The landscape of Web3 wallets has evolved significantly, offering users a diverse array of options tailored to their specific needs and preferences. Web3 wallets have become essential tools for users navigating the decentralized web. In this article, we will compare the top Web3 wallets in 2024 to help you make informed decisions in managing your digital assets.
What is a Web3 Wallet
A Web3 wallet (a decentralized wallet) is an application to store digital assets such as cryptocurrencies and NFTs. It also allows users to interact with decentralized apps (dApps) built on blockchain networks. Users can stake, exchange, borrow, or lend their cryptos within the Web3 wallet without sending them to another address.
Types of Web3 Wallet
There are several types of Web3 wallets, each with unique features and characteristics. Here are some common types:
Hot Wallets
Hot wallets, also known as software wallets, operate online and provide quick access to your Web3 assets. They come in various forms: browser-based, desktop, and mobile wallets. Browser-based hot wallets offer convenience when using Web3 applications through your web browser.
Desktop hot wallets get downloaded onto a computer – you can control private keys better with them because they provide enhanced security features. Mobile hot wallet apps fit perfectly into our busy lifestyles by allowing us to manage our Web3 assets while moving.
Whether facilitating instantaneous transactions or offering seamless compatibility with numerous blockchain networks, hot wallets have revolutionized how we interact with digital platforms.
Yet despite these advantages, they are not without risk – their internet-connected nature potentially exposes them to cyber threats. Users must, therefore, ensure ethical cybersecurity practices like regular software updates and strong password creation for safeguarding their crypto investments.
Cold Wallets
Cold wallets, also known as hardware wallets, are a type of Web3 wallet that prioritizes security. These physical devices store private keys offline, protecting against potential cyber-attacks and hacking attempts.
Examples include popular hardware wallets like Ledger Nano S and Trezor. By keeping private keys offline, cold wallets ensure that your cryptocurrency assets are secure, even if your computer or mobile device is compromised.
With cold wallets, you can have peace of mind by storing your digital assets in a highly secure environment.
Non-custodial Wallets
Non-custodial (aka, self-custody) wallets, also known as self-custody wallets, rely on a public and private key pair to give users complete control over their assets.
A public key is a unique identifier used to receive cryptocurrency or other assets on the network. It is generated from a corresponding private key, a long and complex number the user should keep secret.
The private key is used to sign transactions sent on the blockchain, ensuring that only the private key owner can access and control the associated assets. An excellent example of a public key is the address to your house.
Anybody can know or look it up, whereas you can think of the private key as the key to that house. You would want to keep that secret from everybody.
Keeping the private key safe and secure is crucial because losing access to it will result in losing access to the assets.
Non-custodial wallets can be stored in browser extensions or mobile apps and are classified as hot wallets since they require an internet connection.
However, users can store non-custodial wallets in physical devices (e.g., Ledger, Trezor). They would then be considered cold wallets since it has no tech connectivity and stays offline.
Custodial Wallets
Custodial wallets, on the other hand, are wallets where a third party, such as an exchange (e.g., Coinbase), manages the private keys on behalf of the user.
These wallets generally require KYC (know-your-customer) and use the same recoverability features as your email provider. However, this comes with the requirement of trusting the third party with their private keys and assets. Additionally, these wallets may offer the same features that non-custodial wallets provide (i.e., interacting with smart contracts).
Top Web3 Wallets in 2024
There are many Web3 wallets in the market. Most of them are free to download and set up. Popular and widely used wallets have laid a solid groundwork for building a fair and open internet, even though the entire DeFi and Web3 ecosystem is still in its early stages. The top web3 wallets in 2024 are:
- Trust Wallet
- Metamask
- Coinbase Wallet
- Ledger Nano S
- Ledger Nano X
- Trezor Model T
- Zerion
- Rainbow Wallet
- Exodus
- OKX Walet
- MyEtherWallet
Trust Wallet
Acquired by Binance in 2018, Trust Wallet has evolved into a versatile Web3 wallet catering to the needs of both beginners and advanced users.
Trust wallet is a multi-asset mobile wallet; it’s one of the mobile wallets that supports a wide range of cryptocurrencies and assets.
It has become a single platform that allows multiple chains, making it, by definition, blockchain agnostic.
Beyond its support for a wide range of cryptocurrencies, Trust Wallet boasts a built-in decentralized exchange (DEX), enabling users to swap tokens directly within the app.
Trust Wallet allows staking and returns from earning held digital assets while non-custodial. Despite offering many features, the wallet doesn’t charge any wallet, swapping, or dApp fees.
Trust Wallet’s integration with Binance Smart Chain (BSC) also expands its utility, providing users access to a burgeoning ecosystem of dApps and DeFi protocols.
Currently, there isn’t a desktop or web wallet available for users. Users have expressed concerns about no documentation when cashing out their money alongside the wallet. Trust wallet is also considered a “hot wallet,” making it vulnerable to hacks.
With features like multi-coin support, staking capabilities, and an intuitive user interface, Trust Wallet remains a top contender in the Web3 wallet space.
MetaMask
MetaMask is one of the pioneering Web3 wallets, gaining widespread adoption for its user-friendly interface and robust functionality.
