Why You Should Self-Custody Your Cryptocurrency
Many new cryptocurrency users keep all their digital assets on the same exchange where they bought them. While this is convenient, it's not the safest approach. When you leave your crypto on an exchange, you surrender ownership and control. The exchange holds the actual assets and ultimately has control over them.
Storing cryptocurrency on an exchange means you hold an IOU—a promise that the exchange will let you access the monetary value if you sell or will give you the asset if you transfer out. You might have heard the saying, "not your keys, not your crypto." This principle applies when using centralized platforms like Coinbase or Binance rather than non-custodial software or hardware wallets.
When you download a non-custodial software wallet or purchase a hardware wallet, it comes with a unique set of private keys. Whoever holds these keys controls the assets. On centralized platforms, the exchange holds the private keys, meaning they control the funds.
Another reason to move crypto off exchanges is security. History shows that crypto exchanges can be hacked, leading to the loss of millions in user funds. When self-custodying, always download wallets from official sources to avoid fake apps and websites.
After downloading your wallet, the first step is to back it up. Write down the recovery phrase and store it securely. Without this phrase, you can’t recover your funds if your device is lost or damaged. Every wallet on this list provides a unique recovery phrase during setup—don’t skip this step, and never share the phrase.
Benefits of Software Crypto Wallets
Cryptocurrency holders have several storage options, each balancing security and convenience. Generally, greater convenience means less security, and it's up to the user to find their preferred balance.
The most secure method is using a hardware wallet, also known as cold storage. However, hardware wallets cost money, are less portable, and can be inconvenient.
Software wallets, the focus of this article, are less secure than hardware wallets because they are installed on internet-connected devices, potentially exposing them to viruses and malware. But they are free, user-friendly, and highly portable. Most people carry their mobile devices everywhere, making it easy to check portfolios, execute trades, and make purchases on the go. Many software wallets also offer in-app trading and other useful features.
8 Best Mobile Crypto Wallets
Exodus Wallet: Best for Security and Design
Exodus is my top choice due to its strong security features and design. The team prioritizes security and user privacy, making it one of the most popular and respected wallets in the crypto community.
Beyond security, Exodus boasts a beautiful, intuitive interface. It supports over 225 assets and offers two trading options via third-party APIs without KYC requirements. It also integrates with FTX, allowing users with FTX accounts to trade directly within the wallet.
Exodus provides 24/7 customer support with rapid response times. Additionally, it supports QR code scanning for easy transactions and allows staking for passive income. For enhanced security, Exodus integrates with Trezor hardware wallets. The only downsides are no NFT storage and no browser support for DeFi platforms.
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Coinomi Wallet: Best for Rare Altcoins
Coinomi is ideal for hunters of rare altcoins, supporting over 125 blockchains and 1,770 assets—more than any other mobile wallet. It was the first multi-currency wallet when launched in 2014 and has never been hacked.
Coinomi emphasizes privacy with no IP address association, identity linking, or transaction tracking. Private keys are encrypted and stored locally. Features include built-in exchange, staking, Web3 DApp browser, and support for ERC721 tokens and NFTs. It also simplifies tax reporting with exportable transaction history.
Atomic Wallet: Best for Staking
Atomic Wallet is a beautifully designed, easy-to-use wallet for iOS and Android. It supports staking for 12 different assets, with more coming soon. Users can buy crypto with a card directly in the wallet.
Supporting over 400 cryptocurrencies, Atomic is open-source and requires no KYC. It includes in-app trading via Changelly and ChangeNow, and unique Atomic Swaps for decentralized, low-fee trades. Users even earn 1% cashback on swaps. Atomic also offers 24/7 support.
Trust Wallet: Best for Binance Smart Chain Users
Acquired by Binance in 2018, Trust Wallet is the official wallet for Binance users. It boasts over 10 million users and supports a staggering 1 million assets across 53 blockchains.
Private keys are stored locally and encrypted. Trust Wallet includes a Web3 DApp browser for DeFi interactions on Ethereum or BSC, supports NFTs, and allows staking for 11 assets. It has a built-in exchange and QR code scanner. However, customer support has mixed reviews.
Coinbase Wallet: Best for DeFi and Layer-2 Solutions
Coinbase Wallet, backed by the reputable Coinbase exchange, is popular among new and experienced users. Note: it's separate from the Coinbase exchange app and is non-custodial.
It supports Layer-2 solutions like Polygon and Optimistic Ethereum, reducing gas fees and transaction times. This makes it ideal for DeFi platforms and NFT minting. Users can link their Coinbase exchange account for easy transfers. The wallet supports thousands of tokens, including all ERC-20 tokens and stablecoins. The main drawback is no built-in exchange.
Mycelium: Best Bitcoin Wallet
Mycelium is a feature-rich wallet for Bitcoin purists. Though it recently added Ethereum and major ERC-20 tokens, it focuses mainly on Bitcoin. It offers customizable transaction fees, hardware wallet support, and is open-source.
Launched in 2012, Mycelium has a strong security record with no reported hacks. It includes features like HD accounts, watch-only accounts, and cold storage. The Mycelium Market allows peer-to-peer Bitcoin trading. It supports Tor for privacy and offers multi-layer PIN protection. However, the interface isn't the most user-friendly, and there are no in-app guides.
Electrum Wallet: Best for Advanced Bitcoin Users
Electrum, an open-source Bitcoin wallet since 2011, is known for stability and reliability. It's not ideal for beginners due to its outdated GUI and lack of guides or customer support. However, it offers advanced features like multi-signature wallets, custom fees, and batch transactions.
Electrum runs on decentralized servers, ensuring no downtime. It supports hardware wallets and offers strong security with encryption, PIN protection, and two-factor authentication. Transactions are SPV-verified.
Samourai Wallet: Best for Privacy and Anonymity
Samourai Wallet is for advanced users seeking maximum privacy. It supports only Bitcoin and includes features like Tor and VPN support, AES-256 encryption, and offline transactions. It's open-source and Android-only.
Unique features include PayNym IDs for anonymous identities, Ricochet transactions to mislead blockchain observers, and a "stealth mode" to hide the app. It also offers remote SMS commands to disable the wallet if lost. Samourai integrates with his own full node server, Dojo, for enhanced privacy.
Frequently Asked Questions
What is a non-custodial wallet?
A non-custodial wallet gives you full control over your private keys and funds. Unlike exchange wallets, you own the keys, meaning you have complete ownership and responsibility for your assets.
How do I secure my recovery phrase?
Write it down on paper and store it in a safe place, like a lockbox or safe. Avoid digital storage (e.g., photos, cloud) to prevent hacking. Never share it with anyone.
Can I use multiple wallets?
Yes, many users have multiple wallets for different purposes—e.g., one for daily transactions and another for long-term storage. This can enhance security and organization.
Are software wallets safe?
They are generally safe if downloaded from official sources and used with caution. However, they are less secure than hardware wallets because they are connected to the internet. Always enable additional security features like PIN codes or biometrics.
What happens if I lose my phone?
If you have your recovery phrase, you can restore your wallet on a new device. Without the phrase, your funds may be permanently lost. This highlights the importance of backing up your recovery phrase.
Can I stake cryptocurrencies in a wallet?
Many wallets, like Atomic and Trust Wallet, offer in-app staking for certain assets. This allows you to earn passive income directly from your wallet without transferring funds to an exchange.
Conclusion
Choosing the right crypto wallet depends on your needs: security, convenience, asset support, or advanced features. The wallets listed here offer a range of options for beginners and experienced users alike. Always remember to download wallets from official sources, back up your recovery phrase, and prioritize security. 👉 Find the best wallet for your needs