Blockchain technology has led to the emergence of a new type of currency known as cryptocurrency.
As with any new and emerging financial instrument, the cryptocurrency space is full of risk and speculation.
That’s where the crypto wallet comes into play, making the process simple and safe, helping users of all backgrounds to transact seamlessly.
A crypto highly secured wallet is an essential part of the digital currency ecosystem. In a sense, it’s the equivalent of a physical wallet for paper money.
Therefore, choose the best crypto wallets if you want your digital currency investment to be doubly protected.
However, finding the right cryptocurrency wallet can be challenging, especially with the increasing number of options on the market.
This article will provide you with some helpful information about using crypto wallets and help you choose the best ones in Canada for your needs.
You might also like
What is a Crypto Wallet?
A crypto wallet is a secure digital place for traders to store the digital codes, or keys, needed to access and trade their cryptocurrencies.
They are the digital, user-controlled accounts that store cryptocurrency.
These digital wallets provide access to a blockchain network, helping you manage your cryptocurrency holdings.
Each data block is encrypted using cryptography, ensuring your data stays private and secure.
This allows for an entire network of decentralized databases to be managed securely without the need for centralized storage, further securing any sensitive, personal information.
The crypto wallet was designed to give users complete control over their bitcoins. This wallet allows its users to send, receive and scan crypto codes.
Unlike traditional wallets that store coins and cash, crypto wallets are virtual like email addresses and only hold cryptographic keys.
Every cryptocurrency must have its unique wallet, and therefore if you want healthy interaction with a blockchain, it is necessary to have one.
There are various types of wallets, each with unique features. Whether you want to buy and sell crypto or Bitcoin, these wallets will ensure your needs are met.
How do Crypto Wallets Work?
You are not transferring any coins whenever somebody sends bitcoin, ethereum, dogecoin, or any other sort of digital currency to your crypto wallet.
As such, they are, in effect, transferring ownership to your wallet address. In other words, they are confirming that the crypto on the blockchain belongs to your wallet, not theirs.
This can be accomplished using two digital codes: private and public keys.
- Only the wallet owner should know what the strings of numbers and letters mean in a private key.
- A public key consists of a string of numbers and letters generated automatically by the crypto wallet provider.
Crypto wallets are like email accounts. You need to share your email address with people to receive emails.
This is your public key for crypto wallets, which you must share with others to participate in blockchain transactions.
Nevertheless, you wouldn’t share your password with anyone. This password is similar to the private key in a crypto wallet, which cannot be shared under any circumstances.
Therefore, crypto wallet users may participate in transactions utilizing these two keys without jeopardizing the authenticity of the currencies being exchanged or the transaction itself.
However, to authenticate any funds sent or received by your digital wallet, the public key assigned to it must match the private key.
The amount in your crypto wallet may grow or decrease as soon as both keys are verified.
Why are Crypto Wallets Important?
A crypto wallet does not store your cryptocurrency like a regular wallet, which can hold cash.
Instead, they store the location of a secret key that allows you to access your crypto holdings on a blockchain.
This means no one, not even the developers of any wallet, can access your funds, and in most cases, it also means that no personal information is tied to these wallets.
The blockchain contains your holdings, but your private key is required to access them. Transacting with your digital money relies on your keys, which prove ownership.
Therefore, using a hardware wallet or a reputable wallet provider is essential to avoid worrying about security.
This is essential because when you lose your private keys, you lose access to your money.
Types of Crypto Wallets in Canada
There are different types of Crypto Wallets in Canada. You can choose from the following types of wallets:
- Online wallets: You store keys in an app or another program, making sure such a program is protected by two-step encryption. Your crypto can now be sent, received, and used with the ease of an online bank account, payment system, or brokerage account.
- Hardware wallets: Crypto keys are kept on thumb drives that are kept in a safe place. They are only connected to computers when crypto is required. The goal is to balance convenience and security.
- Paper wallets: In this type of crypto wallet, the keys are written on a physical medium, such as paper, and kept securely. This makes using your crypto more challenging. Since crypto is digital money, you can only use it over the internet.
