As of 2023, nearly 4.97 million people in the UK hold some form of crypto asset, which is nearly 10% of the population.
With this number on the rise, selecting the best crypto wallet becomes essential for safeguarding your digital assets.
The complexities of wallets put many people off, but I’m here to shine some light on it and help UK residents choose the best cryptocurrency wallet for them.
Having worked in the retail investment & crypto sector in the financial heartbeat of the UK (London) over the last four years, I had the opportunity to experience the rise in cryptocurrency first-hand.
Additionally, in my role working for one of the UK’s leading financial companies, “a trustworthy and respected provider of news, education and market analysis for the everyday investor”, I was able to work with and test some of the biggest cryptocurrency wallets on the market.
Using my experience in this field, I’ve compiled a list of the best crypto wallets in the UK based on factors such as usability, safety, fees and additional features.
So, in a nutshell, what are the best crypto wallets in the UK? The best crypto wallets include eToro, Ledger Nano X and Exodus. eToro offers an all-in-one trading platform and wallet with a wide range of supported cryptocurrencies. Ledger Nano X is a hardware wallet known for its top-notch security features, allowing you to store multiple types of crypto offline. Exodus is a user-friendly software wallet that offers a wide variety of cryptocurrencies and is ideal for those who prefer a desktop or mobile interface.
Best Crypto Wallets UK Ranked
Here is a quick list of the best cryptocurrency wallets to use in the UK based on my hands-on analysis:
Don’t invest unless you’re prepared to lose all the money you invest.
- eToro – Overall best crypto wallet UK
- Coinbase – Best crypto wallet UK for beginners
- Exodus – Trustable software crypto wallet
- Atomic – Best secure online cryptocurrency wallet
- Trust Wallet – Best crypto wallet UK for large support of digital assets
- Metamask – Best crypto wallet for Defi, Web3 Dapps & NFTs
- Ledger Nano X – Best hardware crypto wallet in the UK
- Trezor One – Trustable crypto wallet for long-term storage
Best Crypto Wallet UK Reviews
Understanding the distinction between cold and hot wallets is crucial. Cold wallets are widely acknowledged for their enhanced safety compared to hot wallets.
While hot wallets provide greater convenience and simplicity, cold wallets prioritise heightened security measures.
I’ll discuss this in more detail later on, for now, I’ll review my top picks from both options.
Best “Hot” Wallets
Software-based “hot” wallets operate by storing your cryptocurrency balance, providing you, as the account holder, with easy access, convenience, speed, and cost-effectiveness.
These wallets are particularly beneficial for beginners looking to securely store smaller amounts of crypto without any complications or additional fees.
Here are my picks of the best “hot” crypto wallets available for users in the UK.
1. eToro – Overall best crypto wallet UK
Don’t invest unless you’re prepared to lose all the money you invest.
Introducing the eToro crypto wallet, a secure and custodial hot wallet solution that seamlessly integrates with their suite of financial services.
One of the standout features of the eToro crypto wallet is its competitive fee structure. With zero deposit fees, users can easily fund their wallets without any additional charges.
When it comes to withdrawals, eToro only imposes a modest 2% fee, ensuring that your funds remain accessible without excessive costs eating into your returns.
While it’s important to note that eToro applies a 1% commission on crypto trades conducted through the wallet, this falls within the standard range for crypto wallets in the UK.
It’s a reasonable fee considering the convenience and advanced features that eToro brings to the table.
It’s worth mentioning that the eToro wallet does have an inactivity fee, although it kicks in only after one year of inactivity, with a nominal charge of $10 per month. This fee structure ensures that your account remains active and encourages regular engagement.
When it comes to the range of cryptocurrencies, eToro’s wallet impresses with its diverse selection, featuring major players like Bitcoin and Ethereum. This comprehensive offering allows users to access and manage their favorite cryptocurrencies conveniently within the eToro ecosystem.
In summary, eToro stands out as one of the best crypto wallets in the UK, providing users with a secure and user-friendly platform to store, trade, and manage their digital assets.
With its competitive fees, broad cryptocurrency selection, and seamless integration with the eToro investment platform, the eToro crypto wallet offers a compelling solution for both seasoned investors and newcomers to the crypto space.
- Fully accredited in the cryptocurrency sector
- Supports trading, storage, and investment in various cryptocurrencies
- Offers multiple award-winning platforms suitable for all experience levels
- Generally costly, particularly for trading activities
- Less secure than hardware wallets for long-term holdings
Read my full eToro review.
Don’t invest unless you’re prepared to lose all the money you invest.
2. Coinbase – Best crypto wallet UK for beginners
In the realm of custodial, hot wallet providers, Coinbase has emerged as a popular choice.
Widely recognised as one of the leading crypto wallets, Coinbase has gained a reputation as the provider of the best Bitcoin wallet in the UK.
With broad compatibility, the Coinbase wallet supports an extensive range of the largest and most frequently traded cryptocurrencies. From Bitcoin and Ethereum to Dogecoin and Litecoin, Coinbase ensures access to the most prominent digital assets in the market.
