in doubt about which crypto wallet to choose or the different types you can have, you have come to the right place. In this article, we will show you the main types of web3 wallets you can have and the differences between them.

We will also include suggestions on the best wallets you can have to store your digital currencies and NFTs. Whether you’re a beginner looking for an easy-to-use interface or an advanced investor looking for robust security, we've got you covered.

Web3 wallets, also known as digital wallets, are the main way to store and swap digital tokens, such as Bitcoins, Utility tokens, NFTs, etc. They receive this name because they were created to interact with web3 applications, mainly the decentralized web and its numerous blockchains.

Most crypto wallets allow you to operate on multiple decentralized finance platforms simultaneously, but there are also dedicated options. For example, you can find an Ethereum wallet that allows you to operate only in the Ethereum blockchain. The best option will depend on what you’re looking for in a wallet and what kind of operation you want to do.

Regardless of which type of wallet you choose, every option has one aspect in common: you must protect private keys.

Your private key allows you to access the wallet and manage your digital assets. Whether you’re using software wallets, browser extension wallets, or any kind, anyone with your private key can access it remotely and do any operation, like transfer or swap tokens. Make sure to keep them safely stored to avoid problems and scams.

As we mentioned, you can have numerous types of web3 wallets, each with distinct characteristics and features. Here, we will show you the main ones and what their main differences are.

Make sure to take a look at each one to understand which type best suits what you’re looking for and how these features can help you when using decentralized applications. Here are the main types of web3 wallets you can have:

Hardware Wallets

The hardware wallet is more common among advanced users looking for advanced security features. It is one of the only types of wallet that allows you to store your keys offline, making it impossible to be hacked.

Since your private key is the most important piece of information when doing crypto, keeping it safely stored is indispensable. That’s why these wallets exist.

This wallet is a physical piece of technology, a USB device, most of the time, that will be required every time you’re making a crypto transaction. It is not an obligatory item when investing in this kind of asset. Still, it is definitely recommended since it’s one of the safest ways to store your coins, even better than two-factor authentication.

These wallets are also called cold wallets and are the perfect way to enhance security. But we only recommend using them if you’re a professional investor or have valuable assets in your crypto account.

Non-Custodial Wallets

The non custodial wallet is one of the most common types and has numerous advantages. They are also called self-custody wallets and provide the user with public and private keys, giving the wallet owner total control over the assets and their operations.

The private key is a long and complex code used to identify and sign the transactions. It should be kept a secret from everyone else, and it is also how you log in to have control over the assets.

On the other hand, the public key is a simpler code that works as a unique identifier when doing crypto transactions. Through this key, the sender, receiver, or trader can identify you and ensure they’re performing the operation correctly.

It basically works as an address, like a username they can search for when trying to find you. Your public key can be shared and won’t affect your wallet access.

Custodial Wallets

You can also have custodial wallets, where a third party is responsible for managing your private keys. This is the most common type of wallet, and although it looks less attractive, it has numerous advantages that make it one of the best choices.

Since a third party manages your private keys, you don’t have to worry about them. The only thing you need to do is keep them stored safely.

Even though a third party controls your key, it can sometimes be safer, especially if you are a beginner. Think of it as a bank. They manage your account and keep your money safely protected and stored.

This is why most custodial platforms, like Phantom Wallet and Coinbase Wallet, require something called KYC (know your customer.) This means the platform requires some level of identification from the user to create an account.

If you’re a beginner, make sure to use a custodial online wallet since it will help with numerous advanced aspects. On the other hand, if you want complete control over the wallet software and your transactions, non-custodial ones will suit you better.

Smart Contract Wallets

Another type of wallet you can find is the smart contract wallet. As the name suggests, these wallets are featured inside the code of the smart contract.

The wallet’s operations are controlled by the code lines and the information presented when creating the contract. It is not something you need to worry about as a beginner, and its main objective is to provide enhanced security when you try to sign transactions.

The wallet does it by requiring the signature of both parties involved in the operation and storing the information from both users in a secure location. It is a great solution that can be used by all kinds of parties and necessities. You can securely store the information whether you’re a user, business, or any other entity requiring multiple signatures when doing blockchain technology transactions.

