Are Free Crypto Wallet Apps Safe?

 Are Free Crypto Wallet Apps Safe?

If you’re a crypto investor or enthusiast, you must learn how to store your cryptocurrencies safely. While the crypto market has taken a beating recently, this doesn’t mean that digital currencies aren’t still one of the most sought-after investments.

And unlike fiat currencies, cryptos exist exclusively in the digital realm. This makes them vulnerable to hackers looking to access unprotected hot wallets.

Besides that, cryptocurrencies are 100% decentralized and unregulated. So, if your tokens end up stolen, there’s very little the authorities can do to help you. A situation not helped by the pseudonymous nature of cryptocurrencies makes transfers nearly impossible to track.

Thus, this is why you must make use of trusted crypto wallet apps to protect your holdings. After all, the last thing you want is for your hard-earned assets to get stolen by a hacker.

But before we get into that, let’s check the difference between hot and cold wallets.

Hot Wallets

According to this article on the best free crypto wallets by Tezro.com, hot wallets are the most common type of crypto storage available. They are frequently free-to-use and easily accessible. These types of wallets are most commonly used by beginners and those who regularly transact in cryptocurrency.

Some hot wallets feature exchanges that let you buy/sell cryptocurrencies. Others even act as high-interest savings accounts, allowing you stake specific tokens in exchange for interest payments.

While convenient, hot wallets do have some security flaws. Firstly, hot wallets are online 100% of the time, thus making them a favorite target of cybercriminals. Fortunately, reputable wallet service providers regularly perform security audits to identify weak points and flaws.

And as cryptocurrency adoption rises, more insurance companies are willing to provide insurance for depositors. However, keep in mind that the crypto economy is entirely unregulated, which can lead to some issues.

Cold Wallets

This is why hardcore crypto investors often store the majority of their holdings in cold wallets. Cold wallets are devices that store tokens offline, making them impossible for hackers to access.

As an added plus, you can also create backups for your cold wallet, ensuring you have extra copies of your crypto keys. And as cold wallets can be physically secured, making it even more difficult for thieves to access them.

However, cold wallets can be somewhat awkward to use as users first need to plug them into a computer. From here, they have to access their keys before being able to process a transaction.

And if you’re on a tight budget, you should remember that cold wallets are pretty pricey. But the added security they provide makes them well worth using.

Read more: Top Myths Related To Cryptocurrency!

Free and Trustworthy Crypto Wallet Apps

Now that we’ve seen the difference between the 2 wallet types, let’s look at a selection of free and safe crypto wallet apps.

  1. Binance — Robust Selection of Features

Tokens supported: More than 1000 coins, including BTC, ETH, and LTC

Available on: PC, Android, and iOS

Type: Hot wallet

Binance crypto wallet is offered by one of the world’s largest crypto exchanges. It supports more than 1000 different crypto tokens and has a vast selection of features. These include the ability to purchase crypto futures and options, staking, and access to DeFi applications.

The wallet uses two-factor authentication (2FA), device management, and custom address whitelisting to keep your tokens safe. To protect against hacks, Binance claims to have C95% of customer deposits in cold storage.

Other perks of using Binance include low fees and comprehensive charting features. All of which makes it an excellent choice for those looking to get more out of their crypto wallets.

  1. Crypto.com — Great For Active Crypto Users

Tokens supported: More than 250 coins, including BTC, DOGE, DOT, ETH, and LTC

Available on: PC, Android, and iOS

Type: Hot wallet

Crypto.com is specially designed for hardcore crypto enthusiasts who regularly transact in crypto. Its wallet gives you access to a crypto exchange market, an NFT marketplace, and cryptocurrency credit cards. Financial services include crypto staking, which pays out about 14.5% of interest to depositors.

In January 2022, Crypto.com was hacked, and nearly $15 million worth of tokens were stolen. Fortunately, management acted proactively and put a stop to it. More importantly, depositors who lost funds received refunds from Crypto.com, which inspires confidence in the wallet.

As an added plus, users based in the US will be pleased to know that up to $250,000 of USD fiat deposits are insured by the government. So that way, US-based customers will stay protected if the wallet gets hacked.

  1. Exodus — Ideal for Desktop Users

Tokens supported: More than 160 coins, including BTC and ETH

Available on: PC, Android, and iOS

Type: Hot wallet

Exodus was one of the first hot wallets to allow users to interface with their cold wallets. As this is a self-custodial wallet, only you will have access to your private keys, giving you greater control over your crypto assets.

Besides that, Exodus features an intuitive, user-friendly interface. You also get to make use of its built-in portfolio and trade functions.

While Exodus has an excellent safety record, the wallet lacks 2FA and doesn’t feature multi-signature support. Which can be something of a deal-breaker for the more safety-conscious among us.

  1. Mycelium — A Secure Mobile Wallet For BTC and ETH

Tokens supported: BTC, ETH, and ERC-20

Available on: Mobile devices only

Type: Hot wallet

Mycelium supports only 3 types of cryptocurrency, specially built for mobile users, which shouldn’t be much of an issue for hardcore crypto enthusiasts. This hot wallet has robust security features such as dedicated accounts and cold storage integration.

Users can also mask their IP addresses and location thanks to Mycelium’s compatibility with the Tor network.

Closing Thoughts

All of the crypto wallets on this list provide you with top-tier protection, guaranteeing that hackers cannot access your funds. However, it’s not prudent to rely solely on hot wallets. This is why I recommend using both hot and cold wallets to reduce your risk exposure.

And as with all things crypto-related, only invest what you’re prepared to lose. The market’s extreme volatility makes it easy for you to lose your principal investment.

Check out: 5 Reasons You Shouldn’t Worry About Cryptocurrency

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