It is important to note that Coinbase’s wallet does entail slightly higher fees compared to other platforms. While no inactivity fee is imposed, a 1% commission fee applies to all cryptocurrency trades.
Additionally, depending on the specific currency, users may encounter withdrawal fees when transferring or transacting their crypto investments. Withdrawals for Bitcoin typically incur fees ranging from $1 to $5, while other currencies involve lower costs, usually less than $1.
On the positive side, deposit fees with a Coinbase wallet are relatively low, with a standard charge of $10 for bank transfers.
This affordability facilitates easy funding of the wallet and ensures a seamless entry into the world of digital assets.
In summary, Coinbase stands tall as one of the premier crypto wallets in the UK.
Its wide-ranging cryptocurrency support and user-friendly interface make it a go-to option for enthusiasts seeking secure and convenient storage of their digital investments.
While mindful of the slightly higher fees associated with the platform, the comprehensive features and robust reputation of Coinbase contribute to its standing as a top choice among crypto wallet providers.
- Among the most secure web-based cryptocurrency wallets available
- Owned by a regulated company that is publicly listed
- Stores 98% of customer digital assets in cold storage for added security
- Features two-factor authentication and allows IP/device whitelisting
- Steep fees associated with deposits and trading activities
- Requires Know Your Customer (KYC) procedures for Bitcoin account setup
Read my full Coinbase review.
3. Exodus – Trustable software crypto wallet
Exodus is a popular software-based cryptocurrency wallet that helps you manage your digital assets.
With its user-friendly interface, extensive cryptocurrency support, and robust security measures, Exodus stands out as a top choice for both beginners and experienced users.
Exodus supports a wide range of cryptocurrencies, including popular options like Bitcoin, Ethereum, Litecoin, Ripple, and more. This comprehensive support allows you to conveniently manage multiple digital assets within a single wallet application.
One of Exodus’ standout features is its intuitive design, making it accessible even for users with limited technical knowledge. The visually appealing interface offers a seamless experience, allowing you to easily track portfolio balances, view transaction history, and manage your assets with simplicity.
Security is a top priority for Exodus. The wallet employs strong encryption techniques to safeguard private keys, ensuring the protection of your funds. Additionally, Exodus provides the option to set up a secure backup, giving you peace of mind that you can restore your wallet if necessary.
In addition to storage and security, Exodus integrates cryptocurrency exchanges within the wallet itself. This built-in functionality allows you to trade your digital assets for other cryptocurrencies without relying on external platforms. The streamlined exchange process adds convenience and eliminates the need for complex transfers.
Exodus is available as a desktop application for Windows, Mac, and Linux, as well as a mobile app for iOS and Android devices. This multi-platform compatibility ensures flexibility and accessibility across various devices, empowering you to manage your crypto portfolio wherever you are.
Overall, Exodus stands out as a feature-rich and user-friendly cryptocurrency wallet. Its intuitive design, extensive cryptocurrency support, built-in exchange functionality, and robust security measures make it a top choice for individuals seeking a secure and convenient solution to manage their digital assets.
- An excellent choice for novices with minimal trading experience
- Offers an integrated wallet and exchange functionality
- Accessible via both mobile app and desktop computer
- Limited to supporting 180 different currencies
- Lacks open-source software credentials
4. Atomic – Best secure online crypto wallet
Atomic Wallet is a versatile cryptocurrency wallet that offers a range of features to satisfy both beginners and experienced users.
With its user-friendly interface and support for numerous digital assets, it provides a convenient solution for managing and exchanging cryptocurrencies.
One of the standout features of Atomic Wallet is its multi-currency support. It allows users to store and manage a wide selection of cryptocurrencies, including popular options such as Bitcoin, Ethereum, Ripple, and many more.
This broad compatibility enables users to diversify their holdings within a single wallet.
Security is a top priority for Atomic Wallet. It employs robust encryption methods to safeguard users’ private keys and offers a backup option to ensure the recovery of funds if necessary.
By maintaining control of their private keys, users can enjoy enhanced security and sovereignty over their digital assets.
The wallet also incorporates an intuitive and user-friendly interface, making it accessible even for those new to cryptocurrencies. It provides a seamless experience for managing and monitoring portfolio balances, tracking transaction history, and executing trades.
Atomic Wallet’s built-in exchange feature allows users to easily trade cryptocurrencies directly within the wallet. This integration eliminates the need for external exchanges, streamlining the process and enhancing convenience.
While Atomic Wallet offers a range of benefits, it’s important to note that it is a software-based wallet. This means users must take responsibility for their security by ensuring their devices are adequately protected from malware and other potential risks.
In summary, Atomic Wallet is a reliable and user-friendly cryptocurrency wallet that caters to both beginners and experienced users.
With its extensive coin support, strong security measures, intuitive interface, and built-in exchange feature, it provides a comprehensive solution for managing and exchanging digital assets.
- User-friendly navigation and interface
- Includes an integrated decentralised exchange
- Offers staking options for multiple cryptocurrencies
- Limited to NFT support on the Solana blockchain
- The embedded exchange imposes steep fees and high minimum spending limits for certain tokens
5. Trust Wallet – Best crypto wallet UK for large support of digital assets
Trust Wallet offers a compelling package for individuals looking to streamline their crypto management process.
