As of October 2021, there are over 6,900 crypto coins in the digital currency market according to coinmarketcap, a website that tracks the value of digital currencies.
But as the crypto community expands, crypto fraud has been on the increase too. In August 2021, hackers reportedly stole over $600 million from Poly Network, (a platform that integrates different blockchains), in what is considered the biggest crypto theft ever.
More than ever, investors are concerned about the safety of their coins.
If you’re looking for double protection to your digital currency investment, opt for the best crypto wallets.
With the increasing number of crypto wallets on the market, it can be tricky to find the most suitable one. To help you choose right, I’ll be reviewing 5 of my best bitcoin wallets in Canada and provide some helpful information about using crypto wallets.
In this post, I’ll be discussing
- What are Crypto Wallets?
- The Types Of Crypto Wallets – Hardware Vs. Software Wallets
- The Best Crypto Wallets In Canada
- Why You Need A Crypto Wallet
- Helpful Tips To Keep Your Wallets Secured from Crypto Theft
- Frequently Asked Questions About Crypto Wallets
Before we discuss the best cryptocurrency wallets, first things first…
What Are Crypto Wallets?
Simply put, cryptocurrency wallets are used for storing the private keys for your crypto assets.
Your dedicated or private keys are thoughtful security measures designed to keep your cryptocurrencies safe and easily accessible.
Your wallet also allows you transfer, receive and monitor your digital coins.
A wallet stores both your public and private keys. What are these?
Public Key: this (like a bank account) is used to deposit coins into your crypto account. Like in traditional banking, you send over your public key (like your bank account number) to receive money from people.
Private key: This secret code(like your debit card PIN) allows you (the crypto asset owner) to access and spend your crypto coins. Anyone with this code can have unrestricted access to your funds and perform transactions as the authorized owner would.
While a password best describes a private key, a public key can be compared to a username.
Losing your private keys and authentication could mean losing your entire crypto investment.
Now, let’s go over the two significant types of crypto wallets, comparing their individual strengths and weaknesses.
Types of Crypto Wallets (Hardware Wallets vs. Software Wallets)
Unlike hardware wallets, software crypto wallets are either installed on your smart devices or PC as an app or they could be cloud-based.
Software wallets are more easily accessible than hardware. But these free internet-based wallets are highly prone to be hacked or corrupted.
These software wallets are of three forms, namely:
Desktop wallets’ software runs on your computer, through which you can access your coins. One major risk with these wallets is exposure to malware and viruses in your PC that can compromise your account’s security.
These wallets are run via smartphone apps. Mobile wallets are internet-based; hence, exposed to hackers and several other crypto criminals lurking on the internet.
Web-based wallets run on cloud applications and can be accessed and managed from any internet-enabled device, from any location.
Besides their flexibility, convenience, and ability to make online purchases, as with all software wallets, they’re at high risk of third-party attacks, especially with a public internet connection.
Since internet-based wallets are easily attacked, they are usually a recommended storage for smaller amounts of coins.
If you need a safer way to store large crypto coins for a long time, save up for a crypto hardware wallet.
Also called cold storage, hardware wallets are arguably the safest storage, especially for long-term investors with huge digital currencies. Since hardware wallets are offline physical wallets and not internet-based, your funds are safe from hackers.
The only downside is: if you lose your password, you may forfeit your coins.
Why Do You Need A Crypto Wallet?
Many seasoned crypto traders can swear by the benefits of wallets. Still, a few others argue that it’s safer to leave your crypto assets in the watch of an exchange – as long as you find a trusted way to store your passwords and related authentication requirements.
But for more advanced security, particularly if you hold huge crypto assets, I’ll always recommend a good crypto wallet.
Besides, in the community of investors that preach decentralization, relying on an exchange [which is a centralized system] for security and control of your private keys already contradicts the initial crypto concept and can also be, in itself, a massive security threat.
Now you know the importance of bitcoin wallets and the key strengths and weaknesses of both hardware and software wallets, let me walk you through my best crypto wallets in Canada.
I’ll also briefly explain why they made the list.
Best Crypto Wallets In Canada
1. Trezor Model T
First on this list of the best crypto wallets in Canada is Trezor Model T.
Trezor Model T is a hardware [offline] wallet that offers digital currency holders advanced storage and protection of their private keys and digital assets.
