A cryptocurrency wallet is a tool or programme that allows consumers to engage and transact with blockchain networks directly. Crypto wallets like MetaMask, Trust Wallet, Ledger, and Trezor can be software or hardware-based.
In 2021, the global market cap of cryptocurrency reached $3 trillion and many leading coins such as Bitcoin (BTC), Ethereum (ETH), and others posted all-time-highs. To store tokens safely, crypto wallets such as MetaMask, Trust Wallet, Ledger, and Trezor provide self-custody, allowing users to hold crypto in a way where they have access only to the assets. This is different from centralised exchanges like Coinbase, Binance, WazirX, CoinDCX, which are seen as less safe. Losing access to crypto assets due to exchanges being hacked can prove costly.
Basics of crypto wallets
A cryptocurrency wallet is a tool or programme that allows consumers to engage and transact with blockchain networks directly. Crypto wallets can be software or hardware-based.
Hot wallets are software wallets that are generally connected to the Internet. Hardware wallets have no Internet connection and are thus referred regarded as cold wallets.
Software-based hot wallets include MetaMask and Trust Wallet, whereas hardware-based cold wallets include Trezor and Ledger.
Security levels differ between hot and cold wallets. Because hot wallets connect to the Internet, they are seen as less secure than cold wallets, which are permanently offline. Hot wallets, however, are still safer than keeping cryptocurrency on centralised exchanges.
There are also paper wallets, in which crypto addresses are written on documents.
Crypto wallet data consists of one or more pairs of public and private keys, as well as an alphanumeric address created from the keys.
Users may share their address with others in order to receive payments, but they must never reveal their private key, which may be used to access crypto monies from several wallets.
MetaMask
ConsenSys Software created MetaMask, a free crypto wallet. Meta Mask is a software wallet that lets users to engage with numerous blockchains and deal in cryptocurrency via a browser extension or mobile app.
The wallet is used to store and manage keys, to start transactions, to deal in bitcoin and tokens, to connect to and engage with decentralised web apps, and to do other things.
MetaMask is classified as a hot wallet since it functions as a plugin browser extension and an app that connects to other decentralised web services.
With over 10 million monthly active users as of September 2021, it is one of the most popular crypto wallets in the world due to its online connectivity and ease of use.
Trust Wallet
Trust Wallet, founded by Viktor Radchenko, is a free programme that allows users to store cryptocurrency and transact with decentralised applications. Binance, a cryptocurrency exchange, purchased it in 2018.
Despite the fact that Trust Wallet is a hot wallet, it allows users to save personal information on their devices, away from the Internet and any third parties or developers.
Trust Wallet is similar to MetaMask, however it is widely seen to be easier to use and more straightforward. Trust Wallet has earned a reputation for security over the years by never collecting user details or sensitive information.
According to reports, Trust Wallet has 10 million users. It, like MetaMask, is a popular choice among cryptocurrency traders.
Ledger
Ledger wallets are manufactured by Ledger, a French firm that specialises in developing secure solutions for blockchain applications. Wallets are physical devices that are used to store different cryptocurrencies and private keys offline.
Ledger stores private keys offline via offline storage devices like as USB sticks, making it difficult for any third party to obtain the user’s private keys through the Internet.
Apart from safe storage, these cold wallets allow users to transmit and receive cryptocurrency securely using security features and unique operating systems meant to safeguard users’ crypto assets.
Ledger allegedly sold over three million hardware wallets by June 2021. Those that have a substantial quantity of crypto and do not want to trade actively prefer to put their crypto assets in cold wallets such as Ledger.
Trezor
Trezor, like Ledger, is a cold wallet used to securely store crypto assets and sign transactions. Trezor is a subsidiary of SatoshiLabs, which is based in the Czech Republic.
It uses a USB connection to connect to users’ PCs and saves crypto assets and private keys offline.
Trezor also enables users to employ two-factor authentication to safeguard their accounts and protect their assets and identities offline, without the danger of leaks or identity theft from a counterparty.
Despite becoming one of the most popular hardware wallets on the market, Trezor does not release official sales figures. Those that possess substantial crypto assets and do not trade regularly, like Ledger, utilise Trezor wallets to safeguard their savings.
