Cryptocurrency wallets come in several forms, each with different tradeoffs between convenience and security. Understanding these options helps you choose the right wallet for your needs.
Hot Wallets vs Cold Wallets
The fundamental distinction is between “hot” and “cold” storage:
- Hot wallets are connected to the internet, making them convenient for frequent transactions but more vulnerable to online threats
- Cold wallets store your keys offline, providing maximum security at the cost of convenience
Most users benefit from using both: a hot wallet for daily use and cold storage for larger holdings.
Browser Extension Wallets
Browser wallets like MetaMask install as extensions in your web browser. They're the primary way to interact with decentralized applications (dApps).
Advantages
- Easy dApp integration—connect to DEXs, DeFi protocols, and NFT marketplaces
- Quick setup and intuitive interface
- Support for multiple networks including Ethereum Classic
- Free to use
Considerations
- Connected to the internet (hot wallet)
- Security depends on your browser and computer
- Can be targets for phishing attacks
Popular Options
- MetaMask: Most widely used, supports ETC with custom network configuration
- Brave Wallet: Built into the Brave browser
Mobile Wallets
Mobile wallets run on your smartphone, making them ideal for everyday transactions and payments.
Advantages
- Always with you—convenient for in-person transactions
- Can scan QR codes for easy address entry
- Often support multiple cryptocurrencies
- Good balance of security and convenience
Considerations
- Phone theft or loss is a risk (backup your seed phrase!)
- Limited dApp interaction compared to browser wallets
- Performance depends on phone security
Popular Options
- Trust Wallet: User-friendly with ETC support
- Coinomi: Supports many cryptocurrencies
- Exodus: Beautiful interface with built-in exchange
Hardware Wallets
Hardware wallets are dedicated physical devices that store your private keys offline. They're the gold standard for securing significant holdings.
Advantages
- Private keys never leave the device
- Immune to computer malware and online attacks
- Physical button confirmation for transactions
- Can be used with browser wallets for dApp access
Considerations
- Initial cost ($50-200+)
- Less convenient for frequent transactions
- Must protect the physical device and backup seed phrase
Popular Options
- Ledger: Ledger Nano S Plus and Nano X support ETC
- Trezor: Model One and Model T with ETC support
Desktop Wallets
Desktop wallets are software applications installed on your computer. They offer a middle ground between browser extensions and hardware wallets.
Advantages
- More features than browser wallets
- Local control over your wallet file
- Often support multiple accounts
Considerations
- Security depends on your computer
- Must backup wallet files
- Limited dApp integration
Web Wallets
Web wallets run in your browser without installing an extension. They're convenient but require trusting the website.
Advantages
- No installation required
- Access from any device with a browser
- Often beginner-friendly
Considerations
- Must trust the website operator
- Phishing risk—always verify URLs
- Best for small amounts
Popular Options
- MyCrypto: Open-source interface for managing ETC
- MyEtherWallet: Long-standing web wallet with ETC support
Custodial vs Non-Custodial
An important distinction beyond wallet type:
- Non-custodial wallets: You control your private keys. If you lose them, no one can help recover your funds. All wallets discussed above are non-custodial.
- Custodial wallets: A third party (like an exchange) holds your keys. More convenient but requires trusting that party.
The crypto mantra “not your keys, not your coins” emphasizes the importance of non-custodial storage for significant holdings.
Choosing the Right Wallet
| Use Case | Recommended Type |
|---|---|
| dApp interaction | Browser wallet (MetaMask) |
| Daily transactions | Mobile wallet |
| Long-term savings | Hardware wallet |
| Maximum security | Hardware + multisig |
| Beginners | Mobile wallet to start |
Next Steps
Once you've chosen a wallet type, learn how to properly secure it. Check out our guides on seed phrase management and wallet security best practices.