An initiative of the renowned SatoshiLabs, Trezor Model T wallet supports over 1,500 crypto assets, including Bitcoin, Ethereum, Zcash, Dash, Bitcoin Cash, Litecoin, and several others.
This hardware wallet easily connects to your smartphone or PC via a USB type C cord. It also comes with a small touchscreen that allows you to manage your wallet.
Amazingly, this wallet also serves as a password manager.
The less expensive Trezor One is also a fantastic option, but it provides fewer features.
Note that if you lose your Trezor wallet or authentication requirements (recovery seed, PIN, and password), your coins could be all gone.
Key Features of Trezor Model T:
- Hardware wallet
- Supports over 1,500 crypto coins
- User-friendly interface
- Touchscreen display
- Multi-factor authentication
- Password manager
- Cost: EUR164 (C$235)
2. Ledger Nano S
While it may not stand shoulder-to-shoulder with the latest Ledger Nano X and other options like Trezor Model T, when it comes to affordability, Ledger Nano S wallet is one of the best cryptocurrency wallets in Canada.
The affordable entry-point hardware wallet offers good security at a low cost.
One downside, however, is that this first-generation wallet does not feature a type-C USB and, hence, non-compatible with more modern smartphones.
Both Nano S and Nano X support a similar number of cryptos and access the Ledger Live software.
But the Nano X outshines the Nano S, especially with its Bluetooth connectivity and up to 100 applications. Nano S lacks Bluetooth and supports only three apps per time.
Well, at only $89, this Nano S variant offers good value for money, especially to beginners seeking to safeguard a handful of crypto coins at a fair price.
- Hardware wallet
- Ledger Live Software
- Supports over 1500 crypto coins
- Supports up to 3 applications per time
- Cost: $89
3. Ledger Nano X
Ledger Nano X is another wallet that ranks top among the best crypto wallets in Canada in 2021.
This crypto ‘vault’ protects your private keys with a certified, highly secured chip that mimics a traditional flash drive.
Interestingly, Ledger Nano X supports over 1,800 digital coins, including Bitcoin, Ethereum, Litecoin, Dogecoin, Ripple, and many other popular currencies.
The wallet features Ledger Live mobile app that allows you to control your account through your smartphone’s Bluetooth.
The wallet has a stainless steel coating that gives it a classy and durable design.
Key Features of Ledger Nano X
- Hardware wallet (offline)
- Supports over 1800 digital currencies and tokens
- Stainless steel durable cover
- Supports coin staking
- Bluetooth enabled
- Holds up to a hundred applications
- Cost: $159
4. Exodus Wallets
The first software crypto wallet on this list is Exodus.
Exodus crypto and bitcoin wallet is free, has impressive customer support, and features alternative cold storage.
Exodus is a mobile and desktop wallet with a super-friendly interface, making it one of the best recommendations for first-timers.
The wallet allows you to switch between over a hundred cryptocurrencies and supports staking.
No doubt, this wallet offers a decent package for beginners, but experienced users may desire more from their crypto wallet operations and security.
Unlike other more-advanced platforms where users can control their security apparatus and funds, Exodus leaves the bulk of your investment’s protection to the exchange team.
Features of Exodus Wallets
- Software wallet
- User-friendly interface
- Supports over 100 crypto assets
- Backup storage
- Built-in exchange
- Impressive customer support
- Cost: Free
5. Electrum Wallet
Here’s one of the most reputable Bitcoin wallets in the industry. Electrum Wallet has been consistent since its introduction in 2011.
However, there are complaints about its complex interface, and the fact that it only works for Bitcoin is a major setback. But even with its limited features, its performance and delivery are A-class.
This wallet is suited for advanced users due to its relatively complex nature. Electrum is open-source that allows customizable transaction charges and offers an option to choose between legacy Segwit and Bitcoin.
Electrum also allows you to dictate your security level. You can opt for a standard wallet, a multi-signature wallet, or a 2-step authentication.
Consider the Electrum crypto wallet if you’re an experienced Bitcoin-only investor who desires advanced security features and easy customization.
Key Features of Electrum Crypto Wallet
- A-class security
- User-friendly interface
- Supports only Bitcoin
- Customizable transaction fees
- Cost: Free
How To Choose The Best Crypto Wallets In Canada
When scouting for the best crypto wallets in Canada, here are some key determinants to note;
Some crypto wallets are free; some (mainly Hardware wallets) come with price tags.
