Best Crypto Software Wallets for July 2024

The Bottom Line

When searching for a cryptocurrency wallet, seek out a provider with a robust and reliable track record, a high level of security and transparency, a range of crypto asset management features, and seamless options to trade crypto.  

After thorough research, we determined that Guarda Wallet stands out as the top choice for the best overall crypto wallet. Guarda Wallet supports more than 50 blockchains and over 400,000 assets, provides a range of crypto earning opportunities, and comes with easy-to-use in-app crypto purchase and swapping features. Notably, Guarda Wallet has received high rankings in terms of security based on our criteria.

While Guarda’s in-app purchase fees are relatively high, the wallet’s user experience, robust security, and wide range of features justify paying a premium. By storing crypto assets in a secure, non-custodial wallet like Guarda, instead of on a crypto exchange, investors can avoid losing funds due to exchange insolvencies, like the ones that occurred with Celsius, BlockFi, and FTX last year. 

Compare the Best Cryptocurrency Wallets

Guide to Choosing the Best Crypto Software Wallet

Choosing the best cryptocurrency wallet depends largely on your personal needs. Here are some helpful tips to choose the wallet that's right for you.

What Is a Crypto Software Wallet?

A software wallet is an app or site that provides you with a storage solution for your cryptocurrency keys. You can install software wallets on your smartphone, mobile device, or your computer, which is why they're also called digital wallets. This means you'll need an internet connection to access your wallet.

One thing to keep in mind is that software wallets don't store your crypto. Your coins are stored on the blockchain. Rather, they allow you to access your passkeys so you can transact with your digital currencies. When you access your wallet, you can buy, sell, trade, or transfer your crypto from your computer or mobile device without a physical device.

How Frequently Do You Plan to Use Your Wallet?

How frequently you plan to use your crypto wallet plays an important role in choosing one that’s right for you. For example, if you plan to use digital currencies, like Bitcoin or Tether, to make regular payments, you probably want to hold some of your funds in a mobile wallet. 

But if you are looking to invest in and store crypto assets over the long term–and if you're looking to store a large amount of digital currency–you're better off securing your crypto assets offline in cold storage using either a hardware or paper wallet.

If you intend to actively trade digital assets, opting for a multi-platform wallet that offers the flexibility of managing your cryptocurrency portfolio on both your desktop and smartphone would likely prove advantageous. 

Nevertheless, it’s crucial to exercise caution and avoid storing substantial amounts of cryptocurrency on centralized crypto exchanges or lending platforms. By doing so, you mitigate the risk of experiencing a total loss of funds in the event of a hack or the insolvency of an exchange.

Do You Care About the Level of Customer Support?    

If you are a beginner, you probably want to go for a beginner-friendly wallet with an easy-to-use interface. 

Not all wallet providers have customer support. Numerous long-standing open-source wallets, for example, don’t offer any customer support. If you think you will require help with your wallet, choose one that allows you to interact with a human for customer service and support agent via telephone or live chat. 

How Important Is Security?

Are you just looking to test the waters in the brave new world of crypto? Or are you looking to make a substantial investment? Depending on your plans, security will either play a relatively small or a very big factor in choosing a wallet. 

You may be looking for a desktop wallet you can secure with an encryption password. Or maybe you want the best security that crypto storage solutions can offer.

Backing up your wallet is one of the most important–if not the most important–aspects of crypto wallet management. Are you content with writing down and safely storing a recovery phrase, or do you prefer to only have to remember a username and password?  

Choosing a wallet with a backup feature that works for you is another essential security measure when it comes to picking a wallet.

How Important Is It to Have Ownership of Your Private Key?

Are you comfortable with a third-party provider holding your wallet’s private keys (and thus having de facto ownership of your virtual assets)? If not, you can choose a non-custodial wallet where you are responsible for managing your wallet’s private keys. 

While these wallets are considered best practice because you have complete control over your virtual assets, if you lose access to your wallet or forget your encryption password, you will lose all funds held in that wallet.

Software Wallets vs. Hard Wallets vs. Paper Wallets

As we've already mentioned, software wallets are apps that you use on your computer and/or mobile devices, such as your smartphone or tablet. Since you don't have a physical device to tote around, you can access your (software) wallet from anywhere—as long as you have an internet connection.

