A cryptocurrency wallet acts just like a regular wallet – a safe place to store your assets. You cannot buy, sell or trade cryptocurrency without one. With hundreds of options out there, it can be a little difficult to pick your very first Bitcoin wallet. This guide will walk through some of Australia’s best crypto wallets for you to safeguard BTC and other digital currencies.

Hardware Wallets

What are Hardware Wallets?

Hardware wallets are often recommended as the safest way to store large portfolios of cryptocurrency. These physical devices resemble a dongle and can be connected to the computer via a cable or USB port. Hardware wallets are referred to as “cold wallets” because they are not connected to the internet unless being actively used on a PC. When disconnected from a computer, hardware wallets cannot be accessed. This makes them incredibly secure and much more difficult to hack compared to a “hot/software wallet” (e.g., Metamask), which is constantly connected to the internet. The downside is that hardware wallets tend to cost money and require safe physical storage. 

Best Hardware Wallet: CoolWallet Pro

The CoolWallet Pro has everything an investor needs from a secure crypto wallet. You can rest easy storing your digital currencies offline thanks to the CoolWallet Pro’s CC EAL 6+ military-grade security chip. You can send and receive most popular tokens, and even stake eligible ERC-20 tokens directly through the wallet’s linked smartphone app. Users can also control their digital currencies through a device within a 10-metre proximity of the physical wallet, meaning there’s no need to muck around with cables and connections. The battery life of the wallet is about 2-3 months (when idling) and can be recharged through a regular USB adapter.

Features

• Support for hundreds of crypto assets, including heavy-hitters like Bitcoin, Ethereum and Solana
• Associated smartphone app to easily access stored tokens
• Staking for eligible ERC-20 tokens
• 3-4 month battery life
• In-built compatibility with decentralised exchanges (DEX) for advanced crypto trading
• Sleek, lightweight design weighs less than 10 grams
• CC EAL6+ Military-Grade security chip to ensure your assets remain safe

Ledger Nano X

Ledger’s Nano X comes with 25% more storage space than the Nano S, which is useful for those with diverse crypto portfolios. Each “app” you load onto the hardware wallet is essentially a wallet and takes up storage. For example, storing Ethereum requires an Ethereum app on the Ledger Nano – which takes up space.

Additionally, the Nano X comes with bluetooth connectivity and an internal battery, so it doesn’t need to be plugged in to function. iOS users who want to manage their portfolios from an iPhone will also find the Nano X a necessary upgrade.

Features

• Bluetooth connectivity with months of battery life
• Support for macOS, iOS, Android and Windows devices
• CC EAL6+ certification – the industry standard for security
• Integration with Ledger Live, a powerful application that supports staking, DeFi navigation and trading digital assets directly to/from a wallet
• Over 2MB of storage for holding a wide array of digital currencies
• Ledger crypto wallet support over 5,500 coins and tokens, including the most famous BTC with their Bitcoin wallet, Ethereum, Solana and much more.

Ledger Nano S Plus

Ledger is one of the most important names in the crypto wallet industry. The French business has been delivering high-quality hardware wallets for over a decade, boasting a top-shelf security record over this time. The dongle-like Ledger Nano S Plus is a perfect beginner’s hardware wallet, balancing features with pricing. The device can connect via USB-C to Windows, MacOS and Android operating systems while sending, receiving and storing over 5,000 different digital currencies. The physical product itself has a CC EAL6+ certification, making it one of the most secure crypto wallets on the market. 

Ledger Live is the hardware wallet’s affiliate application that boasts several powerful functions. When your wallet is connected to a computer (or smartphone) it can be used to simply manage your crypto portfolio. However, Ledger Live also acts as a crypto exchange, a place to stake/earn on your assets and as a gateway to hundreds of integrated DeFi apps. 

Features

• USB-C connectivity to Android, MacOS and Windows devices
• CC EAL6+ certification demonstrating top-shelf security
• Integration with Ledger Live, a powerful application that supports staking, DeFi navigation and trading digital assets directly to/from a wallet
• Weighs only 21 grams for easy storage and transport
• Support for 100 Ledger apps and over 5,500 digital assets

Ledger Nano S are not sold anymore and have been replaced with the Ledger Nano S Plus.

Trezor Safe 3

The hardware wallet is quite simple in both design, usage and function. It features a two-button pad which can be used to control several features. The associated software supports storing, sending, receiving, staking and trading over 9,000 digital tokens, making it one of the best wallets for altcoin investors. 