If you’re considering a long-term asset or holding a considerable amount of coins, investing in a hardware wallet would be safer.
But if you’re just starting with a few coins, you can go for a free software wallet.
A decent paid hardware wallet ranges anywhere between $80 to $250. The higher the price, the more features you get.
The first thing to think about after your decision to buy digital coins is your funds’ security. You want to do your homework on the security level of your prospect wallet.
To be double-sure of your coin’s safety, opt for a hardware wallet.
If you desire flexibility and convenience in operating your wallets, then desktop, mobile-app, and web-based wallets (software wallets) are your best bet.
In particular, web-based wallets allow you to access your wallet from any internet-enabled device, and anywhere you find yourself.
The best crypto wallet is one that offers you a user-friendly interface. You don’t want to get stuck on some wallet with an unfriendly interface and general operations that frustrate your efforts every single time.
Typically, desktops and mobile apps are usually more user-friendly than web wallets. They also do not require any challenging setup.
If you have multiple cryptocurrencies, then choose a wallet that supports a good range of digital currencies.
You can never go wrong with a reputable wallet with many convincing reviews and responsive user support.
But if you’ll be using the wallet for a single currency, then it may be okay to go with the exchange’s dedicated wallet.
One of hardware wallet’s strong points is that they support multiple cryptocurrencies.
For instance, some of the recommended best cryptocurrency wallets support over 1,000 coins and tokens.
Both software and hardware wallets have their tradeoffs. It is your call to decide how to balance convenience and security to meet your crypto investment needs.
For the best deal, read up my earlier post on recommended best apps to buy Bitcoin in Canada.
Helpful Tips to Protect Your Crypto/Bitcoin Wallet from Hack
Depending on your asset value, the thought of losing your wallet keys can send chills down your spine. All your investment could be gone with no means of recovering them.
To avoid this, I’ll quickly share a few security tips to keep your Bitcoin wallets safe.
- While software wallets are free, hardware wallets’ costs are truly worth it. If you can afford it, go for hardware wallets – or cold storage.
- Handle your wallets with the utmost caution, double-checking the slightest details. Check links sent to your emails carefully before you click. An ignorant click on a phishing link could wipe out all your coins.
- If you’re operating a software wallet, avoid links and unfamiliar websites. Some sites are a den of malware that can compromise your laptop security.
- Don’t be tempted by offers promising to double your coins. Don’t send any coins for some bogus offers.
- For whatever reason ANYONE asks for your keys, don’t oblige. Treat them like your debit card PIN.
- Keep a strong password, change passwords regularly, and have a dedicated password for each account.
- If you operate a software-based wallet, ensure you update your software regularly. Always ensure you’re not using an older version.
Although hacking is real, most who lose their funds are the author of their misfortune.
Whether you’re new to crypto investment or need a refresher, staying up to date helps you make the best-informed decisions.
In crypto investing, minor mistakes can cost you your entire investment in the twinkle of an eye.
Best Crypto Wallets in Canada FAQ
Are Crypto Wallets Safe?
The safety of your wallet depends on your preferred wallet.
Hardware wallets are your safest option as they keep your private keys away from all the criminal elements on the internet. This limits other people’s access to your authentication codes.
Software wallets are also safe, except that they are more susceptible to been hacked since they’re connected to the internet.
What’s the Best Crypto Wallet In Canada?
All wallets have their tradeoffs. But Ledger Nano X is a top-choice. The wallet is well priced, supports many tokens and coins, offers good security, and allows you to stake directly from your wallet.
The best crypto wallet is an essential tool in crypto holders’ arsenal.
A cryptocurrency wallet stores your private and public keys that allow for sending and receiving of funds.
There are many types of wallets available – primarily split into hardware wallets and software wallets.
So which are the best crypto wallets in Canada?
For starters who prioritize flexibility and convenience, I’ll recommend software or hot wallets as they offer easy access to your coins without having to download the blockchain onto your computer.
Fact is, wallets come with different features, so it’s up to you to choose the one that what works best for you given your budget!
One last thing—be sure to safeguard your password by using two-factor authentication when signing up with any site that stores personal data like banking sites and cryptocurrency exchanges.
It only takes a few minutes, but it will help keep yourself safe online!!