Along with the multiple types of wallets you can have, you can also find multiple formats, each with key features. Here are some of the main ones and the perks you get by using them.

Take a close look at each option to see which one provides you with the most convenient access and the best experience when doing crypto.

Mobile Wallets

A mobile wallet is one of the most effective and practical ways to manage your crypto assets, whether coins, utility tokens, NFTs, or anything else. We are always with our phones, so having quick access to your assets through an app helps make everything much easier.

Since your mobile device is constantly connected to the internet, choose a safe wallet with advanced encryption techniques to ensure the safety of your coins and your privacy.

To keep your wallet safe, adding extra security features, like biometric authentication and others, is important. The internet connection might leave you more vulnerable than dedicated physical devices, such as hardware wallets, but with the right wallet, your information will be safely stored with no problems.

Desktop Wallets

Along with mobile apps, another type of software wallet you can easily download and use is the desktop wallet. It works very similar to the mobile format, with the only difference being that it can be accessed through your computer or laptop instead of your phone.

Even though it’s not as practical as a mobile app and you give up on features such as biometric security, this kind of wallet has several advantages when dealing with blockchain networks. One of the main advantages is that not having it on a portable platform provides added security to the wallet. For example, if your phone gets stolen, it can be easier for people to try to access your account one way or another. This doesn’t happen with PCs since the chances of having it stolen are fairly lower.

Another advantage of using desktop wallets is the innovative features regarding data security being released daily. From antiviruses to threat scanning programs, there are several tools that enable users to add extra layers of security to their financial data.

Mobile devices don’t have that many features when it comes to security, and you don’t have as many smartphone app options for this kind of finality, whether when using an iPhone or Android device.

Browser Extension Wallets

You can also find lots of options when it comes to browser extensions. Notice that to use this platform, you need to choose a browser compatible with those extensions. For this, ensure the one you use is based on chromium.

Some of the most common browsers that allow this kind of extension are:

• Microsoft Edge

• Opera GX

• Opera

• Google Chrome

• Firefox

This platform doesn’t have unique features but is an excellent option for storing all kinds of tokens, going from coins to assets earned in blockchain games. Most browser extension wallets also offer a mobile app. You can connect your account on both platforms and control your assets simultaneously.

This is common on more traditional wallets, like MetaMask and Phantom, but other wallets also support this activity. Make sure to check if the selected platform supports the blockchain and asset type you want to invest in.

Paper Wallets

You do not use this to store your assets or make smart contracts. The paper wallet is simply a physical piece of paper used to take note of your primary private keys.

It can be really attractive for beginners, especially if you’re afraid of losing this password. Remember that this is not a safe way of storing your keys. If you’re an advanced investor with valuable assets in your wallet, we highly recommend using other methods to store your digital assets, like a hardware wallet, for example.

Paper wallets are a cheaper alternative, but they can be easily stolen, so keeping the private key noted on them can cause scammers or anyone with the code to gain access to your coins and transfer assets to their own wallets. Using these hardware wallets is indispensable investment advice, especially if you plan to make large crypto investments. This way, you ensure the safety of your data on all trading platforms.

Another important topic that both beginners and advanced users must pay attention to is cold and hot wallets. If you don’t know the differences between them, don’t worry. Here is a quick explanation:

Hot wallets connect to the internet, providing easy and quick access to all assets and operations. Most wallets available are hot wallets, and they can be attractive for all kinds of investors, whether you plan on stacking coins, buying NFTs, or anything else.

There are various platforms to choose from, and the options are almost endless. Even though it is a more vulnerable type of wallet, you’ll have time optimization, a great feature you won’t have with cold wallets.

Speaking of cold wallets, they don’t have an internet connection – unlike hot wallets. This increases the safety of your content since losing access to the internet also makes it less possible for hackers to perform cyber attacks of any kind. Not only that, but your private key is one of your main recoverability features when trying to log into a wallet, and the cold wallet ensures you have them available at any time. 

Along with losing features like encrypted biometrics, the cold wallet makes it harder to trade crypto as well, so the best one for you will depend on the kind of activity you want to perform and what you want to achieve with crypto.

Another challenging aspect when searching for a wallet for your blockchain applications is choosing the right option for you. There are several options featuring different tools and options for the user.