With 21 million monthly active users, its user-friendly interface enables interaction with the blockchain while having an account backed up with a seed phrase.
Metamask allows users to purchase ERC-20 tokens directly through the application itself and gives you control of your private key, therefore being non-custodial.
It’s also open-source and supports trading on other custom chains like Binance Smart Chain or layer 2 solutions like Polygon.
Metamask gives its users more control over their public and private keys. Finally, Metamask can connect to most decentralized apps today due to its popularity and large development community.
Since Metamask is an online wallet, there is a greater risk of being hacked than cold wallets due to its online functionality.
While Metamask does not track your information, the browser you use could collect user information about how much you interact with the Metamask extension while compromising your privacy. In addition, Metamask only supports Ethereum and other ETH-based tokens.
Coinbase Wallet
Coinbase, a household name in the cryptocurrency industry, introduced its own Web3 wallet to complement its exchange platform.
If you were ever curious about cryptocurrencies, chances are you’ve heard or been introduced to Coinbase. A good reason behind the popularity of Coinbase Wallet is that Coinbase is the largest U.S.-based cryptocurrency exchange.
The non-custodial wallet is not used as a centralized exchange but to transfer assets from accounts. Coinbase Wallet combines ease of use with robust security features, appealing to newcomers and seasoned cryptocurrency enthusiasts.
Its seamless integration with the Coinbase exchange allows for convenient asset management and trading. Coinbase Wallet offers users complete control over their private keys, ensuring maximum security and autonomy over their funds.
Remember that Coinbase Wallet is a separate product from the wallet users typically use for interacting with Coinbase. Lastly, it has a proven assurance of security and leverages features like biometric security or a PIN for safeguarding your assets.
The wallet only supports a limited number of digital assets like Ethereum ERC-20 tokens, Bitcoin, Dogecoin, Litecoin, DAI, Ripple, XRP, and more. In addition, Coinbase Wallet supports a variety of ETH Layer-2 solutions, including Arbitrum, Avalanche C-Chain, Binance Smart Chain, Optimism, and Polygon.
Due to the company’s policies, the wallet has high compliance features, such as KYC rules. Like Metamask, it isn’t the safest alternative because your crypto is online.
Ledger Nano S
The Ledger Nano S, an affordable cold wallet, is a great way to get your feet into hardware wallets to ensure your private keys never leave the device and stay safe offline.
In addition, it supports more than 1,100 tokens and has an easy setup and installation process, making it quick and easy to establish a foundation to keep your crypto secure.
Although the wallet supports various tokens, the Ledger Nano S has limited storage space for crypto apps.
The small display on the wallet isn’t touchscreen and is controlled by manual buttons. The wallet overall isn’t as mobile-friendly as the other options out in the market.
Ledger Nano X
Ledger Nano X is among the most popular hardware wallets out in the market, alongside Trezor. It is best paired with the smartphone app called Ledger Live. The app allows you to view your balance with or without the device.
Not only does the Nano X provide Bluetooth, but you aren’t required to use a USB cable to confirm transactions, which eliminates another roadblock toward simplicity.
This hardware wallet provides a sleek, modern look, supporting over 1,800 tokens, including Ethereum and ERC-20 tokens.
With its compatibility with various tokens and well-established security, the only downside would be that it is still relatively expensive compared to other wallets.
Trezor Model T
Often known for developing the first hardware wallet for cryptocurrencies, an LED display is used as an easy-to-use interface in addition to a PIN to access the wallet.
Even more, security is added when the device prompts the user to 2-factor authentication to verify purchases. The wallet aims to implement every official cryptocurrency in the system and has implemented 1600 cryptocurrencies.
A drawback to the secure wallet would be that it doesn’t have a beginner-friendly interface compared to other hardware wallets. Although user-friendly, Ledger has the upper hand regarding the user experience, especially if users first purchase a hardware wallet. The Trezor Model T is also quite expensive, which could be a downside.
Zerion
Zerion is an intuitive mobile-first web3 social wallet and investing tool that enables anyone to manage their DeFi and NFT portfolios. It stands out in the ecosystem because it allows users to connect their non-Zerion wallets (including Ledger hardware wallets) and manage their portfolios – making it a must-have web3 wallet.
Zerion’s built-in trading and bridging aggregator across every major blockchain also helps users find the best deals across all their devices, whether using their web app, mobile app, or iPad app. Additionally, Zerion’s social features enable users to follow other people’s wallets, receive push notifications on NFT drops, and track their favorite assets.
Zerion shares many of its tools to help other builders. Zerion’s Websocket API, which is built on Alchemy, lets developers integrate the whole of DeFi into their applications without running their node infrastructure and is used by wallets like Rainbow Wallet. Zerion’s DeFi SDK, a set of open-source smart contracts, makes trading across networks, query assets, and interacting with major DeFi protocols easier.
Zerion has processed over $1.5B in transaction volume, seeing $5M traded daily on average with a median trade size of $1,000!
Rainbow
Rainbow is another non-custodial wallet solely for Ethereum. It can support dApps on the Ethereum network to provide capabilities like executing swaps straight from the application.