Backed by Binance, but operating independently, Trust Wallet places a great deal of control in the user’s hands by offering non-custodial storage, which means you maintain full control of your crypto tokens and private keys.
Available as a mobile app for iOS and Android devices, Trust Wallet provides a robust platform that is intuitive and user-friendly.
More recently, a browser extension was introduced for Chrome, Edge, and Brave, though it’s worth mentioning that it’s still in its early stages and may have a few bugs.
Impressively, Trust Wallet offers compatibility with over 65 blockchains and access to more than 4.
5 million digital assets, making it one of the most diverse wallets on the market.
This capability translates into an expansive asset management tool, eliminating the need for multiple wallets.
From importing custom tokens to easy connectivity with DeFi apps like PancakeSwap and DEXs, the wallet allows quick purchases of Bitcoin and other assets using a credit or debit card.
In addition, it supports an in-built decentralised exchange system, NFTs, art, and other collectibles, allowing users to track, manage, and store a wide array of assets.
You can also stake various cryptos, and even earn competitive interest on idle tokens without leaving the app, with BNB and Kava offering an APY of 11% and 10% respectively.
However, there are a few drawbacks to consider.
Currently, a bank account cannot be connected for withdrawals, and there are limitations on the assets supported on DEXs.
Additionally, while the browser extension broadens access to desktop users, it’s still new and working through some bugs.
Overall, Trust Wallet is a powerful, all-in-one crypto management tool, especially for those who prefer to handle their crypto transactions via mobile.
While it has some room for improvement, its extensive asset support and user control over private keys make it a top choice for many crypto enthusiasts.
- Enables rapid crypto purchases via credit or debit card
- Supports a range of collectibles including NFTs and art
- Allows for transfers and staking across multiple cryptocurrencies
- Comes with an integrated decentralised exchange
- Offers a highly functional mobile platform
- Boasts a portfolio of over 4.5 million assets
- The browser extension is in its early stages and may have bugs
- Direct bank account withdrawals are not supported
- Decentralised exchanges offer a limited range of supported assets
6. Metamask – Best crypto wallet for Defi, Web3 Dapps & NFTs
MetaMask stands out as a leading Web3 and Ethereum-focused crypto wallet, boasting over 30 million monthly active users.
It’s a non-custodial platform, meaning you have full control over your assets without the need to provide personal information.
The wallet is versatile, offering both a mobile app and browser extensions compatible with Chrome, Edge, and Firefox, giving users the flexibility to manage their crypto in a setting that best suits them.
The user interface is intuitive, making it a great choice for crypto beginners. Users have the freedom to interact with a plethora of third-party DeFi apps like AAVE, Uniswap, and Axie Infinity.
Despite its focus on Ethereum, it does offer limited support for other networks like Binance Smart Chain and Polygon, which need to be added manually.
One of the notable features is its encryption capabilities, ensuring a secure trading environment. While the wallet is internet-based, making it susceptible to potential hacking risks, it does offer backup via seed phrase for added security.
Though the platform is largely Ethereum-centric, its design simplifies your crypto experience, especially when dealing with Ethereum-based assets.
On the flip side, it could benefit from more comprehensive technical support. Overall, MetaMask is a go-to wallet for anyone looking to plunge into the world of Web3 and DeFi.
- Quick and straightforward installation process
- No need for personal identification details
- Compatible with various blockchains and test environments
- User-friendly asset management dashboard
- Option to establish spending caps for extra security
- In-app crypto trading capabilities
- Lacks built-in support for Bitcoin
- Customer service is not extensive
Best “Cold” Wallets
Cold wallets, also known as hardware wallets or offline wallets, are secure devices designed to store cryptocurrencies offline.
By keeping private keys offline, cold wallets offer enhanced security for the long-term storage of cryptocurrencies and are often recommended for users seeking maximum protection for their digital assets.
Here are my picks of the best “cold” crypto wallets available for users in the UK.
1. Ledger Nano X – Best hardware crypto wallet in the UK
The Ledger Nano X is a premier hardware wallet that offers exceptional security and convenience for managing your cryptocurrencies and NFTs.
I highly recommend the Ledger Nano X for its impressive features and robust performance.
With the Ledger Nano X, you gain access to a vast array of over 5,500 coins and tokens, including popular cryptocurrencies like Bitcoin, Ethereum, and XRP.
The device also allows you to install up to 100 apps, giving you the flexibility to manage multiple digital assets simultaneously.
One standout feature of the Ledger Nano X is its ability to connect to your phone via Bluetooth, making it the perfect solution for managing your crypto and NFTs on the go. The device boasts a large screen, ensuring ease of use and providing a user-friendly interface for seamless navigation.
Another notable advantage is the ability to earn rewards by staking your Ethereum, Solana, Cosmos, and more directly through the Ledger Live app. This feature allows you to passively grow your assets while securely storing them on the Ledger Nano X.
It’s worth highlighting that the Ledger Nano X is certified with the CC EAL5+ security standard, which is the highest security level achievable for consumer devices.
This certification provides additional assurance regarding the device’s robust security measures and protection of your private keys.
