- Hot wallets are always connected to the internet, and investors and traders can use them to send, receive, and store cryptocurrencies.
- Metamask is the most popular hot wallet, accumulating over 22.66 million app installations and users
- Unlike Metamask, Coinbase Wallet supports native Bitcoin, giving it a competitive advantage.
When one buys or mines cryptocurrency, they have to set up a wallet to facilitate transactions if they decide to use it to purchase goods or services. Crypto wallets provide a safe method for users to store their cryptocurrency. Determining which crypto wallet to store your money might be daunting, especially in these scam-infested times. Different users will prefer other wallets, depending o the type of coin(s) you hold and the jurisdiction you are in. This article looks at the top, secure, hot crypto wallets traders can use for self-custody in 2023.
What are crypto hot wallets
Hot wallets are always connected to the internet, and investors and traders can use them to send, receive, and store cryptocurrencies. They have both private and public keys that help facilitate transactions while at the same time acting as security. Here are the wallets that topped usage in the first quarter of 2023.
Read: How to upgrade your Metamask Security
Metamask
A study by Coingecko shows that Metamask is the most popular hot wallet, accumulating over 22.66 million app installations and users. The wallet was launched in 2016 by ConsenSys as an Ethereum wallet. Metamask has gained popularity due to its extensive support of multiple blockchains; Ethereum, BNB, and many L2 networks, including Arbitrum, Polygon, and many others. Among the pro characteristics of the wallet include:
- Metamask is easy to set up.
- Users can earn rewards through staking and holding
- The wallet supports a broad range of Ethereum-based tokens
- It acts as a central hub for Decentralized Applications.
Coinbase Wallet
Coinbase wallet comes in second, topping over 11 million app installations and users. Despite being a mobile-only wallet, it allows users to store, manage and transfer cryptocurrencies securely. Unlike Metamask, Coinbase Wallet supports native Bitcoin, giving it a competitive advantage.
The wallet provides a simple, user-friendly interface that makes it easy for users to send, receive and store digital assets. Coinbase Wallet also integrates with dApps, allowing users to access a new world of decentralized financial services such as trading, lending, and borrowing.
The wallet offers high-security features such as multi-sig support, seed phrase backup, and a two-factor authentication process, making it one of the safest mobile wallets.
The pro characteristics of Coinbase wallet include:
- It uses state-of-the-art encryption to protect users’ private keys, heightening their security.
- Coinbase is convenient as users can easily manage cryptocurrencies from their mobile devices.
- Coinbase Wallet is compatible with a wide range of cryptocurrencies.
- It is decentralized.
- The wallet has a simple interface that makes it easy for users to manage their cryptocurrencies.
Trust Wallet.
Trust Wallet feature among the most preferred hot wallets, with over 10.4 million active users on the platform. It is a multi-chain wallet that supports over 65 crypto networks and NFTs. Additionally, Trust Wallet provides a gateway to dApps through an inbuilt browser and the Wallet Connect feature. The wallet has additional features, such as staking programs. Crypto holders can stake and earn from their cryptocurrencies while securing the blockchain.
The Binance-Trust wallet partnership has propelled it to the go-to site for many crypto traders. The partnership allows for easy crypto transfer from Binance to the decentralized network.
Blockchain.com Wallet
Blockchain.com closes in fourth position among the most preferred wallets, with over 10.00 million users on the platform. This web-based crypto hot wallet is open source and non-custodial and cites over US$620 billion worth of transactions across 200+ countries. Despite offering a limited selection of digital assets, the wallet has unique features that other top wallets don’t provide.
The top characteristics of the Blockchain.com wallet include the following;
- com has two wallet options, a storage wallet and another one for trading, that Blockchain.com manages on its members’ behalf.
- Qualified users often get regular airdrops.
- Blockchain.com has an interest-earning account option.
- The platform is easy to understand and use.
Read: Bitrue crypto exchange platform loses US$23 million to crypto hack