Rainbow does not hold assets on behalf of its users, making it non-custodial for users to control. A neat feature is that Rainbow allows users to display their NFTs and other digital assets in the application. Rainbow wallets have the slickest user interface and experience when it comes to Ethereum wallets.
Rainbow wallet is considered a hot wallet, meaning there is a higher risk of being hacked than cold wallets. Therefore, it should be a priority to ensure you have backed up the wallet data file and seed phrases regularly.
Exodus
Exodus has created the space when it comes to desktop wallets. It is a software-based hot wallet with a few distinct features, like a built-in exchange.
You can buy and sell assets straight from your wallet without transferring funds to an exchange or brokerage. Exodus wallets also provide a wide variety of cryptocurrencies, including niche tokens. Overall, it is one of the best desktop wallets out there.
Security isn’t the greatest in Exodus because it doesn’t have two-factor authentication, which is now standard practice in the industry. However, it still provides a recovery phrase and a built-in backup feature.
Fees tend to be higher than other wallets because Exodus is designed to process transactions as quickly as possible.
OKX Wallet
OKX Wallet is a leading self-custody wallet that empowers users to securely take control of their crypto, NFTs, and digital assets all in one place.
The wallet lets users buy, trade, earn, and manage digital assets in over a dozen languages and across 50+ blockchains such as Bitcoin, Ethereum, OKT Chain, Solana, BSC, and Aptos.
Since launching, OKX Wallet has earned over 100,000 Chrome Extension installs, 5 million downloads on Android’s Google Play Store, and 14,000 Apple App Store reviews with an average rating of 4.8 out of 5.0 stars.
MyEtherWallet (MEW)
MyEtherWallet (MEW) has established itself as a trusted Web3 interface for managing Ethereum-based assets since its inception in 2015.
In 2024, MEW continues to evolve, offering users a seamless experience interacting with decentralized finance (DeFi) protocols, non-fungible tokens (NFTs), and other Ethereum-based applications.
With its emphasis on user control and privacy, MEW allows users to generate and manage their private keys locally, mitigating the risks associated with centralized custodial services.
Moreover, MEW’s integration with hardware wallets like Ledger and Trezor further enhances its security features, ensuring users’ funds remain protected.
Comparing Top Web3 Wallets
When comparing Web3 wallets, users should consider several key factors to determine which suits their needs best. Here are some significant factors to consider:
- Type of Wallet
- Platform Focus
- Accessibility and Ease of Use
- Security Features
- Integration and Compatibility
Type of Wallet
- Hardware Wallets:
Ledger Nano S, Ledger Nano X, Trezor Model T – These wallets store private keys offline, providing enhanced security against online threats
- Software Wallets:
Trust Wallet, MetaMask, Coinbase Wallet, Zerion, Rainbow, Exodus, OKX Wallet, MyEtherWallet (MEW) – These wallets are accessible through software applications and can be either hot wallets (online) or cold wallets (offline).
Platform Focus
- Ethereum-focused:
MetaMask, MyEtherWallet (MEW), Rainbow – These wallets primarily support Ethereum and Ethereum-based tokens.
- Multi-platform:
Trust Wallet, Coinbase Wallet, Zerion, Exodus, Ledger Nano S, Ledger Nano X, Trezor Model T, and OKX Wallet – These wallets support multiple blockchains and tokens, providing users with broader asset management capabilities.
Accessibility and Ease of Use
- User-Friendly Interface:
MetaMask, Coinbase Wallet, Zerion, and Rainbow – Offer intuitive interfaces for beginners and experienced users.
- Mobile-Friendly:
Trust Wallet, MetaMask, Zerion, OKX Wallet – Accessible via mobile applications, allowing users to manage their assets on the go.
- Complex Interface:
Ledger Nano S, Ledger Nano X, and Trezor Model T
Security Features
- Cold Storage:
Ledger Nano S, Ledger Nano X, Trezor Model T – Private keys remain offline, minimizing the risk of unauthorized access.
- Non-Custodial:
MetaMask, Trust Wallet, MyEtherWallet (MEW), Rainbow – Users retain complete control over their private keys, reducing reliance on third-party custodians.
Integration and Compatibility
- Decentralized Apps (dApps):
MetaMask, Trust Wallet, Rainbow – Compatible with various dApps, enabling users to interact with decentralized applications seamlessly.
- Hardware Wallet Integration:
MetaMask, MyEtherWallet (MEW) – Integrate with hardware wallets like Ledger and Trezor for enhanced security.
Conclusion
Web3 wallets are an essential tool for anyone interacting with blockchain-based applications. They provide a secure way to store, manage, and transfer digital assets while giving users control over their private keys.
From established players like MetaMask and Trust Wallet to innovative solutions like Coinbase Wallet and Ledger Nano, users can access myriad options catering to their specific needs and preferences.
As the decentralized web continues to evolve, the importance of choosing a reliable and secure Web3 wallet cannot be overstated.
By considering factors such as the wallet type, security features, and platform focus, users can choose the Web3 wallet that aligns best with their priorities, whether it’s security, accessibility, platform focus, etc.