In conclusion, the Ledger Nano X is an outstanding hardware wallet that combines industry-leading security with user-friendly functionality.
Its extensive coin and token support, Bluetooth connectivity, large screen, staking capabilities, and high-security certification make it an excellent choice for individuals seeking a reliable and convenient solution to manage their crypto investments and NFTs.
- Offers the most secure method for storing your digital assets
- Compatible with over 1,800 diverse cryptocurrencies
- Long-lasting battery life of more than 8 hours
- Pricier compared to the Ledger Nano S
- Requires charging before usage
2. Trezor One – Trustable crypto wallet for long-term storage
The Trezor One is a well-established and reliable hardware wallet designed to securely store your cryptocurrencies.
Trezor’s unique physical security flow ensures that every operation you perform is deliberate and legitimate.
Each transaction is independently verified and physically confirmed directly on your Trezor Model One hardware wallet, giving you complete confidence when buying, selling, and trading coins.
Security is a top priority for Trezor, and the Trezor One offers multiple layers of protection. It features a user-defined PIN of up to 50 digits long, which safeguards your device against unauthorised access.
For an added layer of access security, you can set up a passphrase—a user-generated combination of letters, words, phrases, and spaces that is required for each physical access to your Trezor hardware wallet.
In the event of unforeseen circumstances, the Trezor One allows you to create a multi-word recovery seed. This seed serves as a backup of your wallet, enabling quick and easy recovery of your funds. By keeping your recovery seed in a secure location, you can have peace of mind knowing that your crypto assets are protected, even in the face of unexpected events.
The Trezor One supports an impressive range of 1289 coins and tokens, ensuring compatibility with a vast majority of popular cryptocurrencies. This extensive coin support allows you to manage a diverse portfolio within a single device, providing convenience and flexibility.
While the Trezor One may not offer all the advanced features of newer models, it remains a trusted and cost-effective hardware wallet solution.
Its focus on security, user-defined PIN and passphrase, multi-word recovery seed, and extensive coin support make it an excellent choice for individuals seeking reliable protection for their digital assets.
- Provides top-tier, institutional-level security measures for safeguarding substantial investments
- Requires device-based PIN entry for transaction authorisation
- Compatible with a broad array of tokens
- Lacks a dedicated mobile application
- The high-end version is priced above £200
What Is a Crypto Wallet?
A crypto wallet, short for a cryptocurrency wallet, is a digital tool that allows individuals to securely store, manage, and interact with their cryptocurrencies.
It functions as a software application or a physical device designed to store the private keys necessary to access and transfer ownership of digital assets on blockchain networks.
Crypto wallets provide a user-friendly interface for users to view their account balance, initiate transactions, and monitor the history of their cryptocurrency transactions.
These wallets support various cryptocurrencies and employ encryption techniques to ensure the security of the private keys and protect the funds stored within the wallet.
How Do Cryptocurrency Wallets Work?
Cryptocurrency wallets work by leveraging cryptographic techniques to securely store and manage digital assets.
When a user creates a wallet, a pair of cryptographic keys is generated: a public key and a private key. The public key acts as the wallet’s address, allowing others to send funds to it. The private key, on the other hand, is kept secret and is used to authenticate ownership of the funds stored in the wallet.
When a user wants to make a transaction, they sign it with their private key, providing proof of ownership and ensuring the transaction’s integrity. This signature is then verified by the network using the corresponding public key.
Wallets can be categorised into two main types: software wallets and hardware wallets. Software wallets are applications that run on computers or mobile devices, while hardware wallets are physical devices specifically designed for storing private keys offline. Both types provide interfaces for users to manage their funds, view balances, and initiate transactions.
Cryptocurrency wallets do not actually store the digital assets themselves; rather, they store the private keys needed to access and manage those assets on the blockchain.
The blockchain is a decentralised ledger that records all transactions across the network. By keeping the private keys secure, users can maintain control over their funds and interact with the blockchain to send and receive cryptocurrencies.
Hot Wallets vs Cold Wallets
When it comes to cryptocurrency storage, the debate between hot and cold wallets is a critical factor to consider.
Hot wallets and cold wallets represent two distinct approaches to securing digital assets, each with its own advantages and considerations.
Let’s explore the key differences between these two types of wallets to help you make an informed decision about which one suits your needs best.
Hot wallets are digital wallets that are connected to the internet, either through software or online platforms. They offer convenience and accessibility, allowing users to quickly access their funds and make transactions.
Hot wallets are commonly used for frequent trading and everyday transactions due to their ease of use and immediate availability. However, since they are connected to the internet, they are more susceptible to hacking and cyberattacks.
Cold wallets, on the other hand, are offline wallets designed for enhanced security. They store cryptocurrency offline, typically on hardware devices or paper wallets.
Cold wallets are often considered more secure since they are not connected to the internet, reducing the risk of unauthorised access and online threats. They are ideal for long-term storage and holding significant amounts of cryptocurrency. However, cold wallets may be less convenient for frequent trading or instant access to funds.