We will show you the most popular ones and what makes them so good to collect NFTs or other assets. Here are the best crypto wallets you can choose for your operations:

MetaMask

No matter how many years go by, MetaMask is still the #1 choice for web3 wallets. Whether you want to store Bitcoins or any other digital assets, the platform allows you to store a variety of tokens and collect assets from multiple blockchains. The wallet’s success is undeniable, counting with over 20 million active users, according to EarthWeb.

The fame of MetaMask comes not only from the support of thousands of blockchains and tokens but also because of its simple interface and security features. Whether you’re a beginner or a more advanced user, it is a great option. From two-step verification to account recovery features, the app provides numerous options to keep everything safe, allowing users to manage their assets securely.

Another positive aspect of MetaMask is the easy setup process. You can create an account and receive transactions in under five minutes once you download it.

MetaMask is also available on a variety of platforms, allowing you to download it as a web browser extension or the official mobile app, where you can control your activities through push notifications. It is definitely an excellent pick for all crypto investors.

Trust Wallet

Looking for the safest option available? This is the right pick for you.

Trust Wallet features the latest security and encryption technology, ensuring your account's safety and privacy. It is recommended for beginners and professionals, allowing users to store over a hundred different assets. According to the company, over the years, more than 60 million users have already used Trust for storing their assets.

Even though it has tons of features, it still has a user-friendly interface, making it easy to navigate through the app regardless of the platform. It has the same features as MetaMask when it comes to account recovery and gives the user full control of which security features they want to turn on or off. 

If you want to add an extra layer of security to your tokens, choose this wallet. It is free to use and has numerous protection features against phishing attacks or any other kind of cyber invasion.

Exodus Wallet

Exodus Wallet is another great pick for storing your assets, especially if you’re a more advanced investor. The mobile app features everything you need to easily do operations, like trading and selling, all of that while being protected by numerous security tools.

The app has one of the best interfaces, with responsive commands and full support for over a hundred cryptocurrencies. It also allows you to keep track of the price of each of those coins, observing the fluctuation and possible market trends regarding your investments.

It might not be the most used web app, but it’s definitely one of the best options for managing multiple coin types simultaneously. According to SEC.gov, the platform currently has 1,2 million active users. It might not be as many as MetaMask, but the number is usually composed of more experienced users when compared to the most famous wallet.

You can easily swap between them and take care of your investments. For example, you can analyze your Ethereum coins while looking at the Solana ecosystem and its marketing trend, all in the same place.

Another important aspect of crypto investments is how to safely add funds to your wallet. Several options are available, each with its own perks and advantages.

Among all the options available, purchasing a Crypto Voucher is the best. It ensures your safety and requires no KYC, meaning that no third party will monitor your operations, helping keep your data private.

RoyalCDKeys offers a range of crypto vouchers at all prices, ensuring you’ll find the perfect one for your budget. Moreover, you can also choose between multiple payment methods to select the perfect one for your needs. Since we offer a variety of products, going from video game keys to software licenses, your purchase won’t be highlighted for your bank as crypto, avoiding any kind of tax or additional fee. 

Crypto Vouchers are simple and easy to use. They work exactly like a Steam key, for example. Once you purchase the voucher, you’ll receive a code that can be used by accessing cryptovoucher.io. After redeeming your code, the funds will be automatically transferred to the specified wallet.

This way, you get to safely add as many coins as you want without exposing yourself to other parties and without paying any extra fees.

Web3 wallets are great tools and a must-have for any investor trying to succeed in the crypto world. From NFTs to utility tokens, these tools can safely store all of our digital assets for easy management.

There are several different wallet types and formats, each one with particular features and advantages. Choosing the best one will depend on your objectives and the type of asset you plan to store.

Moreover, you also need to pay attention to aspects like each option's security and transaction costs. This way, you can precisely tell which wallet is more likely to help you achieve what you want.

Make sure to safely store your private key and never share it with anyone. Otherwise, people might be able to access your assets and manage them easily. For this, the best option is to choose a hardware wallet since they have no internet connection and are hacking-proof.

Now that you know everything you need, it is time to choose the best wallet and start adding funds to it. Remember that there are several ways to do it safely, and crypto vouchers are the best one, being a quick and effective method.