10 Best Crypto Wallets in Canada
We understand that not everyone is familiar with cryptocurrencies, so we try to be as informative and friendly as possible.
Our list of the best crypto wallets in Canada will help you get started with cryptocurrencies such as bitcoin and litecoin.
Whether looking for the most secure option or the one with the lowest fees, these wallets will help you keep your crypto safe while you get your feet wet in the world of cryptocurrencies.
1. Binance (Trust Wallet)
- Wallet Type: Software
- Cost: Free
Binance is the world’s largest exchange for Bitcoins and other cryptocurrencies. The company acquired Trust Wallet in 2018 and has since taken over the mobile wallet.
With Trust Wallet, you can access more than forty blockchains, which are free to use.
In addition, it supports staking, which means that you can earn more crypto by holding your existing holdings.
2. Ledger Nano X
- Wallet Type: Hardware
- Cost: $159 CAD
There is no doubt that the Ledger Nano X is the best cold storage crypto wallet currently available on the market.
Secure key protection is provided by a certified secure chip in this hardware wallet. In addition to Bitcoin, Ethereum, Dogecoin, Litecoin, and many others, it also supports more than 1,800 cryptocurrency assets.
This Bitcoin wallet has consistently been rated as the best globally by customers.
It is ideal for investors who want a safe, secure cold-storage wallet that supports the maximum number of cryptocurrencies.
3. Ledger Nano S
- Wallet Type: Hardware
- Cost: $89 CAD
Like the Nano X, the Ledger Nano S is a hardware wallet that has received outstanding reviews from users.
Aside from supporting 1,500+ cryptocurrencies like Shiba Inu, Solana, Safemoon, and Tether (USDT). Each user can hold up to 20 digital assets in their account at any given time.
However, fewer coins are stored, resulting in a smaller storage capacity. Nevertheless, 95%+ retail investors are more than satisfied with the Nano S.
In that regard, Ledger Nano S is an excellent choice when you’re looking for a cold storage wallet that’s safe and secure on a budget.
4. Bitcoin Armory
- Wallet Type: Software
- Cost: Free
Bitcoin Armory is a software wallet that allows you to interface with the bitcoin network entirely.
Users must download the entire bitcoin blockchain, which is approximately 360 GB, and validate transactions on the network to use this wallet.
There are no fees associated with using the wallet, except for bitcoin transaction fees.
In addition to generating private keys, Armory also allows users to send and receive funds without letting the private keys touch the internet. Information transmitted through Armory is entirely confidential.
5. Exodus Wallet
- Wallet Type: Software
- Cost: Free
For beginners to the crypto-trading process, Exodus is an excellent choice because it removes the geek requirement. It has a built-in exchange and can send and receive over 130 cryptocurrencies.
It is a very easy-to-use interface that allows you to buy, sell, store, and track your tokens all from one place. That’s pretty good for a free product.
Furthermore, the Exodus platform also allows token holders to stake a variety of proof-of-stake cryptocurrencies,
Due to Exodus’ dual desktop and mobile versions, security would typically be its weakness. However, due to their partnership with this next wallet, this problem is well solved.
6. Electrum
- Wallet Type: Software
- Cost: Free
This Bitcoin wallet has been in existence since 2011 and is online software. With this software, users can use their PC and mobile devices and hardware wallets like Trezor and Ledger.
The Electrum wallet offers versions for desktop and mobile platforms and compatibility with major hardware wallets like KeepKey, Trezor, and Ledger.
Similar to Exodus, this provides a combination of security and functionality. In addition to multi-signature functionality, Electron offers an ecosystem of third-party plugins that are not available with hardware wallets alone.
7. Trezor Model T
- Wallet Type: Hardware
- Cost: $245 CAD
The SatoshiLabs team developed and created the Trezor Model T hardware wallet. It supports many cryptocurrencies, such as bitcoin, ethereum, litecoin, Dogecoin, and others.
In addition to being a crypto-enabled device, the Trezor Model T can also act as a password manager, helping you secure your digital life beyond encryption.