How to Choose the Best Crypto Wallet UK
When choosing the best crypto wallet, there are several factors to consider:
- Security: Security should be a top priority. Look for wallets that employ strong encryption, two-factor authentication (2FA), and provide offline storage options if you want to go down the hardware wallet route.
- Supported cryptocurrencies: Ensure that the wallet supports the specific cryptocurrencies you intend to store or trade. Different wallets may have varying levels of compatibility.
- User experience: Consider the wallet’s user interface and ease of use. A good wallet should have a user-friendly design and intuitive features, making it convenient for both beginners and experienced users.
- Backup and recovery: Look for wallets that offer robust backup and recovery options. This ensures that you can restore your wallet and access your funds if your device is lost, stolen, or damaged.
- Development team and reputation: Research the wallet’s development team and check for reviews and user feedback. A reputable wallet with an active development team is more likely to receive regular updates and security enhancements.
- Community support: Consider the wallet’s community support and engagement. A strong and active community can provide assistance, updates, and additional resources for using the wallet effectively.
- Additional features: Some wallets offer extra features such as built-in exchange services, staking capabilities, or integration with other financial services. Assess these additional features based on your specific needs and preferences.
- Compatibility: Ensure that the wallet is compatible with your devices (desktop, mobile, or web-based) and operating systems (Windows, macOS, Linux, iOS, Android, etc.).
- Reviews and recommendations: Read reviews, seek recommendations from trusted sources, and consider the experiences of other users. This can provide valuable insights into the pros and cons of different wallets.
- Price: Consider the cost of the wallet, if applicable. Some wallets are free, while others may have one-time fees or subscription models. Evaluate the features offered by the wallet in relation to its price.
Ultimately, the best crypto wallet will depend on your specific needs, preferences, and the level of security you require for your digital assets.
It’s recommended to research and compare multiple wallets before making a decision.
Tips for Keeping Your Crypto Wallet Safe
Here are some tips to help keep your crypto wallet safe:
- Choose a secure wallet: Select a reputable and secure crypto wallet that implements robust security measures, such as strong encryption, two-factor authentication (2FA), and offline storage options like hardware wallets.
- Use strong and unique passwords: Create strong, complex passwords for your wallet and avoid reusing passwords from other accounts. Consider using a password manager to securely store and generate unique passwords.
- Enable two-factor authentication (2FA): Enable 2FA on your wallet whenever possible. This adds an extra layer of security by requiring a secondary verification method, such as a code from an authenticator app or a physical token, in addition to your password.
- Keep your wallet software up to date: Regularly update your wallet software to ensure you have the latest security patches and bug fixes. Stay informed about updates from the wallet provider and install them promptly.
- Backup your wallet: Create regular backups of your wallet and store them securely in offline or encrypted storage. This will help you restore your wallet and access your funds if your device is lost, damaged, or stolen.
- Be cautious with public Wi-Fi: Avoid accessing your crypto wallet or conducting transactions on public Wi-Fi networks, as they can be vulnerable to attacks. Instead, use a trusted and secure internet connection.
- Be vigilant against phishing attempts: Be cautious of phishing attempts, where attackers try to trick you into revealing sensitive information. Verify the authenticity of any communication or website related to your wallet and avoid clicking on suspicious links or providing personal information.
- Keep your devices secure: Ensure that the devices you use to access your wallet, such as computers and smartphones, have up-to-date antivirus software and security measures in place. Use a secure and reputable operating system, and avoid downloading apps or software from untrusted sources.
- Use cold storage for long-term storage: Consider using cold storage options like hardware wallets or paper wallets for long-term storage of your crypto assets. These offline storage methods provide an extra layer of protection against online threats.
- Be mindful of sharing wallet information: Avoid sharing your wallet addresses or private keys with anyone unless necessary. Keep this information confidential and be cautious of social engineering attempts or scams.
- Educate yourself: Stay informed about the latest security practices and cryptocurrency-related scams. Educate yourself about common attack vectors and best practices for securing your digital assets.
Remember, securing your crypto wallet is crucial to protect your funds.
By following these tips and practicing good security hygiene, you can significantly reduce the risk of unauthorised access or loss of your cryptocurrencies.
How to Sign Up to a Crypto Wallet & Start Trading Crypto
- Choose a Wallet: The first step is to choose a cryptocurrency wallet. Wallets can be hardware-based or software-based, and you can even use mobile apps for ease of use. Look for a wallet that supports the cryptocurrencies you are interested in and has positive user reviews.
- Sign Up: Once you’ve chosen a wallet, you’ll need to sign up. This typically involves providing an email address, choosing a secure password, and potentially providing some additional information for verification purposes, depending on the wallet.
- Secure Your Wallet: After signing up, secure your wallet. Enable two-factor authentication (2FA) if it’s available, and write down any recovery phrases or backup codes that the wallet generates. Store these securely – they can help you recover your wallet if you lose access.
- Buy Cryptocurrency: You’re now ready to buy some cryptocurrency. This usually involves linking a bank account or credit card to your wallet and choosing the amount and type of cryptocurrency you want to buy.
- Start Trading: Once you have some cryptocurrency in your wallet, you can start trading. This could mean trading one type of cryptocurrency for another or trading cryptocurrencies for traditional currency. You can typically do this from within your wallet or you can transfer your cryptocurrency to an exchange to access a wider range of trading pairs.
