Best Crypto Wallets Of April 2023

Hot wallets are connected to the internet. They’re often available as a standalone product—a “software wallet”—or as a feature offered by a crypto exchange—a so-called “exchange wallet.”

Crypto investors may store the same coins in multiple wallets. That means you can hold the same token or coin in both a cold and a hot wallet. Whichever you choose, the purpose of a wallet is to store the “keys” to your crypto.  In cryptography, a key is an encrypted string of characters. With the correct key, you can decrypt (“unlock”) the wallet and access the stash of crypto.

Hot wallets make it easy to execute crypto transactions. But since hot wallets are hosted online, they are more vulnerable to hackers. That’s why some users look to place their crypto in cold storage as a long-term solution.

Compatibility between wallets helps if you’re looking to access additional features. But a word of caution: If you have multiple wallets for the same crypto or token, you may have heightened security risks, since there are more touch points to reveal the keys to your crypto.

Security takes center stage when it comes to crypto, so some hot wallets offer a form of repayment for stolen crypto. That’s an important feature for assuring your peace of mind and ensuring it’s a good place to park your non-fungible tokens (NFTs).