8. Trezor One
- Wallet Type: Software
- Cost: $69.99 CAD
In a similar vein to Ledger, Trezor makes an older, cheaper wallet that is still decent if you don’t want to spend a lot of money.
Although it is similar to the Model T in many ways, the Trezor One requires a connection to another device, and the screen is monochromatic.
The Model T lacks some of the flash, but it’s a safe, reliable wallet nonetheless.
9. Coinomi
- Wallet Type: Software
- Cost: Free
The Coinomi wallet was one of the first multi-chain wallets to exist, and it supports more than 1700 cryptocurrencies.
As a result, it is among the most versatile free wallets. Despite this, there are still transaction fees, which vary based on the cryptocurrency involved.
In addition to the desktop version, Coinomi has a mobile version. So far, no Coinomi wallet has been compromised or hacked.
Therefore, millions of crypto holders prefer Coinomi because of its innovative security and versatility.
10. Wealthsimple Crypto
- Wallet Type: Software
- Cost: Free
Wealthsimple Crypto enables users to purchase a variety of cryptocurrencies, including Bitcoin, Ethereum, and many others.
Your cryptocurrency assets are generally held in cold storage with Gemini, a regulated custodian with insurance coverage of $200 million on this brokerage.
Wealthsimple Crypto is a great starting point for beginners looking for an easy way to buy cryptocurrencies.
Wealthsimple has also recently released its wallet, which allows you to transfer Bitcoins from other wallets into Wealthsimple.
RELATED: How to Buy Dogecoin in Canada
How to Choose the Best Bitcoin/Crypto Wallets in Canada
When choosing the best bitcoin and cryptocurrency wallets in Canada, you need to look closely at the following key factors:
Security
Security is the primary important factor in the money you store inside your cryptocurrency wallet.
You have to look into its security features and ensure they are adequate for your currency’s storage.
Accessibility
If you are looking for safe, secure places to store your bitcoins and other cryptocurrencies, another first thing to consider is accessibility.
How easily can you access your digital asset wallets? Three types of wallets can be used – desktop, mobile-app, and web-based.
With excellent accessibility, you will have access to your bitcoins anytime and anywhere you can use a computer or smartphone.
Supported Coins
How do you know if a wallet supports the coins you own? You should look at their website and see what coin they support.
Ensuring that the wallet you choose to store your assets supports the most popular cryptocurrencies will save you considerable stress later on.
Cost
It is essential that you look at the fees and what you get in return before making a final decision.
Some wallets are free and may provide certain features that others don’t, so it is up to you to discover what service fits your needs most.
Nevertheless, you can consider paying for a wallet, and if you’re investing a considerable sum of money into cryptocurrency, it is always safer to go for a hardware wallet.
Interface
The interface is one of the most important things you should look for when choosing the best Bitcoin wallet.
Always go for those that have a user-friendly interface and general operations that don’t frustrate you at every turn.
Conclusion
A crypto wallet is a software program that allows you to securely send, receive, and store digital currency like Bitcoin.
However, choosing the best digital wallet for your needs can be tricky since there are so many different types of wallets to choose from.
Fortunately for you, I have explained the basics of crypto wallets and listed the best crypto wallets in Canada.
Hopefully, this will help you make an informed decision on which wallet you should use to store your digital coins in Canada safely.
So why don’t you go ahead and choose the one that suits your need to have a double advantage while using it?
FAQs
Why do I need crypto wallet?
With a crypto wallet, your private keys are kept secure and accessible. Bitcoin and Ethereum can also be received, sent, and spent through crypto-wallets.
Do crypto wallets cost money?
Yes. While many software-based wallets are free, hardware-based wallets typically cost between $100 and $200.
Which crypto wallet has the lowest fees?
Apart from the cost of acquiring the wallet, most of the crypto wallets mentioned above don’t charge any fees.
What is the safest crypto wallet in Canada?
The Ledger Nano X and Ledger Nano S are the safest cryptocurrency wallets in Canada.
How do I buy a crypto wallet?
Crypto wallets are available for purchase on each brand’s website. Some may also be acquired through third-party merchants.