Common Questions About Crypto Wallets
Here I’ve answered some popular questions people have about crypto wallets and using them in the UK.
Are crypto wallets safe?
The safety of crypto wallets depends on a number of factors, including the type of wallet, the security measures implemented by the wallet provider, and how securely you manage your wallet.
Here’s a brief overview:
- Type of Wallet: There are two main types of wallets – hot wallets and cold wallets. Hot wallets are connected to the internet and are more susceptible to hacking. Cold wallets, on the other hand, store your crypto offline and provide greater security.
- Wallet Provider Security: Reputable wallet providers implement robust security measures, including encryption, two-factor authentication (2FA), and sometimes insurance against theft. However, not all wallets offer the same level of security, so it’s important to choose a reputable provider.
- User Security Practices: Even the safest wallet can be compromised by poor security practices. It’s important to use strong, unique passwords, enable 2FA, avoid phishing attempts, and keep your device’s software up-to-date.
While crypto wallets can be safe, their security largely depends on the practices of both the user and the provider.
Crypto investments, like all investments, carry risk and should be approached with caution. It’s recommended to thoroughly research and take necessary precautions when investing in cryptocurrencies.
Can you store any type of cryptocurrency in your wallet?
While many wallets support a variety of cryptocurrencies, not all wallets support all types of cryptocurrencies. Each wallet is designed to support specific types of cryptocurrencies, and this is typically outlined in the wallet’s specifications.
For instance, some wallets are designed specifically for Bitcoin, while others might support a range of popular cryptocurrencies like Ethereum, Ripple, or Litecoin. Additionally, there are wallets that support lesser-known, or altcoins.
There are also multi-currency wallets, which are designed to hold a variety of different cryptocurrencies at once. These can be useful if you trade or hold several different types of coins.
Before choosing a wallet, make sure to verify that it supports the specific cryptocurrencies that you intend to store in it. Always double-check the compatibility of your chosen wallet with the cryptocurrency you intend to store or transact in.
What is cryptocurrency?
Cryptocurrency is a digital or virtual form of currency that uses cryptography for security. The “crypto” part in the name comes from the use of cryptography for secure communication, ensuring that transactions are secure and that new units of currency are securely created.
Cryptocurrencies are decentralised and operate on a technology called blockchain, which is a distributed ledger enforced by a network of computers (called nodes) that manage and record transactions.
Bitcoin, created in 2009, was the first decentralised cryptocurrency, and since then, many other cryptocurrencies have been created. These include Ethereum, Ripple, Litecoin, and many others.
Unlike traditional currencies issued by central banks, cryptocurrencies are resistant to censorship and can be used for international transactions without worrying about exchange rates. However, they are also associated with high volatility and regulatory scrutiny.
How do cryptocurrencies work?
Cryptocurrencies work using a technology called blockchain. A blockchain is a distributed, decentralised, and public ledger where all transactions are recorded and linked to each other. This means that transactions cannot be altered or deleted without the alteration of all subsequent blocks, which requires the consensus of the network majority, thus making blockchain highly secure.
When a transaction is made, it is grouped with others into a block. Miners (participants in the network with high computational power) validate these transactions by solving complex mathematical problems.
Once the problem is solved, the block is added to the existing blockchain. The miner who solved the problem is rewarded with a predetermined amount of cryptocurrency.
Each cryptocurrency transaction is signed with a digital signature, which proves the authenticity of the transaction and provides a secure way of transferring assets. The sender of a transaction generates a digital signature using their private key, and anyone can verify the authenticity of the transaction with the sender’s public key.
It’s also important to note that while traditional financial systems are based on the identity of the participants in the transactions, cryptocurrencies are pseudonymous, which means that they are tied to specific digital wallets rather than individuals, offering a level of privacy (though not complete anonymity) to users.
Cryptocurrencies can be bought or mined and stored in digital wallets. The ownership of the coins is proved by the possession of a cryptographic key associated with the wallet address. The wallet can be used to send, receive, and store cryptocurrency securely.
What are the most popular types of cryptocurrency?
The market is constantly changing, but here a some of the more popular cryptocurrencies.
- Bitcoin (BTC): The first and the most well-known cryptocurrency, Bitcoin was created in 2009 by an anonymous person (or group) known as Satoshi Nakamoto.
- Ethereum (ETH): Launched in 2015, Ethereum is more than just a digital currency. It’s a blockchain-based platform for developing decentralised apps and smart contracts. Ether is the native cryptocurrency.
- Binance Coin (BNB): Binance Coin is the native cryptocurrency of the Binance exchange. It’s used as an optional method for paying the exchange’s fees which include trading fees, exchange fees, and listing fees.
- Cardano (ADA): Cardano is a proof-of-stake blockchain platform that says its goal is to allow “changemakers, innovators and visionaries” to bring about positive global change.
- Tether (USDT): Tether is a type of cryptocurrency known as a stablecoin. Stablecoins are designed to keep their value pegged to a specific value, to counter the volatility often seen in crypto prices. Tether is pegged to the US dollar.