But, there are other wallets that you can use, including:

• Hard wallets: These wallets are physical devices that you can take with you anywhere you go. Hard wallets look like USB drives that you have to plug into a computer or other compatible device. Once plugged in, you'll generally need an internet connection to access your wallet. They are among the safest ways to store your crypto keys. You will have to take precautions, though, when you're online as you can be susceptible to hackers and malware. Examples of hard wallets include Trezor and Ledger.
• Paper wallets: This type of wallet is exactly how it sounds: a piece of paper you keep and carry with you. Paper wallets come printed with public and private keys. They may also come with a barcode that can be scanned if you get yours through an app. Carrying a paper wallet gives you an offline storage method for your crypto keys. They're fairly safe but may be susceptible to damage.

As a point of reference, you've probably heard the terms hot and cold wallets. Hot wallets require an internet connection. These are typically software-based, such as a web, mobile, or desktop wallet. Cold wallets, on the other hand, can be handled physically. So your hard or paper wallet are both considered cold wallets.

What You Need to Create Your Software Wallet

We've already discussed the frequency of use, ownership of your keys, customer support, and privacy. Be sure you understand the difference between public and private keys. Public keys allow others to send you crypto when they're transacting with you. Private keys, on the other hand, are like the password to your wallet, so it works on the same principle as your email password. That means only you should know it.

There are some other factors you'll also want to consider, including:

• Associated costs: Some software wallets may be free while others come at a cost. Free or not, you may also want to consider any fees that are associated with the wallet. These include transaction fees or additional costs to unlock and/or use other features.
• Supported cryptocurrencies: This is very important if you hold or plan to hold different types of cryptocurrencies. You'll want to make sure that the wallet you choose supports all of the ones in your investment strategy.

Once you've decided on the wallet(s) you want, you'll need the following information to open and begin using it:

• Your name
• Your email address
• Your full mailing address
• Your telephone number

This information is required by law to meet anti-money laundering regulations and know-your-customer (KYC) rules. Without these details, you may not be able to open your wallet and begin trading.

Pros and Cons of Crypto Software Wallets

Pros Explained

• Accessibility: Software wallets don't require you to carry around a physical device to access your cryptocurrencies. They rely on an internet connection, which means you can access your wallet from anywhere as long as you have a connection and computer/mobile device.
• Wide range of features: The main point of crypto wallets is to provide you with a place to store the passkeys so you can access your currencies. Software wallets often come with additional features, including the ability to buy, sell, and trade your coins, send and receive crypto, access transaction histories, and check your balance.
• Lower price: Unlike hard wallets, software wallets don't require you to purchase a device. Instead, you can download an app on your computer and/or mobile device—in many cases, for free. Optional features, though, may come at a cost.

Cons Explained

• Security: Software wallets are convenient because you don't have to carry around a physical device. But being internet-based means they are less secure. As such, they're prone to malware and hackers. It's important to take steps to mitigate or avoid a breach by adding features like two-factor authentication.
• Requires an internet connection: Being portable makes the software wallet an ideal choice. But you may run into trouble if you can't find a place to connect to the internet. Slow or no connections may cause you to miss a trading opportunity or lose out on a sale.
• You may need multiple wallets: Some software wallets only work with specific cryptocurrencies. This means if you buy, sell, trade, or transact with different cryptocurrencies, you may require multiple wallets. This may lead to confusion as you try to juggle all your storage solutions.

Why You Should Trust Us

Our review process is built around a quantitative rating model that weighs key factors like security, costs, privacy, usability, customer support, and features according to their importance. Our team of researchers gathered over 40 data points and conducted extensive research for each of the 19 companies we reviewed. Our team then test-drove each wallet to lend their qualitative point of view.

Our model gave preference to companies with the strongest security measures and reputations. Companies with rich features, such as supporting a large number of crypto assets, giving users the ability to sync with hardware wallets, and allowing for fee customization, also ranked highly.

Guide to Crypto Software Wallets

• Cryptocurrency Wallet: What It Is, How It Works, Types, and Security
• Cryptocurrency Software Wallet Methodology
• Hot Wallet: Definition, Types, Examples, and Safety Tips
• Hot Wallet vs. Cold Wallet: What's the Difference?
• Cold Storage: What It Is, How It Works, Theft Protection
• Multi-Signature Wallets: Definition and Use Cases
• How to Store Cryptocurrency
• How to Create a Crypto Wallet
• Blockchain Wallet: What It Is, How It Works, Security Issues
• What Is a Paper Wallet? Definition and Role in Cryptocurrency