Security and privacy is where the Trezor Safe 3 really shines. The product is packed with safety features. Users can set up 2FA right out the box, alongside a PIN that supports up to fifty numbers. Or if you prefer, you can use a passphrase, making it almost impossible for someone to crack your device. Tor compatibility allows truly anonymous crypto usage, while there is a standard backup alongside the classic 12-24 recovery seed phrase to ensure your crypto is always yours.

Features

• Clickable two-button pad for navigating the wallet’s features and confirming transactions on the wallet
• Access to Trezor Suite, a software application with coin management, trading and DeFi integration
• Industry-standard security, including 2FA, passcode, 50-digit PIN and more
• Uses the Secure Element Certified Chip EAL6+, making it one of the most secure hardware wallets available
• Open-source firmware
• Support for over 9,000 digital currencies

Hot Wallets

What are Hot Wallets?

Hot wallets, also referred to as a web browser wallet, mobile wallet or desktop wallet, are digital applications that securely store cryptocurrencies. These wallets often come in the form of a browser extension, desktop software or smartphone application and represent a middle-ground between custody and security.

To store your crypto assets, hot wallets are always connected to the internet, leaving them somewhat more vulnerable than their hardware (cold) counterparts. On the flipside, this makes it much easier to use hot wallets when engaging with DeFi applications or trading on exchanges. Serious crypto investors will likely use a combination of hot and cold wallets to store their digital assets.

Trust Wallet

Trust Wallet is a mobile wallet that provides a powerful way to store cryptocurrencies. A key to its popularity is its flexibility, as the wallet can be installed as a Chrome browser extension, downloaded onto a PC or installed on a smartphone. The wallet boasts over 140M customers and supports thousands of digital assets from over 100 blockchains.

The wallet comes with several features, including in-built purchasing and swapping of digital assets through affiliate exchanges (although this can be quite expensive when using fiat). The platform also supports in-app staking, although all of this (and more) can be done through its integration with thousands of Web3 applications like UniSwap and Lido.

Features

• In-built decentralized exchange access and in-wallet staking
• Support for buying cryptocurrencies with fiat payment methods (Apple/Google Pay, debit card etc.)
• Supports a massive number of digital assets (10M+!), including NFTs
• Available as browser extension, PC software or mobile app
• Extremely popular and well-trusted brand

MetaMask

MetaMask might just be the most popular and active hot wallet among crypto users. The browser extension is widely considered an industry standard for engaging with Ethereum Virtual Machine (EVM) applications, such as SushiSwap or Curve.fi. The wallet has been around for what seems like forever, and has evolved significantly since day one. MetaMask is now available as a mobile app and supports more than just Ethereum coins – although setting this up can be a little complex for beginners.

MetaMask also supports NFTs and buying/selling digital assets privately in the wallet. Users can also easily bridge assets across chains thanks to the new in-built Bridging feature. In general though, MetaMask’s features aren’t necessarily native – as a gateway to the Web3 world, its features are near limitless. 

Features

• 30+ million active monthly users
• Support for several blockchains and 100,000+ assets, including NFTs
• Easy access to the world of DeFi, including yield farming, GameFi and more
• New features constantly being added, such as Bridging and Portfolio Manager

Phantom Wallet

Phantom Wallet is another decentralised hot wallet available primarily as a Chrome/Firefox browser extension. It can also be downloaded as a mobile app on Android and iOS devices. The wallet supports several chains, however, is largely focused on accessing the Solana and Ethereum ecosystems. Customers can easily store thousands of different cryptocurrencies, as well as NFTs, on one of the simplest and best-looking hot wallets on the market. 

Phantom Wallet is particularly powerful for NFT collectors. The platform features a two-click option for users to list their digital artwork on a marketplace (Magic Eden), while also allowing in-app purchases (and immediate storage) of new NFTs. On top of this, users can stake, swap and buy/sell digital currencies directly via Phantom Wallet, making it a nice choice for both beginners and experienced DeFi users.

Features

• Support for Web3 navigation on Solana, Ethereum and Polygon blockchains, encompassing thousands of decentralised applications
• One of the best-looking app designs of any hot wallet
• Extremely easy to set up and start using, making it a good choice for beginners
• Integration with Ledger devices for extra security

Exchange Wallets

What are Exchange Wallets?