- XRP (XRP): XRP is both a digital payment protocol and a cryptocurrency. It’s used for fast, low-cost international money transfers.
- Dogecoin (DOGE): Initially started as a joke, Dogecoin has gained wide acceptance and has a very active community.
- Polkadot (DOT): Polkadot is a unique proof-of-stake cryptocurrency aimed at delivering interoperability between other blockchains.
- Litecoin (LTC): Launched in 2011, Litecoin was among the initial cryptocurrencies following Bitcoin and has often been referred to as “silver to Bitcoin’s gold.”
- Chainlink (LINK): Chainlink is a decentralised oracle network that provides real-world data to smart contracts on the blockchain.
Why do I need a cryptocurrency wallet?
A cryptocurrency wallet is essential for managing your cryptocurrencies in a secure and convenient manner.
Here are a few of the main reasons why you need a cryptocurrency wallet:
- Secure Storage: Wallets provide a safe place to store your cryptocurrency keys – the cryptographic strings of characters that represent ownership of cryptocurrency. Wallets ensure that these keys are stored securely and are less susceptible to hacking attempts compared to exchanges.
- Ownership Control: Having a wallet gives you full control over your cryptocurrency. When your cryptocurrencies are stored on an exchange, the exchange has control over your assets.
- Transaction Management: Wallets allow you to send and receive cryptocurrencies. They facilitate transactions, letting you manage your balance and make payments as required.
- Compatibility: Some wallets support multiple types of cryptocurrencies, making them a convenient tool if you own different types of digital assets.
- Access to Advanced Features: Certain wallets also offer features like built-in exchanges, connection to hardware wallets, and more.
Remember, it’s important to keep your wallet’s private key secure and backed up in a safe location, as losing access to your wallet can mean losing your cryptocurrencies.
What’s the difference between a custodial and a non-custodial wallet?
Custodial and non-custodial wallets represent two main types of cryptocurrency wallets that differ mainly in who controls the private keys of the wallet.
Custodial Wallets: In a custodial wallet, a third-party provider, like a cryptocurrency exchange, holds and controls the private keys of your wallet. This is similar to how a bank operates, where the bank has control over your funds and you trust them to protect your money. The benefits include ease of use, the ability to recover your wallet if you forget your password, and often additional features such as built-in trading. However, they come with the risk that if the third party is hacked or goes out of business, you could lose your funds.
Non-Custodial Wallets: In a non-custodial wallet, you are the only one who holds and controls the private keys. This gives you complete control over your funds and the responsibility for the security of your private keys. This means that if you lose your private keys, there’s usually no way to recover your funds. However, since only you have control of the private keys, your funds can’t be accessed by others without your permission, which makes it less vulnerable to hacks or third-party failures.
Choosing between the two depends on your personal needs for security, control, and convenience.
What are some typical attacks on crypto wallets to be aware of?
Cryptocurrency wallets, like any digital platform, are vulnerable to a range of cyber attacks.
Here are a few common ones:
- Phishing Attacks: Attackers trick users into revealing their sensitive information such as wallet keys, passwords, or login details, often through fake emails or websites posing as legitimate services.
- Malware Attacks: Malware can be secretly installed on a user’s device to steal sensitive data, manipulate wallet transactions, or even control the device.
- Man-in-the-Middle Attacks: In this case, the attacker intercepts the communication between two parties to steal or manipulate information. For instance, they could change the recipient address in a crypto transaction.
- Brute Force Attacks: Here, an attacker attempts to gain access to a wallet by trying all possible private keys or passwords.
- 51% Attacks: Specific to blockchain, this attack happens when a group of miners control more than 50% of a network’s mining power and can disrupt the transaction process.
- Keylogging Attacks: Attackers use software to record keystrokes on a user’s device to steal passwords or keys.
- Dusting Attacks: Specific to blockchain, attackers send a small amount of cryptocurrency to wallets, which when spent, allows them to track and link wallets together to identify individuals for further attacks.
To mitigate these risks, it’s crucial to use secure, reputable wallets and maintain good cybersecurity practices, such as regularly updating software, using strong passwords, and being cautious of phishing attempts.
To wrap things up, choosing the best crypto wallet in the UK is a critical decision for safeguarding your digital assets.
By considering factors such as security features, user-friendliness, supported cryptocurrencies, and reputation, you can find a wallet that suits your needs.
Whether you opt for a hardware wallet like Ledger Nano X or a software wallet like Exodus or eToro, prioritise security measures like strong passwords, two-factor authentication, and regular software updates.
Remember to keep your wallet and devices secure, stay vigilant against phishing attempts, and educate yourself about the evolving landscape of crypto security.
By taking these steps, you can confidently manage and protect your cryptocurrencies in the UK.
What is the safest crypto wallet in the UK?
When it comes to determining the safest crypto wallet in the UK, it’s essential to consider various factors. While no wallet is completely immune to risks, hardware wallets like Ledger Nano X and Trezor are often regarded as among the most secure options. These wallets store your private keys offline, adding an extra layer of protection against online threats. Software wallets such as Exodus and Atomic also prioritise security by implementing encryption techniques and providing backup options. Ultimately, the choice of the safest crypto wallet depends on individual needs and preferences. It’s advisable to research the security features, reputation, and user reviews of different wallets before making a decision.
Which crypto wallet has the lowest fees in the UK?
When it comes to finding a crypto wallet with low fees in the UK, it’s important to consider several factors. Different wallets have varying fee structures, and fees can vary based on the type of transactions you make. Generally, software wallets like Exodus and Atomic offer competitive fee structures for transactions, allowing users to manage their crypto assets with minimal costs. However, it’s crucial to note that fees can also be influenced by network congestion and external factors beyond the wallet’s control. To ensure you find a wallet with the lowest fees, it’s recommended to compare fee structures, research user experiences, and consider the specific cryptocurrencies you plan to transact with.
Which crypto wallet is most secure?
When it comes to the security of crypto wallets, there are several options that prioritise user safety. Hardware wallets like Ledger Nano X and Trezor Model T are often considered among the most secure choices. These wallets store your private keys offline, reducing the risk of online attacks. They also provide features like PIN codes, passphrase protection, and secure element chips to safeguard your assets. Additionally, wallets with strong encryption techniques and regular security updates, such as Exodus and Atomic, can enhance the overall security of your digital assets. It’s important to note that while these wallets offer advanced security measures, it’s essential to follow best practices like enabling two-factor authentication, keeping your recovery phrase secure, and staying vigilant against phishing attempts to ensure the utmost security for your crypto holdings.
Is the Coinbase wallet safe?
Yes, Coinbase is generally considered a safe wallet for cryptocurrencies. Coinbase employs various safety measures such as two-factor authentication, biometric fingerprint logins, and insurance in the event that the platform itself is breached. It also holds the majority of customers’ digital assets in offline storage (cold storage) to reduce the risk of theft. Moreover, Coinbase is a custodial wallet, meaning it manages and controls the private keys on behalf of its users. This comes with an added level of security in terms of account recovery options but also means users are reliant on Coinbase’s security measures to protect their assets. However, like all online platforms, it is not entirely immune to potential security breaches or issues. Users are recommended to employ all the additional security measures available, like using a strong, unique password, and enabling two-factor authentication.
What are private keys?
Private keys are secret, alphanumeric passwords used in the encryption and decryption of data in cryptocurrencies. They allow the holder to access and manage their digital assets. In essence, a private key is proof of ownership of a digital asset, much like a key to a safe. It’s crucial to keep private keys secure and private, as anyone who has access to them can control the associated assets.
Is it wise to leave crypto on an exchange?
While leaving cryptocurrency on an exchange can be convenient for frequent traders, it’s generally not recommended for long-term storage. Exchanges are vulnerable to hacking, and if the exchange doesn’t have sufficient security measures, your funds could be at risk. Moreover, when your crypto is on an exchange, you don’t actually control the private keys to your funds, the exchange does. Therefore, for larger amounts and long-term holdings, it’s wiser to transfer your cryptocurrency to a secure, private wallet where you control the private keys.
How long does it take for cryptocurrency transfers (on average)?
Cryptocurrency transfer times can vary greatly depending on the specific cryptocurrency and network congestion at the time of the transaction. For instance, Bitcoin transactions can take anywhere from 10 minutes to several hours, while Ethereum transactions typically take around 15 seconds to 5 minutes. However, these times can increase during periods of high network activity. Always check the current network status of the cryptocurrency you’re using for the most accurate estimate.
Does your crypto grow in a wallet?
No, simply storing cryptocurrency in a wallet doesn’t increase its quantity. However, some wallets support staking or interest-earning features for specific cryptocurrencies, which can potentially result in your holdings growing over time. Still, this depends on the specific features offered by your wallet and the type of cryptocurrency you hold.
What is the most secure online crypto wallet?
The most secure online crypto wallet can vary depending on individual preferences and needs, but hardware wallets like Ledger Nano X are generally considered to be the most secure for storing cryptocurrencies. These wallets store the user’s private keys offline, making them immune to online hacks. However, for users who prefer online wallets, options like Coinbase with two-factor authentication and insurance coverage are often recommended.
What is the best crypto wallet for iPhone?
Exodus is widely considered one of the best crypto wallets for iPhone users. It offers a user-friendly interface, supports a wide range of cryptocurrencies, and allows for secure private key management right on your device. Its versatility and ease of use make it highly recommended for iPhone users looking to manage their crypto assets.
What is the best crypto wallet app?
The “best” crypto wallet app can depend on various factors like user experience, security, and supported cryptocurrencies. However, popular options often include Exodus for its user-friendly interface and multi-currency support and Ledger Live for those who also use Ledger’s hardware wallets for increased security. It’s important to consider your specific needs and do your own research to find the wallet that’s best for you.
What is the best Bitcoin wallet UK?
In the UK, Ledger Nano X is often cited as one of the best Bitcoin wallets due to its robust security features, including offline storage of private keys. For those who prefer an online option, Coinbase is commonly recommended for its ease of use and additional layers of security, such as two-factor authentication. Both options are widely used and trusted within the UK crypto community.
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