The most popular and accessible way to buy crypto is through a centralized exchange. Whenever you do so, assets you buy are initially stored in an exchange wallet, accessible through that platform. Exchange wallets are hot wallets controlled by the exchange on your behalf. This means the company is acting as a custodian and has access to your private keys (which is how you confirm/deny crypto transactions). From here, investors can either leave their assets on the exchange wallet or transfer them to a self-custodial option. 

Related: Best Crypto Exchanges in Australia

Exchange wallets are by far the most convenient and can be a good option for beginners with smaller portfolios. However, this leaves you open to counterparty risks (like exchange hacks or business liquidations) which could result in loss of funds. Exchange wallets typically cannot be used in conjunction with DeFi apps.

Swyftx

Swyftx is a prominent Australian crypto exchange launched in 2018 in Brisbane. The platform is renowned for its low fees (0.6%) and transparent spreads, alongside a healthy list of supported cryptocurrencies. There are over 400 digital currencies that can be stored in Swyftx’s exchange wallets, which lets you easily swap, sell or send crypto holdings. The platform makes it incredibly easy to convert crypto to fiat (and vice versa), which is a major appeal to beginners. In general, Swyftx sports an excellent user interface which makes portfolio management seamless. Additionally, the company has achieved ISO 27001 certification, is registered with ASIC and has never experienced any compromise or breach. As far as exchange wallet safety goes, Swyftx is a reliable choice. 

Features

• Support for storing 400+ assets across several different blockchains
• Easily send, sell or receive crypto assets through the Swyftx wallet
• Excellent security features (ISO 27001 certification being the industry standard)
• A demo mode to “try before you buy”
• Live customer support operating during Australian business hours
• Clean user interface perfect for first-timers

Visit our Swyftx review for more.

Gate.io

Gate.io is one of the longest-running crypto exchanges in the world, having been founded over a decade ago. The centralised exchange is renowned worldwide for its incredible diversity of supported assets – users can trade (and store in wallets) nearly 3,000 digital currencies. Additionally, Gate.io allows investors to leverage their portfolios through a swathe of native earning programs, including ETH staking and borrowing/lending services. 

While the lack of fiat support does make Gate.io a little less appealing for beginners, more active traders who want convenience but access to a broad range of trading features can consider using Gate.io’s exchange wallets. 

Features

• Wallet support for over 2,900+ cryptocurrencies, arguably the most of any crypto exchange
• Low trading fees, making it a good choice for active traders needing temporary crypto storage
• “Auto-earn” automatically finds best earning opportunities for certain assets

Visit our Gate.io review for more information.

How cryptocurrency wallets work

Custodial vs non-custodial

A huge factor in deciding which crypto wallet you want to use will boil down to whether you want a custodial or non-custodial wallet. Essentially, a custodial wallet means another party is managing your private keys on your behalf. This is by far the most convenient option, as forgetting your password/losing a physical wallet is much less likely. It also allows for simple one-click swapping/selling. An example of a custodian might be Swyftx or Gate.io. However, the risk here is liquidation – like the community saw with FTX – or an exchange hack where someone steals your private keys.

On the flipside, a non-custodial wallet gives you complete control over your finances. With these wallets, you must manage both your private and public keys to successfully “sign” transactions and send/use crypto. Although these wallets can be directly used on decentralised exchanges, if you want to sell your crypto for AUD it will often take a few extra steps (or be significantly more expensive than using a centralised platform like Swyftx). Additionally, if you lose access to your private key, password and/or seed phrase you will likely lose access to your portfolio for good.

Hot wallets vs cold wallets

Hot wallets like MetaMask are constantly connected to the internet to store digital assets like crypto and NFTs. This makes them incredibly convenient for interacting with the Web3 world, as they can easily be linked to an application with just a click or two. Hot wallets are usually available on a web browser, smartphone app or controlled via a third-party exchange. The tradeoff for convenience is that hot wallets pose a greater hacking risk due to their permanent connectivity. Such an exploit is more likely to come due to the app being connected to (for example, a decentralised bridging service), rather than the wallet itself being compromised.

A cold wallet, on the other hand, is aptly named due to its offline nature. These wallets are physical bits of hardware that must be connected to a device – either by Bluetooth or cable – before accessing the internet. This means they are incredibly secure and suitable for storing larger crypto portfolios. However, they can be a little slow to set up and use, making them somewhat inconvenient for crypto traders who need to take advantage of tiny swings in the market.

In short – there is a place for both hot and cold wallets in a crypto investor’s arsenal. Active traders should keep short-term assets in a hot wallet, while the bulk of longer-term holdings are best kept in a cold wallet.

Frequently Asked Questions